GLOBAL EMPLOYER OF RECORD IN PANAMA
Build your team in Panama without incorporating locally
Put the right people in place in Panama while keeping market entry flexible. Acumen acts as your Employer of Record, allowing you to hire now, test the opportunity and commit to a local company only when the scale of the business justifies it.
GLOBAL EMPLOYER OF RECORD
Global Coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic Markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established Jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth Economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and Remote Locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Global Employer of Record in Panama
What Is a Global Employer of Record?
A Global Employer of Record (Global EOR) is a third-party organisation that shoulders the legal and administrative responsibilities of hiring, employing, and managing staff on behalf of a client company. Unlike a standard Employer of Record, a Global EOR can operate across multiple countries, offering a unified solution for managing international employees.
This international talent engagement model is especially advantageous for companies expanding into new markets. Typically, such expansion would require establishing a local legal entity, a time-consuming process laden with bureaucratic hurdles. Global EOR circumvents this necessity. It allows companies to deploy staff in multiple jurisdictions without navigating the complexities of local employment laws, tax structures, and compliance norms. This streamlined approach eliminates the daunting upfront investment and operational costs of establishing a foreign subsidiary or business unit.
The flexibility of a Global EOR model makes it ideal for market testing and agile operations. Companies can quickly enter and exit markets, scaling their workforce up or down based on real-time needs and market conditions. Not only does this minimise risk, but it also preserves the company’s existing tax structure and corporate governance framework. The result is a more efficient, compliant, and strategic approach to international business expansion.
Advantages of Using a Global EOR for Your Global Employment Journey
Navigating the complex landscape of international business poses numerous challenges, from understanding varying employment laws and tax structures to cultural differences and market dynamics. These complexities can often be overwhelming, especially for organisations that need more resources or expertise to manage operations across different jurisdictions. This is where the value of partnering with a Global Employer of Record (EOR) becomes exceptionally clear.
A Global EOR simplifies these complexities and offers strategic advantages to accelerate global expansion plans. By acting as a centralised hub for employment compliance, payroll and tax administration, and local market understanding, a Global EOR enables you to focus on core business functions. At the same time, it handles the nuances of international employment.
Below are some of the key benefits:
Low-Risk, Low-Cost Entry into New Markets
Expanding your business across international borders often comes with significant risks and expenses. A Global EOR mitigates these factors by providing a low-risk, cost-effective solution. You no longer have to invest heavily in establishing a local entity, saving time and money. This reduced financial outlay makes international expansion accessible, even for SMEs and start-ups.
No Need for Local Resources or Entity Establishment
Global expansion typically involves setting up local offices, hiring local staff, and navigating local employment laws—time-consuming and costly tasks. A Global EOR eliminates these burdens by serving as your local entity, managing employment compliance, payroll, and benefits, all while you maintain operational control over your workforce.
Test the Market Before Making a Major Commitment
Market validation is crucial before committing significant resources to an international venture. With a GEOR, you can engage talent and conduct business activities in a new market without making a long-term commitment. This “try before you buy” approach allows you to evaluate the market’s viability and potential return on investment more accurately.
Local Expertise in Multiple Countries from a Single Global EOR Partner
While one of the advantages of using a Global Employer of Record is that you don’t need to have local expertise, the reality is even more beneficial: you gain the local expertise of your Global EOR partner. With their extensive knowledge of local employment laws, tax regulations, and cultural nuances across multiple jurisdictions, a Global EOR serves as a pool of local employment expertise you can tap into.
Instead of having to learn the intricacies of each country’s legal and cultural landscape, you have instant access to this information, all from a single, centralised source. This streamlines operations and enhances the quality of your global employment strategies.
Global Employment Solutions in Panama
Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what we can do:
- Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
- Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
- Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
- Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
- Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
- Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.
| 1. Recruitment | 2. Global Mobility | 3. Checks | 4. Onboarding | 5. Payroll Administration | 6. Working Time & PTO Processing | 7. Benefits Administration | 8. Tax Administration & Reporting | Offboarding |
| Talent skilled in highly specialised areas | Employee Work Visa and Work Permit sponsorship | Health checks | Employment Agreement drafting | In-country registration with statutory bodies | Working hours | Mandatory Benefits | Tax Reporting frequency and requirements; | Employment agreement termination: |
| Executive search | Dependent Visa | Criminal record checks | Compliant worker onboarding on your behalf | Day-to-day payroll management | Overtime | Health insurance | Employer taxes & contributions | Dismissal – by the employer |
| Contingency workforce | Visa extension | Background checks | Account setup in the payroll and HR system | Monthly pay slips or other pay frequency | Public holidays | Workers’ compensation | Employee taxes & contributions | Resignation – by the employee |
| Application for a sponsor license for a foreign national | Education checks | Employee data entry and records maintenance | Accruals | Annual leave | Unemployment insurance | Withholding tax | Termination by mutual agreement | |
| Relocation assistance | Managing probation periods | Allowances | Parental leave | Voluntary Benefits | Local tax payments and reporting to local authorities | Notice period handling | ||
| 13th and 14th salary | Sick leave | Share plans for executives | End of financial year reporting | Final settlement & severance payments | ||||
| Additional leave | Bonuses & Equipment provision | De-registration with statutory bodies | ||||||
| Expenses reimbursement & business trip processing | ||||||||
| Health insurance, dental treatment |
Spotlight on Panama
- Location: Central America
- Capital: Panama City
- Population: 4,319,118 (2023 estimate)
- Area: 75,420 sq km (29,120 sq mi)
- Labor Force Participation Rate: 67.2% (2023 estimate)
- Currency: Balboa (PAB) and United States dollar (USD)
- Holidays: 13 paid public holidays
FREQUENTLY ASKED QUESTIONS
Got Questions?
We’ve Got Answers.
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
How can we build a competitive benefits package for employees in Panama?
Acumen can combine the mandatory employment benefits in Panama with supplementary benefits selected for the role, seniority and hiring market. This is particularly useful for senior, specialist or hard-to-hire positions where a statutory-only package would not be competitive.
Can we include bonuses, commission or variable pay for employees in Panama?
Yes, where the plan can be implemented under the employment and payroll rules that apply in Panama. Acumen can reflect salary, bonus, commission or other variable elements in the employment setup, while checking how the plan should be documented, taxed and processed locally.
What if someone working for us in Panama looks more like an employee than a contractor?
If the working relationship is employee-like, continuing to label it as independent contracting can create risk. Acumen can assess whether formal EOR employment in Panama is suitable and, if so, onboard the individual as an employee. This is not a retroactive reclassification service.