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IMPACT – MEDIUM
What is the change? Panama has made changes to its entry requirements for visa-required nationals.
What does the change mean? Effective Jan. 13, nationals of visa-required countries may enter Panama for tourism or business with a visa or proof of residence issued by Australia, Canada, the United Kingdom or the United States, provided other requirements are also met. Schengen Visas will no longer be accepted as a basis for entering Panama.
Background: The new rules came about under a recently issued decree that took effect Jan. 13.
Those entering Panama on the basis of one of the visas listed above must also be sure that the visa is valid for multiple entries, is valid for at least one year from the day of entering Panama, and has been used at least once to enter the issuing country before travel to Panama.
Travelers who have met these requirements will be permitted to stay in Panama for 30 days, renewable for an additional 60 days.
BAL Analysis: Affected travelers should take note of the changes and assess whether they need to obtain a new visa before traveling to Panama.
This alert has been provided by the BAL Global Practice group and our network provider located in Panama. For additional information, please contact your BAL attorney.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
When traveling to Panama, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if you require a work permit. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Panama, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
Nationals of the European Union, the United States, and many other select countries are eligible for a visa waiver and are not required to obtain a visa in order to enter and conduct business activities in Panama. Additionally, many foreign nationals who normally require an entry visa to Panama but who have a valid visa or residence permit from Australia, Canada, Japan, Singapore, the United States, the United Kingdom, South Korea or have a Schengen Visa may also be exempt from the entry visa requirement.
If your nationality is not eligible for a visa waiver, you must obtain a Tourist Visa from a Panamanian Embassy or Consulate prior to travel. Please obtain an individual assessment before traveling to determine your eligibility for a visa waiver.
The activities below, whether paid or unpaid, generally constitute work under Panamanian law. This list is not exhaustive, and many other professional activities are considered work in Panama, even if conducted for a short duration.
Business visitors traveling to Panama to engage in select professional activities, such as establishing business subsidiaries, carrying out commercial transactions and/or participating as a bidder of public tenders, may be eligible to apply for a Short Stay Business Visa after arrival to Panama. Please consult with your immigration counsel for additional information and to determine your eligibility for a Short Stay Business Visa.
The requirements for work authorization depend on your qualifications, nationality, on the nature and duration of your work and on whether your employer has an entity in Panama. The most common types of work authorization for Panama are:
Panama does not offer long-term work authorization exemptions.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
What is the change? Panama’s National Immigration Service has lowered the minimum salary for foreign workers on International Executive visas from US$5,000 a month to US$2,000.
What does the change mean? Companies may wish to adjust payroll budgets in light of the lower salary minimums, which follow a dramatic increase in the salary minimum in June.
Background: In June, Panama dramatically increased the minimum salary for workers on International Executive visas from US$1,000 a month to US$5,000 a month. Panamanian authorities subsequently decided to lower the threshold in order to bring it into closer accordance with minimum salaries for other visa categories in Panama. The US$2,000-a-month minimum took effect Nov. 29, when the new salary level was published in the Official Gazette.
BAL Analysis: The reduction of the minimum salary represents a significant change that will make it easier for companies to send employees to work in Panamanian branch offices on International Executive visas. Companies should take note of the change and adjust their employee salaries if they wish to do so.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Panama’s National Immigration Service has instituted new rules for entering the country through the nation’s airports.
What does the change mean? Travelers will be routed through one of three lines, one for Panamanian nationals, one for tourists and one for non-Panamanian temporary or permanent residents. Tourists and residents will have to undergo fingerprinting and may encounter long lines. Delays should be expected.
Background: The changes, which were recently implemented, require non-Panamanian nationals entering Panama for the first time to submit fingerprints from both hands. For subsequent entrances, they will be required to undergo fingerprinting of four fingers. Non-Panamanian residents should be sure they have proper identification in order to enter through the line for residents.
BAL Analysis: Delays should be expected, particularly in the first few weeks of the new procedures. Travelers should be sure to travel with proper identification and should build more time into their schedules when traveling to Panama.
What is the change? Panama has changed the way it calculates the quotas that determine how many foreign nationals companies are allowed to employ.
What does the change mean? Effective immediately, foreign nationals holding Specific Countries, Panama-Italy or “Crisol de Razas” work permits, previously counted as Panamanians when calculating quotas, will not be counted as Panamanians or foreign workers. Holders of Professionals work permits, previously counted as foreign workers, will also not be counted as Panamanians or foreign workers. The rules apply both to current work permit holders and future work permit applicants.
Background: Panamanian labor code dictates that no more than 10 percent of a company’s labor force can be made up of foreign workers. Additionally, no more than 15 percent of a company’s managerial or technical positions can be foreign workers. Exceptions to this rule exist for certain work permit categories and, until now, Specific Countries, Panama-Italy or “Crisol de Razas” work permit holders were counted as Panamanians when calculating quotas. Professionals work permit holders were counted as foreign workers. Under the new rules, all work permit holders in the categories listed above will not be counted as foreign or Panamanian workers when calculating quotas.
BAL Analysis: Companies that exceed the 10- or 15-percent quota limit will risk having work permit applications, including renewals, denied. Companies employing foreign nationals in the work permit categories listed above should recalculate their quota figures to make sure they remain in compliance. Those that need help securing the necessary foreign labor while remaining in compliance with relevant quotas or regulations should contact BAL for assistance.
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About Berry Appleman & Leiden LLP Founded in 1980, Berry Appleman & Leiden (BAL) provides comprehensive global immigration services from seven offices across the U.S. and from offices in Geneva, London, Melbourne, Rio de Janeiro, São Paulo, Shanghai, Singapore and Sydney. BAL manages global visa matters and customized application approaches for work permits, business visas, and residence permits in more than 100 countries. With a single cost center for worldwide operations, BAL offers centralized management with regional and local support for the complete spectrum of global immigration matters.
Source: Berry Appleman & Leiden LLP
What is the change? Immigration authorities in Panama are strictly enforcing a requirement that foreign employees’ original ID cards be returned when their visas are canceled, even if the cancellation is requested by the company.
What does the change mean? Authorities will no longer accept a copy of the ID card. If the foreign employee is no longer available or has left the country, the employer must obtain a power of attorney signed by the visa holder in order to request a migratory movement certification from immigration authorities.
Background: Immigration authorities have always required the return of a foreign employee’s ID card upon visa cancellation, but previously accepted a letter from the company and a copy of the ID card, especially in cases where the employee had left the country.
Now, when an employee is unavailable to return the card, the employer must request a migratory movement certification from the immigration authorities before it can cancel a visa. In order to obtain the certification, the company must submit a power of attorney signed by the employee, authorizing a request for a migratory movement certification. The employer must then submit the certification in lieu of the original ID card.
BAL Analysis: To avoid delays in case a visa needs to be canceled, companies should request that the employee sign the appropriate power of attorney at the outset of the visa process. BAL can assist with this process.