Relevant Changes in Labour Migration

With the enactment of Executive Decree No. 6 of 2023 by means of which labor migration is regulated in Panama, relevant changes are introduced in terms of the requirements that must be met for a foreigner to regulate their employment situation in the Republic of Panama, as well as the creation of new categories of work permits which we will briefly examine:

I. Work permit as a migrant worker with ten or more years in the country.

Those foreigners who prove to have ten years of having obtained their provisional residence permit in the national territory and meet the following requirements may apply for an indefinite work permit.

• Not have been absent from the country for more than two years, for which you must prove your cross-border entry/exit in the country.
• Submit any of the following documents:
• Employment contract.
• Income statement.
• Notice of Operation in case of being the incumbent thereof.

II. Self-Employed and Employed Work Permit.

The self-employment permit is nothing more than the work permit to which any migrant worker who is self-employed in an income-generating activity permitted by law or works for himself directly, for example those foreigners who renders professional services or work independently for a messaging platform, is entitled.

While the employed work permit is the work permit that can be requested by any migrant worker who renders services to a third party under an employment contract under legal subordination and economic dependence.

These types of work permit are for those migrant workers who possess the following migratory conditions:

• Migrant worker who is a national of specific countries that maintain friendly, professional, economic and investment relations with the Republic of Panama, for work.
• Migrant worker with a residence permit obtained through the Migration Regularization Programs (“Melting Pot”) (Crisol de Razas)
• Professional migrant worker.
• Migrant worker for family reunification for dependents of residents.
• Students.

III. Work permit as a migrant worker hired by a micro or small employer (MIPE)?

It is nothing more than the work permit to which foreigners who hold temporary residence under the so-called Marrakesh Agreement or work for companies that have nine workers including foreigners can apply.

IV. Work permit for students.

As of the enactment of Executive Decree No. 6 of April 13, 2023, foreign students may opt for a self-employed or employed work permit, provided that:

• They are studying Higher Technician, Bachelor’s, Postgraduate, Master’s or Doctorate and whose study plans have a minimum duration of two years.
• Check that work activities are compatible with the realization of studies and that they do not interfere with the academic part.

V. Work permit for investors.

Any foreigner who holds a residence permit as a qualified investor or for his own economic solvency can apply for a work permit in the Republic of Panama, without the need to prove that he is rendering services for a third party, that he renders professional services or that he is the owner of a business.