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Panama - Foreign Investment Legislation

2. Favorable Foreign Investment Legislation and Agreements in Panama

The Constitution of the Republic of Panama grants equal legal rights to nationals and foreigners, with certain exceptions:

  • Hiring of foreign aliens is not allowed when skilled nationals over 15% of work force are available. Foreign aliens as well as juridical or local entities controlled by foreign aliens or entities are not allowed to acquire land within ten (10) kilometers from the borders including certain islands.
  • Retail business is reserved for Panamanian Nationals, while there are no restrictions on wholesale business. However, Type "A", type "B" and industrial licenses have been replaced by an Operating Permit, which we would be happy to obtain.
  • In addition, Panama is an active participant in the World Trade Organization.




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