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:
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.