A 2016 Harvard study cited immigration as an important factor in Panama’s rapid growth over the last decade.
I wasn’t surprised. Panama is a melting pot of diversity–particularly Panama City– and I knew many skilled foreigners working high-level jobs in Panama. I wasn’t, however, expecting to read their suggestion that Panama should start attracting more immigrants if rapid economic growth is to continue.
These days, when you hear about immigration it’s usually not exactly favorable. But as Ricardo Hausmann, author of the Harvard study, insists:
“It is very hard to create world-class institutions and to be able to innovate by relying exclusively on locally born talent. If it was based on locally born talent, Silicon Valley would not exist.”
Hausmann’s research examines Panama’s three Special Economic Zones, which have less laws hindering foreign employment than other parts of Panama. His study found that skilled immigrants working in these zones generated “positive knowledge spillovers on Panamanians productivity and wages.” Hausmann argues that loosening foreign labor laws in other parts of Panama is in its best economic interest.
Restricted Professions List
People with incredible skill sets often ask me about how they might secure a job in Panama. I always have to be honest and tell them it’s hard.
There are 25 professions on a government mandated “Restricted Professions in Panama” list dictating that only Panamanians and individuals married to Panamanians can work in certain job groups. This was implemented to ensure those coveted jobs went to Panamanians as opposed to foreigners.
Mostly the list covers licensed professionals such as physicians, dentists, lawyers, certified public accountants, registered nurses, pharmacists, veterinarians, therapists and chemists but also hairdressers, engineers, journalists and cosmetologists.
To protect the Panamanian workforce further, another law was implemented that mandated only 10% of a company’s workforce could be comprised of foreign nationals, even in unrestricted professions. That was changed to 1.5 foreign-born individuals out of ten for “expert workers”, but still, that is low.
Exceptions and Alternatives
Hausmann’s research sparked a national conversation, with recommendations made to the Panama government. We should know shortly if restrictions on hiring immigrants will be lifted or loosened. Thankfully, there are a few exceptions and alternatives that foreigners can consider in the meantime.
Costa del Este
Costa del Este is Panama’s hotspot for multinational corporations, with more than 130 there now and more arriving every year. Johnson & Johnson, Procter & Gamble, Estee Lauder, and Adidas are just a few of the major corporations you can find in Costa del Estate.
Why Costa del Este? Panama offers incentives to multinational companies that open an office there– such as tax rebates and not having to maintain a 9:1 ratio of Panamanian workers for every non-Panamanian employee. This creates an opportunity for skilled foreigners looking for employment in Panama. They can apply to these companies online, much like anywhere else. Be forewarned– you’ll probably need to be bilingual.
Panama Pacifico
As a Special Economic Zone, Panama Pacifico can offer companies more lenient labor regulations. This planned community is located in the old Howard Air Force Base near Panama City. It’s home to scores of multinational companies, including Dell, Pepsico, and PriceSmart.
Like Costa del Este, Panama Pacifico offers a higher ceiling on the proportion of foreign vs. national workforce. There are also special investor and worker visas available, with benefits extending to an employee’s immediate family. Multinationals located in Panama Pacifico are a good place to look for foreigner-friendly positions.
City of Knowledge
As another Special Economic Zone, the City of Knowledge receives accommodations allowing for more international employees.
City of Knowledge, or Ciudad del Saber, is a government-sponsored community of academic, tech, and non-government organizations dedicated to research and innovation. Some organizations represented in the City of Knowledge include UNICEF, the Red Cross, the U.S. Peace Corps, the United Nations Development Programme, and the World Food Program.
Create Your Own Employment
Of course, many foreigners come to Panama and make it the old-fashioned way: by pouring their heart and soul into a business. While employment laws are strict in Panama, the laws surrounding establishing a business in Panama as a foreigner are quite lax.
It’s common for foreigners to come to Panama and open restaurants, B&Bs, retail shops or tourism companies. Many use their talents and experience for consulting or freelance work. Others start an online business or manage an existing business from the computer. Panama has a thriving economy that offers plenty of opportunities to the entrepreneur.
