What are the professions reserved only for Panamanians??
By Legal Solutions • 9 minute read
What are the professions reserved only for panamanians? The big question asked by foreigners coming to Panama is whether or not they can practice their profession or which professions are reserved for Panamanians. Many of the foreign companies that want to establish themselves in Panama, wish to bring their trusted professionals from their country of origin who already have the necessary experience in the business. The idea is to open a new branch or subsidiary under the tutelage of these personnel who, in many cases, will train the new employees that the brand or firm hires in Panama. The problem encountered by these companies is Panamanian legislation that prohibits certain foreign professionals from practicing their profession in Panamanian territory.
For this reason we invite all those who wish to open a company to find out if they will be able to move personnel from their country of origin to their new company or subsidiary in Panama.
What professions cannot be practiced by foreigners in Panama?
In Panama the number of professions reserved for Panamanians or protected or that cannot be practiced by foreigners is high. This limitation finds its legal support in Article 20 of the Constitution, which establishes:
ARTICLE 20. Panamanians and foreigners are equal before the law, but the law may, for reasons of work, health, morality, public safety and national economy, subordinate to special conditions or deny the exercise of certain activities to foreigners in general. The law or the authorities may also, depending on the circumstances, take measures exclusively affecting nationals of certain countries in the event of war or in accordance with the provisions of international treaties.
Thus we can mention among the professions reserved for Panamanians:
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It is important to mention that within engineering there are a plural number also limited such as: architecture, industrial maintenance engineer, architectural engineer, agronomist engineer, agricultural engineer, civil engineer, ceramic engineer, construction engineer, road engineer, mining engineer, petroleum engineer, electronic engineer, electrical or electrical engineer, electrical mechanical engineer, mechanical engineer, mechanical engineer, geological engineer, chemical engineer, nuclear chemical engineer, sanitary engineer, forestry engineer, naval and mechanical engineer, etc.
It is also important to remember that, just as there are different types of engineering, there are also other professions that have specializations, consult us if you have any doubts as the list we have shown is generic.
And what about those professions that are off the list?
Those professions outside the list, those that are not prohibited, can be practiced by foreigners, but they will have to carry out the procedure before the University of Panama to be able to homologate a degree. Only in this way, such professionals will be able to request before the National Immigration Service the Residence Permit as a professional.
Are there any possibilities to apply for foreigner eligibility, even if it is a protected status for Panamanians?
Everything will depend on the law that regulates each profession. For example, in the case of architecture and engineering, the Law states that only those professionals who have a Certificate of Suitability issued by the Technical Board of Engineering and Architecture may practice the professions of architecture and engineering in the Panamanian territory. This is established by Law No. 15 of January 26, 1959 in its Art. 1. Panamanian professionals and those foreigners in whose countries the practice of these professions is allowed under equal conditions to Panamanians shall be entitled to this suitability (art.2) 2). Of course, the due verification must be carried out officially from State to State, the detailed procedure of which is described in Article 2, paragraphs "a" to "d" of Decree 257 of September 3, 1965.
However, although the Law recognizes the granting of the certificate of suitability to foreigners, in practice it is not so easy to hire a foreign engineer to work on a construction site in Panama. In this sense, Law 15 mentioned above, when the State, its autonomous and semi-autonomous entities and private companies justify it, the hiring of foreign professionals may be allowed, as long as it is previously verified before the Technical Board that there are no professionals with a Certificate of Suitability issued by said Board, for the required specialties and/or experience.
In addition, the Law requires, in case of hiring foreigners, authorization by the Technical Board for periods longer than twelve (12) months, the authorized company or public entity must hire a Panamanian professional so that he/she can replace the foreigner at the expiration of his/her term.
In conclusion, although it is possible to obtain the suitability as a foreigner, hiring requires another process that on many occasions and depending on the existing demand can be more costly for the employer.
Therefore, we recommend that if, as an entrepreneur, you are considering hiring foreign professionals to practice their professions in Panamanian territory, you consult with experts, as this is a subject that has many aspects. You can contact us and we will advise you on the process.
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