A Complete Guide for Expats and Relocating Professionals: Can Foreigners Work in Panama?

Relocating to Panama has become a popular choice for retirees, digital nomads, and professionals seeking a better quality of life. With its modern infrastructure, tropical climate, and favorable residency options, Panama attracts thousands of new residents each year. But if you’re planning to move to Panama, an important question arises: Can foreigners work in Panama?

The answer is yes—but only with the proper visa and a valid work permit. This guide will help you understand who can work, which visas allow or restrict employment, and what to know before starting your relocation journey.

Understanding Work Eligibility in Panama

Foreign nationals who want to work in Panama must apply for a work permit through the Ministry of Labor. A work permit allows you to be legally employed by a Panamanian company. In most cases, it requires that you already hold a valid residency visa. Work permits are usually valid for one year, with renewal options depending on your visa type and employment situation.

Company Hiring Rules for Foreigners

Panama enforces hiring quotas to protect its local workforce. When relocating to Panama for work, it’s important to know these limits:

• 10% of ordinary employees in a company may be foreigners.

• 15% of specialized or technical employees may be foreigners.

• Companies in Free Zones, SEM (Multinational Headquarters), or the Panama Pacific Area may operate under different, more flexible rules.

  
  

Professions Reserved for Panamanian Citizens

Certain professions are restricted exclusively to Panamanian nationals, meaning foreigners cannot practice them even with a work permit. These include:

• Medical doctors and general practitioners

• Dentists, nurses, and medical technicians

• Pharmacists and related medical fields

• Veterinarians

• Lawyers and legal practitioners

• Architects

• Engineers (civil, electrical, mechanical, etc.)

• Journalists

• Psychologists

• Public notaries

• Certain teaching positions in Panamanian schools

  
  

If your relocation to Panama involves one of these careers, you will need to consider alternative roles or opportunities outside these restricted fields.

Types of Visas and Employment Restrictions

Not all visas grant the right to work. If you are planning a move, make sure you understand the restrictions:

• Tourist Visa – Does not allow any form of employment.

• Student Visa – Restricted to academic purposes; work is not permitted except for authorized internships.

• Digital Nomad Visa – Designed for remote work with foreign companies. It does not permit employment with Panamanian businesses.

• Dependent or Family Reunification Visas – Dependents cannot automatically work; they must apply for their own work permit.

  
  

Can Pensionado (Retiree) Visa Holders Work in Panama?

The Pensionado Visa is one of the most attractive residency options for those relocating to Panama in retirement. It grants lifetime residency and generous discounts on services, healthcare, and entertainment. However, Pensionado Visa holders cannot work as employees for Panamanian companies. This visa is specifically designed for retirees living on a guaranteed pension or retirement income.

That said, Pensionado residents can still:

• Earn investment or rental income

• Own businesses in Panama (but not work as salaried employees)

• Act as passive shareholders

  
  

If your goal is to both relocate and work in Panama, a Pensionado Visa is not the right option—you’ll need another visa that allows employment and a work permit.

Special Cases to Consider

• Friendly Nations Visa Holders – This visa provides residency to nationals from certain countries but still requires a separate work permit to be employed.

• Business Owners and Entrepreneurs – Foreigners may own businesses in Panama, but performing operational tasks or appearing on the company payroll requires a work permit.

  
  

Risks of Working Without Authorization

Relocating to Panama is exciting, but working without proper authorization can have serious consequences:

• Deportation from Panama

• Fines and legal issues for the employer

• Loss of labor rights and social security benefits

  
  

To fully enjoy your relocation, always secure the correct visa and work authorization.

Final Thoughts: Relocating to Panama and Employment

If you plan to relocate to Panama, understanding work eligibility is crucial. Foreigners can work legally with a valid residency visa and work permit, but some visas—such as the Pensionado Visa—do not allow employment. In addition, certain professions are strictly reserved for Panamanian citizens.

By choosing the right visa pathway and following Panama’s labor laws, you can make your move smooth, legal, and rewarding.

Additional Resources for Expats

For those considering a move, here are some helpful links:

• Panama Pensionado Visa Guide

• Friendly Nations Visa Explained

• Residency in Panama Through Real Estate Investment

• Why Relocate to Panama? Guide for Expat

  
  

In summary, moving to Panama can be a rewarding experience. Just ensure you understand the employment regulations and secure the appropriate visa and work permit. This way, you can enjoy all that Panama has to offer while working legally and effectively.