Panama has made big changes to the ‘cancellation with extension’ option for holders of Temporary Residence Visas in the Multinational Companies (SEM) program. And these changes are effective right away.
This option lets companies extend a foreign worker’s visa for six months after their job ends. It helps them take care of personal things like finding a new place to live, arranging school for their kids, or getting a new job and visa in Panama. Usually, when a visa is cancelled, foreign nationals can only stay in Panama for seven days after they’ve met all the cancellation requirements.
Now, employers who want to ask for a cancellation – with – extension, instead of a regular cancellation, have to do it within five business days after the employee’s job ends. Before, they had 20 business days. Also, foreign nationals must give back their original Panamanian Identity Cards when they file the petition. They’ll get a new Identity Card that’s valid for six months or for the rest of the time left on their original card, whichever is shorter. They can’t keep their original Identity Cards after cancellation. This is to stop people from misusing the cards after the six – month extension. The new Identity Card costs $100 per person.
When the six – month extension is over, foreign nationals have to either leave Panama or apply for a new visa within five calendar days. Otherwise, they’ll have to pay overstay fines. These new rules are meant to give Panama more control over residency extensions for SEM Visa holders after their jobs end.
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