Panama is one of the most attractive destinations in Latin America for professionals and foreign workers. Its dollarized economy, commercial dynamism, and position as a Hub of the Americas create a constant demand for international talent in private companies across all sectors..
If a Panamanian company has already hired you (or is about to do so) and you are looking for a way to establish yourself and work in the country, the Residence Permit under the 10% of Ordinary Personnel in Panama is, with high probability, the path designed for your situation. It is the most common migratory work permit for foreign workers hired by private companies in Panama, and in this guide prepared by the expert lawyers at Legalys, we explain everything you need to know..
1. What is the 10% Ordinary Personnel Residence Permit?
The Residence Permit under the 10% of Ordinary Personnel is a migratory category that allows legally established Panamanian companies to hire foreign workers for non-specialized positions, provided that these workers do not exceed 10% of the total of their payroll registered with the Social Security Fund (CSS)..
This is a dual permit: it grants residency and, simultaneously and mandatorily, a work permit must be processed with the Ministry of Labor and Workforce Development (MITRADEL). Both processes are managed in parallel..
1.1. What type of positions does it apply to?
This permit is designed for non-specialized positions within the sponsoring company. There is an important restriction: the position cannot be supervisory or of trust. Additionally, if the position requires a university degree or specialized technical training, there is another immigration category that may be more suitable. At Legalys, we analyze your profile before starting any procedures to ensure that you are in the correct category..
1.2. How many foreigners can a company have under this modality?
The calculation is proportional to the payroll of the Social Security Fund (CSS) and the earned wages.
Panamanian Employees on CSS Payroll | Foreigners Allowed under 10% |
10 employees | 1 foreigner |
20 employees | 2 foreigners |
50 employees | 5 foreigners |
100 employees | Up to 10 foreigners |
The percentage is calculated based on the total number of workers registered in the CSS from the month prior to the request.
2.2. Key Requirements: Company and Worker
The documentation preparation is the most determining factor for the success of the process. The requirements are divided between those provided by the sponsoring company and those provided by the foreign worker..
2.1. Company Documentation
The company takes an active role in the process. It must demonstrate that it meets the requirements and provide all its corporate and labor documentation:
- Power of attorney signed by the Legal Representative, granted to the processing attorney (Legalys develop the model).
- Employment contract duly endorsed by the Ministry of Labor (MITRADEL).
- Current Operations Notice of the employer company.
- Certificate from the Public Registry confirming the legal status of the company (original).
- Copy of the payroll payment from the CSS for the previous month, with breakdown or letter from the accountant.
- Letter from the Certified Public Accountant (CPA) certifying the proportion of national vs. foreign workers and their salaries. A copy of the ID and the CPA certification of the signing accountant must be attached..
⚠️ Warning: If the company does not have at least 10 Panamanian employees on its CSS payroll, it will not be able to sponsor this type of permit. Legalys verifies this point before starting the process to avoid rejections.. |
2.2. Documentation of the Foreign Worker
The worker must gather the following personal documentation:
- 4 passport-sized photos (white background, formal attire).
- Complete copy of the valid passport (general information and entry stamp).
- Card in process issued by the Servicio Nacional de Migración (SNM), once the residency process has begun.
- Certificate from the SNM that verifies the applicant's immigration status (Legalys manage this document).
2.3. Salary Requirement
The salary of the foreign worker must meet two simultaneous conditions:
- Minimum: It cannot be less than $850.00 per month.
- Proportionality: The salary of the foreigner must not exceed 10% of the total salaries earned by all Panamanian employees of the company.
3. The Step-by-Step Process
The process takes place before the National Migration Service (SNM) for residency and before MITRADEL for the work permit. Both processes run in parallel and must be managed by a qualified Panamanian lawyer.
Step 1: Preliminary verification and document collection
Before submitting any application, Legalys conducts a verification of the company's compliance with the requirements (CSS payroll, salary ratios, job type) and the worker's immigration profile. This step prevents costly rejections and delays..
Once compliance is verified, the collection and preparation of all company and employee documentation begins..
Step 2: Presentation to the National Migration Service
The application for a Provisional Residence Permit is formally submitted to the SNM. Upon acceptance of the file, a Processing Card is issued to the applicant, a document that allows them to verify their immigration status while the application is being processed..
Step 3: Parallel processing of the Work Permit with MITRADEL
Simultaneously, the process is initiated before MITRADEL for the Work Permit for 10% of Regular Personnel. This permit is mandatory: obtaining residency does not exempt the worker from also processing the work permit..
Once the residency is approved by the SNM, the work permit with MITRADEL is approved accordingly.
Step 4: Issuance of the Provisional Resident Card
Once the application is approved (a process that can take up to 6 months from the complete submission of the file), the SNM issues the Provisional Resident Card, which is valid for 2 years..
Step 5: Renewal and Permanent Residency
Upon the expiration of the 2-year provisional period, the worker can apply for Permanent Residency, which is for an indefinite period. The work permit, for its part, is renewable for additional periods of 3 years..
4. Can I include my family?
Yes. One of the advantages of this permit is that the worker can include their family group (spouse and children) as dependents within the same residency process. The dependents will obtain a resident card linked to the status of the holder..
📌 Remember: The immigration status of dependents is directly linked to that of the primary worker. If the holder changes employers or loses their permit, the dependents may be affected..
5. Common Mistakes When Applying for Indefinite Leave
5.1. Key Warnings
- Company with insufficient payroll: The most common mistake is to start the process without verifying that the company has the minimum required 10 Panamanian employees. This point can invalidate the entire application from the beginning..
- Supervisory or trust position: Incorrectly describing the position can lead to rejection. The position must clearly be an operational or general role.
- Change of employer without new application: This permit is linked to the sponsoring employer. If the worker changes companies, it is mandatory to initiate a new permit with the new employer.
6 What is the cost of the service Residence Permit 10% of Ordinary Personnel in Panama?
Knowing the real costs from the beginning is part of responsible migration planning. At Legalys, we are transparent: there are no surprises..
Type of applicant | Main applicant |
Precio de la solicitud | $1,600.00 |
Administrative expenses | $1,400.00 |
Summary of administrative expenses | All expenses are included in this fee: 1 Check to the National Treasury (US$250); 1 Check to the National Migration Service (US$800), Notary Fees for Documents, Fees, and the processing and residency card for Migration (US$ 350) |
Total: $3000.00
Includes: legal advice, document preparation, representation before MITRADEL, management of the card and ITBMS on fees. Additional expenses not included: authentication of ID, migration certificate (SNM), photographs, and notary fees..
✅ The online quote from Legalys is valid for 30 days. Request your personalized quote at legalys.com.pa.[ presupuestador en línea →].
¿Your company already has 10 Panamanian employees? ¿Ya tienes contrato firmado?
Consult today with our experts in Panamanian immigration law and get a free evaluation of your case.
Schedule your free consultation. We evaluate your case and let you know if you qualify..
✅ Assessment of your case
✅ Complete management of the file
✅ Real-time tracking from your portal ORBIS
✅ No surprises: $3000.00 all included
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Yes. Both the application to the SNM and the work permit process with MITRADEL must be handled through a qualified Panamanian lawyer. At Legalys, we specialize exclusively in immigration procedures, so we will start your process immediately..
Yes. After the 2-year provisional residency period, you have the right to apply for Permanent Residency, which is indefinite and does not depend on the employer..
No. The permit is linked to the sponsoring employer. If you change companies, you must start a new process with the new employer. Legalys can advise you on the steps to take in that case.
Disclaimer legal: Este artículo tiene carácter informativo y no constituye asesoría legal directa. Las leyes y reglamentos migratorios panameños pueden modificarse. Consulte su caso particular con Legalys, abogados especializados en derecho migratorio panameño.
Author: Legalys Editorial Team — A firm specialized in Immigration Law in Panama with over 10 years of experience and fully digitized processes for the best customer experience.
