We are a full-service generalist law firm. We specialize in the areas of residential and commercial immigration, real estate transactions, commercial transactions and tax matters.
We have specialist advisors in all areas of our business, as well as fantastic support staff who can help you if your advisor is not available when you contact them.
We understand that both buying and selling a property can be a stressful experience, even more so if you are trying to do both simultaneously. Solicitor and Solicitor have a number of highly experienced Conveyancers who can support you through your move.
You will have a dedicated member of the team who will work with you throughout the whole process. They will make sure that everything is explained to you in plain English so that you fully understand every step along the way.
They will also act on your behalf throughout the process whether it’s dealing with Estate Agents, the other party’s Conveyancer, surveyors, mortgage lenders or anyone else who needs to be involved.
Solicitor and Solicitor offer conveyancing services, business services and personal services. Please see the respective sections of our website for more details on each of these areas.
VISA FOR PANAMA SPECIALIST WORKERS
A Panama Specialist Workers Visa gives the holder a work permit for a maximum of nine months.
In general, Panama has different work visa categories available, including the Temporary Resident Visa for Work (Residente Temporal por Trabajo) and the Permanent Resident Visa for Work (Residente Permanente por Trabajo). These visas are typically obtained by securing a job offer from a Panamanian employer who sponsors the visa application.
To apply for a work visa in Panama, the applicant typically needs to fulfill certain requirements, such as providing proof of a valid employment contract, proof of professional qualifications, a clean criminal record, a medical certificate, and other supporting documents. The specific requirements and application process may vary depending on the type of work visa being sought.
The National Immigration Service will establish a registration system for businesses engaged in specialized activities by foreigners within the Republic of Panama. The purpose is to ensure that these businesses are officially recognized by the immigration authority and to maintain updated records annually. To register, businesses are required to complete a formal application and submit the following documents:
- Application for the Panama Specialist Workers Visa.
- Certificate from the Public Registry.
- Copies of the Notice of Operations.
- Payment receipts for public utility services at the business location.
- Bank certification.
- Latest tax return, along with a valid "paz y salvo" (proof of tax clearance).
- Police record.
- Copies of Form 03 issued by the Department of Economy and Finance.
- "Paz y salvo" from the Social Security Fund (CSS).
To remain in the registration system, businesses must comply with Article 89 of the Decree Law.
To apply for the Panama Specialist Workers Visa, businesses must fulfill the formalities outlined in Article 28 of the Decree Law and submit the following documents:
- Application for the Panama Specialist Workers Visa.
- Three (3) photographs of the visa applicant.
- Identification document from the country of origin or residence permit.
- Proof of affiliation with the CSS.
- Deposit of a guarantee, in favor of the National Immigration Service, in the amount of one thousand dollars ($1,000), to be made on behalf of the contracting business.
- Panamá work permit.
- Copies of the airline ticket (electronic or printed) showing return to the country of origin.
- Proof of hotel reservation or accommodation arrangements.
- National "paz y salvo" of the business applicant.
- "Paz y salvo" from the CSS of the business applicant.
- Letter of responsibility from the business.
- Proof of payment of income tax related to the value of the labor contract.
- Affidavit from the foreigner, duly notarized by a Panamanian notary.
It's crucial to check the latest information from official Panamanian immigration authorities or consult with an immigration attorney for the most accurate and updated details regarding work visas in Panama.
Here are some of the important labor protections for Panamanian workers:
- Employment Contracts: Employers are generally required to provide written employment contracts to their employees, specifying the terms and conditions of employment, including job responsibilities, working hours, compensation, benefits, and termination procedures.
- Minimum Wage: Panama has a legally mandated minimum wage that employers must adhere to. The minimum wage is periodically reviewed and adjusted by the government to ensure workers receive fair compensation.
- Maximum Working Hours: The standard work week in Panama is 48 hours, with a maximum of 8 hours per day. Any work performed beyond the regular hours is considered overtime, which entitles employees to receive additional compensation.
- Overtime Pay: Employees who work more than the regular hours are entitled to receive overtime pay, typically at a higher rate than the regular hourly wage. The exact rate varies based on the time of day and the day of the week.
- Paid Leave: Panamanian workers are entitled to various types of paid leave, including annual vacation leave, sick leave, and maternity/paternity leave. The specific entitlements and durations may vary depending on the length of employment and other factors.
- Social Security and Benefits: Employers in Panama are required to contribute to the social security system on behalf of their employees. This provides workers with access to healthcare, retirement benefits, and other social security benefits.
- Workplace Safety: Employers have a legal obligation to provide a safe and healthy working environment for their employees. They must comply with occupational health and safety regulations and take necessary measures to prevent workplace accidents and hazards.
- Protection Against Discrimination: Panamanian labor laws prohibit discrimination in employment based on factors such as gender, race, religion, nationality, disability, and age.
These are some of the main labor protections available to Panamanian workers. It's important to note that specific regulations and labor rights may be subject to updates or changes over time, so it's advisable to consult the latest labor laws and regulations or seek legal advice for accurate and up-to-date information.
In Panama, there are certain jobs or professions that are reserved exclusively for Panamanian citizens. These jobs are known as "reserved occupations" or "nationality-restricted professions." The rationale behind these restrictions is to prioritize the employment of Panamanian citizens and protect their job opportunities.
The specific list of reserved occupations can vary over time, as it is periodically reviewed and updated by the Panamanian government. As of my knowledge cutoff in September 2021, some of the professions that are typically restricted to Panamanian citizens include:
- Public sector jobs: Many positions in the public sector, such as government officials, diplomats, judges, prosecutors, and military personnel, are typically reserved for Panamanian citizens.
- Certain professions requiring licensing: Some professions, such as lawyers, doctors, pharmacists, architects, engineers, and accountants, may have restrictions on practicing for non-Panamanian citizens. These professions often require obtaining a license or registration from the relevant professional association, and eligibility may be limited to Panamanian citizens.
- Some roles in education: Teaching positions in public schools and certain administrative roles in the education sector may be restricted to Panamanian citizens.
- Agricultural and artisanal activities: In certain rural areas, there may be restrictions on non-Panamanians engaging in agricultural activities or artisanal trades.
It's important to note that these restrictions may not apply to all expatriates. For example, foreign nationals married to Panamanian citizens or those who have obtained permanent residency or citizenship in Panama may have broader access to employment opportunities.
It's always recommended to consult with the Panamanian Ministry of Labor or seek legal advice to obtain the most accurate and up-to-date information on job restrictions and eligibility criteria for expatriates in Panama.
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Here are some general steps to consider when buying real estate in Panama:
- Research and Define Your Goals: Begin by researching the real estate market in Panama and understanding the different regions, property types, and prices. Determine your goals for purchasing property, whether it's for investment, retirement, or a vacation home.
- Establish a Budget: Determine your budget based on your financial situation and goals. Consider additional expenses such as property taxes, maintenance costs, and legal fees. It's essential to have a clear understanding of your financial limits.
- Engage a Real Estate Agent: Find a reputable real estate agent or agency that specializes in Panama real estate. A local agent can provide valuable insights, guide you through the process, and help you find suitable properties that meet your requirements.
- Property Search and Viewings: Work with your real estate agent to identify properties that align with your preferences and budget. Arrange viewings to physically inspect the properties and assess their condition, location, and amenities.
- Due Diligence: Before making an offer, conduct thorough due diligence on the property. This may involve verifying property ownership, confirming legal documentation, and ensuring there are no outstanding liens or encumbrances. Engage a qualified attorney to assist with the due diligence process.
- Make an Offer and Negotiate: Once you've found a property you're interested in, submit a written offer through your agent. Be prepared to negotiate on the price and other terms of the purchase. Your agent can provide guidance during this stage.
- Hire a Real Estate Attorney: Engage the services of a trusted real estate attorney who specializes in Panamanian property law. The attorney will review all legal documents, ensure the transaction is conducted properly, and protect your interests throughout the process.
- Sign a Purchase Agreement: Once the offer is accepted, a purchase agreement or sales contract will be drafted by your attorney. Review the agreement thoroughly, ensuring all terms and conditions are clearly stated, including the purchase price, payment schedule, and any contingencies.
- Secure Financing (if applicable): If you require financing, begin the process of obtaining a mortgage or loan from a Panamanian bank or other financial institution. Ensure you meet all the necessary requirements and provide the required documentation.
- Title Transfer and Closing: Prior to closing, your attorney will conduct a final title search and ensure all necessary paperwork is in order. On the closing day, you'll sign the final documents, transfer funds, and the property ownership will be officially transferred to you.
- Register the Property: After closing, your attorney will handle the registration of the property with the Panamanian Public Registry. This step is crucial to establish your legal ownership of the property.
- Property Insurance and Utilities: Arrange for property insurance to protect your investment. Also, set up utility accounts (water, electricity, etc.) in your name to ensure a smooth transition.
It's important to note that these steps provide a general overview, and the specific process may vary based on individual circumstances and local regulations. Working with experienced professionals, such as a reputable real estate agent and attorney, is crucial to a successful and secure real estate transaction in Panama.
In Panama, property taxes are known as "Impuesto de Inmuebles" or real estate tax. Here is some information about property taxes in Panama:
- Calculation of Property Taxes: Property taxes in Panama are calculated based on the registered value of the property. The registered value is determined by the Municipal Government and is typically lower than the market value of the property. The tax rate varies depending on the property type and its value.
- Tax Exemptions: Panama offers certain tax exemptions for new construction properties. For example, newly constructed residential properties may be exempt from property taxes for a specific period, usually between 5 to 20 years, depending on the location and government incentives.
- Annual Property Tax Payment: Property taxes are typically paid annually in Panama. The exact due date may vary depending on the municipality where the property is located. It's important to be aware of the deadline and fulfill your tax obligations on time to avoid penalties or interest charges.
- Payment Process: Property owners receive an annual tax bill indicating the amount due. Payments can be made at the local tax office, through authorized banks, or online platforms provided by the tax authorities.
- Penalties and Interest: Failure to pay property taxes on time may result in penalties and interest charges. These fees can accumulate over time, so it's crucial to meet your tax obligations promptly.
- Property Tax Adjustments: The Municipal Government periodically reassesses property values to adjust property taxes accordingly. These adjustments can result in an increase or decrease in property tax obligations.
- Tax Benefits for Primary Residences: In Panama, there are tax benefits available for individuals who designate their property as their primary residence. These benefits may include lower tax rates or exemptions.
It's important to note that specific property tax regulations and rates may vary across different municipalities in Panama. It is advisable to consult with a local tax advisor or attorney who can provide accurate and up-to-date information regarding property taxes in the specific location where you intend to purchase property.
In Panama, property sale taxes are commonly referred to as "Transfer Taxes" or "Capital Gains Taxes." Here is some information about property sale taxes in Panama:
- Transfer Taxes: When selling a property in Panama, the seller is responsible for paying transfer taxes. The transfer tax rate is generally set at 2% of the property's registered value or the sale price, whichever is higher. This tax is typically divided equally between the buyer and the seller, although the parties can negotiate different arrangements.
- Capital Gains Taxes: In addition to transfer taxes, sellers may also be subject to capital gains taxes on the profit made from the sale of the property. Capital gains tax is calculated on the difference between the purchase price and the sale price of the property. The tax rate for capital gains can vary depending on various factors, including the length of ownership and whether the seller is a resident or non-resident of Panama.
- Exemptions and Reductions: Panama provides certain exemptions and reductions for capital gains taxes. For example, if the property being sold is the seller's primary residence and certain criteria are met, there may be exemptions or reductions available. Additionally, capital gains taxes may be reduced or eliminated for properties held for a specific period under certain government incentives or programs.
- Reporting and Payment: Sellers are required to report the sale of the property and pay the corresponding transfer taxes and capital gains taxes within a specified timeframe. The reporting and payment process is typically facilitated through the Panamanian tax authorities.
- Consult with Professionals: It's important to consult with a qualified tax advisor or attorney in Panama to understand the specific tax obligations and any potential exemptions or reductions that may apply to your situation. They can guide you through the process, help you calculate the taxes owed, and ensure compliance with local tax regulations.
It's worth noting that tax laws and regulations can change over time, so it's advisable to seek professional advice and stay updated on any updates or amendments to the tax legislation in Panama.
BUSINESS OR RETIRE IN PANAMA?
IMMIGRATION
Individuals who wish to become Panamanian residents or who are considering Panama as a permanent residence have a variety of options.
We will discuss three different groups in this article and leave others for future articles. Say you want to move to Panama for one of the following reasons: a) to work, b) to start a business, or c) to retire.
We keep saying "here", because, although we provide our services both in Panama and abroad, through our international network of strategic allies, this cozy and tropical country between the Pacific and the Caribbean, is what we proudly call home.
The possibility of moving to Panama for work.
Generally, foreigners hired in our country are granted temporary visas.
To hire a foreigner, a Panamanian company must comply with the 10% or 15% rule. This means that for every 10 Panamanians, the company can hire a foreigner, and regarding the 15%, these are foreigners who are experts or technicians. However, there are exceptions, such as the SEM (Multinational Company Headquarters), which is a very special regime that does not apply these restrictive percentages. Meanwhile, the Friendly Nations Visa allows you to apply for a temporary work permit for a period of three years, making it much more favorable for foreigners who want to start a business or work locally.
The first step is to create your company in Panama.
Whether you're starting a business from scratch, bringing an already established company from your country, or partnering with local entrepreneurs, our country offers you several types of companies that you can create, including limited partnerships, limited liability companies, and corporations, which are the most popular. To avoid fines, you should ensure that your company receives the necessary legal advice.
As part of these requirements, the company must obtain an Operation Notice, which is nothing more than a notification to the Panamanian Government that it has begun operating. Also, you must register the company with the Social Security Fund, the General Directorate of Revenue, and the corresponding Municipality.
The option of retiring in Panama.
In our country, a foreigner who has already retired from his business or professional activity will find stability and unparalleled security. In contrast, it offers discounts on an array of goods and services, allowing you to save and enjoy your pension fund even more.
A pensioner's most sought-after visa is, in fact, the Pensioned Tourist Visa, which offers pensioners not only discounts (starting at 60 years old for men and 55 years old for women), but also allows them to import a vehicle each two years free of customs taxes and household goods up to a value of US$10,000 only once a year.
When considering whether to do business or retire in Panama, there are several factors to consider. Panama has a growing economy, with a stable political climate and a favorable business environment. The country offers various incentives for foreign investors, such as tax breaks and residency programs. Additionally, Panama's strategic location as a hub for international trade and transportation makes it an attractive destination for business ventures. On the other hand, retiring in Panama offers numerous advantages as well. The country boasts a low cost of living, affordable healthcare, and a range of retirement communities and amenities. Panama's warm climate, beautiful landscapes, and vibrant culture also make it an appealing place to spend one's retirement years. Ultimately, the decision to do business or retire in Panama depends on individual preferences, financial goals, and lifestyle choices.
MULTIPLE ENTRANCE AND EXIT VISAS
Immigration requires this visa for every foreign national with a file pending. The result is that if you have applied for a residency or visa in Immigration and it is in process, you should request a Multiple Visa in order to travel from Panama
A Residency Visa is provided by the Government of the Republic of Panama to foreigners so that they may establish residency and permanently reside within the territory of the Republic of Panama.
The term "immigrant" refers to a foreigner or tourist who has applied for a Panamá residency visa.
A "Resident" is a foreigner or tourist that has completed a Panama resident Visa application program and has obtained a Panama Permanent Resident Card.
Article 264 of the Executive Decree No. 320 of August 8, 2008 abolished the requirement for foreigners who are residents of Panama to obtain a Panama Multiple Entry/Exit Permit in their passports. This applies to:
1. Those persons who currently have a Panamanian cedula;
2. Those persons who have a Provisional Panama Resident Permit for one year;
3. Those persons who have a Panama Temporary Visa for one or two years and;
4. Those persons who have a carnet (card) as pensioned retirees ("jubilados pensionados").
When entering Panama at the international airport, the immigration authorities will honor the cedula (national identification card) or respective carnet (resident card)
The National Immigration Service of Panama has eliminated the process of the Multiple Entry and Exit Visa for all those people to whom the Temporary Residence Visa and the Permanent Residence Visa have been approved. The Multiple Entry and Exit Visa is required only for those applicants for the Provisional Residence Permit, which is valid for three (3) months and renewable for the same period up to one (1) year, who are in the process of Legal Residence in Panama.
To be more precise, all applicants for a Legal Residence Visa in Panama, whether Temporary or Permanent, and before their Visa is formally approved by a resolution, will need to process the application for a Provisional Residence Permit before the National Immigration Service, which is valid for a period of three (3) months and extendable up to one (1) year, and allow the applicant to reside legally in Panama for that period and until their Temporary or Permanent Resident Visa is formally approved.
If the process of approval of temporary residence takes between three (3) months and one (1) year, then it must be renewed and the provisional permit must be extended. All foreigners who have the Provisional Permit card, must apply for the Multiple Entry and Exit Visa if they wish to leave Panama and re-enter during the time it takes to obtain approval of their Residence Visa.
MULTIPLE ENTRY/EXIT VISA PROGRAM
Immi-Pa can assist foreigners in the process of acquiring their Multiple Entry and Exit Visa.
The government of the Republic of Panama provides Residence Visas so that foreigners who wish to reside in Panama can do so legally.
An "immigrant" is a foreigner or tourist who has applied for the Panama Residency Visa.
A "resident" is a foreigner or tourist who has completed the Panama Residency Visa Application Program and has obtained their permanent resident card.
Article 264 of Executive Decree 320 of August 8, 2008, abolished the requirement of the Multiple Entry and Exit Visa for foreigners who are resident in Panama, namely:
- Those people who currently have a Panamanian ID.
- Those persons who hold a provisional residence permit in Panama for one (1) year.
- Those persons who have a Temporary Residence for one (1) or two (2) years.
- Those people who have a pensioner or retired card.
When entering Panama through the International Airport, the Immigration authorities will honor the Cédula (National Identification Document) or the respective Residence Card.
Note: The only people who will need to apply for a multiple entry and exit permit in Panama will be those who are in the initial phase of the legal residence process and who have a provisional residence permit valid for between three (3) months and one (1) year.
VISA MULTIPLE PANAMA
The Panama Multiple Entry and Exit Visa will be granted for the duration of the provisional residence permit, which will depend on the evaluation of the application, compliance with the requirements and the applicant's request.
The Multiple Entry and Exit Visa application must be submitted in person or through a licensed attorney and the following documentation will be required:
- Multiple Entry and Exit Visa Application.
- Original and copy of your valid passport, which will certify that your stay in Panama satisfies the legal terms.
- Original and copy of Panama immigration identity card. (If applicable)
- Proof of economic solvency (Only for non-residents)
- Certification as a trader or entrepreneur or the reasons why this authorization is required. If the foreigner is invited by a company, he must deliver:
- Invitation letter from the company, duly signed by the Manager or legal representative with a copy of the respective identification document.
- Copy of the Public Registry Certificate of the company.
- Bank reference letter from the company.
Note: All those who have temporary or permanent residence in Panama, have the possibility of entering and leaving Panama without having to previously require this permit issued by the National Migration Service of Panama, except for those cases in which the competent authorities interpose preventive measures or restrictions on entry and exit.
Validity: The Visa of multiple entries and exits of Panama for the term of the provisional residence permit (Provisional Processing Card)
Time Period: The processing of the application for the Multiple Entries and Departures Visa at the offices of the National Immigration Service in Panama can take between three (3) and five (5) business days.
DOCUMENTS REQUIRED FOR PROCESSING
- Original and photocopy of the applicant's valid passport, including the page where the photograph appears, name, date of birth, passport number, place of issue, etc.; as well as the rest of the pages where the stamps of entries and exits to the different countries visited are shown.
- Two (2) passport-size photographs of the applicant.
- Copy of Provisional Residence Permit (Provisional Processing Card)
DOCUMENTS THAT OUR LAW FIRM WILL PROVIDE YOU WITH
Special power of attorney duly signed by the applicant and granted to an attorney of our firm, through which the processing of immigration documentation for the Multiple Entry and Exit Visa process is authorized.
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Panama For South African Expats
