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Last Updated Sep 2, 2019 - by Panama Relocation Tours

Working in Panama

Many people need to continue working to support their lifestyle when they move to Panama. They may not have a pension or social security check or stash of cash to rely on every month. There are more young singles and young families with children moving to Panama and they obviously need to find a way to make money while living in Panama.

Even if you do have a pension or social security, some expats prefer to continue working just to stay busy and to supplement their retirement income.

Either way, there are rules for working in Panama.

To legally work in Panama, you need a WORK PERMIT (Permiso de Trabajo). Employers will not hire you unless you have a work permit. Foreigners cannot sell any product or service in Panama unless you have a work permit.

You cannot get a work permit without also getting a Visa. But only certain Visa’s include a work permit. The Friendly Nations Visa, Business Visa or Professional Visa all include a work permit. There are a few other SEM work permit visas which are only available for employees of multinational companies. Once you get the Friendly Nations Visa, you can get a 3 year work permit which can be renewed. Many of the other Visas have a work permit which must be renewed every couple of years. It is really very easy to get a work permit when you get the appropriate Visa.

You can never get a work permit with the Pensionado Visa because that Visa is intended for those who have moved to Panama to be retired. People who have a Pensionado Visa are not allowed to work in Panama or sell any products or services in Panama.

(NOTE – no matter which Visa you get, you can still get the Pensionado discounts if you meet the age requirements for women who are 55 or men who are 60.)

Without the work permit, you will find it extremely difficult to get a job. Your employer could even get fined if the Panamanian government discovers that they hired someone who does not have a work permit or allowed someone to work at their business who does not have a work permit.

Just because you have a work permit, you may not be able to do the kind of job you want or a job that pays enough. Some professions are protected for only Panamanians, like a doctor, lawyer, counselor, engineer, accountant, or architect. You will need to consult with your immigration attorney to see if your profession is a protected profession. You may be able to offer your services online. Consult with your Panamanian immigration attorney for guidance.

To compound the problem of finding work in Panama, most companies cannot hire more than 10% foreign workers unless they are a registered multinational company. And, most jobs in Panama have very low pay compared to North America or Europe. Some multinational companies pay the equivalent of North America wages but not all.

THE EASIER WAY….

You may find that it is easier to start your own company than it is to get a job. But even when you start your own company, you will still need a work permit to legally work in your company. The solution is to start an ONLINE business then you do NOT need a work permit.

There are so many opportunities!

Some expats, and Panamanians, do freelance work. They sell their services to the world through websites like upwork.com, freelancer.com or fiverr.com See what jobs people have posted to explore the opportunities. If you are a freelancer living in Panama, you do NOT need to get a work permit.

If you sell products on Amazon, you do not need a work permit in Panama.

You can get more ideas in my free booklet, Fund Your Freedom Overseas, available below.

SPECIAL OPPORTUNITY…

For those who have ever considered starting an export business, Panama has what may be the best place to operate from—the Colon Free Zone. In this special zone, you can reap tax and financial benefits that are unrivaled anywhere else on the planet. Plus, you can gain easy, cost-effective access to a market of more than 500 million consumers in Latin America and the Caribbean.

The Colon Free Zone, located in the City of Colon, near the Atlantic entrance to the Panama Canal, is the second-largest duty-free zone in the world—second only to Hong Kong.

Since its inception in 1948, it has grown from a mere 120 acres to over 1,000 acres, is home to more than 2,000 companies from across the globe, and employs over 14,000 people. In January 2018, imports in this free zone registered a total of $775,522,000, while exports were about $ 943,164,000. Revenue continues to rise every year.

The Colon Free Zone offers free movement of goods and complete exemption from tax on imports and re exports. There are no taxes on the export of capital or the payment: of dividends. In addition, there are reduced income tax rates on earnings from re-export sales. Furthermore, firms located in the CFZ are exempt from import duties as well as from guarantees, licensing, and other requirements and limitations on imports. Due to its geographic location, the CFZ is a major factor in channeling goods from large industrialized countries to consumer markets in Latin America.

Colon Free Zone imports and exports grew by 56% between 2008 – 2012, an astonishing figure amid the worldwide recession. In 2018 alone, there was an increase of 24%.

One time when I was flying to Florida, I sat next to a man who owns three stores in the Colon Free Zone. He said he was making money so fast he was on his way to Miami to buy a couple of apartment buildings for $5 million dollars.

If you’re interested in getting information about starting an import-export business in the Colon Free Zone, contact your immigration attorney.

There are a lot of different ways to make money in Panama but most of them will require that you have a work permit and the appropriate Visa. Stay legal. As expats, we are guests in Panama and need to set good examples by following the rules. Some expats have been deported for breaking the rules. You sure don’t want that to happen to you.

PanamaRelocationTours.com — Fund Your Freedom Overseas

FREE BOOK

Get my FREE booklet, Fund Your Freedom Overseas….

> > > > > GET YOUR FREE BOOK HERE < < < < <

This free book will give you ideas of things you can do in Panama to make a little ( or a LOT) of extra income. It also has information on where to apply for a job in Panama is the entrepreneur lifestyle is not for you.

ADVICE FOR GETTING A JOB IN PANAMA…

Following is advice from Joel Thomas, a 32 year old who came on a Panama Relocation Tours in 2014 and was successful at getting a job in Panama with a six-figure salary.

1. Know yourself and the know the industry you want to work for. Once you have the industry (macro) start researching companies in Panamá. These multinationals are a good start if you ….

a. Don’t have a visa or work permit as they offer SEM visa and

b. do not have Spanish fluency

Other resources to find opportunities and job openings are LinkedIn.com , http://m.konzerta.com for private sector,
and http://ciudaddelsaber.org/en/opportunities/jobs for multinational companies

2. Be proactive. Call ahead and email ahead to speak with HR. If you are a consultant or know a way to add value do not be shy. A quick call and setting up a meeting to propose how you can offer value can be easier than you think if you articulate your value proposition simply. A German friend of mine wanted to connect German private and institutional investors with real estate developers in Panama. He was very succinct in his emails and value proposition and was able to set up meetings rather quickly with decision makers at large real estate development firms before coming to Panama.

3. It’s not what you know it’s who you know. Panama is small and knowing someone inside the company can offer insight to new positions being offered first internally and then externally. Many multinationals look to hire within first so get head start on the job leads with the people that matter most. Networking especially with HR representatives or managers pays dividends as they often hold the most influence in new hires. This usually requires coming to Panama which is strongly recommended to make sure Panama is the right cultural fit for you anyway. After touring Panama, I chose to build my network of managers and executives and continuing my professional development through a top 15 US MBA program offered at 1/3 of the cost with the same professors, accreditation, and instruction, but more flexibility in the exciting emerging market of Panama.

THE SOLUTION… WORK ONLINE

No matter which country you decide to move to, they will usually require some kind of work permit and/or visa to work their or run a business in the country legally. These rules are not unique to Panama.

Only if you sell a product or service or work in Panama, do you need a work permit in Panama. That’s one reason an online business is so attractive. With an online business, you won’t need a work permit. Plus it is a portable business which you can run from any where.

If you live in Panama but are not selling a product or service in Panama, you would not need a work permit. If you live in Panama and work online selling products or services to people in other countries, you would not need a work permit in Panama.

With an online business work doesn’t really feel like WORK when you are relaxing on the beach or enjoying the tropical mountain weather from your back patio in Panama.

Before apply for a Visa, it is best to discuss with your immigration attorney what your plans are for working in Panama. Your attorney can give you advise about the best visa for your personal situation.

It is not possible to switch from a Pensionado Visa to a different Visa which has a work permit. You would have to renounce your Pensionado visa, then apply all over again for the new Visa. You would not be able to get credit for any money paid for the Pensionado Visa. So, if you think you might decide to work or start a business someday in Panama, it is best to get the appropriate Visa which comes with a work permit.

Last Updated May 9, 2019 - by Panama Relocation Tours

Why People Move to Panama

When I first started doing Panama Relocation Tours many of our tour guests moved to Panama because they were looking for great weather and a more affordable place to live. Everyone is looking for a new adventure. Fifty percent of tour clients came from the United States. Nine years ago, the majority of my tour guests were over 60 and ready for retirement.

People from all over the world come on a Panama Relocation Tour. About 50% of our clients come from the United States and about 25% are Canadians. We also have clients from England, Germany, France, Poland, Russia, Italy, Spain, Turkey, China, Singapore, South Africa, Egypt, Sri Lanka, United Arab Emirates (Dubai), New Zealand, Australia, Bahamas, Cayman Islands, and more! It’s fun for me and it’s fun for everyone on the tour to meet people from other countries who are also considering relocating to Panama.

Over the last 3-4 years the reasons for moving and the demographic have changed.

We still get plenty of retirees looking for great weather, affordable living and a new adventure. You can find all of those things in Panama. Panama is the number one country that retirees move to. It’s understandable for retirees and others to move to Panama because it offers so much!

But now, we have people in their 30s 40s and 50s coming on the Tours and relocating to Panama. These people are obviously not retirees. They are also looking for that new adventure but they are looking for business opportunities which are plentiful in Panama. Some already have online businesses which they can run from anywhere there is an internet connection.

What attracts people to Panama?

Panama is close to the United States. Miami is only a 2 hour flight. From Panama, it is a quick flight to Ecuador, Colombia, Chile, Argentina, Costa Rica, Belize, Mexico, etc. Living in Panama makes it easy to explore and enjoy the adventures in other countries too.

Even though Panama is a small country it is packed with a lot of diversity. Drive an hour in any direction and you can completely change your environment. Panama City is a very cosmopolitan city where you can find anything you’d every want. There are first class restaurants, fancy malls, opera, ballet, a subway, and some of the best hospitals in Latin America.

Beach lovers can enjoy 1547 miles of coast line from two oceans. The Pacific Ocean is to the south and the Atlantic and Caribbean Sea is to the north. There are many islands off both coasts. Snorkeling, scuba diving and deep sea fishing are favorites of sun lovers. Those who prefer cooler weather will enjoy Spring-like weather year round in mountain towns like Boquete, Volcan and El Valle. It’s not just the weather, the scenery is just spectacular.

Another huge benefit for retirees in Panama is the world’s best retiree program, the Pensionado Visa. With this visa you need to prove a lifetime income of $1000 for singles or $1250 for a couple. Then you qualify for discounts on eating out, prescription drugs, 25% discount on airfare or cruises to anywhere in the world and many other discounts.

It’s easy to start a business in Panama and there is much less regulation compared to other countries. There are many tax advantages to living in Panama too.

The Panama Relocation Tours demographic is changing

In August, a family from Seattle came on the tour and decided to stay instead of flying back to the United States. Within 2 weeks, they had a nice rental house, a car, bank account, a visa and a corporation set up. A few months later, they opened a new restaurant after hiring contractors to completely renovate the building, getting all the permits and health certificates, and hiring employees. Try doing all that so fast anywhere else!

Panama makes it easy to start and run a new business.

There are several Visa programs available for people who want to work or start a business in Panama. The easiest is the Friendly Nations Visa which only requires $5,000 in a Panama bank account then a corporation set up with the intent of doing business in Panama… someday. You do not need to prove any income. You can also get this Visa if you have a job offer.

Most people from other countries are not taxed on their worldwide income. US citizens are taxes on their worldwide income but you do get a $103,000 per person tax exemption. That means a single person from the United States,who lives overseas full time, can make more than $100,000 in income (after expenses)… and not pay a penny in taxes! You still have to file a tax return but you will not owe any taxes if you keep your income below $100,000 a year.

That’s a really good reason to move to Panama! And it is why many younger adults are moving to Panama.

If your income is not sourced in Panama, you don’t owe any taxes in Panama either. So, it is possible to move to Panama and not pay ANY taxes. Even if you do have to pay taxes in Panama, taxes are much less than the United States, Canada, or other countries. You can live in Panama but not have income sourced in Panama if you do not sell a product or service in Panama. An online business if ideal.

Some people who move to Panama don’t have a pension or Social Security so they need to find a way to make a living in Panama. My free book Fund Your Freedom Overseas will give you plenty of ideas about how to make a living or supplement your retirement income when you move to Panama.

Affordable health insurance and quality health care are another reason people move to Panama.

I have international health insurance which covers me at any hospital or doctor anywhere in the world. I pay $2200 a year with no deductible in Panama and a $1000 deductible for procedures done outside of Panama. My insurance would be much less if I were only covered in Panama. I’ve had two eye surgeries in Panama. Insurance covered every penny. This insurance is the price for a 64 year old. If you are younger it would be less. If you are older, it would cost more.

Two 52 year old November tour clients who live in the United States told me their Obamacare insurance has a $6,000 deductible and is $750 per month per person. That’s $1500 a month for a couple or $18,000 a year for health insurance that they cannot use until they pay $6,000 out of pocket first.

You can see why affordable health insurance is a big reason why people move to Panama.

Panama is safer!

Panama has no military. Panama does not go around the world occupying other countries or telling them what to do or not do. Therefore, Panama has few, if any, enemies. There is no big divide between political, religious or ethnic groups like there is in other countries. So, it just feels much safer in Panama. There are no terrorist threats in Panama.

Panama offers something for everyone. Whether you are looking for a more affordable lifestyle, better weather, business opportunities, or just a new adventure– Panama has what you are looking for.

Come check out Panama during a Panama Relocation Tour.

Last Updated Apr 17, 2019 - by Panama Relocation Tours

Panama Visa Delays If You Have Dings On Your Criminal Report

To get a residency visa in Panama, you need to provide a criminal background report from your country of origin. For US citizens, that means an FBI report. Several years ago, you only needed a local police report but the laws changed in 2012 to require a nationwide criminal report. It’s a good thing because someone could commit a murder in one state but have no police record in another state, so they were able to get a Visa in Panama. The national criminal report put a stop to letting criminals get a visa in Panama.

If there are no dings on your criminal background report then you should have no problems getting a visa quickly. A temporary visa, which is good for one year, takes a couple of days. Then about 2-3 months later, you get your permanent residency visa. This applies for a Pensionado Visa or a Friendly Nations Visa or other Visas.

However, if you have any dings on your criminal background report, then you can expect delays in getting your permanent residency visa. If you have had any arrests or DWI (driving while intoxicated) or other offenses, then your visa has to go to either the Supervisor of Immigration or the Director of Immigration for approval.

It takes a several weeks for an attorney to get an appointment with the Director of Immigration so it is better to go through the Supervisor of Immigration for approval.

The Supervisor has the power to OK your visa even if you had infractions on your criminal report. They will usually only approve your visa if the offense happened more than 5 years ago and did not involve use of a gun in a crime.

So, what happens if your criminal report reveals offenses that Immigration would not approve?

Then you cannot get any visa right away, not even a temporary visa. After you have lived in Panama two years (without leaving for more than 30 days total), then you can apply for a Visa with only a Panama Police report, provided that the Police report is clean. You would not need to present an FBI report or any criminal report from your country of origin.

Living in Panama without a permanent visa will require leaving the country every 90 days if you are driving or every 5 months if you are not driving. Most people go to Costa Rica for a few days because it is convenient to drive or take a bus to Costa Rica from Panama.

Before you gather all the documents necessary to get a Visa, it is best to discuss your personal situation with a Panama attorney especially if you have offenses on your criminal report. The attorney can advise you on the best way to proceed. Each Visa has different requirements. The Pensionado visa requires that you can prove a lifetime income of $1000 per month for one person or $1250 for a couple. A Friendly Nations Visa requires that you either set up a corporation with the intent to do business in Panama, or you have a labor contract, or you have purchased a residential property worth at least $100,000 and it is titled in your name. The Friendly Nations visa also requires that you have a Panama bank account with at least $5,000 deposited. Always discuss with your attorney what the current requirements are because things change in Panama!