Guide · Business and employment
Panama SEM Regime: Multinational Company Headquarters
What Panama's Multinational Company Headquarters (SEM) regime is, which groups qualify and what tax and immigration advantages it offers.
- Updated
In short
The Multinational Company Headquarters (SEM) regime allows international groups to set up a headquarters in Panama that provides services to group companies, with special tax treatment and visas for its staff. It requires a license and real activity in Panama.
Who qualifies?
Multinational business groups that meet the size and international presence requirements set by law and obtain the SEM license. The headquarters provides services to other group companies, such as management, finance, logistics or support.
What does it offer?
- A special income tax on the services the headquarters provides.
- Exemptions from other taxes for services provided to group companies outside Panama.
- Specific visas for headquarters staff and their families.
What does it require?
- The SEM license, granted by a commission attached to the Ministry of Commerce and Industries.
- Real activity in Panama: office, staff and management.
- Compliance with accounting, tax and reporting obligations.
Frequently asked questions
Can a small business use the SEM regime?
The regime is designed for multinational groups that meet size requirements. For a small company, an ordinary corporation is usually more suitable.
Do foreign staff need a work permit?
The regime has its own visas for headquarters staff, with a specific procedure. For other hires, see hiring employees in Panama.
What other special regimes are there for companies?
If your operation needs facilities, for example for logistics, manufacturing or services, the Panamá Pacífico special economic area offers its own incentives to companies registered there.