Multinational Headquarters

This type of visa is granted to foreigners who will hold administrative or executive positions within the company. They are usually granted for a period of five (5) years, extendable for another five (5) years. Holders of this type of visa do not need a work permit to work. 

The Permit is requested for foreign personnel who will be performing an activity within the company for a short period of time. They are generally granted for a period of three (3) months, extendable for a further period of three (3) months. Foreigners who hold this type of visa do not need a work permit to work. 

This type of visa must be requested by workers who are coming to the country for a specific event, provided that their nationality requires them to have a visa to enter Panama. 

The price for applying for a Permanent Resident Permit as an SEM worker consists of the following expenses: (notary, registration, stamps, transaction, transportation, certificates, proof of kinship, SNM registration, etc., including processing card, residence card, and multiple-entry visa) and legal fees.

The total cost is US$1,565.00. Below is a breakdown of the price:

• Expenses: US$365.00 (three hundred and sixty-five US dollars).

• Legal fees: US$1,200.00 (one thousand two hundred US dollars).

The total cost does not include the payment of:

• Certified check for US$250.00 (two hundred and fifty US dollars) payable to the National Treasury.

The requirements to apply for a Permanent Resident Permit as an SEM worker are as follows:

1. Power of attorney and application granted by the legal representative of the Multinational Company Headquarters (SEM) and by the foreign personnel to be hired.

2. Three (3) passport-size photographs of the permit applicant (originals, not photocopies).

3. Copy of the applicant's passport (certified by a Panamanian notary or responsible authority; a copy of the entire passport is required).

4. Certificate of Criminal Record from the applicant's country of origin. It must not be more than three (3) months old at the time the documents are submitted. If it does not exist in the applicant's country of origin, a certification from a Diplomatic Agent or Consul from their country of origin accredited in the Republic of Panama must be submitted, attesting to the non-existence of such a document.  If the applicant provides a Criminal Record Certificate from their country of residence, they must attach documentary evidence proving their residence in that country. All these documents must be apostilled. If the applicant has resided in Panama for more than two years and has not left the country for more than 30 consecutive days, they may submit a Criminal Record Certificate issued by the Judicial Investigation Directorate (DIJ) of the Republic of Panama.

5. Certificate of good health in Panama (we can help you obtain this).

6. Affidavit of the applicant's personal background, which will be provided by the National Immigration Service.

7. Letter of employment and responsibility from the SEM company, notarized and signed by the legal representative or person authorized for that purpose. The letter must include the following information:

• Name of the employee and their personal details.

• Position or role they will hold in the company (in Spanish).

• Duration of the contract.

• Assigned duties.

• Salary to be earned.

• Source of their salary, whether local or foreign.

• Indicate the insurance to which the staff and dependents will belong, in which the company is responsible for repatriation if necessary.

8. Certification of medical insurance policy, collective or individual.

9. Certification issued by the Technical Secretariat of the Multinational Company Headquarters Licensing Commission, certifying:

• That the applicant is covered by individual or collective medical insurance.

• That the company is authorized under the special regime established in Law 41 of 2007.

• A fee of B/250.00 must be paid to the National Treasury for the application for an immigration category. (subject to change)

The SEM visa is the name given to the Permanent Visa for Multinational Company Headquarters, which can be applied for by any foreigner, or foreign personnel, who is hired by a multinational company that holds a Multinational Company License, in accordance with the provisions of Law 41 of August 24, 2007.

This type of visa and its corresponding identification card are granted for a term of five (5) years, renewable without limits. The SEM visa is not only granted to permanent personnel, but a Temporary Personnel visa can also be requested and is granted to foreigners who are hired by Multinational Companies in Panama to perform technical or training services at the Multinational Company Headquarters for short periods (no more than three (3) months, extendable once for the same amount of time).

An important point is that any worker hired under this visa can apply for visas for their dependents. The SEM visa allows foreigners who work or have worked under the umbrella of an SEM visa, after a period of five (5) years, to apply for permanent residence in Panama. 

Even if foreign personnel decide to opt for Permanent Residence, they may continue to provide services to the SEM company, with the difference that they will have to pay the taxes corresponding to any salaried employee (income tax, educational insurance contributions, and Social Security contributions).

The so-called SEM Law in Panama is specifically Law 41 of August 24, 2007, which creates the Special Regime for the Establishment and Operation of Multinational Company Headquarters and the Multinational Company Headquarters Licensing Commission and enacts other provisions, promulgated through Official Gazette No. 25864.

The main objective of this regulation is to create a Special Regime for Multinational Companies to establish their business headquarters in Panama. In other words, by granting a series of tax, immigration, and commercial benefits, Panama seeks to attract and promote investment, thereby generating jobs and technology transfer.

This law regulates everything related to Multinational Company Headquarters Licenses that must be requested by companies interested in establishing themselves as SEM companies and obtaining the benefits granted by the Law to those who hold such a license. The Law itself even establishes an immigration regime and other special conditions for personnel.

An SEM company or enterprise is one that has obtained a license as a Multinational Company Headquarters. To obtain this license, the company must have met a series of parameters at the time of application, such as: the assets of the Multinational Company, the locations or headquarters of the company's operations, commercial operations, the listing of shares on local or international stock exchanges, as well as any other element that the Commission decides to establish as a requirement.

The body responsible for establishing the necessary requirements is the Multinational Company Headquarters Licensing Commission, which is attached to the Panamanian Ministry of Commerce and Industry.

The cost of a SEM visa is divided into out-of-pocket expenses and the fees of the lawyers working on the case. The total cost varies depending on the situation of the applicant.