FAQ | Panama Legal Questions
Immigration
Q: What is the first step to present my application of legal residency before National Immigration Service Office in Panama?
The first step to start your process is to REGISTER YOUR PASSPORT. Below you will find procedure to follow for your reference:
- Client / Applicant(s) presence IS NOT required. Immigration officers will attend only lawyer or his/her authorized paralegal.
- Client / Applicant(s) should deliver original physical passport to the lawyer or his/her authorized paralegal.
- The passport registration process is generally done in the same day, however, the time it takes will depend on the volume of applicants ahead of our representative in line, so the earlier we get there the better.
- The Panama immigration office will place a “stamp” in the applicants Passport that will show a Registration number, which is used throughout the immigration process, which is why it is also advisable that the passport used should have at least 1 to 2 years time remaining before the passport expiration date. Once the passport is registered at the Panama Immigration office, the applicant will receive their passport back.
- Client should keep a photocopy of their passport and entry stamp page with them at all times in Panama.
Q: Is there a dress code for entering the immigration office?
Yes, certainly there is and not only in that office but for any government office where you must perform some kind of procedure, which we detail below:
Dress Code:
- For Men: Male Clients / Applicants must wear long pants, collared shirt, and shoes with socks. Do not wear shorts, cut-off shirts or t-shirts, or any footwear that shows toes.
- For Women: Female Clients / Applicants must wear a dress or long pants, collared shirt or top that covers shoulders, and formal footwear (shoes). No mini-skirts, shorts, cut-off shirts or tops showing shoulders or t-shirts, and no sandals or footwear that shows toes.
Q: After obtaining residency, can I work?
A: Permanent residency only grants you with the right to reside (live) in the country legally; in other words, you can stay legally in the country for as long as your residency status allows it. Working is another right yet to be granted, by applying for a work permit. There are specific residency programs that will make you eligible to apply for a work permit, and if so you are intending, then it is important to consider those types of residency options in the first place.
Q: Do I need a Multiple Entry Visa?
A: Multiple Entry Visa is required by any foreigner that has a residency application pending of approval, and intends to travel abroad during that timeframe. A temporary resident that leaves the country without having that visa, will be fined for USD $2,000.00. We usually include the Multiple Entry Visa in our clients application, by default.
Q: How long my papers are good for, prior to submitting an application?
A: The criminal Record is good up to six months, unless the document itself specifically states differently. The health certificate issued in Panama is good for ninety days. The bank reference letter is good for thirty days. Marriage certificates, birth certificates, and retirement letters are valid for 6 months.
Q: How long do I need to stay in the country to apply for residency, if I live abroad?
A: Usually at least five (5) business days are required, but eight (8) to ten (10) days are recommended.
Q: Can I include my family in my visa or residency application?
A: In most of the Residency Permits the Panamanian Immigration Law allows you to include your family group (Spouse, children and parents) in the processing of the principal. With respect to the children they can be included up to 18 years old, and exceptionally up to 25 years old as long as they are unmarried and they are studying or enrolled to study in a University in Panama.
Thus, by way of example, if a foreigner of United States nationality applies for a Residence Permit under the Friendly Countries agreement, he may include his spouse, children and even his parents, even if any of these do not have American nationality. You would include them in your application as dependents and they would enjoy the same benefits as the principal.
However, not all visas or residence permits allow the family group to be included in the principal’s application; non-resident visas, short stay visas, and some temporary visas do not admit dependents.
Q: What is the processing card?
A: The Processing Card is an identification document issued by the National Immigration Service when your migratory process is introduced. It is valid for 6 months while your file is being analyzed. This card grants you the status of Provisional Resident, even when the documents are under analysis, which means that you can remain in the Republic of Panama during that time while waiting for the approval of your application.
Remember to check that all your documents are complete before traveling to Panama.
Q: I have my residence under the Friendly Nation Visa as a Principal, my dependent (spouse, adult children or parents) is not a national of a friendly nation. Can you apply for a friendly country work permit?
A: No. Only the principal of the Friendly Nation Visa application is eligible for a Friendly Nation work permit. Dependents cannot apply for a friendly nation work permit. The same happens for the rest of the migratory categories such as Residents under the Italy-Panama Treaty, Professional Foreigner, however, in the month of April 2019, a new category of work permit was approved called work permit for permanent residents that grants the right to all those permanent residents with an identity card (Panamanian E-cedula) to apply for the mentioned work permit.
Q: Criminal Records issued by my country’s consulate in Panama are good to apply for residency?
A: It varies. some countries for which Immigration accepts criminal records issued at the local consulate are: UK, Chile, Argentina, South Korea, and Colombia.
Q: Do you assist me to obtain a driver’s license?
A: Residency is required in order to apply for a local driver’s license. We have a specialized team that can assist you in this matter.
Q: Can I drive with my foreign license?
A: Foreigners are allowed to drive with their foreign license, up to 90 days only, nonetheless, once they apply for residency, they are no longer allowed to drive with it, as they will be requested to obtain a driver’s license from Panama.
Q: Which are the careers reserved to the Nationals and with which one cannot apply for the Residence Permit as a Professional Foreigner?
A: Panama, as well as some other countries, maintains laws that reserve the professional practice to nationals, so that foreigners cannot practice those professions because they do not have the corresponding suitability. The suitability is granted by the respective professional associations who require the applicant to be Panamanian.
For this reason it would be illogical that a foreigner could apply for the RESIDENCY AS A PROFESSIONAL FOREIGNER; whose main document is a bachelor, master or doctorate degree, if the degree accredits him/her as a professional of a reserved career. It is NOT possible to apply for this residence permit with a degree of a reserved career.
When the foreigner holds several professional degrees he/she may obtain his/her residence using any of the degrees not reserved for nationals.
The careers are:
- Nursing. Law 1 of 1954
- Barbering and cosmetology. Law 4 of 1956
- Dentistry. Law 22 of 1956
- Architecture. Law 15 of 1959
- Agricultural Sciences. Law 22 of 1961
- Pharmacy. Law 24 of 1963
- Chiropractors. Decree 8 of 1967
- Nutrition. Decree 362 of 1969
- Medicine. Decree 196 of 1970
- Psychology. Law 56 of 1975
- Physician Assistant. Decree 32 of 1975
- Accounting. Law 57 of 1978
- Journalism. Law 67 of 1978
- Laboratory Technician. Law 74 of 1978
- Public Relations. Law 37 of 1980
- Phonoaudiology, therapists and similar. Law 34 of 1980
- Economics. Law 7 of 1981
- Social Work. Law 17 of 1981
- Veterinary Medicine. Law 3 of 1983
- Physiotherapy. Law 47 of 1984
- Medical Radiology. Law 42 of 1980
- Law. Law 9 of 1984
- Dental Assistant. Law 21 of 1994
- Sociology. Law 1 of 1996
- Chemistry. Law 45 of 2001
- Education in the following subjects: History, Geography and Civic mention. Law 47 of 1946 (The rest of the mentions are allowed).
- All Engineering.
We have been asked about the occupation of MEDICAL VISITOR, which does not appear in the list, because as in many countries, it is not a profession but an occupation. In Panama, Law 24 of 1963, establishes in its article 35 that only Panamanian professionals with degrees in medicine, dentistry, veterinary medicine, pharmacy, chemists, biochemists and graduates in Medical Sciences may act as medical visitors, thus excluding foreigners and also nationals not graduated in those careers.
Even if you obtain a work permit, as a result of having applied for and obtained a residence permit, you cannot, with that permit, practice these professions, because you may be sanctioned for such fact.
In those visas or migratory permits that give the right to naturalization, once you have become a naturalized Panamanian, you will be able to become a member of a professional association, obtain your qualification and practice any of these professions only with the homologation or revalidation of your respective degree.
The exercise of the reserved careers without suitability is punishable by law.
Real Estate
Q: What is the legal basis to obtain permanent residency in the Panama-Italy program?
A: Resolution 4803 from March 30, 2012; Law 15 from February 1, 1966; Law 3 from February 22, 2008; and Executive Order 320 from August 8, 2008.
Q: Can foreigners own property in Panama?
A: Any national or foreign person or entity can purchase and own property in the country.
Q: I chose a property to buy but I am abroad and can’t travel now, How can I buy it?
A: It depends on how you want to hold the property. If you opt to hold it in your name, then you need to sign a Power of Attorney and authenticate it in the nearest Panamanian Consulate. Although, if you would like to own it in a Holding Corporation or Foundation, then we can prepare and sign the papers on behalf of your new entity, for which we would just need to coordinate it all.
Corporation and Private Interest Foundation
Q: Can I open a business and work?
A: Well, you can invest and open a business, but to work on it, you are supposed to have a working permit, even if it is your own business.
Q: What is the structure of a Corporation?
A: Corporations are formed by the Officers (President, Secretary and Treasurer); Board of Directors (at least three) and the Shareholders. The Shareholders are the ones that have the control of the Corporation, and can name and assign the Board Members, who then assign the President, and other officers, which are responsible for the administrative management of the corporation’s functions.
Q: What is the structure of a Private Interest Foundation?
A: Private Interest Foundation are formed by the Officers (President, Secretary and Treasurer) which are optional as law does not obligate their appointment; Member(s) (at least one if it is another legal entity) or three, if they are natural persons. Foundation Council Members are responsible for the administrative management of the private interest foundation. Founders, members of the Foundation Council, Beneficiaries and Protectors or Supervisory Bodies may be natural persons or corporations of any nationality domiciled anywhere in the world. Founders need not be Foundation Council members.
Q: Do I need a resident agent?
A: Panamanian Law requires the corporations or private interest foundation to necessarily have a resident agent, who must be an authorized attorney or law firm.
Q: What is the annual cost of a Corporation?
A: Corporations pays US$300.00 of annual tax, as a government fee for its right of existence. Additionally, the resident agent might charge his own fee to represent it.
Q: Why would I need a Corporation?
A: A Corporation is advised if you were going into business, either in Panama or any other country in the world, so that you can separate the possible business liability, if any, from your personal assets. Some people also use Corporations as a Holding of Real Estate or Bank Accounts.
Q: Why would I need a Private Interest Foundation?
A: Private Interest Foundations are the best choice for Estate Planning, so that, in case that you have different assets, such as real estate and bank accounts, they can be held by your Private Interest Foundation, so that your declared heirs can inherit them automatically, without going through an expensive and long Probate Process.
Q: How do I close a Corporation or Private Interest Foundation?
A: The process to close or dissolve a corporation or private interest foundation requires a minute/resolution entry in the corporation or private interest foundation’s minute book, approving its closure or dissolution. This minute/resolution must be protocolized by means of a public deed, registered in Panama’s public registry, and published in a local newspaper at least once.
Q: How long is the approximate processing time for the incorporation of an Corporation or Private Interest Foundation?
A: Depending on the plan chosen by the client, the processing time may vary between 5 to 7 working days.
Q: What is the minimum capital that the corporation must have in order to be incorporated or formed?
A: The minimum capital must be US$10,000 and must not be fully paid up or released.
Q: What is the minimum number of shareholders that can exist in a Corporation?
A: A corporation can be formed by only one shareholder.
Q: Can the shareholders of the Corporation be of any nationality?
A: Shareholders do not necessarily have to be Panamanian, they can be natural or legal persons of any nationality and domiciled anywhere in the world.
Q: What is the responsibility of the shareholders towards the Corporation?
A: The liability of shareholders is limited by the amount they owe on account of their shares.
Q: What is the Public Registry of Panama?
A: The Public Registry is the institution of the state where corporations or private interest foundation incorporated under Panamanian law are registered or recorded, as well as those foreign corporations that carry out activities in Panama. It is worth mentioning that the Public Registry of Panama is considered to be one of the most orderly, efficient and modern in all of Latin America.
Q: What kind of activities are considered illegal?
A: Activities related to money laundering, drug trafficking, human trafficking, terrorism, are considered illegal activities both in Panama and anywhere else in the world
Q: Do I need to come to Panama to finalize anything?
A: For most of our services, including immigration processing, as well as real estate purchase transactions, and bank introductions, a personal visit is required. In some cases we can setup Panama corporations or foundations without meeting in person, however, Panama is a beautiful country and we encourage you to visit us. Our attorneys would be more than happy to schedule a personal meeting with you for consultations which are free for the first 30 minutes, and US$100 per hour.
Q: What if I want to relocate to Panama?
A: We offer various relocation services. We can assist you with getting residency in Panama, setting up businesses, bank introductions, among other services.
Q: Do you recommend buying or renting property in Panama?
A: That depends on your needs. Foreigners usually rent for the first year and then they buy a property.
Q: Can I see properties during my visit to Panama?
A: Yes, we can arrange to show you many different properties, depending on what you are looking for and the location you prefer. Once you decide on a property you wish to rent or buy, we can assist you with handling your property transaction.
Q: What is the difference between a corporation, foundation or trust?
A: Generally, corporations are used for profit ventures involving business activity such as securities trading, banking, international trade, ownership of assets etc. Private Interest Foundations are generally used for non-profit activities such as charities, receiving or giving donations, grants, etc., but can also be used for holding purposes such as holding ownership of a Panama corporation or any other type of asset. Trusts are generally used for holding purposes such as owning corporations, or holding assets.
Q: Can I ship my household goods to Panama?
A: Yes, you can ship your household goods to Panama. It is recommended to ship your household goods to Panama after you have residency, because you may be able to obtain special discounts on the importation duty if you are a resident as a Pensionado, for example.
