HOW TO RELOCATE TO PANAMA

TABLE OF CONTENTS Page

Introduction 3

Panama Relocation Checklist 3

CHAPTER 1: DRIVING IN PANAMA

Driving a Vehicle in Panama 6

How to Get a Panama Driver’s License 9

Panama Car Insurance 12

Panama Vehicle Registration 14

How To Get a New Panama Vehicle License Plate 15

HOW TO DRIVE A PANAMA VEHICLE TO ANOTHER COUNTRY 17

CHAPTER 2: BUYING OR RENTING APARTMENTS

IN PANAMA

OWNERSHIP 19

Renting Panama Real Estate 27

Buying A Panama Condo 31

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CHAPTER 3: LIVING IN PANAMA

How to Receive Mail in Panama 34

How to Get a Cellular Phone in Panama 37

Getting Your Electrical & Gas Utilities & Water in Panama 39

How to Open Panama Personal Bank Accounts 43

Choosing the Best Panama School 45

Where are the Best Hospitals in Panama City? 54

How to Import Your Car & Household Goods Duty Free 58

as a Pensionado

How to Hire a Maid in Panama 61

How to Get a Panama Work Permit 65

How to Get Married in Panama 68

Having a Baby in Panama 70

How to Get a Divorce in Panama 75

How to Import Guns into Panama 78

How to Buy a Gun in Panama 80

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Introduction
Moving to a foreign country can be mind boggling and stressful if you do not know
the local laws, customs, and the way things get done. This e-book will make the
move to Panama much easier.

We have prepared a Checklist of things you should do from your home country
before you actually make the move to Panama.

We also have chapters regarding driving, basic living needs, renting or purchasing
real estate,

Panama Relocation Checklist

Before leaving your country to relocate to Panama here is a useful Checklist of
things you need to do:

1. Research Panama Immigration Visas to see which one would be the best fit
for your family. Panama has numerous permanent residency programs for entire
families including pensioners, investors, businessmen, job offers, and even for
citizens of 22 “friendly nations”. While Panama’s embassy and consulate websites
can provide general information it is better to find a Panama immigration lawyer’s
web site to learn about specific immigration visas. Read our Immigration web
pages to learn more about Panama Immigration.

2. Research the Types of Vaccines needed to relocate to Panama. The U.S.

Center for Disease Control recommends contacting your doctor to determine what
vaccines are necessary depending on your health, vaccine history and which part
of Panama you will relocate to. For instance, make sure you are up to date with
routine inoculations for mumps/measles/rubella (MMR) vaccine, poliovirus vaccine,
and diphtheria/pertussis/tetanus (DPT) vaccine. The CDC website has a map of
the world indicating Panama has an intermediate risk of Hepatitis A virus but no
risk of contracting Hepatitis B Surface Antigen. Some areas east of the Panama
Canal Zone heading towards the border with Colombia may require a Yellow Fever
vaccination. Click Here for CDC Panama

3. Research Customs Duty and Taxes for new vehicles and luxury items being
shipped to Panama.

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4. Bringing Pets to Panama requires rabies vaccines and specific forms from
your vet and other documents. See our web page Pet Immigration for this
information.

5. Medical Health Insurance covering travel to Panama may be purchased.

However if you plan to fly to Panama City’s International Airport (Tocumen), you
will receive a brochure explaining the government of Panama’s free medical
insurance program covering you and your family for the first 30 days. After that
period you can purchase health insurance plans in Panama

6. Gather Important Documents to take with you and have them Apostilled by
your government within 3 months before applying for a Panama immigration visa, a
Panama driver’s license, and opening a Panama bank account. These documents
include:

• Marriage and birth certificates

• Passport, naturalization document, green card, proof of citizenship, etc.
• Social security cards
• Vaccinations, dental and medical records
• Insurance policies
• Academic records and diplomas
• Employment records
• Proof of residency (utility bills with your name and address)
• Driver’s licenses
• Original reference letter from your bank (two banks would be better)
addressed to a specific Panama bank and signed by a bank official.

An Apostille is an internationally recognized method of authenticating government

issued documents such as birth and marriage certificates and driver’s licenses. In
the U.S., a state’s Secretary of State Office can do the Apostille.

7. Moving & Shipping: Locate an international moving & shipping company.

8. Vehicle Insurance which can be used in Panama.

9. Property Insurance during shipping and relocation. There are international

insurance companies who can provide coverage for expats and their relocation.

10. Maintaining Bank and Credit Card Accounts requires notifying them of your
move so they won’t treat you like an identity theft fraudster.

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11. Prescription Drugs requires taking a quantity with you and obtaining the
pertinent medical records which need to be kept in a safe place.

12. International Driving Permit must be obtained which will be carried with your
original driver’s license.

13. Cancel Subscriptions to newspapers, magazines, and anything else which

will be delivered or mailed to your former home.

14. Hotel & Flight Reservations should be made as soon as you verify your
travel date.

15. VOIP Phone Service (Voice Over Internet Protocol) like the free Skype
account to make free international calls.

16. Research the culture, neighborhoods, things you need which are not available
(so you can stock up), schools, job opportunities, real estate prices, Spanish
language schools, and Panama’s expat community groups and forums for
networking.

Contact Us for all of your Panama Relocation needs.

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CHAPTER 1: DRIVING IN PANAMA
Driving a Vehicle in Panama
Always carry your passport (or Panama ID called a “Cedula”), your country’s
driver’s license (if you do not have a Panama driver’s license) and International
Driver’s Permit when driving a vehicle in Panama. The Panama police will ask for
these if you are stopped while driving.

A foreign driver’s license is valid for 3 months in Panama. The police officer may
ask to see the Panama immigration entry stamp in your passport to verify that you
have not been in the country longer than 3 months. After the first 3 months
foreigners are required to obtain a Panama driver’s license.

The ATTT is the Panama government agency responsible for road travel including
vehicle registration and licenses. Their website is: Autoridad del Transito y
Transporte Terreste

Panama Road Rules & Regulations

• The minimum age for drivers is 18;

• You must drive on the right side of the road;

• You must keep the following documents on your person or inside the car at all
times: your ID, your valid driver’s license, vehicle registration, insurance papers,
and accident report form.

• It is prohibited to be using a cellular phone while driving.

• Children under 5 years old must be seated in a special car seat in the rear.

• 3rd party insurance is mandatory.

• Seat belts must be worn by the driver and front seat passenger.

While rules of the road are often ignored, the laws can be enforced by traffic police.

Traffic tickets issued by the police for violations such as using a cellular phone
while driving must be paid within 48 hours at any Autoridad del Transito y
Transporte Terreste office. The ATTT office in Panama City is located in the Juan
Diaz neighborhood in the Los Pueblos area.

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Speed Limits, Roads and Driving Drunk

Panama Roads

Panama has a network of paved highways connecting Panama City with the
Atlantic Ocean coast and through the interior to the border with Costa Rica.
Panama City’s main roads and in most large towns are paved and fairly
maintained.

Panama’s main highway is called the Inter-American highway which runs from
the border with Costa Rica to Yaviza, Darien Province. Past Yaviza leading to
the border with Colombia is the mainly impenetrable Darien rainforest making
driving unfeasible. Colombia is generally accessible from Panama either by
foot, airplane, or by boat.

There are toll highways called the Corredor Sur and Corredor Norte with
nominal toll fees depending on the length of time spent on the highway.

Panama Road Problems

Panama City is experiencing a lot of road work, building construction, and a metro
subway system construction project (completion expected in 2014) all contributing
to closed roads and single lane traffic causing a lot of traffic congestion.

Panama City has many manholes which are uncovered, drainage problems, and
potholes on its roads. Panama City also has poor road drainage after heavy rains
causing road flooding problems. There are few traffic lights in Panama City.

Much of the work on Panama’s highways outside of Panama City occurs during the
night with few road lights increasing night time hazardous conditions. The roads in
the undeveloped regions are rarely paved, as well as, the small roads off the
highways.

Panama Speed Limits

Typical speed limits in the city streets are from 25 to 30 Km/h and about 100 Km/h
on Panama’s highways. All road signs, speed limits, and many car odometers are
in Kilometers.

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Panama Vehicle Insurance

Every car in Panama must have 3rd party liability insurance. This means that
the car is insured but not the driver or owner.

Some Panama car insurance policies have roadside assistance coverage.

Panama Drinking and Driving Laws

Panama’s Blood Alcohol Content is a zero driving limit. This means that just a
small indication on a breathalyzer can result in a drunken driving violation.
Drinking and driving can end up with receiving a fine and having the car
impounded. The police in Panama City often set up road blocks in different
areas to check drivers and occupants ID’s and drunk driving. However,
breathalyzers are seldom used.

Riding a Bicycle in Panama

Bicycle riding on the streets of Panama City can be hazardous. That is

because Panama City drivers can drive erratically and are unpredictable and
many drivers ignore stop signs. The traffic congestion in Panama City due from
all of the construction projects can be heavy at any time during the day which
makes bicycle riding even more dangerous.

Panama City does have parks suitable for bicycle riding like the Cinta Costera
on Ave. Balboa and the Amador Causeway.

Parking in Panama park wherever they want without regard to signs, red or
yellow paint on sidewalk borders. There are only a few streets in Panama City
with hourly parking meters.

If you happen to get a parking ticket in Panama City it must be paid at the
Municipio de Panama. Panama City’s Municipio is located on Avenida Cuba.

Contact Us for all of your Panama Relocation needs.

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How to Get a Panama Driver’s License
Foreigners using their country’s driving license can operate a motor vehicle in
Panama legally for up to 90 days. After that time period, foreigners are required to
obtain a Panama driver’s license. Once a tourist becomes a temporary resident of
Panama he or she will be required to apply for a Panama driver’s license right
away (even if it less than 90 days).

The Panamanian government contracts with a private company called

SERTRACEN to examine applicants and issue the driver’s licenses.

This is the process for obtaining a Panama driver’s license:

U.S. Citizens

All U.S. citizens are required to go to the U.S. Embassy and visit the American
Citizen Services (ACS) office during normal working hours to request an affidavit.
There is a standard form for requesting a Panama driver’s license. The Consular
cashier will charge $50 which includes a public notary to authenticate the signature
on the affidavit.

Citizens of other Countries

Citizens from other countries must contact their nearest embassy or consulate to
obtain the forms necessary to apply for a Panama driver’s license. This will also
include an affidavit similar to the one provided by the U.S. embassy.

Panama Ministry of Foreign Affairs

The Ministry of Foreign Affairs (MFA) used to be located in Edison Plaza on Ave.
Ricardo Alfaro (called Tumba Muerto) but has moved to another building on the
same street several blocks in the direction of the international airport. The MFA
will authenticate the embassy’s affidavit and a copy of the original foreign driver’s
license.

No Blood Type

If the original driver’s license doesn’t list the driver’s blood type you will have to go
to a medical laboratory which is certified by Panama’s Transit Authority (ATTT).
The website of the SERTRACEN has a web page listing all of the certified medical
labs throughout Panama. There are 65 of them in Panama City. The website link
is: www.sertracen.com.pa/

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SERTRACEN

Bring the proof of blood type medical report, your passport, original driver’s license,
residency immigration documents (if applicable), and the notarized affidavit and
MFA documents to a SERTRACEN service center whose website lists where their
service centers are located in Panama. Their phone number is 315 – 6500.

The fee for applying for a Panama driver’s license is $40 USD.

At the service center you will take an eye exam to determine whether you will be
required to wear eye glasses or contact lenses. If you fail this test you must get a
prescription and purchase eye wear before returning to retake the eye exam.

A hearing test will also determine whether you can hear cars honking and other
noises while driving.

After passing these two exams your photo will be taken along with your home
address information.

It only takes an hour for the new Panama photo driver’s license to be issued.

The Panama driver’s license is valid for four years.

Here is the entire step by step process to obtain a Panama Driver’s License:

• Certify the License in the embassy or consulate of the country where the license
was issued.
• Authenticate the embassy’s Certification in the Ministry of Foreign Affairs.
• Provide original and copy of the passport;
• Provide original and copy of the immigration card;
• Provide original and copy of foreign license;
• Provide results of blood type test issued by one of the certified laboratories (If the
license has the blood type it will not be required);
• Perform visual and auditory exams in the branch where the application is being
processed.
• Be in good standing with A.T.T.T;
• Pay $40 USD in cash (includes visual and auditory exams);
• Payment must be made in the checkout counters of the ATTT located in
SERTRACEN’s branches where the license is being processed.

** Certification by the Embassies or Consulates must provide the following

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information:
• The term "certifies or declares, certifies or establishes" must be used.
• Name of the Consul or autonomous person in charge of validating the information
must be provided.
• Applicant´s Name and Passport Number as established in the passport of their
country must be included.
• License number to be validated and expiration date must be included.
• Place or country of issuance of license must be included.
• Describe the vehicle license categories (if the license has details on the
categories, it won’t be necessary for the certification to detail them. A copy of both
sides of the license must be presented.).

Contact Us for all of your Panama Relocation needs.

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Panama Car Insurance

Panama requires that every driver of a vehicle to have 3rd party basic liability
insurance. Such policies generally include roadside assistance, medical
payments, and some provide legal services too.

Two types of Panama car insurance packages are available on top of the basic
liability insurance:

• Collision (colision)

• Comprehensive (cobertura complete)

Collision only provides coverage for accidents having injuries or death.

Comprehensive offers more coverage than basic insurance by covering damage to

the car or replacement cost if it is stolen and pays the cost for the other vehicle’s
damage if you are at fault.

Not every Panama vehicle insurance company insures foreigner’s cars. Those
which do will require a copy of the foreigner’s passport, driver’s license and foreign
title & registration. Comprehensive insurance will require the car to be inspected
with photos and verification of mileage.

Panama insurance premiums are based on the Panama driving record (foreigners
generally will have a clean driving record in Panama). Premiums will increase in
the case of an accident where the policy holder is at fault.

If the policy holder maintains a clean driving record the premium can be negotiated
when it is time to renew the policy.

In Case of an Accident

Panama law requires that cars be moved where an accident takes place to allow
the traffic to flow freely. However, drivers tend to keep their cars where they stop
after an accident until a traffic policeman or insurance company representative
arrives. Panama car insurance companies tend to arrive at the accident scene
faster than the police do and can assist with filling out the accident forms and take
photos of the accident scene.

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Panama Accident Report Form

An official Panama Accident Report Form must be kept in the car and provided to a
Panama car insurance agent at the accident scene. If the police show up first the
accident report can also be filled out then. The report describes the accident and
any damages.

You can download a Panama Accident Report Form when you Click Here (PDF).

Use the Panama Accident Report Form for minor accidents when a party admits
liability. Otherwise, a police report is required. Both reports will have similar
information such as driver information, car information, insurance information, and
description of the accident. The Panama car insurance company representative
will make sure that enough information is provided in order to file a claim.

Filing a Panama Car Insurance Claim

If the Panama car insurance company representative does not show up the policy
holder has up to 72 hours to file a claim at an insurance office providing the
following documents:

• Copy of your Passport;

• Copy of your Driver’s License;

• Vehicle repair quotes (if damaged); and

• Accident Report Form or a Police report (depending on the severity of the

collision).

Contact Us for all of your Panama Relocation needs.

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Panama Vehicle Registration
If you wish to register a vehicle in Panama, you can do it in your personal name
(which is not advisable for many reasons such as anonymity, security, liability,
etc.), or in an Entity (Panama Corporation/Panama Foundation) name.

The registration of the Entity (Panama Corporation/Panama Foundation) in the

Municipio (which is the Municipal Government Institute that registers the Vehicles
in Panama) is not automatic, this means that your Entity should be registered first
at the Municipio and then you can register the Vehicle in the name of the Entity.

PROCEDURE FOR ENTITY REGISTRATION:

Once your Entity (Panama Corporation/Panama Foundation) is registered at the

Public Registry, the following is the Procedure to be performed for the registration
at the Municipio:

1. Process at the Ministry of Commerce a Business License (if your Entity is doing
business) or process at this Government Institute (Ministry of Commerce) a
Certification that states that your Entity is not doing business and therefore does
not require Business License. These documents would take a few days to
process.

2. Process at the Ministry of Economic and Finance a Paz y Salvo (Certificate of

Payment of Corporate Taxes).

3. Process the entity registration at the Municipio.

Once the Entity is registered at the Municipio, you can then register the Vehicle
under the Entity (Corporation/Foundation).

Entity Registration at the Municipio processing fee: $100.

If you are importing a Vehicle, and wish to register the Vehicle under your Entity,
you should inform us in advance to process the Entity registration at the Municipio,
and you should deal with a Customs Agent for the Vehicle importation process,
duties and liquidation from Customs.

Contact Us for all of your Panama Relocation needs.

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How to Get a New Panama Vehicle License Plate
If you purchase a new or used car in Panama from a car dealership they will take
care of all the paper work to register the car and obtain the license plates.

If you buy directly from an individual it is best to go with him or her to the
Municipality where the car has been registered to make the ownership transfer.
Used cars must have up to date license plate and annual sticker. You will need to
bring the following documents:

• Photocopy of the original owner’s ID

• Municipality Ownership Transfer Card signed by the owner

• Copy of your ID

• Vehicle inspection certificate for current year

• Sole Title of vehicle certificate

• Municipality’s Paz y Salvo of the owner (shows nothing is owed to the

government)

• National Permit of Circulation Tax payment of the Municipality that issued the
license plate

Once all of these documents are presented the Municipality clerk will make the
transfer of ownership official.

Renewing Panama Vehicle License Plates or Stickers

Panama vehicle license plates must be renewed annually.

A vehicle inspection will be required before renewing vehicle license plates. The
inspection must be performed at a garage authorized by the Autoridad del
Tránsito y Transporte Terrestre (ATTT).

The vehicle inspection involves testing the brakes, lights, and general condition.
Problems can be fixed by the garage who will re-inspect the vehicle. The re-
inspection is free. After passing the inspection a Vehicle Registration Certificate is
stamped and signed by the garage.

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Next you will need to go to the nearest Municipio (municipal office).

Take the following documentation:

• Certificate of current vehicle registration

• If available, prior certificate of vehicle inspection along with the newest one

• Proof that the vehicle is insured

• Paz y Salvo stating that there are no unpaid tickets or fines from the government.
You can download a Paz y Salvo form Click Here

• Pay the required fee

The municipal office will then issue a new license plate or updated sticker to apply
to the old license plate.

Contact Us for all of your Panama Relocation needs.

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How to Drive a Panama Vehicle to another Country
Since October of 2010, Panama does not allow non-residents to drive a vehicle
registered in Panama to another country. That means tourists who purchase a
vehicle in Panama will not be able to drive the vehicle out of the country.

Here are the basic requirements to obtain approval to drive a vehicle

registered in Panama to another country:

1. Vehicle must be current with its registration.

2. Obtain a Paz y Salvo from the Municipality showing no outstanding parking

tickets or fines or fees are owed.

(a) Bring the vehicle to the appropriate municipality vehicle inspection site with the
chassis numbers and VIN numbers clearly visible and a clean engine.

(b) Bring the vehicle’s ATTT registration and proof of ownership documents.

3. Obtain Panama Customs Clearance Certificate from the Aduana.

4. When obtaining the above-mentioned documents, go to the Panama City

Municipality to obtain a Certificate “Autorización para la Salida de Vehículos Fuera
del País”.

Additional Required Documents

Natural persons must present a copy of their Panama ID card (cedula or

residency carnet card).

If the vehicle has an outstanding loan for its purchase, the lender must provide a
notarized authorization for the vehicle to leave the country.

If the actual owner will not be obtaining these certificates, a Power of Attorney will
be needed signed by the actual owner specifically authorizing the person and
including his cedula number.

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Corporations

Vehicles owned by a corporation will require the following additional

documents:

1. The person making the application must present his cedula and a copy of it.

2. Present an original certificate from the Panama Public Registry verifying that the
corporate owner is registered and in good standing.

3. An original notarized document authorizing the specific person to make the

application signed by a legal representative of the corporation.

4. If the vehicle has an outstanding loan for its purchase, the lender must provide
a notarized authorization for the vehicle to leave the country.

Contact Us for all of your Panama Relocation needs.

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CHAPTER 2: BUYING OR RENTING APARTMENTS IN PANAMA

OWNERSHIP

KNOW WHAT TYPE OF REAL ESTATE YOU ARE BUYING (and the Process of
Purchasing)

The Difference between Titled and Rights of Possession Properties

There is a lot of confusion when foreigners look to buy real estate in Panama.
That’s because some sellers have actual “title” and others only sell their rights to
“possess” a property. Moreover, deeds of title are different in Panama from the
United States or Canada.

Let’s clear up this confusion. Panama recognizes three different types of real
properties: Titled, Rights of Possession, and Concessions.

1. TITLED PROPERTY

Titled property is similar to “fee-simple” title in the United States and is the most
secure form of real property ownership in Panama. The Constitution of the
Republic of Panama guarantees the right to own private property. Titled properties
measured and properly recorded in Panama’s Public Registry office verify one’s
real property “title”. These verifiable, guaranteed rights allow banks to issue
mortgage loans for titled properties by registering liens against one’s title as
collateral.

Purchasing titled property is simple by following these procedures:

a) Negotiation: If you are dealing through a real estate agent, make sure all of
the terms and conditions are clear and in writing. Make sure that the written
contract clearly sets forth the payment amounts and dates. If you are
dealing directly with the seller, understand all terms before hiring an attorney
to prepare the written contract.

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 b) Promise to Purchase Contract: Instead of a Purchase & Sale Agreement
(common in the United States), the buyer and seller initially sign a Promise
to Purchase (the property) Contract. A small down payment when signing a
written Promise to Purchase Contract secures the property while the buyer
conducts a title search to verify the seller’s ownership. In the meantime, the
purchaser arranges for financing (if not paying fully in cash) and setting up a
corporation (if applicable) to hold title. Register this contract at the Public
Registry to prevent the seller from selling the property to another party prior
to the Closing.

c) Title Search: Once you sign the Promise to Purchase Contract, you should
hire a competent attorney to conduct an investigation of the seller’s title at
the Public Registry. The lawyer will also verify that the property is free and
clear of any encumbrances, liens, and other issues affecting transfer of title.
Title Search also includes reviewing the catastral survey map. In many
cases, a professional surveyor will verify the map points on the property to
avoid future boundary conflicts. Finally, have your lawyers verify the main
utility debts (water & sewer) with the government agency providing them
(IDAAN).

d) Buy-Sell Contract: Upon conclusion of the Title Search, the parties sign a
formal Buy-Sell Contract (also known as Public Deed of Title Transfer). The
escrow agent pays the seller’s final balance and transfers title into the
buyer’s name. We highly recommend using an established Escrow
company to protect both parties.

e) Title Transfer: This process is known as the “Closing” in the United States.
Property ownership officially transfers to the buyer when both parties sign
the Buy-Sell Contract (Public Deed of Title Transfer) and registers it with the
Public Registry. If title is in a corporation’s name and the buyer chooses to,
the seller merely transfers the corporation’s shares to the buyer without
transferring title. In order to facilitate the Closing by assuring the seller will

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 be paid and the buyer will receive full Title; the attorney prepares a “Promise
To Pay Letter” from a local bank. This letter guarantees full payment to the
seller when the Title Transfer registers at the Public Registry.

Problem Solved: The “Promise To Pay Letter” solves a typical Closing problem.
Sellers usually require full payment when they sign the Public Deed of Transfer
prior to the actual registration of Title Transfer at the Public Registry. There have
been instances when the seller received full payment, but the Deed was not
registered (or the government rejected the deed). The buyer did not become the
new owner because there was no record of the title transfer in the Public Registry.
The “Promise To Pay Letter” guarantees payment to the seller by a local bank
while assuring the buyer that payment is not made until actual transfer of title.

2. RIGHTS OF POSSESSION

Not all land in Panama is privately owned. People can “possess” government land
in order to improve them. These “rights of possession” can pass from one
generation to the next. Rights of Possession can be sold to third parties including
foreigners.

Possession rights are granted through a simple certification document issued by

either municipal mayors, sheriffs, or other government agencies such as the
Agricultural Reform Department (Reforma Agraria). There are no property taxes
because the possessor does not own the property. However, any structures built
on the property may incur municipal and/or national taxes if they are registered.
Possession rights become titled by purchasing the property from the government.
However, certain coastal areas, national parks, or islands are “protected
properties” which cannot be titled where the possessor can apply for an
administrative “Concession” over the land guaranteeing use of it.

An important difference between titled property and Rights of Possession is that

the latter cannot be mortgaged. This makes sense: if you do not actually own the
land (hold title), you cannot mortgage it.

The Ministry of Agriculture’s Agrarian Reform Office, not the Public Registry,
records Rights of Possession on agricultural lands.

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Otherwise, there is no central recording of Rights of Possession. Title deeds are
recorded with Panama’s Public Registry, but not Rights of Possession.

Origins of Rights of Possession

Former president Martin Torrijos father, Omar Torrijos a colonel in the Panama
Defense Forces overthrew the Panamanian President Arnulfo Arias in 1968 and
ruled Panama until his death in 1981. During those 13 years, he instituted agrarian
land reform programs including the Rights of Possession system. If you live on the
land and work the land, you have the right to “possess” it.

There are two kinds of Rights of Possession:

1. Those located in national land, which include beachfront, marine bottom and
islands, up to two hundred (200) meters inland from the high tide mark, which are
in the custody of the nation and subject to the jurisdiction of the Ministry of
Economy and Finance.

This type of Rights of Possession segregates into those subject to title and those
subject to an administrative concession (lease). The Rights of Possession subject
to an administrative concession are beachfront, marine bottom and islands.

2. Those located in agricultural land which have been allocated and transferred to
the Department of the Agrarian Reform of the Ministry of Agriculture for the specific
purposes to grant titles for agricultural use.

How Do You Tell Who Possesses What?

An administrative system exists for the documentation and certification of ROP

land. Employees of the regional offices of the Agrarian Reform, local Mayor’s
office, property tax office (Catastro), and justices of the peace (Corregidor) oversee
and manage this system of documentation.

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Foreigners can Purchase ROP land.

The national government owns ROP land. Possessors can petition the
government to obtain title. Essentially the government sells the land to the
possessor who obtains recorded title at the Public Registry office.

Acquiring possession rights to a property requires these steps:

1. Promise to Purchase Contract: Pay a small down payment at the signing of

the Promise to Purchase Rights of Possession Contract securing the property and
providing enough time for the due diligence. During this time, the buyer
coordinates payment arrangements for the closing. Contracts for the purchase of
Rights of Possession cannot be registered at the Public Registry; therefore, a
public notary should authenticate them.

2. Due Diligence: Unlike titled property that is easily verifiable through the Public
Registry, the due diligence procedures on Possession Rights property is more
complex. Panama has no central database of Possession Rights properties.
Therefore, buyers of Possession Rights should take extra precaution during the
due diligence process. Generally, the extent of the due diligence investigation that
one can realize on Possession Rights property is the following:

a. Verification of Certification of Rights of Possession: The Certification of

Possession Rights validly issued from a competent government authority
containing the possessors’ name and correct description of the property in
terms of location, size (area), limits, boundaries, and neighbors on all sides.

b. Verification of Survey: A survey stamped and signed by a professional,

licensed, surveyor engineer. This identifies the possessors’ name, location
and reflects the same information in accordance with the Certification of
Possession Rights.

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 c. Inspection: The main elements to verify are: physical occupation, no
opposition by third persons, and good faith. Your surveyor identifies and
marks the points of the property confirming these points with the neighbors
to ensure that there are no future boundary conflicts. This requires a
physical inspection. In addition, the property should be marked and fenced,
delineating the boundaries.

d. Permit Verification: In some cases, if the buyers’ intentions are to build a

certain type of structure or project on the Possession Rights property (for
example, a marina, port, hotel, airstrip, etc.), it is necessary to verify if there
are any national or municipal regulations prohibiting those activities in the
area.

3. Buy-Sell Contract: After verification, the seller expects the final balance at the
signing of the Buy-Sell Contract. If you use an escrow agent, payment of the final
balance is made once the Possession Rights Certification transfers to the buyers’
name. Contracts for the purchase of Rights of Possession cannot be registered at
the Public Registry; therefore, a public notary should authenticate them.

4. Possession Rights Certification Transfer: The possession rights over the

property officially transfers to the buyer in the Possession Rights Certification. This
occurs immediately after each party signs the Buy-Sell Contract. If the possession
rights are in a corporations’ name, the buyer agrees to purchase the corporations’
shares. Then there is no transfer of Possession Rights Certification, only a transfer
of the corporation shares to the buyer.

3. CONCESSION PROPERTY

Concession property is similar to a land lease arrangement, common in Mexico or

Hawaii. This is where the government grants a Concession to an individual or an
entity for a specific purpose, such as a real estate development, hotel, or marina.
Most Concessions in Panama are granted for a maximum of 20-year (renewable)
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periods. However, some Concessions are granted for up to 40 years (renewable)
in specially designated areas such as the Amador Causeway where there are
commercial and condominium developments currently being sold. Concession
Property exists in special coastal or other governmentally protected areas where
actual title is prohibited by law. In many cases, real estate developments on
Concession properties offer investors time-share or fractional ownership
arrangements, which are very common in Mexico and other resort-type coastal
areas around the world. Unlike Possession Rights property, the government
through a specific contractual agreement guarantees Concession property.
Therefore, there is very little risk to the investor. Title insurance companies
generally offer title policies for Concession properties.

ACQUIRING TITLE OVER POSSESSION PROPERTIES

“Titling Process” is the official administrative procedure to purchase Rights of

Possession property from the Panamanian government. You are buying the
property from the government and registering the Buy-Sell Contract with the Public
Registry. Island properties cannot become “Titled” according to the Constitution of
the Republic of Panama (only mainland can become titled). However, there are
some titled Island properties registered before the Constitutional restrictions
existed which can be sold. All beachfront titled properties require a 22 meter set
back due to high tide.

TITLE INSURANCE

Even though Panamanian laws are setup to protect foreign investors, you should
always take precautionary measures to insure your investment. I recommend Title
Insurance for every property transaction. This is readily available in Panama
through major international title insurers, such as LandAmerica Lawyers Title and
Chicago Title. Title insurance is available for titled and Concession properties but
unavailable to most Rights of Possession properties. Title policy costs are minimal
and the peace of mind is definitely worth the cost.

In Conclusion: Now that you have learned the different types of real property
rights in Panama, you can take steps to protect your investments. Look for “titled”
properties first. Make sure that you use a competent real estate lawyer to prepare

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your Promise to Purchase Contract, to conduct a thorough Title Search, and to
prepare your Buy-Sell Contract. Hire a good Escrow company to ensure that all
documents registered with the Public Registry before making final payment.

If you purchase Rights of Possession, hire a competent real estate lawyer to

prepare your Promise to Purchase Rights of Possession Contract, conduct Due
Diligence, and to prepare your Buy-Sell Contract. Hire a professional surveyor to
verify all-important facts. Protect your original documents from loss because they
will not be registered.

Obtain Concession rights for using government property whenever you can.
Again, hire a knowledgeable real estate lawyer to prepare your contracts.

Finally, purchase Title Insurance to protect your investments.

With these precautions, you should be able to enjoy full rights of ownership or
possession of your new real property purchases.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 26

Renting Panama Real Estate
Foreigners need to learn about their rights when renting real properties in Panama
or investing in Panama real estate to rent out homes or apartments.

There are two old laws dealing with Panama real property lease agreements:

Panama Civil Code of 1917

Fourteen years after Panama became a nation the Spanish Civil Code was
adopted which covers real estate leases in Panama. The Panama Civil Code of
1917 oversees private residential real property where the monthly rent is $150 or
more, business and & commercial usage, educational purposes, and industrial
usage.

Law 93 of 1973

This law oversees the following types of properties where the monthly rent is less
than $150:

• Residential leases in urban areas;

• renting rooms in a house or an apartment;

• Rentals of furnished apartments;

• Sub-leases;

• In addition, holiday (vacation) homes and apartments leased for more than six
months for any monthly amount.

When this law was first enacted, $150 a month rent was a sizeable amount.
Tenants have more protection from rental increases and evictions than from the
Panama Civil Code.

Law 93 does not include leases:

• located in the former Panama Canal Zone which reverted to Panama control;

• Rural properties;

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• Government owned properties;

• Daily rentals (inns, hotels, motels, and lodging houses) and

• Holiday home rentals for less than six months.

Note: Foreigners will only be renting properties for more than $150 a month,
therefore only the rights of tenants under the Civil Code will be emphasized here.

Tenant’s Rights

Here are the types of rights which tenants have:

Rental Amount

The parties to a lease agreement can agree on any monthly rental amount and
increases.

Security Deposits

One month’s rent as a security deposit is supposed to be paid to the Ministry of

Housing which is fully refundable to the tenant upon expiration of the lease. Before
the deposit is refunded the landlord can make a claim for rent past due or
damaged property caused by the tenant. However, foreigners usually do not know
about this law and some Panamanians ignore the law by receiving the deposits for
themselves. This is a law which is not regularly enforced.

Length of the Lease

A lease can be agreed upon by the parties for any length in time. Tenants can
break a lease by providing 30 calendar days written notice prior to the next
payment.

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Utilities

Certain services and utilities cannot be transferred to the tenant including monthly
condo homeowner’s association fees and water where the landlord is responsible
for paying. The landlord normally inflates these costs into the monthly rent.
Phone, internet, cable TV, and electricity can be placed in the renter’s name to be
paid by him or her. Commercial property leases normally require the renter to pay
water, building maintenance, and utilities.

Repairs

Structural cracks & wear and tear, electrical wires, and plumbing are normally paid
by the landlord.

Triple Lease Agreements

Rental agreements must be prepared in triplicate. One copy is for the tenant, the
second copy for the landlord, and the third copy for the Ministry of Housing.
However, since foreigners do not have knowledge of this law and many
Panamanians ignore it, normally a copy is made for the landlord and another copy
is for the tenant.

Foreigners

The Civil Code provides equal protection for leases as its citizens. Foreigners are
usually requested to provide first month’s security along with a damages deposit.
Sometimes, a landlord will request a personal reference letter from a Panamanian.
Cash or checks from local banks are the preferred methods for paying rent.

Investments

Many foreigners buy Panama real estate as investments and rent them out to other
foreigners and sometimes to Panamanians. This can be very profitable.

Taxes

Panamanians and foreigners pay income taxes on profits derived from renting
properties in Panama. There are several tax deductions to help write off the taxes
due. A landlord can deduct repairs, maintenance fee, management fees, real
estate commissions, utilities and other expenses.

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Real Estate Commissions

A realtor’s commission normally is for one month’s rent. Because there is no

Multiple Listing Service (MLS) in Panama, many times there are two or more real
estate agents splitting the commission. The law requires payment of a 7% sales
tax (VAT) called ITBMS in addition to the commission.

Real Estate Agents Services

If the tenant requests, the real estate agent can assist with setting up phone,
internet, cable TV, and electricity services in the renter’s name.

Contact Us to provide you with a quote for real estate investment services before
buying an apartment or a house as an investment.

© Copyright 2013 Panama Offshore Legal Services Page 30

Buying a Panama Condo
Work with a real estate agent who speaks English and can show you a wide range
of condominium buildings. Beware of real estate agents committed to only a few
property developers or simply looking to make the biggest commissions. Then find
a reliable English speaking real estate lawyer who can give you practical advice,
do the title search, and draw up the necessary purchase contracts. The sales
office at a specific condominium building will have the architect drawings, a model
of the building along with typical floor plans. If the sales staff hands you a written
contract you will find that it will usually be in Spanish. Do not sign anything until
you have a licensed Panama real estate attorney review it and explain it to you.

There are two types of Panama condos for sale: Pre-construction and Existing
buildings.

Pre-Construction

Developers have a “Pre-Construction Contract” ready to be filled out by their sales

staff or a real estate agent. Let us explain things a buyer should be looking out for
in these types of contracts.

Many of them include clauses restricting purchaser’s rights such as the right to re-
sell the condo unit before construction is completed without the developer’s
consent. Such a clause requires the buyer to complete the purchase before selling
to another party. The reason for such a clause is to prevent the original buyer from
selling a unit for less than what the developer is trying to sell the other units for.

Developers also include what are known as “subjective” clauses like “possibility of
a sales price increase up to 5% due to rising construction costs or materials”.
Expect this clause to be enforced every time.

Developer’s contracts often limit their liability for construction damages to one year
from the occupation permit being issued. Purchasers should be aware that
Panama’s Civil Code Article 1343 holds construction companies liable for
“structural” damages for the first 10 years. Thus, the one year limit can only apply
to “non-structural” damages.

Panama courts have held some pre-construction contracts null and void for
violating Panama’s Consumer Protection laws by having “abusive” clauses which
restrict buyer’s consumer rights.

Another problematic clause requires full payment of the balance when the
government issues the occupation permit which may occur when the foreign buyer
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is out of the country. To prevent such poor timing the buyer can acquire a bank’s
“Promise to Pay” letter which guarantees payment upon issuance of the occupancy
permit without requiring the purchaser to be present.

If the buyer wants the penthouse the pre-construction contract should be specific
about the top floor instead of naming the 20th floor because the developer may
add more floors leaving the 20th floor below the penthouse.

Another clause in which a competent real estate lawyer should include in any pre-
construction contract is a “purchaser’s protection clause” in case the mortgage
application is not approved by the bank. Without this clause the buyer will lose the
30% down payment.

Condominium Documents created by the developer include:

Plans;

Drawings;

Articles of Incorporation;

Bylaws;

These documents are filed with the Ministry of Housing and copies can be
purchased there. These documents will all be in Spanish.

Existing Condominiums

The above-mentioned documents for existing condo buildings will also be on file
with the ministry of Housing.

In addition, the Condo owners association will have their own rules and regulations
which every owner is entitled to receive. Ask about how much funds are held in
reserve and plans for future maintenance or repairs where every owner will have to
contribute.

Purchasing an existing condo unit requires hiring professionals to inspect the unit’s
electricity, plumbing, air conditioning, and structure.

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Here are the following steps necessary to purchase a condominium in Panama:

1. Promise to Purchase Contract: This will include important terms and

conditions which a competent Panama real estate attorney will need to review
before signing. The down payment will be paid when the parties sign this contract.

2. Title Search: The Promise to Purchase Contract should give the buyer
sufficient time to verify the seller is the owner. Hire a real estate attorney to do a
title search at the government Public Registry. Encumbrances, liens, existing
mortgages, and other possible problems which may affect transferring ownership
can be researched at the Public Registry. The lawyer can also research that all the
utilities are paid up.

3. Buy-Sell Contract: After the title search is completed, a formal Buy-Sell

Contract is prepared for all parties to sign.

4. Transfer of Title: Title officially transfers from seller to buyer when the Public
Deed of Transfer is signed and recorded at the Public Registry. This is when final
payment is made. In order to avoid paying the seller who doesn’t file the deed at
the Public Registry use a reliable escrow agent who will pay the seller and
personally file the deed.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 33

CHAPTER 3: LIVING IN PANAMA
Life in Panama for a new foreigner can be stressful. This section will provide you
with information regarding the basic necessities a family needs to start a new life in
Panama.

How To Receive Mail in Panama

Receiving mail in Panama can be frustrating because unlike North America
Panama does not have a home mail delivery system. Most Panama City
neighborhoods don’t even have numbers on houses or apartment buildings. Plus,
there is no Zip Code system which confuses U.S. shippers who assume the whole
world has zip codes like theirs.

Most people residing in Panama rent a box at the local Panama Post Office.
However, mail often gets lost or misplaced in the wrong post office box and this
system is unreliable.

Monthly electricity bills in Panama City are left at the entry to apartment buildings
which can be lost or misplaced forcing most customers to use their online billing
and payment services. Here is how a typical electricity bill is labeled:

William Stuart
Bella Vista, 42 Este P.H. Aqua Azul #2-18 APTD-4B
CL Ave. Rep. Bolivia Otro Lado UDI

What this means is that the courier knows that the property is located in the Bella
Vista district on 42nd Street East in the Property Horizontal (P.H.) Aqua Azul
building in Apartment 4B. The “#2-18 refers to when the building was originally
provided with that number indicating it is 2 streets up from the sea and 18 paces
from the corner. The most important line is the last one which tells the courier that
the building is close to the cross street Avenue Republic of Bolivia on the other
side of the University del Istmo (UDI).

This address is not suitable for actual mail.

So, how can you reliably receive mail in a country with no address system and an
unreliable post office box system?

You can pay for the expensive international couriers like UPS, FedEx, or DHL who
will call you before arriving at your building so you can meet them at the entry or

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buzz them up and guide them to your apartment. But, at $50+ for each delivery
can become very expensive if you receive a lot of mail from your home country.

Here are the alternatives in Panama:

Earth Class Mail provides a U.S. address which can be used for banks, credit
cards, creditors, etc. They are the best for regular size mail. They will scan the
envelope’s exterior and post it online for you to access when you want to. You can
instruct them to do the following with each piece of mail: Store, Shred, Recycle,
Forward to you, or Open and Scan the contents. You view the scanned images
and then instruct them to Store, Shred, or Forward to you. Most people opt to
store the scanned mail in their computers to save the expense of forwarded mail.
You can use the stored scanned copies to pay your bills. The costs are around
$10 USD a month.

AirBox Express provides a U.S. address which can be used for banks, credit cards,
creditors, etc. They are good for packages which cannot be scanned. The
package is received in Florida and shipped to Panama by air freight to be picked
up at one of their offices in Panama City. You can also use this company to buy
things online to be shipped through their U.S. address and forwarded to one of
their Panama offices. In addition, you can ship things from Panama. Their costs
are more expensive than Earth Class Mail ($2.25 USD for each 8 ounces), which
can be cut the costs by using one of their monthly plans which start at $15 USD.

Mail Boxes, Etc. which is the world’s largest franchise offering import & export
services, customs (aduana), online ordering of goods & products, faxes,
packaging, along with office supplies and packaging supplies. They offer a Florida
P.O. Box address with a Miami physical address enabling foreign customers to be
able to order U.S. products from the internet to be shipped to Miami and then
forwarded to their Panama offices. There are 23 offices in Panama.

Aeropost, is similar to Mail Boxes, Etc. with a Miami P.O. Box and physical address
allowing customers to shop online for U.S. products and have them forwarded to
one of their Panama offices after being approved by Panama Customs.

Priority Express, offers shipping by air and sea from Miami to Panama with door to
door services. This company handles large cargo.

Panama Offshore Legal Services offers mail forwarding to Panama. Our corporate
mail forwarding service includes a Corporate Post Office Box and Physical Address

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either in Panama City (Republic of Panama) or in Miami, Florida (USA) to receive
postal mail or courier packages. The fee is $300 per year.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 36

How To Get a Cellular Phone in Panama

Most people buy rather than rent cellular phone is Panama as they can be
relatively cheap to purchase with brand names like Nokia selling for less than $30.
The cellular service providers in Panama have their own stores scattered around
the country and kiosks at malls and on busy streets offering discounted cellular
phones with brand names like Samsung, Nokia, and even Blackberry as long as
you use their SIM card forcing you to purchase their pre-paid cell phone cards.

Panama Pre-Paid Cellular Phone Cards

Once you have bought a pre-paid cellular phone you must buy their pre-paid
cellular phone cards. You can buy these cards at supermarkets, malls, on the
street, at service provider’s stores & kiosks, and even in small grocery stores.
They come in values of $2, $5, $10, and $20. The back of the cards have a scratch
off strip which reveals the code in which you type into your phone. The directions
for inputting the code is only in Spanish so you can ask the person who sold you
the card to input the code which they are happy to do.

Four cellular phone companies operate in Panama: Claro, MoviStar, Digicell, and
+ Movil (Cable and Wireless). You can only purchase pre-paid cards from the
company whose phone you own as other company card codes will not work.
Cellular phone reception is pretty good around the country including islands and
small towns.

Panama cellular phone companies often have promotions offering double to

quadruple minutes when you buy your pre-paid cards and input the code on certain
days. Cellular phone companies send out texts to their customers notifying them
when these promotions are going on.

Many malls and popular streets with high pedestrian traffic always have young
people selling cellular phones and pre-paid cards mat discounts. When they are
wearing the company’s t-shirts and has company brochures you can feel secure
that they are legitimate.

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Annual Contracts

If you plan to move to Panama, you may want to sign a one-year contract and get
a preferable cell phone plan. Claro and Digicel have small offices and kiosks
scattered all over Panama City while the other two only have a few locations.
Getting a one-year plan can at those two companies require a lengthy wait at their
cell phone company offices. You may also need proof of residency and other
critical information in order to sign up for a long-term cell phone plan. There isn’t
much difference between the various companies in terms of service or coverage so
go with the one that offers the best plan at the time.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 38

How to Get Your Electrical & Gas Utilities & Water in Panama
The first thing you need to do to get electricity and water services in Panama is to
get a permanent address in Panama. You cannot obtain utilities in Panama from
another country. You must be able to present a housing lease agreement or title to
a home or an apartment (condo) along with your passport and appear in person to
make an appointment to have the services installed and turned on.

Panama Electrical & Gas Services

Required Documents for Electrical & Gas Connections:

Natural Person:

1. Copy of passport or national ID card (cedula or carnet issued by Panama

immigration);

2. Copy of the Title Deed of real property ownership or Certificate of Public

Registry of a Lease or Certificate of Address issued by a competent authority
certifying ownership or legal possession of the real property.

Legal Entity:

1. Copy of the Certificate of Public Registry of the Panama corporation or

Panama Private Interest Foundation;

2. Copy of the Title Deed of real property ownership or Certificate of Public

Registry of a Lease or Certificate of Address issued by a competent authority
certifying ownership or legal possession of the real property.

3. Original notarized letter authorizing a 3rd party the right to act on the legal
entity’s behalf regarding obtaining electrical and gas services;
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4. Copy of the ID of the legal representative (passport, cedula, or carnet issued
by Panama immigration);

5. Copy of the ID of the person authorized to act on the legal entity’s behalf
(passport, cedula, or carnet issued by Panama immigration).

In Addition, if this is a new building or unoccupied facility:

1. Copy of the Occupancy Permit

Gas Connection

Many apartment buildings in Panama City provide central gas services which
are included with the Condominium Homeowners Association (HOA) which is
not the responsibility of the apartment owner or tenant. The gas is always
available so re-connection services are not required.

In Panama City bottled gas is provided by two companies Panagas and

Tropigas.

Older apartment buildings in Panama City have a line from the kitchen to an
area outside where large gas tanks can be connected which last a lot longer
than the smaller bottled gas containers. You must call the company providing
the service to replace the large gas can when it runs out. In the meantime, you
can attach a small gas bottle while you wait for the gas company to show up.

Houses require contacting the gas company to purchase a new gas tank if one
is not on the premises. After calling the gas company to turn on the gas it takes
from two to five days to have that done. When the tank is near empty call the
company to have the tank refilled which also takes from two to five days. You
pay for the refill when the company refills.

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Here are the Panama City phone numbers for the two gas companies:

• Tropigas Telephone: 206 - 0088

• Panagas Telephone: 216 - 0155

Electricity Connection

One company provides electricity in Panama, Union Fenosa. Take the housing
lease agreement or the property’s title deed to the company along with your
passport (or photocopy) and pay a deposit. An appointment is made to have an
employee come to your home to switch on the service. This can take from 1 to 2
weeks so it is advised to begin this process as soon as you have the title deed or
housing lease agreement.

Electricity Bills

There is an electricity meter which is read every month. The electricity bill is
left near the front door of the apartment building or the gate at a home.

Electricity bills can be paid online or by going to a Rapid Money or E-Pago

kiosk located in malls and supermarkets. Just give the clerk the bill and pay.
While the Rapid Money payments can take several days to be credited, the E-
Pago payments only take a few hours.

Late Electricity Payments

After 2 months of non-payment, the electricity is turned off. You can

immediately pay for both months when the 2nd bill arrives to retain the service.

• Union Fenosa (in Spanish) Telephone: 315 – 7222

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Panama Water Service

Panama City water is provided by IDAAN which is a government owned

company.

After purchasing a house take the title deed to IDAAN along with your passport
(or a photocopy) and pay a deposit. An appointment is made for an employee
to turn the water on. It is the owner’s responsibility to maintain the water supply
inside the house while IDAAN is responsible for the water supplied up to the
house.

When leasing a house the tenant must pay the water bills. The process for turning
on the water supply is the same as a homeowner’s except you must present a
copy of the lease agreement to IDAAN.

Apartment (condominium) buildings always have the water turned on where the
Homeowners Association (HOA) pays the water bills.

Panama City tap water is safe to drink along with most of the country. The Bocas
del Toro province does not have safe tap water requiring bottled water which is
affordable and readily available.

Water Bills

You can pay the water bill online or go to a Rapid Money or an E-Pago kiosk
located in supermarkets and malls. While the E-Pago payments are credited
within a few hours, the Rapid Money payments may take a few days.

• IDAAN (Instituto de Acueductos y Alcantarillados Nacionales) (in Spanish)

Telephone: 523 - 8567

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 42

How to Open Panama Personal Bank Accounts

Panama banks are economically strong and were not affected by the recent global
economic crisis as banks around the world suffered losses. Panama has one of
the strictest bank secrecy laws in the world so foreigners can feel secure their bank
accounts will be private. Newcomers will need several documents in order to open
a personal bank account in Panama.

While some Panama banks may require different information they all want to know
who their customers are and that the funds are from legal sources. By using a
professional introduction by a law firm, you can increase your chances of being
approved for a bank account. Choosing the right bank is important as some banks
do not accept foreigners, some don’t offer online banking, multicurrency accounts,
or debit cards. The law firm knows what each bank offers and will help choose a
bank that will fit the client’s specific needs saving lots of time.

Once a bank is chosen, here are the general requirements:

1. Passport copy including the photo and personal information pages and the
Panama immigration entry stamp page.

2. Copy of a second ID such as a driver’s license.

3. Two financial reference letters from banks or investment brokerage firms in

which the customer held accounts. These reference letters should be on original
letterhead, dated within three months, addressed to the specific Panama bank, and
signed by an officer of the bank or investment brokerage company.

4. Two professional reference letters from lawyers, accountants, or financial

consultants using the same format described above. Panama professionals will
have greater weight than foreign ones.

5. A copy of the last two years income tax returns.

6. Fill out and sign the bank’s application form.

7. A personal letter explaining the source of funds which will be deposited. This
could include source of funds documents such as a copy of retirement or pension
income, an annuity statement, or a letter from an employer.

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Once all of these documents have been collected, an interview with a bank officer
is required. A law firm will provide professional bank introduction and a translator if
the banker does not speak English (which is very common).

Bank interviews usually entail why the foreigner wants to open the account and an
explanation of where and from what source future funds will be coming from.

A compliance officer will contact references to verify them before approving the
account which may take anywhere from a few days up to a few months.

Expect a minimum initial deposit to open the account ranging from $500 to
$100,000, depending on the bank, and which department of the bank will be used.
Choosing to open an account with the Private Banking department of a bank
makes the minimum much higher, but the service and benefits are greater. The
initial deposit can be done by cash or U.S. Dollar check.

Panama banks have a variety of credit and debit cards offering different credit
limits and fees. If the foreigner does not have established credit history in
Panama, banks will ask for 125% to be deposited of the monthly maximum credit
amount. There are silver, gold, platinum credit cards with options for air miles or
points systems.

Debit cards will generally have the option of the “MasterCard”, “Visa”, or “Clave”
system. The fees for using debit cards vary between banks.

Panama banks offer savings and checking accounts. Some banks provide a
savings book which requires visiting a branch of the bank with the book to make
deposits or withdrawals. Other banks eliminated the savings book and use online
banking and just a deposit or withdrawal slip when banking in person.

Panama law firms offer a “bank account introduction and processing” service for
foreigners which includes the law firm’s professional introduction to the bank, plus
the law firm assists with completing all the forms and due diligence documents in
advance, provides a professional reference letter, and assists through the process,
including follow up with the bank until the account is approved.

Order Now a Panama Bank Account Introduction or Contact Us for all of your
Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 44

Choosing the Best Panama School
Panama has many good private schools to choose from for expats relocating here.
Panama’s private schools are amongst the top in Central America.

It is recommended that foreigners enroll their children into private schools because
Panama’s public schools lack resources, good teachers, and have poor curriculum.
Another problem is over crowding where schools have students either attending
the morning session or the afternoons and not full time resulting in half the hours of
instruction offered in North American schools.

The majority of Panama private schools have a onetime admission fee ranging
from $1,000 up to $12,000 per student. Large family discounts are available.

The school year either follows the North American schedule from September to
June or March to December. Every school is closed during Carnival, Easter, and
Christmas. The best schools offer a good curriculum following the International
Baccalaureate program and hire natural English speaking teachers earning high
salaries. Many Panama private schools have swimming pools, athletic facilities,
and modern high tech classrooms. Most Panama private schools provide
transportation services for home to home pick up and return.

Panama private school students come from all around the world including Asia,
Europe, and North & South America. There are even language based schools
such as a Japanese school, a French school, several Chinese schools, and
English schools. Religious based schools include Jewish, Catholic, and Muslim.

While most private schools are located in Panama City there are new international
schools opening just outside the city.

Here is a list of the international and private schools:

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Panama Pacifico Academy
Panama Pacifico Academy (PPA) is one of the newest schools in Panama and will
be opening their doors for the first time for the 2012 – 2013 school year. Initially,
they will be offering Pre-K3 to 8th grade in the traditional schooling environment
and a high school curriculum via an online learning program.

Panama Pascifico Academy is located in the Panama Pacifico development which

is just west of downtown Panama City, Panama. There is a onetime admission fee
of $10,000 per child. Pre Kindergarten classes costs $10,500 per year and K-12
costs of $12,500 per year. PPA offers a discount for families with multiple children.

Tel.: ++ (507) 836 - 5054

E-Mail: info@ppa-panama.com

Website: www.ppa-panama.com/

King’s College
King’s College is the new British School of Panama which will open its doors in
September 2012. This new private school is part of the King’s Group, an
internationally well-known, prestigious education organization with schools in Spain
and the UK.

King’s College will initially offer pre-primary, Nursery and Reception Years and the
Primary Cycle. Eventually the school will also offer the full secondary cycle.
Schools in the King’s Group achieve very high academic standards, this year
students at King’s have been awarded scholarships to Cambridge University and to
Yale University.

King’s College delivers the English national curriculum. The focus is on

developing thoughtful and knowledgeable young people. They strongly believe
that a child-centered, exploratory learning teaches young children how to think,
question and explore new ideas.

For further information on King’s College please contact them by e-mail at:
Lindsay.carmody@kingsgroup.org

or visit their website www.kingscollege.com.pa

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International School of Panama
The International School of Panama (ISP) is located on Golf Club Road
Cerro Viento Rural, San Miguelito district in Panama City.

The ISP was created in 1982 and is currently home to over 900 students from all
over the globe. They offer classes from Pre-K – 12th grade. New applications to
what is widely considered the best school in Panama are accepted up through May
and are reviewed by a committee. The calendar runs from August – June. The
Ministry of Education in Panama certifies ISP graduates as well as the Southern
Association of Colleges and Schools (SACS) and the International Baccalaureate
(IB). School curriculum includes classes for students with learning disabilities and
special education programs. Special needs students are considered for admission
to ISP on an individual basis depending on their needs and the level of service
available to ensure success in the regular classroom environment. Admission is
determined by a special team relying on a variety of information such as an
Individual Educational Plan, psychological and educational evaluations, school
grades, and interviews with parents and teachers. All classes are taught in
English.

Tel.: ++ (507) 293 – 3000

E-mail: admissions@isp.edu.pa

Website: www.isp.edu.pa

The Metropolitan School of Panama

The Metropolitan School of Panama MET) offers classes from Pre-K to the 9th
grade and from the 2013 school year and beyond, they will be offering one
additional grade level, meaning by the 2017 school year they will be offering a full
12 year school program.

The staff and teachers at the Metropolitan School of Panama are from all over the
globe.

The Metropolitan School campus is located near Clayton in the City of Knowledge.
The school year is from August – June.

Contact the Director of Admissions at admissions@themetropolitanschool.com

Tel.: ++ (507) 317- 4700 or ++ (507) 317-1130 .

Website: www.themetropolitanschool.com/
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Balboa Academy
The Balboa Academy enjoys both Panamanian and USA accreditation for all
graduates fulfilling the school’s rigorous curriculum. Balboa Academy began in
1999 and has over 800 full time students from pre-kinder through 12th grade.
Balboa Academy applicants should submit their documents for review by May. All
classes are taught in English and Spanish is taught as well. Their high school
offers French language courses. The school year starts in August to June.

Location: Clayton, Ciudad del Saber, Building No. 129

Tel.: ++ (507) 211- 0035

Website: www.balboaacademy.org/

The Panamamerican School

The Panamamerican School is located in the Cerro Viento district. This school’s
academic year is from March thru December. It is one of only two schools in
Panama offering curriculum for handicapped students and children with learning
disabilities. Classes are for the mostly in English, with an increased Spanish
emphasis in the higher grades. Current enrollment is over 600 students.

Tel.: ++(507)266 – 6513 or 266 – 4692

Website: www.panamericanschool-pa.com

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Colegio De La Salle
Colegio De La Salle is a Christian school, founded in 1975 as an educational
institution, its main concern is the integral formation of each student, respecting the
free development of personality within the concepts of Christian ethics, a sense of
community acts socio-cultural and commitment of every citizen. The school period
is from March to December.

Location: Vía Simón Bolívar, El Cangrejo district of Panama City

(Phone) ++(507) 223 - 6256 / 263 - 6325

(Fax) ++ (507) 265 -1094

Website: www.lasalle.edu.pa

Colegio de Panama
Colegio de Panama operates from March – December and expanded in 2011 to be
a fully accredited elementary and high school. It is located in the San Francisco
neighborhood and they offer their own bus service.

Location: Calle 73 in the San Francisco district of Panama City

Tel: ++(507) 391- 3930, 391 - 3929

Fax: ++(507) 270 - 2339

E-Mail: elcolegiodepanama@cableonda.net

Website: www.elcolegiodepanama.edu.pa/

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Colegio San Agustin
Colegio San Agustin was established in 2001. San Agustin school has a total
enrollment of 2,000 students from Pre-K to 12th grade. This school is located in
Costa del Este district and the school year runs from March – December. All
classes are given in English and graduates are certified by the Ministry of
Education of Panama. They do not have any programs for disabled students, and
operate their own bus service.

Tel. ++(507) 271 – 4590 /91 / 92

Website: www.colegiosanagustinpanama.com

Oxford School
Oxford School should not be confused with Oxford International School which is
another good school in Panama City.

The Oxford School was founded in 1984 and is the first private international British
school in Panama. It follows the National Curriculum of England.

It is located off of Transismica street in Edison Park. It offers classes from Pre-K to
12th grade. All classes are in English with the exception of Social Studies classes.
The school year runs from March to December. Graduates are certified by the
Ministry of Education and also Cambridge University in England.

Contact: Aida Ceballos Academic Secretary

Phone: ++ (507) 321- 3811

E-Mail: aceballos@oxfordpanama.com

Website: www.oxfordpanama.com/oxford/

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Oxford International School
Oxford International School is a well respected private school. The school is
located in the Bella Vista district in Panama City on Via España street The Oxford
International School of Panama was founded in 1983 and accredited by the
Panama Ministry of Education, as well as the following certificates: Northwest
Association of Accredited Schools and Commission on International and Trans-
regional Accreditation” (CITA). The total student body is 900, the school year goes
from March – December, and classes are taught in both English and Spanish.

Location: Oxford International School of Panama is located in front of La Iglesia de

Guadalupe on Vía España street.

Tel.: ++ (507) 265 – 6422

Website: www.ois.edu.pa/ois/

Saint Mary’s School of Panama

Saint Mary’s School of Panama is located in the Albrook neighborhood in Panama
City. This is considered an “international “school because the majority of the
students are from all over the world and they also use the American and European
calendar of August – May. Classes are entirely in English, and degrees are
recognized by the Ministry of Public Education. St Mary’s Panama campus has
almost 1,650 students and is one of the largest schools in Panama. While St.
Mary’s is a Catholic school it does accept students of all religions.

Phone: ++(507) 315 - 0724/ or 315-0725

Website: www.stmarypa.com/

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Colegio Javier
Colegio Javier is well ranked in Panama. Its original campus is located on Via
Espana and offers education for grades Pre K – 12 in a mostly bilingual
environment. A second campus was recently opened near Clayton in the former
U.S. Canal Zone. Enrollment is limited in this Catholic school in Panama, but
positions are still open. The school year is from March – December, and there are
approximately 1,925 students enrolled in the Colegio Javier.

Location: Perejil district in Panama City on Via España. 2nd campus near Clayton

Tel: (507) 269 - 4222

Fax: (507) 223 – 4002

Website: www.javier.edu

Crossroads Christian Academy in Cardenas

Crossroads Christian Academy in Cardenas is a small school run by Panama’s
biggest English speaking Evangelical Church whose curriculum includes Bible
classes. Grades are PK 4 – 12 and students are prepared for U.S. universities.

Location: Cardenas district in the former U.S. Canal Zone.

Tel.: ++(507) 317 – 9774

E-Mail: info@isaacrabin.com

Website: www.ccapanama.com

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The Episcopal School in El Carmen (CEP)
The Episcopal School in El Carmen (CEP) is a bilingual school with a good
reputation. Spanish is taught in every class so either your child already knows
Spanish or starts with kindergarten and learns Spanish that way. By high school
students can learn French or Japanese as a third language. Great after school
activities such as a debate club, dance clubs, soccer, ecology club, school
newspaper, and folklore.

Tel.: ++(507) 223 – 4836

Fax: ++(507) 264 – 8336

E-Mail: colegioepiscopaldepanama@hotmail.com

Website: www.cep.edu.pa

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 53

Where are the Best Hospitals in Panama City?
Panama has a very good healthcare system and is very inexpensive compared to
North America and Europe. Panama has several local insurance companies
providing medical insurance coverage for as low as $35 a month. There are
healthcare insurance plans covering up to 80% to 100% of the surgery,
hospitalization, medicines, and therapy.

Panama City health care costs are half that of the United States and more
foreigners are taking notice. The city has many good dental clinics and four large
hospitals which are affiliated with respectable U.S. medical hospitals and offer first
class equipment and facilities.

Regular medical care, all types of surgery, hospitalization, and minor & major
dental care in Panama cost less than half as in the Europe or the U.S. For
example, a MRI costs $900 in Panama while costing $2,000 in the U.S.

Panama City Hospitals

The best private hospitals in Panama are in the capitol. They offer the highest
levels regarding excellence in care and superior medical procedures, technology,
and equipment. Four of them affiliate with prominent U.S. hospitals.

The 4 Major hospitals in Panama City include:

Centro Medico Paitilla

Located near the main ocean view Balboa Avenue, this hospital affiliates with the
Cleveland Clinic where the two hospitals hold joint annual conferences in Panama
for the past eight years. This hospital boasts having Panama’s best-known
Oncology Unit.

Location: Calle 53 and Avenida Balboa in Marbella district

Tel: 265 – 8800
Website: http://www.cmpaitilla.com/Default.aspx

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Clinica Hospital San Fernando

Located on busy Via España street, this hospital has an “international office”
helping expats unfamiliar with Spanish. The San Fernando Hospital affiliates with
three respectable U.S. hospitals: Miami Children’s Hospital, Baptist Health
International of Miami, and Tulane University Health Services Center.

Location: Next to McDonald's on Via España

Tel: 305 - 6300
Fax: 305 – 6303
Website: http://www.hospitalsanfernando.com/www/

Hospital Nacional

Located just 3 blocks from Balboa Avenue, this hospital is run by the American
Hospital Management Company which affiliates with the Kendall Medical Center in
Florida and the University of Nebraska Medical Center.

Location: Between Calle 38 and Calle 39 on Ave. Cuba

Tel: 306 – 3300/ 207 - 8100
Fax: 207 8337/ 227 0580
Website: http://www.hospitalnacional.com/index.html

Hospital Punta Pacifica

This hospital is newer than the other three and is considered the most technically
advanced hospital in all of Latin America. They have state of the art diagnostics.
They offer advanced videoconferencing allowing authorized doctors around the
world to watch surgeries, view and analyze patient data. This is the only hospital
and medical center in the Caribbean and Latin America region affiliated with Johns
Hopkins Medicine International. Johns Hopkins Medical Center is rated the
Number 1 hospital in the USA.

• Location: Via Punta Darien and Boulevard Pacifica, next to Multicentro mall
Tel: 204 - 8000
Fax: 204 – 8010
Website: http://www.hospitalpuntapacifica.com/

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Many Doctors in Panama are U.S. Trained

Another reason the health care in Panama has such a good reputation is that many
doctors here are U.S. trained and speak English. The standards at the top
hospitals in Panama compared favorably with those in the U.S., Canada and
Europe.

Panama’s private health insurance is available with several insurance companies

including Blue Shield with premiums costing much less than insurance in the U.S.
In addition, Panama’s medical fees and hospital stay costs are much cheaper.

Hospital Plans

Many Panama expats find that hospital membership plans are a better option than
purchasing medical insurance.

One popular hospital plan is with Hospital Chiriqui in David which is a city of
100,000 in the interior. This private hospital is modern and treats expats living in
the Chiriqui province and as far away as Bocas del Toro. Members receive
discounts from 50% to 70% for most procedures. This is on top of the fact that this
hospital is inexpensive to begin with.

Hospital San Fernando in Panama City also has a similar plan.

Hospital plans help to limit diagnostic, surgery, hospital stays, and post-op therapy
and treatments which gives Panama expats peace of mind.

Medical Tourism

Many foreigners are taking advantage of Panama’s health care through “medical
tourism” programs that are increasing quickly in popularity in the Central American
city.

The health care here is so good that “medical tourism” companies are flourishing.
Most of the participants come from countries where health care is prohibitively
expensive. Foreigners come for just about every type of procedures from cosmetic
surgery to complete dental work. The medical tourism companies offer help with
all arrangements including booking the procedures and with airfare, transportation,
and hotel stays.

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Medical procedures in Panama City can cost half than the cost in the U.S. In
addition, Panama City as an international hub is easily accessible from nearly all
parts of the world.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 57

How To Import Your Car & Household Goods Duty Free as a
Pensionado

Pensionado Visa Holders

Here is a list of the documents required to import household goods and vehicles
into Panama by a holder of a Panama Pensionado Visa:

• Passport (original & Panama notarized copy)

• Pensionado visa ID card (original & Panama notarized copy)

• Panama bank reference letter (pensionado’s bank account) written for the
Direccion Nacional de Aduanas de Panama.

• Two original Air Way Bill or Bill of Ladings or Express Release B/L

• Original Inventory List or copy e-mailed in English or Spanish

Vehicles require these additional documents:

• Original Certificate of Title and Registration

• Original Purchase Invoice or Commercial Invoice

• Original Pollution Certificate and Environmental Control Certificate

Note: If the person does not have the Pensionado visa ID yet, then a letter from a
Panama attorney addressed to Direccion Nacional de Aduanas de Panama that
the Pensionado Visa application is pending will be required.

Once the Goods Arrive in Panama

• The person must be present to pick up the vehicle and personal goods at the time
of clearance.

• The household goods, personal effects, and the car are duty free, but are subject
to an ITBM tax (VAT) of 7%.

• All shipments will be personally inspected at the entry port.

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• For an additional fee to the Panama government, the inspection can be done at
the person’s residence at the time of delivery.

• Shipments must arrive within six months from when the person arrives.

• Customs Broker’s fees are paid by the person at the time of clearance.

• If there are storage fees they will be also paid at the time of pick up.

Additional Requirements for Holders of Panama Pensionado Visa:

• As of January 2008 Panama customs has prohibited the issuance of Vehicles

Temporary Circulation Permits.

• All vehicles owned by Pensionado Visa holders will be held on a Fiscal or

Customs Bond until exonerated.

• The exoneration process could take several days or longer.

• During this period the person will be responsible for paying for Use of Bond and
Retention fees.

• When the Pensionado Visa ID is verified there will be an ITBM (VAT) tax of 7%
imposed on the customs valuation of the car.

• When the entire process is completed and all fees are paid the person can pick
up the car.

Additional Requirements for Imported Cars

In order to ensure that the car is not stolen, the local police will have to inspect the
car and issue a Certificate "that the car has not been stolen". Then the Police will
send the papers to "a Municipio", and once the papers are received at the
Municipio, the car can be registered in the owner’s name.

In Panama City, at the Municipio of Panama is where the "Registro Unico de

Propiedad Vehicular" will be issued. The Placa has to be paid and then the car
can be collected.

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When Selling the Vehicle

When the vehicle is later sold, unless it is sold to another individual who is eligible
for duty free importation of a vehicle, they must pay the exempted duty before
transferring title of the vehicle.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 60

How to Hire a Maid in Panama
Many apartments in Panama include a servant’s bedroom and a small bathroom.
That’s because having a live in maid is customary in Panama. Hiring a maid to
come and clean once or twice a week is very different than hiring one to live with
you and your family.

Finding an honest, competent, and reliable maid can be difficult for foreigners living
in a strange land. The best way is to ask other foreigners (expats) living here for
recommendations. If an expat had a good experience with a maid but couldn’t hire
her full time or moved far away then this maid may be right for you. If the expats
you know can’t recommend a maid then Panamanians you work with or associate
with will always know one or more potential candidates. There are also agencies
that can provide maids for a fee. Most of these agencies will have prior references
for their maids.

Interviewing candidates may be difficult if you do not speak Spanish fluently. Ask
someone you know who is bilingual to attend the interview so you can ask all your
questions and receive complete answers. Ask for references from past employers
(preferably expats) and contact them to see if the candidate was honest, reliable,
and a good worker.

Good Communication: A maid with a cellular phone is easier to communicate

with when she is late than one with a home phone or none at all. Panama maids
tend to show up late due to traffic congestion, missing a bus connection, or simply
not being organized. The ability to call her to find out how far away she is and an
estimated arrival time will save you from stress and frustration.

The Right Equipment on hand is very important as Panama maids do not bring
any tools or cleaning supplies. When hiring a Panama maid it is a good idea to
show her what brooms, mops, cleaning solutions and supplies you have and what
more she will need.

The Keys to the front security gate and your front door may be the difference from
peace of mind to losing everything you own. Many expats are home when the
maid arrives and leaves with no need to give her a copy of the keys. Expats who
work or are on holiday and not at home when the maid arrives must decide
whether to give her a copy of the keys. The better solution is to have a trusted
neighbor let the maid in and out while you are away. But, if you must hand over
your keys to a stranger make sure to lock up all valuables (cash, jewelry,
passports, etc.) inaccessible to the maid. Keep an inventory of all valuables
including silverware, cutlery, clothing, expensive tools, music CD’s and videos.
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When you terminate the maid ask for the keys back but also take your front door
locking mechanism to a locksmith to re-tool the lock and make new keys.

Live In Maids require more attention as you trust a complete stranger with the
keys to your home and access to your family and pets. Most live in maids come
from the interior with little schooling and only speak Spanish. Treat them like an
extension of your family by feeding them the same foods your family eats. Buy her
a small TV for her room. The reality of the Panama economy is that a live in maid
can save more money than a shop clerk or an office worker who have to pay rent,
utilities, buy furniture, commute to and from work, and buy groceries.

Training may be required if the maid has no prior experience. For the first day of
employment write up a list of things the maid should do written in Spanish. Make
sure she knows how to clean appliances like the microwave, stove, oven, and
fridge. Make sure she knows how to use the washer & dryer, vacuum cleaner,
carpet sweeper, and cleaning solutions.

Pregnancy can happen when you hire a young maid leading to paid maternal
leave and lost work time. Panama does not have any laws against age
discrimination. Therefore, it might be wiser to hire older maids in their 40’s and
50’s who already have grown up children.

Payments should never be in cash. Make all payments either by local bank check
or direct deposit into the maid’s bank account. Direct deposit is easier because the
maid doesn’t have to take time to deposit checks in her bank. This way there are
permanent records proving payment whereby signed cash receipts can be lost or
disputed in labor court. If the maid does not have a bank account request that she
open one and offer a $10 advance to the required initial deposit.

Buy Homeowner’s or Renter’s Insurance to cover any damages or losses by

theft from a maid. This will give you peace of mind. Make sure you save all
receipts and photograph or video all valuables and keep an inventory for the
insurance company in case you have to file a loss or damages claim.

Importing Maids

Another option is to either find an illegal immigrant or to import a maid from another
country.

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Panama has a unique immigration residency law called the Foreign Domestic
Worker’s Visa which provides resident visas for all types of live in domestic
workers including maids, cooks, gardeners, butlers, handymen, and chauffeurs.

Any Panama legal resident (temporary or permanent) can hire foreigners to be live
in domestic workers and obtain immigration residency visas for them. These visas
can be renewed annually up to four times totaling five years.

Here is a list of the requirements under the Foreign Domestic Worker Visa:

• Written Employment Contract with three originals, for the employer, employee,
and the Ministry of Labor. The contract should define all responsibilities and the
salary. Include a two week trial period clause allowing the maid to be fired if it
does not work out.

• Pay Minimum Wage: Domestic workers in Panama City earn a minimum of

around $2 an hour, which amounts to $352 a month based on a 44-hour week.

• Register the maid within 30 days of hiring with the Social Security (CSS).

• Hire a Panama Immigration Attorney who knows the Panama labor laws.

Follow the Labor Laws

The Foreign Domestic Workers Visa requires following Panama’s Labor Laws.

All wages are subject to income taxes, social security taxes, and an education
fund. Withholding these taxes from employee’s salaries is mandatory after the first
week. An uncompensated day off per week is required (usually Sunday).
Employees receive a 30 day annual paid holiday after working continuously for 11
months.

The following days are paid holidays or days of mourning for all employees: New
Years (January 1), Martyrs Day (January 9), Carnival Tuesday (Mardi Gras), Labor
Day (May 1), Independence from Colombia Day (November 3 & 5), First Cry for
Independence Day (November 10), Independence from Spain Day (November 28),
Mother’s Day (December 8), and Christmas Day (December 25). Employment on
a holiday requires paying 150% of the usual wages.

Every employee receives a special bonus called the “13th month” equivalent to
one month’s salary every year. This bonus is earned with one day’s pay for every

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11 days employed and paid in three equal installments: April 15, August 15, and
December 15.

Employees are also entitled up to 11 sick days per year.

Document every violation of the employment contract and give the maid a copy.
Guard the original reports from the maid. The maid can be fired after several of
these violations for just cause.

Contact Us for all of your Panama Immigration Visas and Panama Labor Law
needs.

© Copyright 2013 Panama Offshore Legal Services Page 64

How To Get a Panama Work Permit

Many foreigners come to Panama too young to be retired. Plenty of energy and
nothing to do becomes a hazard in warm, tropical Panama. Starting a business or
finding a job are alternatives worth pursuing.

Work permits are required for foreigners wishing to work in Panama.

There are 11 different ways to obtain work permits in Panama:

1. 10% or less of the employees of a Panamanian company can be foreigners, as

long as the employee is paid a minimum of $850 per month and only for a
maximum of 6 years.

2. Resolution by the Ministry of Labor (where a company actually applies for

special treatment/exemption above the 10% maximum quota) where the employee
is paid no less that $850 a month with a maximum stay of 6 years.

3. Temporary Visitor via Marrakech Treaty (this treaty is for temporary workers
intending to live in Panama for a maximum of 5 years). The Marrakech Treaty
created the World Trade Organization. This visa is only available for companies
employing between 3 to 10 employees earning at least the minimum wage. Only
one foreigner is allowed who must be paid a minimum of $1,000 a month.

4. City of Knowledge Work Visa Program (located inside the former U.S. Army
Base of Fort Clayton). Foreign investors owning a company located within
Panama’s City of Knowledge can have 5 special work permits for their foreign
employees. This work permit is for up to 6 years for foreign businessmen,
researchers, professors, students, and technicians.

5. Married to a Panamanian (once you marry a Panamanian you can apply for a
work permit).

6. Panama Specialist Workers Visa is a new visa with a work permit for a
maximum of 9 months. The National Service of Immigration will create a
registration of businesses dedicated to activities of specialists inside the Republic
of Panama. No one knows what a “Specialist” is until the immigration department
issues rules and regulations defining what type of job titles or functions qualify as
being “special”. Due to the 9 month maximum stay; this is intended as a temporary
specialist position.

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7. Cultural, Sports, or Educational Visa where the immigration law allows
companies to hire a foreigner to work for a single occasion carrying out cultural,
technical, musical or artistic, sports, educational field, professional, or scientific
work will be able to request this visa for a maximum term of three (3) non-
extendable months.

8. Domestic Workers Visa is a new immigration law allowing a Panamanian

citizen or a permanent or temporary resident to hire a foreigner to work as a
domestic worker can apply for this Panama Foreign Domestic Workers Visa, for a
term of one year (renewable four times). This includes maids, cooks, chauffeurs,
gardeners, nannies and butlers.

9. Short Stay Visas are also new allowing for up to 9 months stay in order to
establish business subsidiaries; investigators and scientists conducting research
for embassies or governments or foreign businesses; investors or businessmen
entering Panama to analyze investment possibilities or to perform transactions in
the Food Processors Zone for Export, Call Center, or special areas appointed for
the development of the Audiovisual and Film Industry.

10. Temporary Residency Work Permits is another new immigration law allowing
a foreigner to live and work here for 6 years as an employee of the government,
semi-autonomous companies, small business contracting with the government,
executives or management for a Colon Free Zone company, non-diplomats
working for a foreign government or international agency; news media
correspondents.

11. Special Temporary Residency For Special Reasons is a new immigration

visa providing temporary residency for 6 years for all employees in the film or
audiovisual industry (this includes producers, directors, actors, and technical
support); Panama Canal workers; Panama-Pacifico Special Economic Area
workers (like the former Howard U.S. air force base); Foreigners hired by
businesses inside the Food Processors for Export Zone; Foreigners employed by
Call Centers for commercial purposes; Foreigners hired as executives for an
international business with a subsidiary in Panama.

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You must apply for the Work Permit through the Ministry of Labor and apply
for a resident Visa through the Immigration office.

If your employer doesn’t provide you with an attorney and immigration visa and
Ministry of Labor processing services, you will have to hire a competent
immigration attorney who knows Panama labor laws.

Panama Work Permit Application Requirements:

1. The Panama Work Permit application must be filed by an attorney.

2. Letter of responsibility issued by the future employer in Panama.
3. Original and two (2) copies of the future full-time Employment Contract.
4. Certificate of School Records and Professional Experience, legalized either by a
Panama Consul or by the internationally recognized Apostille.
5. Eight (8) photos, passport sized.

Presidential Executive Decree 343 issued in May of 2012 will provide easier and
faster permanent residency visas along with work permits for citizens of 22 friends
of Panama nations. This decree awaits rules and regulations to be issued by the
Immigration and Ministry of Labor in order to process applications. More
information is available in a separate web page.

In conclusion, there are 11 ways to obtain Panama work permits. You must use a
competent attorney when applying for a Panama work permit. Prosperity awaits
you in Panama.

Contact Us for all of your Panama Relocation needs and assistance with Panama
Work Permits and Panama Immigration Visas.

© Copyright 2013 Panama Offshore Legal Services Page 67

How to Get Married in Panama
Panama offers a variety of beautiful landscapes, beaches, islands, valleys, and
people to fall in love with. Foreigners come to Panama just to get married and
honeymoon here. Anyone over 18 years of age from anywhere can come to get
married in Panama. Residency in Panama is not required.

In order to get married in Panama there are requirements and documents to

submit.

Here are the required documents and procedures for a Panama marriage:

• Application for a marriage license at the nearest court to where one party lives.

• Health certificate by both persons includes a physical from a licensed medical

doctor prepared within 15 days before the marriage.

• Medical lab tests include:

a) Complete blood count

b) Urinalysis

c) Hemoglobin electrophoresis

d) Venereal diseases (VDRL) and

e) AIDS/HIV test

• Birth certificates of the parties and their children

a) The birth certificates must be apostilled which is an internationally recognized

government authentication of public records. U.S. citizens can obtain this from the
Secretary of State office in each state.

• Take the apostilled documents to Panama’s Ministry of Foreign Affairs (in

Spanish Ministerio de Relaciones Exteriores).

• Never married singles need to obtain a certificate declaring he or she a lifetime

single (Certificado de Solteria). This can be achieved by signing a sworn assertion
in front of a Panama notary public and two witnesses (who are unrelated and
confirm the single status) which asserts that he or she has always been single.

• Parties who are divorced or widowed need an apostilled divorce decree or death
certificate.

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• The wedding ceremony must be witnessed by two people unrelated to either
party.

• All parties must bring all of the above-mentioned documents and either Panama
identity card or passport to the Marriage Court (in Spanish, Juzgado en Turno en
Matrimonios) for the civil wedding ceremony.

Roman Catholic Marriage

The Roman Catholic Church requires that the civil wedding occur first. Before the
Catholic wedding the couple is required to take a pre-marriage preparation course
and upon completion the couple will receive a Certificate of Attendance. Panama
City has nine parishes offering this course in Spanish.

After obtaining the Certificate of Attendance the couple will sign a Statement of
Marriage in front of a priest along with two witnesses. The church will also want
baptism certificates for the couple from the church which performed the baptisms.
Foreigners can obtain an authenticated baptism certificate from a bishop in one’s
home country. Finally, provide a copy of the civil marriage certificate.

If these Panama Marriage procedures and documents are too difficult to acquire
Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 69

Having a Baby in Panama
Panama is no different than other modern countries when dealing with
pregnancies.

When pregnancy is suspected make an appointment to see an obstetrician to

confirm the pregnancy.

Prenatal care will include checkups, full blood tests, cervical smear, ultrasound
scan, plus Rh factor test. Every four weeks a routine exam should be conducted.
At the 28th week of pregnancy, a GTT (glucose tolerance test) will be conducted
along with more blood tests, plus a RhoGAM shot if needed. A basic exam should
be conducted every two weeks until the 36th week when they will become weekly.
An ultrasound is conducted at week 12, 20, and the 32nd week. As the birth gets
closer it will be necessary to choose a pediatrician who will be available at the
onset of labor and delivery.

Prenatal, respiration, and birth preparation courses are available in Panama City.
Vida Mama is a company located in Panama City providing these classes.

If you have private medical insurance the health insurance agency will book the
hospital birthing room. If you do not have insurance you will need to contact a
hospital to register for the birth. Private hospitals offer several delivery packages
and a deposit is required when choosing one.

The birth is commonly assisted with epidurals for pain relief while local anesthesia
and intravenous drugs are also available. When giving birth, an obstetrician,
nurses, and the ultimate pediatrician will assist.

Typical time for a hospital stay is two days; however, complications may require
additional time. A caesarean birth requires from 3 to 5 days stay.

The hospital will administer the newborn primary vaccinations.

Home births are available but are not common in Panama. Midwives are
available in Panama City. One Midwife company operating in Panama City
explains their procedures for a natural child birth at home. Their website is:
http://partonaturalpanama.com/

Postnatal Care is available through many quality pediatricians in Panama. A

check up for the new born should occur once a month during the first year. During
the second year, checkups should occur every three months. It is common in

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Panama to hire a nurse to take care of the baby upon returning home for the first
few months.

Vaccinations required by Panama schools include Diphtheria, Polio, Tetanus,

MMR, and Pertussis.

Having a Baby in Panama City, Panama

Expats describe their experiences at the Centro Medical Paitilla in Panama City
as being a modern hospital with English speaking doctors, but the medical support
staff is not bilingual. However, everyone was professional and very caring. One
woman stayed in the hospital for 10 days while delivering twins, had an epidural for
the pain, two neonatal teams for the delivery, and a private room, all costing a little
under $6,000 USD.

Here is a list of the most popular hospitals in Panama City providing

maternal care:

• Hospital Punta Pacifica: The renowned Johns Hopkins Hospital in the U.S.
manages this modern hospital. Besides maternity, services include
emergency, clinical laboratory, radiology, cardiology, endoscopy, preventive
medicine, and general surgery.
Location: Via Punta Darien and Boulevard Pacifica, next to Multicentro mall
Tel: 204 - 8000
Fax: 204 – 8010
Website: http://www.hospitalpuntapacifica.com/

• Clinica Hospital San Fernando: Besides maternity, services include

diagnostic and cardiovascular, emergencies, blood bank, allergist,
pulmonologist, radiology and imagery
Location: Next to McDonald's on Via España
Tel: 305 - 6300
Fax: 305 – 6303
Website: http://www.hospitalsanfernando.com/www/

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 • Centro Medico Paitilla: Besides maternity, services offered include
emergency hospitalization and ICU oncology, general surgery, imagery and
radiology, clinical laboratory and physical therapy.
Location: Calle 53 and Avenida Balboa in Marbella district
Tel: 265 – 8800
Website: http://www.cmpaitilla.com/Default.aspx

• Hospital Nacional: Besides maternity they provide complete health services

including general surgery, laboratory, emergency, pharmacy, physical
therapy, cardiology, and a genetic center.
Location: Between Calle 38 and Calle 39 on Ave. Cuba
Tel: 306 – 3300/ 207 - 8100
Fax: 207 8337/ 227 0580
Website: http://www.hospitalnacional.com/index.html

Having a Baby in Santiago, Panama

The Jesus de Nazareno Hospital in Santiago is highly recommended by expats in

Panama. From the initial admittance either a gynecologist or pediatrician will
attend the patient until the baby is born. In November of 2010 the cost for two
nights hospital stay including epidural and circumcision was $1,200 USD. The only
recommendation was that expats should bring their own fluffy pillow.

Having a Baby in David, Panama

The Mae Lewis Hospital in David, Panama is popular with expats living there.
One expat reported having a baby by C-Section at this hospital with four doctors in
the operating room during the procedure. She spent three days in a private room.
The total cost was $2,500 USD which included hospital stay, OR, doctors &
nurses. The care was “top notch” compared to her hometown in Oregon where the
same care would have cost around $25,000 USD.

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Obtaining a Birth Certificate for a New Born Baby in Panama

All births need to be registered at the Civil Registry in Panama.

The hospital will automatically register the birth with the Panama Civil Registry.
Basically, all that is required will be ID’s from the parents (passports, residency
cards), and two witnesses who are unrelated to the parents. The hospital will give
the parent the birth certificate.

If the baby is not born in a hospital, in order to obtain a birth certificate for the new
baby, the parents need to provide the following documents at the Civil Registry:

• Notarized photocopies of their “cedula” (ID cards) or passports

• Letter signed by a doctor

• Written statement signed by a witness to the birth

The birth can be registered by one of the parents or a grandparent. As an

alternative, a lawyer can be hired to register the child’s birth.

Here is the Contact information and website link for the Panama Civil
Registry:

Direccion General de Registro Civil (Civil Registry)

Tribunal Electoral - Registro Civil
Avenida Cuba y Avenida Peru
Cuidad de Panama

Tel: (507) 207 - 8053 TOLL FREE (507) 207 - 8053

Website: www.tribunal-electoral.gob.pa

Obtaining a Panama Passport for Your Baby

You must take your baby to the Passport Office in Panama City located on Via
España in the Plaza Concordia.

Both parents need to bring the baby unless one gets a Power of Attorney from the
other.

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Arrive before Noon as they only take applications in the morning. The process will
take around 2 hours.

Present the following documents:

• Baby’s birth certificate with one copy

• Both parents’ passports or cedulas and one copy of each (bring a Power of
Attorney if only one parent goes)

• $50 fee in cash

Wait to be called and hold up the baby for a photo. Wait again until the passport is
ready.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 74

How to Get a Divorce in Panama
Surprisingly, Panama ranks 4th in the world behind the U.S. and just ahead of
Russia in per capita divorce rate.

According to an article published in Panama’s largest daily newspaper, La Prensa,

on March 8, 2010 Panama divorces nearly doubled from 2,997 in 2008 to 5,674 in
2009.

The Divorce Laws in Panama

Law of January 17, 1911 created Panama’s first Divorce law which allowed a
spouse free of any wrong doing to request a divorce if the other spouse committed
shameful acts.

Panama’s Civil Code was adopted in 1917 providing the basis for a divorce on
grounds such as adultery committed by the wife, the husband keeping a
concubine, cruelty, attempt by the husband to prostitute the wife, and
abandonment.

Law 3 of May 1994 created Panama’s Family Code modified by Law 12 of 1994
which is still in force.

Basis for Obtaining a Panama Divorce

Panama’s Family Code lists 10 reasons for granting a divorce. These include
alcoholism, abandonment, drug addiction, acts of violence, attempts to make a
spouse into a prostitute, psychological damage, a separation for more than two
years, failure to meet support obligations for the family, and mutual consent.

Community Property

Panama follows the centuries old Spanish civil law doctrine of marital community
property which means that anything a spouse brings into the marriage and gets
during the marriage belongs to both spouses. A pre-nuptial agreement separating
the individual assets and preventing a spouse from claiming half ownership is
accepted in Panama. Marital assets can include corporate stocks (including bearer
shares), real properties, securities, vehicles, and bank accounts.

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Favored Spouse

Panama Family Law is meant to treat the spouses equally, but divorce courts tend
to favor the wife especially if there are children.

Alimony and Child Support

Alimony and child support are granted by the divorce court with cost of living
increases, education, and any special needs for the children’s upbringing. The
spouse’s alimony is provided so the spouse can continue to live the life he or she is
accustomed to in relation to each spouse’s income. Alimony continues until the
spouse remarries. Child support remains until the child turns 25 or becomes
independent.

Mutual Consent Panama Divorce

Both parties can agree to a Mutual Consent Panama Divorce as long as the issues
regarding community property, alimony, child support, and visitation rights are
agreed upon. This is a faster and easier way to get a Panama divorce but it still
requires a Panama divorce court process.

Spanish Translator

If you do not speak and understand Spanish legal terms you will need a Spanish
translator for the Panama divorce court proceedings. You will be at a big
disadvantage if you cannot be understood in a Panama divorce court.

Married to a Non-Panamanian

If your spouse is not a Panamanian he or she can possibly file for a divorce in their
own country even if you were married in Panama. This can become very costly
and complicated with the spouse probably getting better treatment by his or her
home country’s divorce court. If you know your marriage is heading for a divorce
you might find it advantageous to file in Panama or your home country first.

Unilateral Panama Divorce

If only one spouse wants a divorce and claims one of the ten allowable grounds for
a Panama divorce while claiming the other spouse is at fault, a Unilateral Panama
Divorce can be granted. However, the spouse filing for the Panama divorce under
these grounds must be totally innocent and not accused of any of the grounds for
divorce by the other spouse.

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Contentious Panama Divorce

This is a Panama divorce where the spouses can’t agree on a Mutual Consent
Panama Divorce. This can be a long and expensive process. Panama family
courts are in place to handle Panama divorce cases.

Panama Divorce Process:

• The formal request for a Panama divorce requires it be in writing, include the full
names of the spouses (include Panama cedula numbers), and the grounds for a
divorce.

• The defendant must be served with the complaint after it is filed.

• A hearing must be conducted within 15 days from when the defendant is served.

• In the first hearing the court will try to see if there is a possibility of reconciliation
by the spouses.

• If that is not possible the court will accept evidence from both parties.

• The judge will prepare a summary of the proceedings which the parties will sign.
If one or both parties refuse to sign, it will be noted in the court records.

• If no further hearings are required the court will issue a Panama divorce decree.
The court has the right to deny the divorce petition.

• The losing party has the right to appeal the final decision to the Family Superior
Court. No new evidence will be allowed unless it can be proved it can change the
outcome. The decision by this court will be the final decree.

If the divorce is granted, the court will issue a Panama Divorce Decree which will
be filed with Panama’s Public Registry.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 77

How To Import Guns Into Panama
First of all, you need to find out what is required to export a gun out of your country
and fulfill all of those requirements.

Importing firearms into Panama is possible, however there is some documentation

needed to get it done.

Ammunition is prohibited from being imported into Panama. Therefore, make sure
that the type of ammunition your firearm requires is sold in Panama.

The required documents to import guns into Panama are:

1. Provide a photograph of the gun (or company brochure photo of the exact
model).

2. Provide of copy of the purchase receipt showing when and where you bought
the firearm.

3. Provide an authenticated copy of the gun’s registration in your country.

4. Provide an authenticated copy of your passport.

Note: “Authenticated” can be accomplished in 2 manners:

(a) Apostille – Is an internationally recognized form of a government authenticating

public documents; or

(b) Panama embassy or consulate in your country authenticates the documents.

The authenticated documents are then taken to Panama’s Ministry of Foreign

Affairs for further authentication.

Then the documents are filed with Panama’s Ministerio de Gobierno y Justicia
(Dirección Institucional en Asuntos de Seguridad Pública) which issues the permit.

A certified copy of the permit is then delivered to the Panama Custom’s at

Tocumen International Airport where the weapon will be shipped to.

Panama Customs will not simply hand over the gun upon receiving these
documents. You must then apply for a Panama gun permit and have the national
police perform a ballistics test on the gun.

Before the gun is released by Customs you will have to pay a fee, a luxury tax, and
a duty tax.

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If you wish to avoid all of the paperwork you can hire a Panama attorney to handle
it for you.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 79

How to Buy a Gun in Panama
Americans often ask if they can purchase firearms in Panama. Yes, foreigners
who are legal residents in Panama can purchase guns here. However, there are
only a few gun stores in Panama City and the selection is sparse compared to the
United States. While fully automatic weapons are illegal in Panama, one can
purchase semi-automatic guns, rifles, revolvers, and shotguns. Ammunition is
readily available for the types of guns sold here.

Expect to pay nearly twice as much for guns than in the U.S. Ordering a gun from
the U.S. can take at least three months to arrive at the gun store.

To purchase a gun in Panama one needs to go to a gun store with proof of legal
residency, select a gun and pay for it. Then urinate in a sanitized cup which will be
tested for drugs. The gun store has the required government forms to fill out. One
form will include having a fingerprint taken of the right index finger. A government
health clinic will take a blood sample for DNA analysis. Visit a psychiatrist for a
short interview and a medical report showing the applicant is mentally fit to own a
gun. Return to the gun store with these documents and two passport size photos
and the gun store will forward the documents to the national police. The gun will
be ballistic tested by the national police. It will take at least three months to obtain
the gun permit.

Unlike the U.S., Panama will have the gun permit owner’s DNA, a fingerprint,
photo, and the gun’s ballistic test results on file. That way if a bullet is located
inside a body or at a crime scene the ballistic match will lead to the weapon’s
owner. This is why it is imperative to report any lost or stolen weapons to the
national police right away. Otherwise, the recorded owner will be arrested if the
weapon was used in the commission of a crime.

The gun permit is a triple folded green cardboard paper pocket sized document
which includes one photo, one fingerprint, listing the weapons by make, model &
serial number and can be purchased in yearly increments for a maximum of five
years. Each year costs $11 for a maximum $55 for a five year permit.

Up to 10 guns can be purchased with one gun permit listing all of them along with
their make, model, and serial numbers.

Ammunition can be purchased after receiving the gun permit. Armor piercing
ammo is illegal, but hollow point and high velocity bullets are legal.

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Owning a gun and having a permit to carry it requires greater caution when using it
than in most states in the U.S. because Panama doesn’t have a “right to bear
arms” in its Constitution or laws protecting one’s right to defend himself outside of
the home. Foreigners have been convicted and sent to long prison terms for
shooting fleeing burglars outside the home.

Before purchasing a gun, talk to a knowledgeable attorney about Panama’s laws

regarding owning and using a firearm.

Contact Us for all of your Panama Relocation needs.

© Copyright 2013 Panama Offshore Legal Services Page 81