What are the restrictions in hiring a foreign (non-Panamanian) individual to work as an employee for my company?
Panamanian laws establish that only 10% of a companies work force can be foreign (non-Panamanian). Therefore, to hire a foreign (non-Panamanian) employee you are required to obtain a work permit issued by the Ministry of Labor. The law establishes that 90% of employees must be Panamanian citizens or a foreign individual married to a Panamanian, or foreign individuals that have resided in the country for ten or more years. However, there are exceptions to the 10% rule. For example, under circumstances where the company requires specialized staff that is not readily available in the labor force in Panama, it is permitted to hire technical or specialized staff not exceeding 15% of all the company’s employees. Also, under certain conditions, the Ministry of Labor can authorize a higher percentage of technical and specialized foreign (non-Panamanian) employees. Panamanian companies with under 10 employees are permitted to have at least 1 foreign (non-Panamanian) employee. Please note that t
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