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Who Needs a Work Permit?

In Panama, foreigners need a work permit to work. Working is when you are selling any products or services in Panama or when you have a job in Panama. During the February 20th Livestream, I interviewed a Panamanian attorney with questions about specific situations to see if a work permit is necessary. We also discussed how to get a work permit.

These are some of the topics we discussed:

When you own a rental property in Panama, do you need a work permit?

When you sell crafts at a market once a week, do you need a work permit?

When you teach classes, like painting or yoga, do you need a work permit?

When you own a business in Panama, do you need a work permit?

When you have an online business, do you need a work permit?

Who can never get a work permit in Panama?

Do volunteers need a work permit?

How do to get a work permit and how long does it take.

When you sell products or services in Panama, you’ll also need to report your income in Panama and pay taxes. A Panamanian CPA can help you with both. These are the individual tax rates:

Income Tax
0 – $11,000 0%
$11,001 – $50,000 15%
over $50,000 25%

The corporate tax rate is greater of 25% tax on net taxable income of 1.17% on gross taxable income.

In our Complete Panama Relocation Guide, I have a 9-page report with more details about taxes in Panama.

Jackie Lange

Jackie Lange is the founder of Panama Relocation Tours and lives in the highlands of Boquete Panama. She has helped thousands of people relocate to Panama.

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