Special Temporary Residence Permit: Concept and Requirements

Special temporary resident permits (also known as VTE) are issued to foreign executives (Regional Directors, for example) working on International companies with offshore activities (exclusively) from Panama. This residence permit is granted for a one-year period with renewals options (until five years). For this special type of resident permit, the Company’s subsidiary will not have to comply with any restriction in the amount employees nor wages limitations. This type of residents are not obliged to pay social security, nor income tax as the income comes from abroad. Salary: up US$1,000.00 plus US$ 250.00 per each dependant, according the last modification of the Immigration Law. The dependants of the resident are not allowed to work within the Republic of Panama.

Requirements:

1. Full copy of the passport, front to back Passport, duly authenticated by your Embassy in Panamá
2. Police Record, duly authenticated by the Panamanian Consulate
3. Certificate of Good Health
4. Photos in carnet size with white background
5. Certificate of Birth (for dependents under 18 years old), duly authenticated by the Panamanian Consulate
6. Certificate of Marriage (for spouse as dependent) duly authenticated by the Panamanian Consulate
7. Bank's letter stating that you receive your income from abroad.
8. A certificate of good standing (also known as a certificate of existence or certificate of authorization) duly authenticated by the Panamanian Consulate stating the following

• the existence of the company and that it is in good standing in its country of origin, its principal head-quarters, and the branch or head-quarters which is responsible for oversight of the office in Panama, as well as the details of the address, phone number, email address, etc. of the principal representatives of the company;
• confirmation that the applicant is an executive of the company, specifying the nature and attributes of the role, and the title;
• confirmation that the salary earned by the executive is from overseas, that this is not Panamanian-source income, and the amounts and form of payment (i.e. wire transfer from the headquarters in XYZ, sent to the applicant's account in Panama);
• That the company is responsible for all expenses of the executive in Panama, and that the company undertakes to inform the Immigration Department should they decide to close their office in Panama or terminate the labor relationship with the applicant, and cover any repatriation expenses which the applicant may have; and
• How long they estimate that the applicant will be working in Panama as an executive.
  Banking reference letter issued by a Panamanian bank, either for the applicant or the Company that he is working for, and should indicate how long the account has been in existence.

I would strongly recommend this residence permit to those persons living in Panama and working with a foreign company. It is easier and faster than other type of resident permit. Please remember that each resident permit might vary according to the situation of each person.