The Ministry of Public Security modifies the requirements to request the residence permit for foreigners from specific countries who maintain friendly professional, economic and investment relationship with the Republic of Panama.

The Ministry of Public Security through Executive Decree No. 197 of May 7, 2021 (hereinafter the “Decree”), modifies the requirements to obtain the residence for foreigners from specific countries who maintain friendly professional, economic and investment relationship with the Republic of Panama, commonly known as “residence permit as friendly nations”, as follow:

• Taiwan is eliminated from the list of countries whose citizens can apply for this residence permit.

• This residence permit will be granted in 2 stages. A first stage that grants a provisional residence permit of 2 years and a second stage that grants a permanent residence permit.
• The applicant cannot longer request this residence permit for investment reasons as owner of the shares of a Panamanian corporation.
• This residence permit can be requested for (i) working reasons as employee of a Panamanian company, and (ii) for investment reasons as owner of a real state in Panama.
• To request this residence permit for working reasons the applicant must provide:

• • A job letter from the employing company, which certify the job position, salary, and the commitment of the company to assume the repatriation expenses, depending on the case.
  • Public Registry Certification of the employing company.
  • Notice of Operations of the employing company.
  • To obtain the approval of the residence permit, the applicant must request a work permit through the Ministry of Labor and Labor Development.
• To request this residence permit for investment reasons as owner of a real state the applicant must provide:

• • Public Registry Certification of the real state which prove (i) the ownership of the real state by the applicant, and (ii) the real state’s minimum value of B/. 200,000.00, which can be financed with a local bank.

• In addition to the requirements mentions above, the applicant must provide:

• • The general requirements established by the Article 28 of the Decree Law No. 3 of February 22, 2008, which are (i) copy of the passport, (ii) non-criminal record from the country of origin or residence of applicant, (iii) good health certificate, (iv) payment of B/. 250.00 to the National Treasury, (v) payment of B/. 800.00 to the National Immigration Authority, and (vi) affidavit of personal background.
  • Three (3) passport size photo.
  • If the applicant will include dependents, he/she must provide (i) evidence of kinship through a marriage or birth certificate, depending on the case, and (i) a responsibility letter from the applicant towards their dependents.
• To apply for the permanent residence permit, the applicant must provide the same requirements mentioned above, except the paymet of B/. 250.00 and B/.800.00
• This Decree will take effect 90 days from its promulgation.

Comments.

• This residence permit currently grants a permanent residence permit in a single stage, however, with the change introduced by this Decree, the permanent resident permit is granted in the second stage.
• Currently, this the residence permit can be requested if the applicant is the owner of a real estate, with a value of more than B/. 100,000.00. With this new Decree the amount increase to B/. 200,000.00
• With this Decree, it is eliminated the requirement of the bank certification or account statement of the applicant, with a balance of no less than 4 average figures.
• The applicants will have until August 20, 2021 to apply for the resident permit as friendly nations with the current requirements that were stablished in the Executive Decree No. 416 of June 13, 2012.

The Government of the Republic of Panama, in response to the new modalities of work worldwide, among these, remote working, considered it appropriate to create this subcategory within the Non-Resident Visas.

Executive Decree No. 198 of May 7th, 2021 (hereinafter, the “Decree”), published in the electronic Official Gazette on May 20th, 2021, creates the Short Stay Visa as a Remote Worker.

• This visa will be granted to those foreigners who intend to work remotely within the Republic of Panama for a period of nine (9) months, renewable once for the same period.
• The foreigner who applies for this Visa must meet, in addition to other applicable specific requirements, with the following prerequisites:

• • To (i) have a work contract with a foreign transnational company, or be a (ii) self-employed worker, in the remote working model.
  • Perform duties that have effects abroad.
  • Receive income from a foreign source and with an annual amount not less than USD 36,000.00 or equivalent in foreign currency.
  • Have a valid medical insurance policy, with coverage in Panama.

• For its renewal, the foreigner must meet the same requirements submitted with the first application.

Comments:

• Once the short stay visa is approved, it will not be necessary to carry out additional procedures or obtain authorizations from another governmental entity.
• If the foreigner were to represent the foreign company for local activities in Panama, the Short Stay Visa will be canceled.
• This Executive Decree became effective as of May 20th, 2021.

Panama, May 20, 2021. We are proud to announce that our partner Albalira Montufar was selected as Leading Immigration Lawyer in Panama byWho´s Who Legal (WWL) Central America 2021 edition, a comprehensive guide to the region’s legal market, including the most highly regarded firms and individuals across Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.

Ms. Montufar features in the Labor, Employment, and Immigration chapter of the guide, highlighting her more than 15 years of experience advising local and multinational corporations on immigration law.

“The excellent Albalira Montufar is a tenacious, resourceful and articulate lawyer with strong judgement and problem-solving skills, in addition to her detailed knowledge of immigration law and regulation.”, WWL says.

More information can be found online here: Who´s Who Legal Central America 2021 – Albalira Montufar.