Working in Panama as a French National: Permits, Contributions, Tax, Tax Treaty, Self-Employed and Remote Work

The SNM describes in its requirements sheets (requisitos) several routes to work for a foreigner. The provisional permanent-resident permit for foreign staff of private companies (PPT-6) concerns a foreigner hired within the limit of 10% of the company’s ordinary staff, with a salary of at least B/.850 a month; it lasts two years, then the holder can opt for permanent residence. The file includes in particular an employment contract countersigned (refrendado) by the Ministry of Labour (MITRADEL), a letter from the company stating the post and the salary, the notice of operation and the certificate of good standing of the company, a work permit, proof of affiliation to the CSS and the company’s national tax clearance certificate.

• Professional foreigner (PPT-PROF): permit open to graduates whose profession is not reserved by the Constitution or by law for Panamanians by birth or naturalisation; the diploma is apostilled or authenticated, and a foreign diploma requires recognition.
• Nationals of specific countries: a job in a Panamanian company (work letter, public registry, notice of operation, application filed with MITRADEL) opens a provisional two-year residence, provided the person belongs to a country on the list set by decree.
• Panama-Pacífico zone: a specific permit covers workers within the limit of 10% of the ordinary workers of a company in this special economic zone, with a certificate from the zone and affiliation to the CSS.

A tourist does not work, and the remote worker visa forbids accepting an offer of work or services in Panama (sworn statement). The page on living in Panama presents the residence statuses, and the guide to working abroad summarises the general logic.

The legal minimum wage is set by MITRADEL. Its official portal could not be consulted when this page was written: no amount is given here, and the scale in force can be read on the ministry’s minimum wage portal, which states the applicable rates.

The SNM sheets do, however, provide income thresholds that serve as benchmarks: a foreigner hired within the 10% quota earns at least B/.850 a month; a resident from a specific country who brings dependants proves their solvency with an income of at least B/.1,000 a month, plus B/.100 per dependant; the remote worker has a contract providing at least B/.3,000 a month of foreign source. The pay levels actually applied beyond these minimums vary by sector, employer and region, and the official sources consulted do not publish them by occupation. The “Economic indicators” block above gives the updated indicators.

The Social Security Fund (CSS) is the country’s social protection body; its immigration requirements sheets demand proof of affiliation for a foreign employee. Law No. 462 of 18 March 2025, which reforms the CSS organic law, raises the employer contribution in stages: from the April 2025 contribution month to the February 2027 one, the employer pays 13.25% of salaries, against 12.25% previously; the schedule presented by the CSS then provides for 14.25% and then 15.25%. The employee’s share could not be found in an official source read for this page and should be confirmed with the CSS or the employer.

For an employee seconded by a French company, CLEISS explains that, in a country with no agreement with France, the secondment lasts three years, renewable once, and that an employee already seconded for the maximum period cannot be seconded again to the same country until after two years. They remain affiliated to the French scheme while being subject to the local scheme if it is compulsory, the employer paying the corresponding contributions; care reimbursements remain limited to the French level and, for the family, only the benefits of children living in France apply. See the guide to secondment versus expatriation and the glossary entry on the local contract.

The tax authority (DGI) applies the territoriality principle: the return covers income and expenses of Panamanian origin. The scale for individuals is 0% up to B/.11,000, 15% on the excess up to B/.50,000, then B/.5,850 plus 25% on the surplus. The return for individuals is filed by 15 March of the following year, with an extension without penalty to 15 April, the tax due remaining payable on the original date.

The France-Panama treaty to avoid double taxation, signed in Panama on 30 June 2011, entered into force on 1 February 2012; for taxes withheld at source, it applies to amounts taxable from 1 January 2013 (BOFiP, the French official tax doctrine). It contains several rules that matter to an employee.

• Employment income (article 14): pay is taxable only in the State of residence, unless the employment is exercised in the other State; it remains taxable in the State of residence alone if the stay in the other State does not exceed 183 days over twelve months, if the employer is not established there and if the cost is not borne by a permanent establishment.
• Residence (article 4): in the event of dual residence, the text uses the permanent home, then the centre of vital interests, the habitual abode and nationality. The notion of resident excludes persons liable to tax in a State only on local-source income, a point to examine for a person taxed in Panama only on Panamanian-source income.
• Double taxation (article 21): France eliminates double taxation through a tax credit on income taxable in Panama; Panama exempts income taxable in France.

The French tax administration reminds us that one can remain a French tax resident despite having one’s home abroad. The combination of status, length of presence and nature of income is specific to each case: the non-resident individuals tax office or a tax adviser confirms the treatment before departure.

The CSS organic law (No. 51 of 2005, article 79) opens voluntary insurance to people not subject to the compulsory scheme, including the self-employed. Group G (contributing self-employed) provides proof of activity and a copy of the latest income return received by the DGI; group B2, open to foreigners, proves a monthly income with a minimum taxable base of B/.500, a home address and medical examinations, and contributes under modality 3 (disability-old age-death and sickness-maternity).

The remote worker visa is a short-stay non-resident visa: nine months, renewable once for the same period, for an employee of a foreign multinational company or a self-employed teleworker whose foreign-source income reaches B/.36,000 a year, with a letter from the employer attesting at least B/.3,000 a month, a health insurance policy valid in Panama for the whole duration, payment of B/.250 to the SNM and B/.50 for the card. The duties are carried out abroad, with no job offer in Panama. The guide to digital nomad visas and the page on digital nomad insurance complete these benchmarks.

The SNM’s official texts express amounts in balboas (B/.), accepting the foreign-currency equivalent to justify income; the “Economic indicators” block above gives the growth, inflation, unemployment and GDP per capita indicators, updated continuously. The official statistics consulted do not detail the sectoral breakdown of employment.

The specific immigration schemes do, however, indicate the sectors the State wants to attract: the Panama-Pacífico special economic zone, export-oriented call centres, export processing zones, the film and audiovisual industry, agricultural investment (temporary permit from B/.60,000 invested in agro-industry or aquaculture) and forestry investment. For a specific business project, the sheet of the scheme concerned sets out the conditions. On health protection, see the Panamanian healthcare system and healthcare reimbursement in Panama; Expavy helps you compare contracts once your work situation is settled.