IS IT WORTH GETTING NATURALISED?

By Rigoberto Coronado
Panama is a country known for the diversity of nationalities that converge in its territory. It
is something that we Panamanians have seen since we were children. In fact, many
Panamanians have friends who remained in Panama due to work or love. It is common to
encounter a Chinese owner of a convenience store, or a merchant with a foreign accent in a
shopping mall. The above-mentioned situations are but a few examples of the great
diversity of cultures in Panama.
However, despite the fact that Panama has a long-standing tradition of welcoming
foreigners from all over the world, it has developed labour laws designed to protect
Panamanians jobs. The labour laws in Panama limit the percentage of foreigners that can
work for a company. Several professional licenses are prohibited for foreigners, including
medicine and law. We do not intend to pass judgment on the labour laws as appropriate or
inappropriate; we only refer to them to inform our readers.
It has been possible to overcome some of these legal setbacks through the promulgation of
migratory and labour legislation creating new immigration statuses. For example, foreign
university graduates or nationals of a country among those appearing on the list of 48
privileged countries, commonly known as friendly nations, are now eligible for one of the
new immigration statuses.
Nevertheless, this does not provide a solution for everyone, and much less to those who,
despite having one or more university degrees, cannot work in their profession as a result
of a law that prevents them from obtaining a license reserved only for Panamanian
nationals.
Neither do such legal restrictions provide a solution to the ever growing number of foreign
investors who are eager to trade their products in the retail sector, which is another
activity reserved for Panamanians by the Constitution. Such persons, quite often pressed by
circumstances, may choose to naturalise or become citizens.
This is basic information for lawyers, but it is also good for others to keep in mind that the
National Constitution sets out three separate conditions under which a person may request
naturalisation:
1. Five consecutive years of residence in Panama
2. Three consecutive years of residence in Panama if there are children born to a
Panamanian mother or father or Panamanian spouse in Panama
3. By reciprocity, if the person is a national of Spain or another Latin American country, and
fulfils the same requirements for naturalisation of a Panamanian in that country.

In any event, one should bear in mind that the above-mentioned residence needs to be
permanent and obtained in accordance with the respective migratory procedures. In
addition, proficiency in Spanish and basic knowledge of Geography, Spanish, and Panama
Political Organization must be proven through a test given by the Electoral Tribunal. A
foreigner seeking naturalisation should note that the National Constitution requires
renouncing the nationality of origin. Although an affidavit is used for this purpose, same
which is attached to the naturalisation file, those documents need not be presented to the
country from which a person renounces. However, it must be taken into account that in
some countries renouncing nationality has legal effects, whereas there are no such effects
in others.
Naturalisation is usually a lengthy process considering that by law the President of the
Republic needs to review such requests, and that the matter itself, due to national security,
requires participation of certain government agencies.
As we do not foresee a Constitutional amendment in the near future, and modification of
certain laws regulating the subject entails long consultation periods, it may well be wise to
start thinking about the naturalisation process as a viable option.
Immigration Services Offered by Mossack Fonseca
Our full suite of immigration services encompass all of the current Panama visa programs
for tourists, immigrants, workers, investors, foreigners married to Panamanian
businessmen/women, and others. A partial list of the many visa programs we can assist
you with includes:

Naturalisation as Panamanian Citizen

Friendly Nations Visa

Pensioner Visa

Professional Employment Visa

Reforestation Investor Visa

Self Economic Solvency Visa

Business Investor Program

Married to Panama Citizen Visa

Parents of Child Born in Panama Visa

Tourist Visa

Tax Free Processing Zone Investor Program

In addition, we can assist clients with extensions, exit and entry permits, residency, and a
host of additional visa, immigration, and other legal services.
If you have any questions or would like further information, please do not hesitate to
contact your local Mossack Fonseca office, or email us at rcoronado@mossfon.com or
marketing@mossfon.com