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Whether you’re looking for fun and sun, a peaceful retirement, or the chance to earn some extra income, you’ve got a real world of opportunity open to you… In short, we’ve done our best to narrow down your best options, but only you can decide the right country for you.
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Home » Best Countries To Live, Invest, And Retire Overseas » Panama : Everything You Need To Know In 2025 » Work In Panama
This is the land of opportunity! There are many opportunities to work in Panama, as well as starting your own business in Panama.
A great way to work in Panama is to bring your current job along with you. If you’re a professional who can work remotely, think about making Panama your new home base.
Panama has been welcoming North Americans and Europeans with gusto for decades now, and it even caters to them with easy residency options and bonus incentives like discounts and tax waivers.
Reviewed By Kathleen Peddicord
Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.
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As a foreign resident looking to work in Panama, your options for local employment are limited. Foreign residents are restricted from participating in certain industries.
You can’t become a licensed real estate agent, until you have been a legal resident for five years and have passed the Spanish real estate broker’s exam.
As an expat, you are also unable to practice medicine or law. Also, retail is another sector which foreigners are not allowed to work in Panama.
You wont be able to act as an official translator, however some expats have found side jobs doing the translating for offices and receive cash payments.
To begin working in Panama you will need to find an employer willing to sponsor you and arrange for your work visa. As competition is high for many positions, there are restrictions on the percentage of foreigners a Panamanian company may hire (generally 10%).
Exceptions do exist for technical positions and temporary situations. According to Panamanian law, only 10% of employees in a company can be foreign. However, there are exceptions.
For example, if a company requires specialized staff that is not readily available in the labor force in Panama, it is permitted to hire technical or specialized staff.
In this case, foreign employees still can’t exceed 15% of all the company’s employees.
Above all, if you have a particular skill, especially one that is in high demand or is difficult to find in Panama, you will have better luck finding a job. In Panama there is a shortage of skilled labor, but an oversupply of unskilled labor.
As with many things here, finding a job in Panama can be easier once you have developed connections. This is very much a “who you know” country when it comes to getting a foot in the door.
Over the past decade, in large part due to technological improvement, jobs have become much easier to find without having established a presence in country. Websites such as Konzerta and Encuentra24 have regularly posted positions.
There are a few ways to obtain a work permit in Panama, however the easiest for foreigners is through the “Specific Countries” visa program. This program allows you to get a visa and residency in Panama, along with a work permit.
Most importantly, the program statutes state that you simply need to prove that you are from one of the approved countries and that you have US$5,000 in the bank, any Panamanian bank, and an additional US$2,000 in the account per dependent. Also, you must also demonstrate an offer of employment and contract from a Panamanian business.
Plus, there are a few other minor requirements, however through this process you will obtain a Panamanian work permit.
The work permit application can be initiated only after permanent residency has been granted, which, depending on your lawyer and connections can take 3 to 8 months. And, if your immediate goal is a work permit, this can be problematic, but this is an indefinite work permit, something only obtainable in Panama…a true Holy Grail.
When you consider that the minimum wage here is less than US$500 a month, it’s not surprising that Panamanians are hired first.
As of January 2024, the minimum wage in Panama starts at US$340 per month for domestic workers in Region 1 and US$315 for Region 2.
Retirees will find they can live like a king in Panama on their pension, without the need to find supplemental employment.
Truth be told, you probably won’t need to work if you are considering retiring in Panama. A modest income is more than enough money in this country.
One of the best options for work in Panama is simply to move your current job there. If you are a mobile professional, it’s worth considering making your base in Panama.
You’ll be earning North American or European wages and enjoying a Panamanian cost of living.
In addition, high-speed Internet, inexpensive phone rates (less than 7 cent per minute to the U.S.), inexpensive English-speaking workforce, and a U.S.-dollar economy all contribute to a great workplace.
Many web-based and creative businesses have already found a home here alongside other large and established businesses.
For example, if you move your business to Panama, your best bet is to base yourself in the City of Knowledge, a technology and education park with a state-of-the-art communications infrastructure and bustling business population. So, you’ll be in good company: the United Nations’ Regional Headquarters are here.
Plus, other locations to consider are the Colon Free Zone and Panama Pacifico Industrial Zone, both offering certain tax exemptions and advantages.
Panama, much like the United States, values entrepreneurship and works hard to attract future business development. With a less matured marketing and business environment, you will quickly find opportunities to start working in Panama for yourself, if only to materialize a business or service you are missing from back home.
Adventurous entrepreneurs with foresight and a little business acumen stand to make substantial gains. There are a few restrictions are placed on foreigners interested in owning and operating businesses, but not as many as in the general employment sector.
Panama boasts over 400,000 registered corporations. It is second only to Hong Kong as a home to corporations and corporate subsidiaries. And, if you are looking to invest in Panama, starting a corporation can be a good way to begin.
So, here are a few ideas of businesses to start in Panama:
In short, you can find work in Panama, with a little effort, and if not, there is always an abundance of opportunity to make your own.
Set yourself up properly, and you’ll be liable for no corporate tax. Not in Panama and not anywhere else either (including, you may be wondering if you’re an American, in the United States).
That’s a big reason why Panama is the #1 place in the world right now to start an online or e-commerce business. It’s also the best place to base yourself if you want to make a living from consulting, travel writing, copywriting, or any other laptop-based profession you can think of.
The key is that your customers are outside Panama. In other words, as long as the revenues of your business aren’t sourced in this country, you don’t pay tax on them in this country. And, again, as long as you structure your corporation properly,you won’t be liable for taxes from the revenues that flow through it anywhere else, either.
That’s hard to beat.
In addition, I’m more convinced that Panama is the best choice for launching and building an Internet-based business the longer we’re operating here for other reasons, as well…
First, the infrastructure works. Not 100%… but I remember suffering through occasional electricity and Internet problems in our office in Baltimore, Maryland, when I was conducting the same kind of business from a base in that city years ago.
Nowhere are you going to enjoy services that are 100% reliable. I’ve opened and operated businesses in the States, Ireland, France, London, Nicaragua, Honduras, Ecuador, Mexico, Argentina, and Panama. The doing-business infrastructure in Panama (electricity and Internet reliability, options for Internet service, office space, etc.) compares favorably with that in the States (which could be used as an international benchmark). It beats the infrastructure in Ireland (where I ran a business for seven years) and every other country in this Central America region. It’s not as sophisticated as in France (but there are other big downsides to doing business in that country… the French don’t value the entrepreneurial inclination).
Second, in Panama, you’re in the same time zone (give or take an hour or two) as North America. If your market and your customers are in North America, this is a big and important plus. Again, I’ve tried doing business with North Americans from different bases in Europe, and the time lag was sometimes a point of frustration (for me and my staff and also for the customer). Sometimes it was even a cause of lost business. For this reason, I recommend against trying to base a business in Europe or, worse, Asia if the marketplace is in North America.
Third, the English-speaking labor pool in Panama is proving broad and interesting. Our experiences as employers in this country for this current undertaking haven’t been 100% problem-free. In nearly eight years operating here, we’ve had our share of employees who haven’t worked out. But this would be true anywhere, and the staff that hasn’t worked out could generally be categorized as the kind that didn’t want to work too hard.
Meantime, we’re finding dozens of other people who do want to work and who are also smart, competent, ambitious, and truly bi-lingual. Are there thousands of people of the kind we want to hire in Panama City? I don’t know, and, fortunately, we don’t expect to have to find out. We don’t need thousands of people to staff our operation. Right now, we employ about three-dozen, and we’re delighted with them, one and all.
Fourth, the cost of doing business in Panama is very controllable. Office rent is affordable on a global scale, and other costs are comparatively low, including Internet and labor… though rising.
We moved to Panama from Paris eight years ago specifically because we wanted to start this business. If we’d stayed in Europe, our operation wouldn’t be working as well, because our costs would be at least four times greater than they are currently.
I was reminded of this fact recently when a friend in Paris sent me the budget for a new business he is planning to launch. Reviewing his cost projections, I remembered why we’re in Panama City.
Elsewhere in this region, I don’t think we’d be able to find the labor we need. And we’d likely struggle more in our efforts to keep in touch in real time with the rest of the world.
The downsides to being an Internet-based business owner in this country?
Employment law favors the employee, as it does in most of the world, but not to the extent it does in most of Europe. The social costs that the employer must cover (including what’s called a “13th month” salary bonus to employees each year) are not insignificant, but, again, not as onerous as they can be in, say, France.
When we launched this business in Panama eight years ago, the other challenge was work permits. At the time, the law allowed employers to hire one non-Panamanian employee for every nine Panamanians on the payroll. Those numbers didn’t work for us, and we were struggling with creative ways to engage more international staff.
Then a remarkable thing happened. Then President Ricardo Martinelli woke up one day and decreed by Executive Order that nationals of any of the 22 countries on the “Friendly Nations” list he published could apply for and receive residency and a work permit according to straightforward, affordable, and easy-to-achieve guidelines.
The list of Friendly Nations has since been expanded to include 48 countries. As a result, we’ve been able to build an eclectic staff that includes Americans, Canadians, Germans, French, Brits, Irish, Belgians, Hondurans, Russians, and Jamaicans. As I write, my Marketing Manager is interviewing a young Finnish girl for the Marketing Assistant position we’re currently looking to fill.
All things considered, again, I’m more convinced every year we’re here that Panama is the best place in the world to run a business of this sort.
Panama is doing what Ireland did in the 1990s (when we, coincidentally, were living in that country)—it is positioning itself as the doing-business capital of the region. When I moved, with my business, from the United States to the Emerald Isle 14 years ago, it was to take advantage of government incentives, including a very appealing corporate tax rate and an English-speaking and educated labor pool that was, at the time, a bargain.
We enjoyed many other benefits, of course, living in Ireland for seven years, and we’re enjoying other things about our time now in Panama. But, again, the primary motivation for relocating from Paris to Panama City eight years ago was to take advantage of what we recognized as a very entrepreneur-friendly jurisdiction. In fact, the situation here in Panama is better than it was in Ireland back in the days of the Celtic Tiger. Here, if your business earns its money outside Panama (as any online business does), you owe no corporate tax in this country.
If you’re shopping the world for a place to indulge an entrepreneurial agenda, I strongly suggest you take a close look at Panama.
Reviewed By Kathleen Peddicord
Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.
Experience The World’s #1 Retirement Haven
Sept. 17-19, 2025
Valencia, Spain
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We Value Your Privacy! We will not share your email address with anyone else, period.
Firstly, to start working in Panama you need to find an employer willing to sponsor you and arrange for your work visa. As competition is high for many positions, there are restrictions on the percentage of foreigners a Panamanian company may hire (generally 10%).
Panama reserves for its national citizen professions like engineering, law, accounting, and psychology. A foreign national can’t work in one of these occupations, regardless of whether they have a work permit.
In Panama all overtime hours in excess of 48 hours a week are to be paid at an overtime compensation rate. The rate depends on the hours in which the overtime happens. Hours between 6 p.m. and 6 a.m. or on a rest day or holiday are paid at a rate of 150% of the employee’s regular income.
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