Frequently Asked Questions About Panama Immigration & Business Law

Permanent residency gives you the right to live in Panama, but working requires a separate work permit. Some residency programs allow you to apply for this permit, so if you plan to work, choose a program that includes this eligibility.

Yes. If you plan to leave Panama while your residency application is pending, a Multiple Entry Visa is required. Without it, temporary residents risk a $2,000 USD fine. Our firm includes this visa by default in residency applications.

You can live in Panama indefinitely, but to maintain your residency, you must re-enter the country at least once every two years.

No. This temporary program is handled directly by the Immigration Office and does not require legal assistance. We recommend checking the Immigration Office’s official website for information.

Validity varies by document:

• Criminal records: 6 months (unless stated otherwise)
• Panama health certificate: 90 days
• Bank reference letter: 30 days
• Marriage, birth, and retirement certificates: 6 months

Plan for at least 5 business days, though 8–10 days is ideal. General timeline:

• Day 1: Notarize your passport
• Day 2: Register with Immigration
• Day 3: Submit application and apply for Multiple Entry Visa
• Days 4–5: Complete visa approval process

Sometimes. Panama Immigration accepts consulate-issued criminal records from certain countries, including the UK, Chile, Argentina, South Korea, and Colombia.

Yes. A special visa called a VTR is required. However, applicants with a valid and previously used US or UK visa can enter Panama without a VTR for up to 30 days. Restricted countries include India, China, Pakistan, Iraq, and Bangladesh.

While we can offer general guidance, we do not handle this service directly. Residency is required to apply, but the process does not need legal representation.

Yes, for up to 90 days. However, once you apply for residency, your foreign license is no longer valid and you must obtain a local Panamanian driver’s license.

Under Resolution 15703 (August 24, 2012), you may request an extension for up to six months.

Please refer to Law 14 of October 15, 2013 for specific requirements regarding residency for refugees or asylees.

Yes. Under Executive Order 229 (March 22, 2013), foreign workers with this permit may apply for permanent residency if they earn at least B/. 850 and have received two prior extensions.

The program is supported by Resolution 4803 (March 30, 2012), Law 15 (February 1, 1966), Law 3 (February 22, 2008), and Executive Order 320 (August 8, 2008).

Yes. Former foreign employees with five or more years of experience in a multinational company can apply for permanent residency, as outlined in Executive Order 822 (August 2, 2013).

According to Executive Order 863 (June 21, 2011), the VTR (Tourist Visit Visa) must be requested at least 60 days before traveling.

This program allows any foreigner with a recommendation letter from the President of Panama to obtain permanent residency under Executive Order 2 (January 17, 2013).

No. Shares must be registered in the applicant’s name. Bearer certificates are not accepted under Executive Order 147 (March 17, 2017).

You can invest and start a business in Panama, but even as the owner, you must obtain a valid work permit to be legally employed in your own company.

A corporation includes:

• Dignitaries: President, Secretary, Treasurer
• Board of Directors: At least three members
• Shareholders: Hold ownership and appoint the Board

The Board manages corporate operations, including appointing the CEO or President.

Yes. All Panamanian corporations must have a resident agent who is a licensed attorney or law firm, as required by law.

Corporations must pay a $300 government tax annually. Your resident agent may also charge a separate maintenance fee for legal representation.

PIFs are subject to a $400 annual government tax. As with corporations, resident agents may charge an additional annual service fee.

Corporations protect personal assets from business liabilities and are often used to hold real estate or bank accounts. They are ideal for both domestic and international business operations.

PIFs are excellent tools for estate planning. They allow assets like property or bank accounts to pass directly to heirs without probate, reducing cost and delay.

IBC: Requires 3 Directors, 1+ Shareholders. Offers privacy (Anonymous Corporation).

LLC: Requires 2 Managers, 2+ Partners. Names must be disclosed publicly.

LLCs are often preferred when transparency is required by the client’s country of origin.

Yes. Power of attorney can be granted by corporate resolution or by amending the articles of incorporation. It may be assigned to partners, shareholders, directors, or third parties.

Dissolution requires:

• A notarized company resolution to close
• Registration with the Panama Public Registry
• Publication in a local newspaper

Yes. The company must prepare a formal resolution and register it with the Public Registry to update the agent.

Depending on the service plan selected, incorporation usually takes between 4 to 6 business days.

An IBC requires a minimum authorized capital of $10,000, which does not need to be paid in full or released at the time of incorporation.

A corporation in Panama can be legally formed with just one shareholder.

Yes. Shareholders of International Business Corporations (IBCs) in Panama can be individuals or legal entities of any nationality, residing anywhere in the world. There is no requirement for Panamanian citizenship or residence.

Shareholders’ liability is limited solely to the unpaid portion of their subscribed shares. They are not personally responsible for the corporation’s debts or legal obligations.

The Public Registry is the official institution responsible for registering all corporations and legal entities established under Panamanian law, including foreign corporations doing business in Panama. It is widely regarded as one of the most modern and efficient registries in Latin America.

Panamanian corporations must pay an annual government tax of $300 USD to maintain their legal status and corporate registration.

Illegal activities include money laundering, drug trafficking, human trafficking, terrorism financing, and any activity prohibited under Panamanian law or international regulations. Corporations found engaging in such activities are subject to severe penalties and dissolution.