Searching for a job abroad can be overwhelming. The absence of connections in the new business world, unfamiliarity with labor laws and employers' preference for local staff can be daunting. However, understanding the job market and working with legal and recruitment professionals can ease the process. Even though finding a job in Panama may present some challenges, most foreigners thrive in the local work environment. This guide covers key sectors in the capital and provinces, the legal framework for employment and job-hunting strategies to help you navigate the Panamanian job market.
Overview of Panama's economy
Panama is a major financial and trade hub. The country owes its essential role in the region to its strategic position linking the Atlantic and Pacific Oceans via the Panama Canal.
The local economy has recovered from the pandemic The current unemployment rate is 9.5% 鈥� a major improvement since the 18% pandemic spike. However, the social and political situation is not ideal. The recent change in the Panamanian government, the closure of the major copper mine and the narrative of the newly elected U.S. President Donald Trump regarding the Panama Canal have created a certain unease in the country. Nevertheless, the country's standing is stable, supported by several key industries such as banking, logistics, tourism, construction and international trade.
Panama's economy is dollarized. The U.S. dollar is the official currency alongside the Panamanian balboa. Thus, expats from the United States enjoy a smooth transition into the country's financial landscape. People from other countries also benefit from reduced risk of currency fluctuations.
Key employment sectors for expats in Panama
Panama City concentrates the lion's share of the country's job market. Still, foreigners can also find numerous job opportunities outside the city. The main employment sectors in the provinces differ from those in Panama City. However, some overlap is present. For example, IT and finance positions are available mainly in the capital. In the provinces, agriculture and fishing industries create a significant number of jobs. Still, tourism, real estate and construction are important in the capital and beyond.
Finance and banking
As mentioned above, most finance positions are concentrated in Panama City. Banks, brokerage firms and investment funds often seek professionals with international experience. Expats can try their luck in corporate finance, investment banking and asset management.
Logistics and shipping
Logistics is Panama's economic locomotive, representing 28% of the country's GDP in 2024. The Panama Canal, Col贸n Free Trade Zone, Panam谩 Pac铆fico and major ports determine the vastness of this sector, which is not limited to Panama City.
The following logistics positions may be available in Panama: supply chain manager, freight forwarding specialist, logistics coordinator, customs and trade compliance specialist, transportation manager, warehouse operations, logistics data analyst, etc.
Expats can find logistics jobs in:
- Panama Canal Authority: Roles in maritime logistics, engineering and shipping operations (Foreign nationals' applications are limited to hard-to-fill positions);
- Col贸n Free Trade Zone: Jobs in import/export, freight forwarding and customs;
- Panam谩 Pac铆fico: Logistics and multinational supply chain companies.
Tourism and hospitality
Tourism plays a vital role in the economy of this tropical paradise. Panama City is a business hub that receives many business travelers and tourists. Tourism and hospitality are among the leading industries in areas like Bocas del Toro, Chiriqu铆 and the Azuero Peninsula, which are also home to large expat communities.
Foreigners with experience in hotel or restaurant management, customer service, tour guiding or event planning can find opportunities in the country.
Construction
Construction is a sector that has been under strain lately but still plays an essential role in the Panamanian economy. Although architecture and engineering fall into the category of reserved for Panamanians, some foreigners work in the field by partnering with Panamanian nationals or doing limited-time consultancy jobs. Note that a foreign national cannot get a Panamanian work visa or license for these careers.
Real estate and property management
The importance of the real estate sector to the country's economic health is hard to overestimate. Foreign investors have long favored Panama's property market. This fact opens career prospects to professionals proficient in languages, especially English.
Expats can find jobs in sales, customer service and real estate brokerage. Note that real estate brokers have to be licensed in Panama. The institution responsible for issuing licenses is . A foreigner must reside in the country for at least five years to apply.
Besides Panama City, real estate and property management jobs are available in growing areas, such as Boquete, David, Coronado and Pedas铆, where the market is expanding.
Technology and IT
Panama City provides most jobs in this sector due to the concentration of tech companies in the capital. Programmers, systems analysts, data science specialists, developers and cybersecurity specialists are in demand here.
Education
International schools in Panama often hire foreign teachers, especially those with TEFL or TESOL certification. Most of such institutions are located in the capital. However, other areas like Coronado, the Azuero Peninsula and Bocas del Toro are also home to international education centers.
Agriculture and fishing
Agriculture and fishing sectors can provide career prospects for expats wishing to live in rural areas. Agricultural regions like Chiriqu铆, Veraguas and Cocl茅 often need skilled professionals. Although agronomy and agriculture belong to the in Panama reserved for Panamanian nationals, foreigners can still work in agriculture-related roles that do not require a professional license. Examples include agribusiness and farm management, as well as sales, marketing and supply chain roles.
The fishing industry is significant in Veraguas, Chiriqu铆 and Los Santos, known for their fishing and seafood production. Experts in the field can find opportunities in fishing management, fish farming and seafood processing. Additionally, Panama is a popular fishing tourism destination, and organizing fishing tours can be a way to combine work and passion for the sport.
Retail and services
Most retail and services jobs are concentrated in Panama City, which has numerous malls, wellness centers, real estate agencies and coworking spaces. However, there is also demand in the provinces for personnel proficient in English and Spanish.
In the capital, foreigners can find sales, customer service and store management positions. In Panama's provinces, expats often start businesses that offer specialized services such as expat-focused tourism and consulting or food and beverage establishments.
NGOs
This country is home to numerous that often require skilled personnel with expertise in international development, human rights, environmental protection, education, health and social services. Here are some roles that can be available in Panama-based NGOs:
- Program management and coordination;
- Research and monitoring;
- Fundraising and donor relations;
- Advocacy and public relations;
- Social services and education;
- Environmental and conservation roles;
- Legal policy and support.
Note that Spanish proficiency is typically required for these roles in Panama, as well as relevant experience and expertise. Often, these organizations require the applicant to be authorized to work in the country, although some NGOs may assist in the application process for highly qualified specialists.
Legal framework for employment in Panama
Panama has a relatively well-regulated labor market. Panamanian laws are designed to protect workers. Expats wishing to work here should learn about local labor regulations to comply with the law and protect their employees' rights.
Protected professions
Panamanian law establishes reserved exclusively for Panamanians. Examples include but are not limited to medicine, psychology, journalism, law, dentistry, sociology, agronomy, accounting, architecture and engineering. Foreign nationals are not allowed to practice in these fields. Some foreigners bypass this regulation by working under the license of a Panamanian company. However, they cannot obtain their certification to offer independent services.
Labor rights
Panamanian labor law provides several protections for employees, including a standard 40-hour workweek and regulations on overtime pay. Workers are entitled to paid annual, sick and maternity leave. Additionally, employees benefit from social security benefits, including health insurance, pension contributions and disability coverage. It is essential to work legally and contribute to the Social Security Fund, which guarantees employees' rights.
Taxes and social security
Panama has a territorial tax system, meaning the country does not tax foreign-earned income. Residents must pay taxes on their Panamanian income according to the following scale:
- Up to $11,000 - 0%;
- From $11,001 to $50,000 - 15%;
- Above $50,000 - 25%.
Additionally, both employees and employers in Panama must contribute to the Social Security Fund, which covers health care, pensions and other benefits. The employer deducts a percentage from the employee's salary (9.75%) and makes monthly payments to the fund along with the employer's contribution (12.25%).
Foreign personnel quotas
Panamanian companies are allowed to employ foreign nationals. However, labor regulations limit foreign staff to 10% of the firm's workforce. Specialized or technical quotas of 15% are designed for cases when an employer cannot meet its personnel needs locally.
Work visas
To work legally in Panama, foreigners must obtain a work visa through the National Migration Service and a work permit through Mitradel (The Ministry of Labor and Workforce Development).
There are several types of work visas, each with their specific application and requirements. Arranging legal documentation can be complex and is best navigated with the help of local lawyers.
Job hunting in Panama
Online portals
The job search process in Panama is similar to that of the rest of the world. Nowadays, the internet is a gateway to the job market. Online portals known worldwide, such as and , are also popular here. The former has a broader selection of job offers. is an official employment portal of Mitradel (Ministry of Labor and Workforce Development). is a large Panamanian portal. , which advertises varied products, from real estate to cars, also has a job section. is another site posting employment offers.
Networking and professional groups
Networking is one of the most common ways to find a job. Friends, acquaintances, professional groups and conferences can surprise you with unexpected possibilities. In Panama, expats can benefit from :
- Chamber of Commerce events: and host networking events that can provide a link to your dream job. is a prominent organization that supports business development in the country.
- Meetups and business associations: Industry-specific events are excellent for making professional connections. is an open forum for professionals doing business in the country. is an organization dedicated to the maritime industry. has listings of business events happening in Panama.
Recruitment agencies
Although more and more people rely on independent job search, recruitment firms help expand the spectrum of possibilities. Some examples of recruitment agencies in Panama are:
- - specializes in corporate hiring;
- - provides executive search services;
- - focuses on executive search and coaching;
- - offers online search and agency services for a broad selection of jobs;
- - helps find both corporate and domestic employment.
Registering with job recruiters can increase your chances of getting noticed and offered a position.
Salaries in Panama
Salaries in Panama vary greatly depending on the industry and the location. The capital offers the lion's share of executive positions with higher earnings, while you can expect to find low- and mid-level wages in the provinces.
The country's average minimum salary is US$600 per month. Entry-level jobs pay between US$1,000 and US$2,500 monthly. You may earn over US$3,000 if you are a highly skilled professional. If you manage to secure an executive role, you can enjoy a luxury lifestyle, earning between US$5,000 and US$10,000+ per month.
Panama's work culture
Panama's businesses tend to be team-oriented with a well-defined hierarchical structure. However, the work environment can vary depending on location and sector.
Punctuality is a condition that all employers require but not all employees provide. While the capital's multinational companies are more strict about this aspect, a more relaxed attitude from staff can occur even in some government institutions. In the provinces, punctuality varies, so don't be surprised if businesses open later or delays happen.
The dress code also varies. Formal attire is expected in the capital's business environment and government institutions, while other industries, such as retail and real estate, allow for more casual clothing. If you work in tourism or hospitality in provinces, you may be able to enjoy the country's sunny climate by wearing shorts and flip-flops to work.
Panamanians value their free time, so public holidays and vacations are sacred. Locals often choose a day off over extra income. In Panama, employees are entitled to 30 days of paid annual leave after 11 months of continuous employment, in addition to 12 public holidays each year.
This tropical country is known for its slow pace, which can be challenging for newcomers. Expats often complain about delays and inefficiency in the workplace. Raising your voice is not a winning strategy in the local work environment. A smile and a polite request will get you further. However, do not expect things to be as swift and precise as in your home country.
Takeaway
Panama's strategic location and strong economy create abundant job opportunities. Understanding the peculiarities of the local labor market is crucial for building a successful career. Legal restrictions and competition can be challenging, but the right job search strategy, expertise and Spanish proficiency open many doors in this country. Networking, job portals, recruitment agencies and compliance with labor laws help ease the transition into the Panamanian workforce.
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