Panama is a country
known for the diversity of nationalities that converge in its territory. It is
something that we Panamanians have seen since we were children. In fact, many
Panamanians have friends who remained in Panama due to work or love. It is common
to encounter a Chinese owner of a convenience store, or a merchant with a
foreign accent in a shopping mall. The above-mentioned situations are but a few
examples of the great diversity of cultures in Panama.
However, despite the
fact that Panama has a long-standing tradition of welcoming foreigners from all
over the world, it has developed labour laws designed to protect Panamanians’
jobs. The labour laws in Panama limit the percentage of foreigners that can
work for a company. Several professional licenses are prohibited for
foreigners, including medicine and law. We do not intend to pass judgment on
the labour laws as appropriate or inappropriate; we only refer to them to
inform our readers.
It has been possible to
overcome some of these legal setbacks through the promulgation of migratory and
labour legislation creating new immigration statuses. For example, foreign
university graduates or nationals of a country among those appearing on the
list of 48 privileged countries, commonly known as “friendly nations”, are now
eligible for one of the new immigration statuses.
Nevertheless, this does
not provide a solution for everyone, and much less to those who, despite having
one or more university degrees, cannot work in their profession as a result of
a law that prevents them from obtaining a license reserved only for Panamanian
nationals.
Neither do such legal
restrictions provide a solution to the ever growing number of foreign investors
who are eager to trade their products in the retail sector, which is another
activity reserved for Panamanians by the Constitution. Such persons, quite
often pressed by circumstances, may choose to naturalise or become citizens.
This is basic
information for lawyers, but it is also good for others to keep in mind
that the National Constitution sets out three separate conditions under which a
person may request naturalisation:
1. Five consecutive
years of residence in Panama
2. Three consecutive
years of residence in Panama if there are children born to a Panamanian mother
or father or Panamanian spouse in Panama
3. By reciprocity, if
the person is a national of Spain or another Latin American country, and
fulfils the same requirements for naturalisation of a Panamanian in that
country.
In any event, one should
bear in mind that the above-mentioned residence needs to be permanent and
obtained in accordance with the respective migratory procedures. In addition,
proficiency in Spanish and basic knowledge of Geography, Spanish, and Panama
Political Organization must be proven through a test given by the Electoral
Tribunal. A foreigner seeking naturalisation should note that the National
Constitution requires renouncing the nationality of origin. Although an
affidavit is used for this purpose, same which is attached to the
naturalisation file, those documents need not be presented to the country from
which a person renounces. However, it must be taken into account that in some
countries renouncing nationality has legal effects, whereas there are no such
effects in others.
Naturalisation is
usually a lengthy process considering that by law the President of the Republic
needs to review such requests, and that the matter itself, due to national security,
requires participation of certain government agencies.
As we do not foresee a
Constitutional amendment in the near future, and modification
of certain laws regulating the subject entails long consultation periods,
it may well be wise to start thinking about the naturalisation
process as a viable option.
Immigration
Services Offered by Mossack Fonseca
Our full suite of
immigration services encompass all of the current Panama visa programs for
tourists, immigrants, workers, investors, foreigners married to Panamanian
businessmen/women, and others. A partial list of the many visa programs we can
assist you with includes:
• Naturalisation as Panamanian Citizen
• Friendly Nations Visa
• Pensioner Visa
• Professional Employment Visa
• Reforestation Investor Visa
• Self Economic Solvency Visa
• Business Investor Program
• Married to Panama Citizen Visa
• Parents of Child Born in Panama Visa
• Tourist Visa
• Tax Free Processing Zone Investor Program
In addition, we can
assist clients with extensions, exit and entry permits, residency, and a host
of additional visa, immigration, and other legal services.
If you have any
questions or would like further information, please do not hesitate to contact
your local Mossack
Fonseca office, or email us at rcoronado@mossfon.com
or marketing@mossfon.com