Search the Community
Showing results for tags 'immigration law'.
Starting October 1st tourists in Panama will only be allowed to legally stay 90 days in the country. Nevertheless the National Immigration Service issued another resultion (decree 22706) declaring the US Americans and Canadians will be exempted from this rule. Which means that citizens of the USA and Canada will be allowed to remain 180 days in Panama as a tourist. Whereas citizens from other countries (Germany, Austria, Switzerland, Italy, France, Spain etc) will only be able to stay 90 days as a tourist in Panama.
Today Panama’s National Immigration Service has published in detail the requirements for the NEW Friendly Nations Visa and additionally August 6th has been set as the new deadline to submit visa applications under the "old" Law. As of August 7, the new Friendly Nations Law will be in effect. What are the requirements for a residency application under the new Friendly Nations Visa? There were several pending issues that were not detailed in the executive decree published months ago. In practice we knew that they had to be modified and so it happened. Finally, the National Immigration Service of Panama made its pronouncement. Below, we have made a summary of what the new Law says. In order to apply for the new Friendly Nations Visa, an investment must be made by purchasing one (1) real estate property whose cadastral value is at least two hundred thousand US dollars (US$ 200,000). This was already known but it was not clear if the investment should be in the personal name of the main applicant or if it could also be made in the name of a corporation or private interest foundation. Now the National Immigration Service has established that the investment can be made either as natural person or in the name of a corporate body (corporation or foundation) as long as the main applicant is the final beneficiary of said corporation or foundation. This means, by presenting a true copy of the corporate documents of the corporation or the foundation's by-laws. There is a NEW option beside real estate investment Beside investing in real estate in Panama, the National Immigration Service now offers a second investment option which is the following: Investing in a fixed-term deposit (certificate of deposit – CD) with a bank in Panama. The CD must be a minimum of two hundred thousand U.S. dollars (US$ 200,000) and with a minimum term of three (3) years. It is possible to obtain the CD in one’s personal name or by a Panamanian legal entity (corporation or foundation), as long as it is demonstrated that the main applicant is the final beneficiary of the corporation/foundation that holds the CD. Remember, that in Panama any interests generated by a savings account or a fixed term deposit in a bank according to the current fiscal code of Panama do not pay any taxes in Panama. The third option to obtain residency under the new Friendly Nations Visa remains the same: for labor reasons. This means, it is necessary to file for a work permit granted by the Ministry of Labor of Panama. The requirements according to the new Law include submitting a letter of employment on letterhead and signed by the employer stating the position, salary and commitment to assume the repatriation expenses, certificate of public registry proving the existence of the company (if applicable) commercial license (if applicable). But there are not any further details given (yet) on how to obtain the work permit and other documents needed. The new law will have modifications as it is usual in the legal practice, but we can foresee positive changes. In addition, there is now the possibility of obtaining residency in Panama not only by investing in real estate but also in a CD, which might be a more practical option for many clients.
For over 15 years I have been advising and assisting expats in their first steps in their new home country, and I have also lived and worked in many countries myself. I know from personal experience how it feels to start from scratch, to live as a newcomer in a foreign country, and to know neither the culture nor the language of the new host country. It is perhaps an unpleasant truth, but unfortunately a fact: not everyone finds in Panama what they might have hoped to find. If you are looking for a country to move, then in my opinion it is not about finding the "perfect" paradise, but to choose a country that meets your personal wishes and needs. How these are shaped and what is important to you (or not) is a very individual decision, which, in addition to facts, is always a certain decision of the heart. Therefore, I have summarized five points for you that you absolutely must know about Panama. If you find it difficult to accept these cultural differences and adapt in certain ways, Panama may not be the right place for you. Patience, patience, patience: The clocks tick differently in Panama. Time is a relative concept: "mañana" does not always mean "tomorrow" but maybe "two weeks", "ahorita" is anything but "right now", and it is quite common to arrive at private meetings much later than agreed. Unpunctuality (except at work and when dealing with authorities) is not a discourtesy in Panama. Bureaucracy and a different attitude to work mean that many processes, procedures and work steps are handled much more leisurely and slowly than we are perhaps used to in the USA or Canada. Irascible and brash behavior is often completely pointless. However, a smile and a certain degree of composure and flexibility can open many doors in Panama. “Juegavivo”: A common expression in the Panamanian culture describing a person who charmingly and with a twinkle in his eye likes to cheat a little, swindle or twist the truth in order to benefit from it. As a foreigner it is often difficult to distinguish cultural differences from "juegavivo". Therefore, always inform yourself in advance, especially in business and financial matters. You will find many insider tips and advice in my legal blogs, or simply book an appointment for a (virtual) free initial consultation. “Puente del mundo, corazón del universo” (Bridge of the world, heart of the universe): This is how Panamanians describe their beloved Isthmus and this national pride runs through all areas of life. In November Panama celebrates various national holidays, for this reason the whole country more or less stands still during this month. If you are planning a trip to Panama for business, it is better not to do it in November, and if you do, expect additional delays and allow more time than usual. "Clothes make the man": Clothes and appearance are important in Panama. Even ordinary people are careful to appear neat, clean and well-groomed at all times. Permissive, dirty clothing or vulgar behavior is not always appreciated. Foreigners who dress appropriately usually gain respect. Shorts (despite the temperatures) are usually worn only in private, at the beach or pool. Insider Tip: When attending appointments with public officials or at a bank, always make sure to dress appropriately: no flip-flops, sandals or Crocs, no shorts or miniskirts, no sleeveless T-shirts, loose-fitting shirts or spaghetti strap tops (or dresses). However, it doesn't have to be a shirt and tie. A simple short-sleeved t-shirt, jeans and sneakers are perfectly fine. Don't forget to wear a faceshield as well as a mouth-nose protection (mask) during appointments at the immigration office. “Piropos” or flattery: As a (single traveling) woman (but also as a man) you often get more attention in Panama than you are used to. Many men (and women) in Panama are often very direct when it comes to attracting the attention of the opposite sex or making first contact. If you don't want this, you can simply ignore unwanted remarks or reject them in a friendly but firm manner. Panama is unique. Using the slogan of the Panamanian Tourism Authority, “Panama is for travelers, not tourists." Whether you are looking for a destination to move, want to have a "Plan B" on hand, are interested in investing abroad, or want to spend your retirement in the sunny south. There are many reasons that speak for Panama and inspire expats for this small country. Whether as a traveler, investor or expatriate, the country enchants its visitors with mountains and beaches and offers the unique opportunity to wake up in the Caribbean and have dinner at the Pacific Ocean. In addition, Panama is an insider's tip for investing in real estate overseas. Panama is above all one thing: authentic, open and warm. Let yourself be carried away by the joy of life, openness and friendliness of the locals. It is easy to see why Panama is considered one of the happiest nations in the world. Panamanians like to strike up a conversation with others, be it in the supermarket, at passport control at the airport or in a café. Just try it out, even if you speak little or no Spanish your counterpart will always be eager to help you and make small talk. This is also true when moving around in Panama, whether as a single traveler, with or without children; you can be sure that people are always friendly and helpful. When our daughter was born in Panama, we were often approached by complete strangers on the street or in stores who congratulated us and wished us luck. One time my wife was stopped by the police asking for her driver’s license. At the end the official called over his other colleague just to have a look at the lovely baby on the back seat. And this actually happened more than once. I will never forget when at the passport control at the airport in Tocumen, an immigration officer held up our family (and the whole line waiting). We were just coming back from a trip to Europe, and of course we were tired and exhausted. While being in line for passport control, suddenly the official in charge yelled “STOP! STOP! Stop, here!”. My wife and I looked at each other confused. What was wrong? Then the immigration official pointed to our daughter in her stroller. “Now look a this little princess! Everybody, look a the sweet little girl…”
Several companies (especially in the IT sector) are offering their employees more flexible working models and making teleworking the new normal. Nowadays for many employees it does not matter where they work from, which creates new freedoms, self-determination and opportunities when it comes to choosing a place to live. Why not move your workplace to the tropics in the short or long term? Like many other Caribbean countries, Panama has adapted its legislation to the new working conditions and has created an immigration category especially for remote workers and/or digital nomads. With this measure, the government hopes to encourage the development of the national economy, through investment and consumption of local goods and services. To qualify for the remote worker visa you must meet the following conditions: To have an employment contract from a foreign company of transnational character or to be a self-employed worker, in the modality of remote worker To carry out functions that take effect abroad. Receive income from a foreign source and with an annual amount not less than thirty-six thousand U.S. dollars (US$36,000), or its equivalent in a foreign currency. To apply for the Remote Worker-Visa, the following documents must be submitted: Complete copy of the passport duly authenticated by a Panamanian notary. Five (5) passport size photos. Criminal background check from the country of origin or residence (duly apostilled). Health certificate issued by a licensed Panamanian professional. Affidavit of personal background. Completion of the corresponding application form. Copy of the applicant's medical insurance policy. Affidavit of Non-Acceptance of any job offer or service offer from nationals, residents, tourists or companies of Panama in order to carry out business within the Panamanian territory (signed by the applicant). Payment of two hundred and fifty U.S. dollars (US$250) in favor of the National Immigration Service. Proof that your income comes from a foreign source: Bank account statement from your bank abroad (or from a local bank), duly sealed by the issuing bank that proves the transaction of the remittance of the funds and that accredits that the same is linked to the declared labor condition (if it comes from a foreign bank, the statement must be duly apostilled). Additional requirements for REMOTE EMPLOYEES If your are a foreign employee who wishes to reside in Panama to work remotely for a foreign company, you must additionally provide the following documents: Certification or proof of existence of the foreign company you are working for in the place where it is registered (apostilled). Letter of the company (apostilled), on the company’s letterhead, signed by the legal representative stating the following Your general information. The position and functions performed within the company. Your monthly income (which cannot be less than three thousand US dollars US$3,000), periodicity of payments and that it comes from a foreign source. The modality of your job (remote work / home office) The commitment to assume the costs of return or repatriation to your country of origin or destination, if necessary. Additional requirements if your are SELF-EMPLOYED OR DIGITAL ENTREPRENEUR In order to apply for a visa as a remote worker, a self-employed person must provide the following documents: Certification or proof of your company, duly registered abroad, through which you will conduct your business (apostilled). Notarized affidavit describing the commercial relationship with the clients to whom your are providing your services. Once approved the visa as a remote worker will grant you the right to live and work in Panama as a remote worker or digital nomad without having to request any other type of procedure or additional permission. The visa will have a duration of nine (9) months, extendable one-time (1) for the same period.