The Panamanian government has extended the deadline to renew expired residence permits.

Key Points:

  • Foreign nationals living in Panama whose residence permits expired on or after March 13, 2020, can now renew them until Dec. 31, 2023.
  • Those who have been living in Panama on an expired visa must still pay overstay fines for each month they stayed in the country.

Additional Information: Foreign nationals who have not renewed their residence permits and stayed beyond their expiration date have to pay $50 per month of overstay, either to leave the country or file for renewal.

BAL Analysis: Panamanian authorities have extended the deadline to renew expired residence permits to allow more foreign nationals to stay in the country legally.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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The Panamanian government has introduced new travel requirements to mitigate the spread of COVID-19.

Key Points:

  • Anyone entering Panama must provide results of a negative COVID-19 PCR or antigen swab test taken no more than 48 hours before arriving in Panama.
  • Anyone traveling from South America must take an additional swab test at their own expense at the airport upon arrival in Panama.
    • Those who test negative must complete a five-day quarantine at home or at a quarantine hotel. On the fifth day, these travelers must take another swab test. If the results are negative, the quarantine ends.
    • Those who test positive must complete a 14-day quarantine at a quarantine hotel.
    • Travelers from South America must sign forms upon arrival stating that they provide consent for the quarantine and testing measures. While this requirement will apply to all travelers from South America, airlines may also request consent from travelers from any location under a previous decree.

Analysis & Comments: The changes will add to the time it take to plan travel to Panama, especially for those traveling from South America. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States, which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2021. For information, contact Deloitte Touche Tohmatsu Limited.

Panama has introduced an online platform for foreign nationals living in the country to register for the COVID-19 vaccine.

Key Points:

  • Foreign nationals living in Panama can now register for a COVID-19 vaccination through this website.
  • While the vaccination is not a requirement, it will be available to foreign nationals who are working in the country.
  • While registration is not required in order to receive a shot, the program is designed to make it easier to identify people who want the shot and to help distribute and track vaccinations.

 

Background: Panama received its first doses of the COVID-19 vaccine in January. Some countries have excluded foreign nationals from the vaccination process, but the government of Panama decided they would be included.


Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2021. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – HIGH

The government of Panama has reopened commercial flights for citizens and residents with some restrictions. Limited humanitarian flights and flights for medical goods and appliances are currently allowed as well, however, the airport remains closed to the general public.

Key Points:

  • Citizens and residents of Panama can now travel by air. “Residents” is anyone with a valid immigration ID card, or those with pending cases that have been filed while the applicant was outside of Panama, has received a receipt of filing, a receipt of payment of the temporary ID card and a RE-Entry Visa.
  • A negative antigen or PCR swab test taken within 48 hours prior to boarding a flight will be required for entry.
  • All travelers must sign an affidavit of commitment to comply with sanitary measures issued by the Ministry of Health and use an application for monitoring symptoms, confirmation of quarantine and traceability.
  • All travelers will be expected to quarantine for 14 days.
  • Travelers must provide a landline telephone number for the place where the individual will quarantine.

Analysis & Comments: Commercial air travel has been suspended in Panama since March. The government expects to reopen the airport by Oct. 12 to the general public, but it is only a projection, not a formal commitment. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

 

IMPACT – HIGH

The government has granted extensions for residence permit filing, as well as other immigration-related documentation.

Key Points:

  • Immigration offices will remain closed through June 7, resuming processing for attorneys June 8 to be followed by processing for the general public at a later date.
  • Those whose temporary residence or tourist stay expired between March 13 and June 7 will receive a three-month extension for residence filing, without fines/penalties.
  • All supporting documents that expired between March 13 and June 7 are also granted a three-month extension, except bank references and health certificates.
  • Immigration will begin issuing ID card appointments once regular residence permit filing and notification resume.
  • The Ministry of Labor will resume services on June 16; however, it has not yet addressed how it will conduct appointments and ID card photos.

Background: The international flight suspension, in force since March, will continue until June 22.

Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.

 Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

IMPACT – HIGH

The government has halted all international flights, beginning March 22 and lasting 30 days.

Key Points:

  • All international flights to and from Panama are halted for 30 days.
  • No one will be able to enter or leave Panama by air, including Panamanian citizens.

Background: Panama is one of many Latin American countries that are closing their borders and restricting or halting air travel in an effort to mitigate the spread of the COVID-19 virus.

Analysis & Comments: Employers should anticipate serious disruptions to employee mobility. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

 

 

IMPACT – HIGH

The Panamanian government recently announced new travel restrictions to mitigate the spread of COVID-19.

Key points:

  • Effective March 16, all foreign travelers who do not have a Panama residence are no longer allowed to enter the country.
  • Panama nationals and foreign travelers with Panama residences are allowed to enter, but will undergo a 14-day quarantine.
  • The new measures are in place until further notice.

Analysis & Comments: The new travel restrictions will significantly impact travel to the Panama. It is possible further restrictions may be announced. Employers should account for affected travelers and rearrange travel schedules accordingly. Significant delays may occur for consular and in-country processing.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? Panama has simplified the process for Reinstatement of Status applications.

What does the change mean? Permanent residents who have been outside of the country for more than two years, and no more than six years, can now apply for reinstatement without having to submit updated versions of the documents required in the initial permanent residence card application. Applicants for reinstatement must instead submit a copy of their passport, a notarized declaration explaining the reasons for travel, and copies of the permanent residence card and permanent residence card approval resolution through an authorized attorney within 30 business days of arrival in Panama.

  • Effective date: Sept. 4, 2019.
  • Visas/permits affected: Reinstatement of Status.
  • Who is affected: Permanent residents applying for Reinstatement of Status.

Analysis & Comments: The change is good news for permanent residents applying for Reinstatement of Status, as they will no longer be required to collect and submit updated versions of the documents required during the initial application. Eligible nationals needing to submit a Reinstatement of Status should ensure that required documents are gathered far ahead of their travel, as an authorized attorney must still submit the application no later than 30 business days ahead of arrival.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? Panama has expanded the options for SEM visa holders seeking permanent residence.

What does the change mean? SEM visa holders will now have the chance to qualify for permanent residence after five years, without making the previously required investment, if they intend to continue working at an SEM company.

  • Implementation time frame: Ongoing. The change took effect June 11.
  • Visas/permits affected: SEM visas, permanent residence.
  • Who is affected: SEM visa holders seeking permanent residence.
  • Business impact: SEM visa holders who obtain permanent residence will be able to work at any company with an SEM license in Panama.

Background: Earlier this month, Panamanian officials issued a decree making it easier for foreign nationals working at multinational corporations in Panama (Sedes de Empresas Multinacionales or SEM countries) to obtain permanent residence. Under the decree, SEM visa holders can obtain permanent residence one of two ways.

  • SEM visa holders who are working at an SEM company and have held an SEM visa for five years can obtain permanent residence if they (1) have a bank account with at least $5,000 in it (plus an additional $1,000 for each dependent) (2) are paying into Social Security and local taxes. Dependents can qualify if they have held an SEM visa for at least two years.
  • SEM visa holders who stop working at an SEM company can qualify for permanent residence if they make a minimum investment of $150,000 in real estate or a fixed-term deposit (or a combination of the two). Dependents can qualify if they have held an SEM visa for at least two years.

Analysis & Comments: The change will ease the path to permanent residence for SEM visa holders. Previously, there were no permanent residence options for foreign nationals who continued working at an SEM company, only for those who stopped working and made the requisite $150,000 investment.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – HIGH

What is the change? Panama has overhauled its immigration and labor laws.

What does the change mean? The changes include creation of a new temporary visa for U.S. nationals, extension of work permit validity in some categories while restricting it in others, and eased procedures for professional work permit applications.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Temporary stay visas for U.S. nationals, work permits for permanent residents, work permits under the 10% or 15% quota, visas for spouses of Panamanian nationals, short-term work permits, visas for aviation personnel, work permits for refugees, work permits under the Marrakesh Agreement, professional work permits.
  • Who is affected: Employers and foreign nationals applying for any of the visas or permits listed above.

Additional information: The reforms were announced in late May and took immediate effect. Among key changes, officials have:

  • Created a new temporary stay visa for U.S. nationals. The visas are available to U.S. nationals for the purposes of studying, investing or conducting temporary work or technical transference in Panama. The visas are valid for one year and renewable up to a total of five years. While the regulations do not specifically require a separate work permit, U.S. nationals using a temporary stay visa are encouraged to obtain a temporary work permit as well.
  • Created a new three-year work permit for foreign nationals with permanent residence. Anyone holding permanent residence will be able to obtain a renewable work permit valid for three years at a time. Applicants in this category will not need to obtain company sponsorship or a quota allocation. Previously, some categories of permanent residents were not eligible for work authorization.
  • Extended the validity of work permits under the 10% or 15% quota. Work permits under the 10% or 15% quota will now be valid for two years, renewable in two-year periods. After 10 years, work permit holders in these categories may apply for an indefinite work permit.
  • Extended the validity of visas for spouses of Panamanian nationals to two years. Work permits for spouses of Panamanian citizens will now be initially valid for two years, renewable in three-year periods. After 10 years, visa holders in this category may apply for an indefinite work permit.
  • Restricted the validity of visas for aviation personnel. Permits in this category will be limited to a two-year validity period, renewable twice for a total of six years.
  • Restricted the validity of work permits for refugees. Work permits in this category will be issued with a one-year validity period, renewable once for an additional year.
  • Imposed a new rule on companies using the Marrakesh Agreement. Only companies with at least three Panamanian employees will be able to apply for work permits under the agreement, which allows companies with fewer than 10 employees to sponsor one foreign worker.
  • Changed requirements for professional work permit applicants. Applicants may now submit applications while their professional visa applications are pending by providing a temporary immigration ID card, a copy of a final immigration ID card or a copy of a permanent residence card issued by the Civil Registry. First-time applicants will be required to provide an apostilled copy of their university degree.

Analysis & Comments: On the whole, the changes will help companies recruit and retain foreign nationals in Panama. In some cases, however, work permits will be restricted or subject to additional application requirements. Employers are encouraged to review the new rules and amend immigration and recruitment plans as needed.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.