How to find a job in Panama City

Introduction

The coastal capital's location and economy provide many occupations for locals and foreigners.
Before starting your research in the Isthmian Nation, you should understand how the local market works.

The country's economy is heavily influenced by the service sector. It accounts for over 65% of GDP. The finance/banking sectors and the Canal drive it. They impact logistics, maritime, and transportation. Additionally, there's a growing demand for professionals in the IT, tourism, and healthcare sectors.

This article gives you a complete guide on how to navigate the job market, and occupations in the Central American country for foreigners, and secure employment in this country.

Eligibility to Work

To be able to work in the nation, foreigners should first obtain a work permit. It usually involves getting a job offer from a Panamanian company. They will help you apply for a work permit and visa.
Ensure you have all needed documents, including your passport, proof of qualifications, and any required health certificates.

Restricted Professions

The Panamanian government has restricted some professions for foreign workers. These include accountants, engineers, and lawyers, for foreign workers. The full list of regulated professions in Panama, restricted for migrant workers, is on the government website.
These professions can be done only by Panamanian-born or naturalized citizens Panamanian professionals. Even if your profession is restricted, you can still apply with a working VISA in specific fields of specialization that are still open.

Popular Sectors and Growing Opportunities in Panama City

The Metropolitan City is growing economically. But, not all sectors are equal. Some offer more opportunities than others. Foreigners who wish to work must identify sectors that would help them fit in.

Top Industries for Employment:

Finance and Banking:
- The banking facility in this Central American republic is well developed with a large number of regional and international banks functioning in this country. Employees with a background related to investment, banking and finance are ideal for the market, especially in risk management, auditing and financial consultancy.
- Growing Trends: New occupations are also being created by the FinTech and digital banking services that are being developed, requiring skilled IT professionals and financial software engineers.
Logistics and Shipping:
- Logistics is a very vibrant industry, being the Canal as part of the transportation system. Among these companies, there are large logistics companies involved in managing international supply chains, customs services, and managing ports.
- Opportunities: Project managers, logistics coordinators/analysts and professionals in the maritime industry are needed. Firms in this industry may need employees who are fluent in both English and Spanish to sustain international clients.
Technology and Digital Transformation:
- The Isthmian Nation is becoming a technology hub in Latin America, with tech startups and multinational tech firms setting up operations. The government’s push for digitalization and the development of a strong digital economy contributes to the employment of software engineers, cybersecurity specialists, data scientists, and other experts in the field.
- Future Prospects: The IT industry is active with segments such as Artificial Intelligence (AI) and cloud computing which IT specialists with experience in these areas can benefit from.
Tourism and Hospitality:
- The tourism sector of the coastal capital is developing even more, especially after COVID-19, with the main emphasis placed on various types of sustainable tourism, luxury and eco-tourism. There are increased vacancies in hotel management, tour guides, services to customers and planners of functions.
- Specialized Roles: There are new opportunities in luxury tourism such as the management of luxury resorts and kitchen staff, culinary arts and travel consulting.
Healthcare:
- Healthcare costs are relatively low, and many good hospitals and clinics are available; these factors make the Central American Republic an ideal for medical tourism. Open positions include nurses, general practitioners, specialists, healthcare administrators and other medically related fields.
- Medical Tourism: Jobs related to medical tourism coordination, patient care, and health tourism marketing are increasingly common.
Real Estate and Construction:
- The skyline of the gateway city is still growing with real estate development activities having constant and ongoing projects, particularly in the commercial and residential buildings. Real estate agents selling luxury apartments and villas, Civil engineers and architects involved in the design, construction and management of such luxurious buildings or projects and project managers.
- Green Building Initiatives: As eco-friendly construction practices rise, there are opportunities for sustainable building design and renewable energy solutions.
Education:
- Teaching positions are available for foreign professions, especially in international schools, language academies and universities. English teachers particularly those certified internationally are highly demanded in private schools and corporate organizations.
- Remote Learning: It noted an increased adoption of online classes, expanding vacancies for digital educators and e-learning developers.

Entrepreneurship and Startup Scene

Another aspect of the isthmian capital is its economic prospects that can be very suitable for businessmen and inventors. The legal system is relatively clear for foreign investors due to incentives by the government for the investment of foreign enterprises.

Popular areas for foreign entrepreneurs

Tech Startups: Today, the Central American Republic has been witnessing constant growth of the IT industry with the availability of accelerator programs and funding in software development as well as IT-related solutions.
Tourism Ventures: Ecotourism, adventure tourism, and startup boutique hotel industries have been on the rise because of Panama’s benefits such as its geographical features.
Real Estate: The buying of real estate is allowed to foreigners, especially in areas with new constructions of houses for rent for tourists and expatriates.

Remote Work and Digital Nomads

The country has also become an attractive destination for digital nomads, thanks to its good infrastructure, fast internet, and relatively affordable cost of living.
Working as a freelancer in the gateway city could be an advantage thanks to the territorial taxation. Websites like Upwork, Freelancer, and Fiverr are popular among freelancers worldwide.

Work Permit and Visa Issues

For expatriates, securing the right to work as a freelancer in the nation typically involves obtaining a work permit. To get a Visa you should open a company and follow the steps required in one of the Visa programs such as the Friendly Nations Visa. All visa applications should be carried out by a Panamanian lawyer.
The introduction of a digital nomad visa allows foreigners to legally work remotely while living in the republic, without the need for a traditional work permit.

Who Can Apply: This visa is available for freelancers and remote workers who work for employers in a foreign country provided they earn at least $36,000 per year.
Tax Benefits: Panama follows a territorial system, which implies that income obtained from other countries cannot be taxed in the republic. Note that the income obtained must be realized from a completely offshore activity, the clients as well as the work realized should be located outside of the country.

Salaries in Panama City

Compared to other Latin American cities, this country has a high cost of living similar to European cities, by the way, the wages tend to be competitive, especially in certain sectors. Here's a summary of salary expectations in Panama City, investigating various sectors and job roles:

Minimum Wage: The minimum wage in the city ranges from $600 to $800 depending on the sector.
Average Salary: The average monthly salary in the isthmian capital is about $900 to $1,300, although this varies significantly across industries, experience, and job roles.

Industry-Specific Salaries

Finance and Banking: Experienced roles of professionals in the finance and banking sector command salaries of at least $2,000 and go up to $5,000 per month or even more for senior positions.
Technology and IT: The tech sector has competitive salaries with software developers and IT professionals making a monthly salary of $1,500 to $3,000, depending on the level of expertise and experience.
Tourism and Hospitality: In the tourism and hospitality industry there is a huge variation in salaries ranging from the minimum wage for entry-level positions to over $2,000 per month for management roles.
Healthcare: Doctors, nurses and other medical professionals get from $2,000 to $6,000 per month considering their specialization and experience.
Education: Teachers, particularly in international schools or specialists, may be paid from $1,000 to $2,500 per month.

Aspects that influence salaries

Level of experience and education: Across all industries, greater education and experience have a significant impact on wages.
Industry Demand: Industries with high demand for workers, such as technology and finance, tend to offer higher salaries.
Size and type of company: Large multinational companies tend to offer higher salaries than local businesses.
Language Skills: Most of the companies in the republic offer English-speaking jobs and operate in English, by the way, knowing Spanish can increase your chances of getting a new position. Consider taking some basic Spanish lessons to integrate in your new position quickly.

Salary Income Taxes

Taxable income has to be considered: employment income such as salaries, premiums, benefits, allowances and any benefits; income from commercial or agricultural business and investment income.

The income tax rates in the nation are progressive:

Income from $0 to $11,000: 0% income tax.
Income from $11,000 to $50,000: 15% income tax.
Income above $50,000: 25% income tax on the income above $50,000 plus a fixed rate of $5,850.

In any case, different exemptions are accessible, which can assist in mitigating tax liabilities such as Health insurance deductions and deductions for a mortgage.

Deductions of income taxes paid to foreign countries may be allowed under special cases.

Job Research and Preparation

Job Search Platforms

The most effective way to search for a new position is to use search websites.
Popular websites among job seekers in are:

Networking

It could be a good option before you start your search, to ask the people you know: friends, colleagues, classmates. Use social media platforms like LinkedIn to connect with professionals working in Panama. Participation in industry conferences, seminars, or local networking events is also a source of valuable contacts.

Applying for a job

Localization: Adapt your resume and cover letter to the Panamanian market. Point out any Spanish language proficiency or earlier Latin American experience.
Professional Networks: Include a section for professional references or endorsements, especially from those with connections in Panama or Latin America.
Application Process: Follow application instructions precisely. It’s essential to modify your CV and cover letter promoting the skills that suit the application.
Interview Preparation: Do your research about the company and typical interview questions.

Getting a new work in Panama needs planning, patience and correct strategy. Understanding the local market, utilizing your network, and representing your skills effectively, will help you to open up amazing career chances.

Internships

The Pacific metropolis could be a nice opportunity if you're looking for an internship and looking for international experience. Many foreigners are present in the city for Internships, especially in the NGO sector. Panama City is a hub for NGOs and International Organizations. Internships are also available in sectors like finance, logistics, tourism, and international trade.

Restaurant/Mall employment opportunities

Employment at restaurants and shopping centres in the city is appropriate for almost all levels of skills and experience, beginning from the simplest to a managerial position.

Restaurants roles

Kitchen Staff: chefs, sous chefs, line cooks, and dishwashers.
Front of House: servers, bartenders, hosts.
Management: restaurant managers, kitchen managers, and general managers.
Retail Sales: Positions in clothing shops, electronic shops, jewellery stores, and other related retailers.
Customer Service: Receptionists, concierges, and customer service agents.
Security and Maintenance: Guards, cleaners, and maintenance.
Management: store managers, department managers, and mall administration positions.

Walk-ins:

For entry-level positions, submitting resumes in person and asking for a work opportunity walking at restaurants and malls can be successful. This demonstrates initiative and at times can result in impromptu interviews.

What to Expect

Work Hours: Hours are often irregular and may involve evenings, weekends, and holidays when restaurants and malls are at their busiest.
Bilingual Environment: Bilingualism of Spanish and English in the canal city is a great benefit, given the fact that the city is visited by international tourists and expatriates from all around the world.
Legal Requirements: Non-residents need to get a work permit to work legally. Employers might facilitate this process, particularly for positions for which there are no adequate local candidates.
Salaries and Benefits: The pay of compensation hugely depends on the position, experience and the employer. Although minimum wage laws are in place, tips have a large impact on the income of restaurant staff.

Sources & Foot Notes

[1] Statista - Panama GDP Distribution Across Economic Sectors
[2] World Bank - Panama Country Overview
[3] Kraemer & Kraemer - Panama Work Permit Guide
[4] ExpatDen - Working in Panama: A Guide for Expats
[5] Vacation to Panama - Panama Employment and Jobs Guide