May 9, 2025
Limitless Team
If you are a foreigner and are considering moving to Panama with a Friendly Nations Visa, you probably already know that this visa is one of the most accessible and popular ways to establish legal residence in the country. However, a key question arises for those who have plans to generate income: Does this visa allow you to work legally in Panama?
The answer is yes, but with conditions. The Friendly Nations Visa alone does not grant the automatic right to work in Panama. To do so legally, you need to manage a work permit Before the Ministry of Labor of Panama. Many people make the mistake of assuming that being legally in the country with permanent residence already authorizes them to work. Not only is this wrong, but it can have serious legal consequences, including fines and penalties for both the foreign person and the employer.
In this updated guide for 2025, we explain in a clear and simple way how you can working legally in Panama as a foreigner with your current visa. We will break down the work requirements for the Friendly Nations visa, the steps to obtain a work permit in Panama, and what every foreigner should know to avoid costly mistakes. If you have plans to start a business, look for a job or simply want to explore new job opportunities in Panama, this information will be very useful to you.
We will also address What Panamanian employers should consider who want to hire foreigners with this visa, what are their legal responsibilities and what can happen if the rules established by Panama migration and the Ministry of Labor.
Whether you're just starting the application process or you already have your visa and want to work, this guide will give you clarity to avoid surprises. The most important thing is to start off on the right foot and understand the process for obtain a work permit with a Friendly Nations visa legally and effectively in 2025.
Can you legally work with the Friendly Nations Visa?
The Friendly Nations Visa is a migratory option that offers permanent residence to citizens of countries with friendly relations with Panama. Despite being an excellent tool for living legally in the country, this visa does not automatically include the right to work. For working legally in Panama as a foreigner, it is mandatory to have a work permit issued by the Ministry of Labor and Labor Development (MITRADEL).
This means that, even if you have a Panamanian permanent resident ID and your immigration status is completely regular, you cannot start working or sign employment contracts without having previously managed that work permit. Even if you work online for a foreign company from Panama, there may be specific requirements depending on the type of activity. The best thing to do is to always consult with experts in Panama migration requirements.
Why is a work permit required?
The work permit serves to ensure that:
- The foreigner complies with Panamanian legal requirements for gainful employment.
- The employer is complying with the regulations of the Ministry of Labor of Panama.
- The labor rights of both the worker and the employer are protected.
If you work without this permission, not only do you expose yourself, but also the company that hires you may face labor fines in Panama and sanctions for violations of immigration law. In addition, working without authorization can harm future immigration procedures or the renewal of your status in the country.
Once you obtain a work permit, you can then apply for jobs, start a business legally or carry out professional activities with total peace of mind. That's why it's essential to include this step in your planning if you're considering living and working in Panama in 2025.
In short, Yes you can work legally with the Friendly Nations visa, but only if you apply for the corresponding work permit. Not assuming this can lead to costly errors and unnecessary legal complications.
How to apply for a work permit with a Friendly Nations Visa
The process for obtain a work permit with the Friendly Nations Visa In Panama it may seem complex at first, but if you follow the right steps, successfully achieving it is completely possible. This permit is processed by the Ministry of Labor (MITRADEL) and is essential for Work Legally in Panama, regardless of whether you are a freelancer or if you are going to be hired by a local company.
General requirements for applying for a work permit
You must submit a series of key documents to begin the process. Make sure they're all up to date and in the required format:
- Copy of the residence resolution issued by the National Migration Service.
- Copy of the permanent resident ID.
- Work contract duly signed and notarized (if you are already employed).
- Photocopy of the passport (and identity card if applicable).
- Complete the MITRADEL membership form.
- Request form for permission and power of attorney.
Steps to obtain a work permit
Once you have your documents ready, the general procedure includes:
1. Preparation and Verification: It brings together all the Documents needed to work in Panama and confirm that they are in good standing, especially those issued outside the country (they may require authentication or apostille).
2. Submission of application: You must submit the completed application to a regional branch of the Ministry of Labor Panama Or at its head office.
3. Payment of the procedure: There are fees associated with a work permit, which vary by category. Make sure you make the corresponding payment at the authorized bank or directly at MITRADEL.
4. Evaluation and Response: The ministry will evaluate the documentation and, if everything is in order, will issue a resolution authorizing your work in the country.
Keep in mind that this permit is normally issued for one or two years, and can be renewed following established procedures. In addition, in the case of entrepreneurs, it can also be requested under a different figure, which requires justifying economic activity and meeting certain additional requirements.
If you're managing this process for the first time, having the guidance of a legal professional can help you avoid delays or errors.
As a summary, these are the Steps to work in Panama in 2025 with a visa from Friendly Nations:
- Confirm that your residency status is approved.
- Gather the required documents.
- Draw up or get a legal employment contract.
- Submit the application to MITRADEL.
- Wait for approval and keep an eye out for possible notifications.
Planning this process in time and in an orderly manner is key to starting your work phase in Panama successfully and without legal problems.
Legal obligations of the employer who hires foreigners
When hiring a foreign person who has the Friendly Nations visa, the employer in Panama must not only be concerned about the candidate's professional profile, but also about complying with current immigration and labor regulations. Failure to comply with these obligations may result in economic sanctions and legal problems before the Ministry of Labor of Panama And the National Directorate of Migration.
The key role of the employer in the legalization of employment
Once the foreigner has obtained the Permanent Residence through the visa and you have the necessary documents to work legally, the next step must be managed by the employer: processing the Work permit before the Ministry of Labor. This is not an optional or automatic procedure. It is the employer's responsibility to initiate the application and submit official documentation.
Common requirements that an employer must submit include:
- Copy of the employment contract duly signed and notarized.
- Certification from the company's Public Registry (if applicable) and a copy of the notice of operations.
- Company Operations Notice
- Power of attorney of the employer authorizing the procedure
The procedure is carried out before the Department of Work Permits of the Ministry of Labor and Workforce Development (MITRADEL). Generally, work permits have an initial validity of up to one renewable year, and must be kept up to date throughout the employment relationship.
Legal Restrictions and Quota Compliance
Panamanian legislation states that not all companies can hire foreigners freely. By law, there is a labor ratio rule: no more than 10% of a company's staff can be foreigners (except for exceptions allowed by the type of visa and the nature of the business). It is essential that the employer validates whether their structure complies with these regulations before proceeding with the hiring.
In addition, the employer is expected to respect all the labor rights of the foreign worker, including minimum wage, social security, working hours and payment of benefits. Any contract must be legally signed and registered with MITRADEL.
Importance of keeping your work permit up to date
Even if the foreign worker has started his employment with proper papers, it is essential that the employer follow up on the renewal or update of the work permit. The expiration of the permit invalidates the employment relationship and exposes both parties to sanctions.
In short, the Employers who hire with a Friendly Nations visa they must be proactive in verifying the immigration status of their employees, processing permits correctly and maintaining compliance with Panamanian labor law. This avoids fines and legally protects both parties.
Fines for working without a permit in Panama
Working in Panama without a valid work permit represents an offence both for the foreigner and for the employer. Although having the Friendly Nations visa grants legal residence, does not replace the work permit required by the Ministry of Labor of Panama. Ignoring this obligation can be costly.
What happens if I work without permission in Panama?
If a foreign person is discovered working without proper permission, they may face immigration and labor sanctions depending on the seriousness of the case. These consequences can affect a foreigner's immigration status in the short and long term, including the possibility of losing residency or facing restrictions when renewing documents.
The most common violations detected are:
- Work without ever having applied for a work permit.
- Have an expired permit with no renewal pending.
- Skip the notification of a change of employer without managing a new permit.
Under all these circumstances, the Ministry of Labor may issue administrative sanctions or refer the case to Migration Panama for additional measures.
Fines for employers
Employers that allow a foreign national to work without authorization are also subject to heavy penalties. According to Panamanian labor law, these are some of the consequences that a company may face:
Economic fines: They generally range from B/.500.00 to B/.10,000.00 for each foreign worker without a permit. The fine depends on the number of violations and whether it is a repeat offence.
Temporary suspension of the operating permit: If the irregularities are serious, the Ministry may order the partial or total suspension of the company's business activities.
Additional Investigations: In some cases, the fault may result in labor inspections or additional legal processes by the State.
How to avoid sanctions?
The only way to avoid these consequences is to respect all work requirements for foreigners stipulated by law. Both the worker and the employer must verify that:
- The work permit is approved before starting work activities.
- The permit remains in force throughout the employment relationship.
- Changes in the position or company are reflected in a new procedure before MITRADEL.
Finally, it is important to clarify that Panama has reinforced its migratory and labor controls in recent years, especially in the context of Panama visa 2025. Count on the documents to work legally in Panama it is no longer a formality: it is an essential requirement to avoid fines, preserve your immigration status and continue to work without problems.
Now that you know the possible sanctions and how to avoid them, let's move on to reviewing some of the Common Mistakes Foreigners Make and how you can anticipate so as not to jeopardize your stay or your job opportunities in Panama.
Common Mistakes and Tips for Avoiding Employment Legal Problems
One of the areas in which the most mistakes are made when wanting Working Legally in Panama as a Foreigner It is to assume that having the Friendly Nations Visa it's enough. Although this visa grants legal residence, it does not exempt from paperwork with the Ministry of Labor of Panama to obtain a work permit. Below, we review the most common mistakes and give you key tips so that you can build your working life in Panama without problems.
Not Applying for a Work Permit on Time
One of the most common mistakes is starting to work without first obtaining the Work permit in Panama. This document is mandatory, regardless of whether you have already approved your residence for Visa Friendly Nations. Starting to work without having one can lead to inspections, sanctions or even the nullity of the employment contract.
Tip: Wait until your work permit is resolved before accepting or starting any type of employment.
Not knowing the employer's requirements
Many foreigners don't know that their employers must also meet certain legal requirements. The company or person that hires you needs to formally register with the social security fund, report your hiring to the Ministry of Labor and ensure that the allowed percentage of foreign workers is not being exceeded.
Tip: Before signing a contract, make sure your employer is familiar with their Legal Obligations Towards Foreign Workers.
Errors with the documentation
Submitting expired, incomplete, or poorly prepared documents can delay your process for Obtain a work permit with a Friendly Nations visa. In some cases, the file is rejected repeatedly, leading to frustration and waste of time.
Tip: Verify that your Documents for working in Panama are up to date, apostilled (according to migratory requirements) and correctly translated into Spanish if they come from abroad.
Don't Renew Your Work Permit
Even if you already obtained your first work permit, not renewing on time can result in penalties. Some permissions are temporary and must be renewed depending on the category you're enrolled in.
Tip: Keep a scheduled check and start the renewal process at least 1 to 2 months before its due date.
Not having adequate legal or immigration advice
Because they want to “save”, some people turn to informal brokers or try to do the process on their own without up-to-date information. This increases the risk of making mistakes or of falling into fraudulent processes that can even cause you problems with Panama migration.
Tip: It is always advisable to go to professionals with experience in Visa to Panama 2025 and labor issues. This ensures that you meet all the requirements correctly and safely.
Additional tips to avoid inconveniences
- Don't work while your permit is “in process” unless you have a valid provisional authorization.
- Ask your employer if they have hired foreigners before and if they know how to report your contract to the Ministry of Labor.
- Keep copies of all the documentation sent and proof of delivery to the authorities.
- Stay informed about changes in labor and immigration laws from year to year (such as those that may apply in Panama in 2025).
Avoiding these mistakes will not only protect you from Labor Fines in Panama, but it will also allow you to build a stable and legal professional career, which is key if you plan to stay for the long term or seek greater job opportunities.
✍🏼 Take note...
La Friendly Nations Visa remains an excellent gateway for those who want to live and develop professionally in Panama. However, having this visa is not enough for Work Legally in Panama. It is mandatory to request the Work permit through the Ministry of Labor, complying with all the requirements established in labor and immigration laws.
In this step-by-step guide, we've explained how to get permission, what your employer must do, and what consequences could result from working without it. We also highlight the Common Mistakes Foreigners Make —such as not renewing the permit, submitting incomplete documentation or assuming that the employer knows everything— and tips for avoiding them. Being clear about these aspects is key to avoiding sanctions, loss of job opportunities or even immigration problems.
Working in compliance with local regulations not only gives you legal security, but it also opens the door to more stability and professional growth in the country.
Do you have one Friendly Nations Visa and you're not sure how to manage your work permit in Panama? At Limitless Legal we help you verify your documents, accompany you during the process before the Ministry of Labor and legally advise you to work without risks. Contact us and avoid errors that could cost you time and peace of mind.