What are the 6 key questions to consider regarding expatriate law in Latin America? Our Latin American member firms have provided this handy overview for you. Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com

1. Expatriate
Law
IN LATIN
AMERICA
6 Key Questions to Consider

2. In your jurisdiction, do foreign workers
have to enter into an employment contract
in the host country or can their services
be governed by an employment contract
executed in another country?
HOST COUNTRY OTHER COUNTRY
?
What are the main laws or regulations
in your jurisdiction relating to foreign
workers?
LAWS &
REGULATIONS?
AA Decree Law 1.094 (July 19, 1975),
Supreme Decree 597 (June 14, 1984)
and Article 19 of the Labor Code.
AA The “Foreigners Law”, approved by
Legislative Decree N. 703, and the
Regulations approved by Supreme Decree
N. 014-92-TR.
AA For migratory purposes the Unique Text of
Administrative Procedures of the Migratory
Authority is applicable.
Argentina Argentina
CHILE
CHILE
MEXICO MEXICO
BRAZIL
Colombia
PANAMA
PANAMA
PERU
PERU
AA Immigration Law 25871 & Decree
number 616/2010 create the main legal
framework for foreign workers.
AA Other important regulations include:
DNM Regulation 1170/2010 and
1171/2011.
AA Law No. 6,815/1980,
Brazilian Labor Code Decree No. 5,
452/1943,and National Immigration
Council’s Normative Resolutions
establishing rules for different visa
categories.
AA The Colombian Labor Code (“Código
Sustantivo deTrabajo”), and amendements
(Law 50 of 1990 and Law 789 of 2002).
AA Employer–employee relations are
also governed by Law 100 of 1993
(which consequently also regulates the
Social Security System), as subsequently
amended by Law 797 of 2003 and Law
1122 of 2007.
AA Foreign workers are subject to the same
regulations provided for local employees,
with the sole exception of the immigra-
tion obligations that must be complied
with in any case.
AA The Mexican Federal Labor Law, Chapter
III (Art. 56-31); the Social Security Law,
Chapter II (Art. 11-26).
AA Likewise, there are accessory
administrative-law regulations that are
applicable to immigration proceedings
and which govern rules of procedure.
AA The Labor Code,Executive Decrees 17 (1999),
107A(2011),140(2012) and 67-69 (2013).
AA The general rule is that the foreigners have
to be employed by a local legal entity.
AA In some extraordinary circumstances
(professional or technical visas and personnel
transferred by an international company to
an Argentinean branch) and for fixed term
periods, foreigners can work through a
non- Argentinean company.
Depends on the visa type:
AA An Employment ContractVisa requires
foreigners to enter into an employment
contract with an employer, who must be
a natural or juridical person with legal
domicile in Chile.
AA A Temporary Visa is a residence visa that
can be given those who are going to
perform activities in a Chilean company
but will be paid abroad.
AA If a foreigner will not receive any salary or
benefits in Mexico then there is no need to
sign a local employment agreement.The
labor relationship is governed by the offer
or assignment letter provided by the country
or origin.
AA Pursuant to the Labor Code all foreign
workers have to enter into an employment
contract in Panama.
AA Foreign workers that enter Peru with the
purpose of rendering services to a Peruvian
Company must have a labor agreement
previously approved by the Peruvian
Labor Ministry. It is important to note that
the labor agreement could be signed in
Peru or in the foreign country, but it must
contain all the dispositions established by
Peruvian labor law.
AA Workers of foreign companies that enter
Peru without a residence intention and
for a specific period of time do not need a
Peruvian labor agreement.
AHOST A Other
BRAZIL
Depends on the visa type:
AA A temporary visa requires a local contract.
AA A technical assistance visa, under
Resolutions 61/2004 and 100/2013,
requires an employee to remain under a
foreign employment contract or possess
dual contracts (local and foreign).
AHOST A Other
AHOST A Other
AHOST A Other
Colombia
AA Colombian labor laws are ruled by a
principle of territoriality in virtue of which
every employment relationship developed
in Colombian territory will be subject to
Colombian labor laws.Therefore, every
foreign employer rendering services
should enter into an employment
contract in Colombia.
AHOST A Other
AHOST A Other
AHOST A Other

3. Can foreign workers receive their salary
in foreign currency and/or in another
country?
In your jurisdiction, are there any specific
laws or regulations regarding pensions,
healthcare and social security obligations
for foreign workers?
PENSION
SOCIAL
SECURITY
Argentina Argentina
CHILE CHILE
MEXICO MEXICO
BRAZIL
BRAZILColombia
Colombia
PANAMA
PANAMA
PERU
PERU
AA The general rule is that foreigners
employed in Argentina have to receive their
salary in Argentina and in local currency.
AA However, if the Argentinean employer has
foreign currency in reserve, that currency
can be freely disposed of and therefore
the salary can be paid in that currency.
AA If the employee has been transferred to an
Argentinean branch of the same company,
his salary can be paid in his home country
for a period of one year.
AA Any worker under an employment
agreement in Brazil can only be paid in
local currency.
AA However, dual employment agreements
allow for split payroll.
AA The salary can be agreed in foreign currency,
but it must be paid in Chilean Pesos in the
equivalent amount of the foreign currency
at the payment date.
AA The remunerations can be paid abroad
if such payment it is expressly requested
by the employee and such agreement is
reflected in the employment contract. In
any case, the employer will have to fulfill
all the social security and tax obligations
in connection with the employee´s salary.
AA A company would be able to pay in
foreign currency to the foreign worker
as long as he is not considered a
foreign exchange resident (no more
than 180 days of stay in Colombia
within one year).
AA Once the worker is considered a
Colombian resident, all payments must
be made in Colombian pesos.
AA It can be agreed by the parties that
salary will be paid in local, foreign
currency or even in a bank account
outside of Mexico.
AA Foreign workers must receive their
salary in Balboas. Given the absence of
Balboa bills, US dollar bills are used as
legal currency.
AA Technically, the worker must receive
their salary in Panama. Nevertheless, it
is customary to pay part of the salary in
Panama and part outside of Panama.
AA If a foreign worker gives his authorization,
he can receive his salary in foreign
currency or in a foreign bank account.
The laws and regulations regarding pensions,
healthcare and social security obligations
are equal for foreigners and locals employees.
There are some bilateral social security
agreements that credit or compensate
social security payments made in different
countries.There is also a multilateral social
security agreement between Mercosur
partners.
Foreign workers in Brazil must register with
the National Social Security Institute (INSS)
(for public health services and pension).
An employee contributes 8-11% of his
salary up to a maximum, and an employer
pays 20% of payroll and fringe benefits.
Employers must guarantee medical costs of
foreign worker during their stay in Brazil.
Law N° 18.156, exempts employers from
fulfilling the social security laws with
respect to foreign technical personnel that
enter into employment contracts, provided
they meet the following requirements:
a) The foreign employee must be a‘technician’,
or‘professional’;
b) The employee has to be affiliated to a social
security regime outside Chile that provides
benefits,at least,in case of sickness,disability,
old age and death;
c) In the employment contract the foreign
employee must mention his will to main-
tain the respective affiliation to the social
security regime in his country of origin.
Although regulations for health and profes-
sional risk systems are the same for foreign
employees and local employees, there are
special regulations for foreign employees
regarding pensions. Foreign employees that
are registered and covered by a pension
system in another country are not obliged
to pay contributions to the pension system
in Colombia.
Any person under a local Mexican
Employment Agreement regardless of their
nationality is entitled to enjoy the minimum
labor and employment benefits granted
by Mexican Labor law, which includes the
right to enjoy the benefits of Mexican Social
Security.
Mexican Social Security benefits include
old age retirement pension, healthcare and
medical insurance.
Foreign workers must become affiliated
with the Social Security Institute through
their employer. Moreover, the Social Security
Institute manages the social security system
of Panama, which covers health, maternity
leave, disability, retirement pensions and
deaths (not originating on the job).
There are no specific laws or regulations
for foreign workers regarding pensions,
healthcare or social security obligations. In
the case of foreign workers, general labor
law will be applicable.
YES
YES
YES
NO
NO
NO
NO
AYES A NO AYES A NO
AYES A NO
AYES A NO
AYES A NO
AYES A NO
AYES A NO

4. In your jurisdiction what type of permit
does a foreign employee need to obtain
to render services?
? ?
? ?
?
??
Is there a possibility to ask for a work visa
once a person is in the host country or
does it have to be obtained before the
person arrives?
HOST
?
ADMIN
HOME
?
AA Citizens fromArgentina, Uruguay or Paraguay,
Chile, Bolivia, Peru and Colombia, (Mercosur
or Associated States to the Mercosur) are
allowed to request a temporary residency up
to two years upon arrival in Brazil.
AA Citizens from other nationalities may have
the Brazilian entity sponsor a visa application
while they are in Brazil, as tourists or as
business visitors, however are prohibited
to work during the process.They will be
required to collect the visa at a Brazilian
Consulate outside of Brazil once approved.
Either the Employment Contract Visa or the
Temporary Visa application can be filed in:
AA abroad, in the Chilean Consulate from the
country of the person who requests the visa;
AA or in the Foreigners’ Department of the
Chilean Home Office (“Departamento de
Extranjería del Ministerio del Interior”)
in Chile (after the applicant’s arrival as a
Tourist).
AA Employees who are nationals from countries
that belong to the Andean Community (CAN)
(Peru, Ecuador, Bolivia and Colombia) need a
Work Visa, but they can apply for it once they
are in Colombia.
AA All other foreigners must obtain theWorkVisa
at a Colombian Consulate before arriving in
Colombia.
AA A foreigner may enter the country
under a tourist visa, which grants a stay
of six months. During this period of
time, a work permit can be requested.
AA A foreigner can request a work visa in
his home country, or
AA once he arrives in Peru. However, a
foreigner will only be able to begin
working once he obtains the work visa.
ArgentinaArgentina
CHILE
CHILE
MEXICO
BRAZIL
Colombia
Colombia
PERU PERU
AA Temporary visas and permanent visas can
be issued to foreigner workers.
AA Temporary visas can be issued for the trans-
fer of technical knowledge and provision of
technical services for a short or long period;
for working on ships and maritime plat-
forms; for foreigners employed by Brazilian
multi-nationals or by a foreign entity for
professional training at a Brazilian branch,
subsidiary or headquarters of an entity
belonging to the same economic group
AA PermanentVisas can be issued for foreign
administrators, managers, directors, and
executives; for foreigners who represent
financial institutions based abroad; for
foreigners appointed to manage non-profit
organizations;for individual foreign investors.
AA A working visa is required for any foreign
national to work in Argentina.There is
a simplified procedure for citizens from
Mercosur countries.
AA BusinessVisas (Section 24 Clause H Law
25871 and NDM Regulation 1171/2010)
and Professional and technical visas
(Section 24 Clause H Law 25.871 and
NDM Regulation 1170/2010) are two
specific types of work visas issued to
foreigners.
AA The work documents allowing foreigners
to perform a labor activity in Chile
are: Permission to Work with a Tourist
Visa; an Employment Contract Visa; a
Temporary Visa.
AA Under Colombian laws,a foreign employee
needs 2 permits to render services in Colom-
bia:aWorkVisa and a Professional Permit
from a Professional Council (depending on
the profession and services provided).
AA There are three kinds of documents that the
Immigration Office has authority to issue
to a foreigner in order to render services
in Mexico:Temporary Resident card
with permission to participate in gainful
activities;Temporary Resident card with
no permission to participate in gainful
activities; Permanent Resident Card.
AA All foreigners who wish to work in Panama
must obtain a work permit form the
Ministry of Labor and Work Development.
AA The Labor Code stipulates that each
employer can hire ordinary foreign
personnel in a proportion of no more
than 10% of his regular labor force. The
employer can, however, employ foreign
specialized or technical personnel that
do not exceed 15% of the position in the
total labor force.
AA If a foreigner wishes to start rendering services
for a Peruvian company and receiving
remuneration, he needs to obtain a work
visa from the MigratoryAuthority. Once
the work visa is obtained, the migratory
authority will grant a foreign card.
AA If a foreigner enters to Peru as an employee
of a foreign company assigned by their
foreign employer for a specific term of
time, a temporary visa will be granted.The
migratory authority usually grants this kind
of visa for a period of six (6) months, which
can be extended.The visa is stamped on
the passport. No foreign card is granted.
PANAMA
PANAMA
AA The future employee could enter the country
with a tourist visa and apply for a working
visa at the National Direction of Migration
during his stay in Argentina.
BRAZIL
AAfter A Before
AAfter A Before
AAfter A Before
AA Regardless of the type of document
needed, proceedings should be initiated
prior to the foreigner’s arrival in the
country, as the Consular interview
constitutes a crucial step for the obtaining
of the Resident Card.
AA In the event that the foreigner already
has a Temporary Resident status with
no permission to participate in gainful
activities, he would be entitled to
request a work permit and modify the
non-gainful status for a gainful one.
This procedure can be initiated while
the foreigner is in Mexico.
MEXICO AAfter A Before
AAfter A Before
AAfter A Before
AAfter A Before

5. Basham, Ringe y Correa S.C.
Paseo de los Tamarindos N°. 400
Floor 9 Bosques de las Lomas
05120 México, D.F. Mexico
T +52 55 5261 0442
F +52 55 52 61 0496
E basham@basham.com.mx
jorgedepresno@basham.com.mx
Funes de Rioja & Asociados
Av. Eduardo Madero 942
C1106ACW
Ciudad Autónoma de Buenos Aires,Argentina
T +54 11 43484100
E estudio@funes.com.ar
ARGENTINA
MEXICO
Veirano Advogados
Av. Presidente Wilson, 231 23º floor
Rio de Janeiro
RJ 20030-021 Brazil
T +55 21 3824 4747
F +55 21 2262 4247
E luiz.migliora@veirano.com.br
BRAZIL
Arosemena Noriega & Contreras
Tower Financial Center, 16th Floor
50th Street and Elvira Mendez
P.O. Box 0832-01091
Panama, Republic of Panama
T +507 366 8400
F +507 366 8457
E anc@anorco.com.pa
PANAMA
Philippi, Yrarrázaval, Pulido & Brunner
El Golf 40
piso 20 Las Condes Santiago
C.P. 7550107 Chile
T +56 2 364 3700
F +56 2 364 3796
E philippi@philippi.cl
CHILE
Estudio Olaechea
Bernardo Monteagudo 201, San Isidro
Lima 27, Peru
T +51 1 219-0400
F +51 1 219-0420 | +51 1 219 0422
E postmaster@esola.com.pe
PERU
Brigard & Urrutia
Calle 70A N°. 4 - 41
Bogotá - Colombia
T +571 346 20 11
F +571 310 06 09 | +571 310 05 86
E servicioalcliente@bu.com.co
csantos@bu.com.co
COLOMBIA
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