Working In Panama: Everything You Need To Know

Are you considering working in Panama? Thanks to its beautiful landscapes, friendly and welcoming culture, and relatively low cost of living, there are plenty of reasons to consider employment in this Central American destination.

In this post, we’ll discuss visa considerations, average wages, and common types of work expats look for. Whether you’re interested in launching your own business, landing a job at a corporation in Panama City, or making ends meet as a digital nomad, we’ve got you covered.

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Working In Panama

Sources vary on whether Panama is a good place to live and work because wages are highly variable. Government restrictions prevent companies from hiring foreigners for more than 10% of their positions, and expats are also prohibited from working in certain fields.

However, there are opportunities in Panama with international corporations and nonprofits. Many expats start businesses or work remotely for countries outside of Panama.

How To Work In Panama

To hold a job in Panama, you must obtain a visa or residency that expressly allows you to work. The kind of residency visa you hold dictates what you are allowed to do, so it’s important to research the different options. The Friendly Nations Visa and the Professional Employment Visa are popular choices.

Migration laws can change rapidly so it’s crucial to obtain up-to-date information from a reliable source. You may wish to speak to an immigration lawyer to avoid confusion. 

If you find work with a corporation or non-profit, they may be able to assist you in getting the appropriate paperwork.

After you’ve obtained your temporary residency or other work-permissible visa, you will need a work permit from Panama’s Ministry of Labor. Visit their website for more information. 

There are many different kinds of work permits, including those for permanent residents, holders of the Friendly Nations Visa, experts and technicians, and others. 

Wages In Panama

Wages in Panama vary a lot and are influenced by industry, region, education, and experience.

According to a January 2024 decree, the minimum wage ranges from $1.64 an hour for agricultural workers in small business settings to $4.88 an hour for airplane mechanics.

Fortunately, it is possible to earn more than minimum wage.

According to Expat Den, the median annual salary in Panama is $25,940. A quarter of the Panamanian population takes home more than $69,780 a year. For expats, the best-paid jobs are generally found with multinational corporations and international non-profits.

Indeed reports that surgeons, judges, lawyers, bank managers, executive directors, financial directors, marketing directors, and pilots make the most money. However, some of these sectors are reserved for Panamanians, and foreign employees are prohibited from working in them.

Types Of Jobs In Panama

Let’s discuss the work options in Panama in more detail, from everyday jobs to starting your own business.

👉🏻 Everyday Jobs

It isn’t common to move to Panama and get a job working as a delivery driver, supermarket clerk, or waitress. Wages are often low for this kind of work, and fluent Spanish is essential. In addition, the government only allows companies to hire one foreigner out of every ten employees.

Your chances of finding a job improve if you are a professional with a specialty, years of experience, and an upper-level degree. Spanish fluency is still a must, but Panama is seeking people with talent. One source claims that professional tradesmen, logistic experts, computer programmers, and management executives may have the best chances of being hired.

Before you can hold a job in Panama, you will need to apply for residency and obtain a work permit. According to Rod Larrivee of  Retire in Panama Tours, you must have a job offer from an existing company in Panama before you can even start the process. You’ll be given temporary residency and a work permit. If you apply through the Friendly Nations Visa, the process of becoming a permanent resident could cost $8,000 to $10,000 and take approximately two years. Work visas can take four to six months to obtain. 

Some corporations to look into include the Panama offices of 3M, Dell, Caterpillar, and Hewlett-Packard.

Note: If you lack experience, consider interning with a company in Panama to improve your qualifications.

👉🏻 Work Exchange Jobs

If you’re less concerned with making a salary than you are about financing your travels, work exchanges are great ways to make your money go further and experience Panama differently.

Many places across the country offer room and board in exchange for a certain number of volunteer hours in their home or business. Workaway and Worldpackers are two common ways to search for and apply to different work exchange positions.

Workaway has over 100 hosts looking for volunteers in their hostels, eco-lodges, sailboats, and water sports projects.

👉🏻 Digital Nomad Jobs

Another way to earn a living in Panama is to work online.

Sometimes, expats already have functioning online businesses before moving. Others find remote jobs or work as freelancers. They cite the lower living costs, gorgeous year-round weather, and tax advantages as prime reasons for their change of address. More affordable real estate is an additional attractor.

While getting hired by a Panamanian company can be complicated, digital nomad jobs can be easier to find, higher-paying, and potentially offer more flexibility. Many freelancers have the freedom to set their own hours and explore to their heart’s content. 

Panama’s Digital Nomad Visa allows remote workers and freelancers to live in Panama for 9 months, with the option of extending to 18 months.

Remote workers in Panama offer their services as writers, social media managers, content creators, graphic designers, stocks and crypto traders, and online counselors or coaches. Others earn money through affiliate marketing jobs.

Consider renting in the area you’re interested in before purchasing property to see how fast and reliable the internet is, and how often there are power outages. Rod Larrivee of Retire in Panama Tours has excellent suggestions for how to set up backup power and backup internet so that your online work will continue without a hitch.

👉🏻 Starting A Business In Panama

If you have an entrepreneurial spirit, starting a business in Panama could be just the thing.

Research your visa and residency options to ensure you can legally start your own company in Panama. The Friendly Nations Visa is a great option.

Although you’ll have to jump through government hoops to launch your start-up, many aspects of business in Panama are similar to those in North America. 

Ensure your business is set up and registered correctly and employ a trustworthy and competent local accountant.

Expats in Panama have started successful businesses selling botanical health and beauty products, serving retirees looking to move to Panama, creating custom kitchens, and selling high-end furniture. Others open resorts, restaurants, and boutique hotels.

Learn more about starting a business in Panama.

Requirements to Move To Panama

Moving to Panama involves planning, paperwork, and a willingness to adapt. Start by exploring visa options, such as the tourist visa for short stays or the Friendly Nations Visa. Panama offers residency to investors, retirees, and professionals.

Next, research the cost of living and decide on a location that suits your needs. Popular options include Panama City for modern amenities, Coronado for beach life, or Boquete for a cooler mountain climate.

To find housing, begin with short-term rentals to explore your neighborhoods of interest before committing to long-term leases or property purchases. If you’re moving with your family, investigate schooling options. Private international schools often offer the best experience.

Learn basic Spanish, making daily interactions much easier and helping you integrate into the culture. Building connections within local and expat communities will help you adapt to your new home.

Finally, stay informed about safety, health care, and transportation options to ensure a smooth transition. Moving to Panama is exciting, and with the right preparation, you’re sure to fall in love with its vibrant culture and tropical charm.

Frequently Asked Questions: Working in Panama

Conclusion About Working in Panama

Although finding jobs in Panama involves surmounting some hurdles, the rewards are often worth it. Otherwise, this Latina American country wouldn’t rank as the best place overall to live overseas, according to an Expat Insider report. Whether you seek a professional career with a local company, opt to freelance, or choose to start your own business, working in Panama could be a rewarding experience.