Special regime created for the establishment of Multinational Headquarter (MHQ), companies that operates as a foreign company registered in Panama or as a Panamanian company owned by a transnational company.
Its objective is to provide services to its parent company or subsidiary in other countries.
Laws:
- Law 41 of 24 August 2007 (Amended by Law 45 (2012), Law 57 (2018) and Resolution 15 (2018).

Sectors/Industries:
- Logistics.
- R+D
- Electronic processing and consolidations of business group operations.
- Construction and design.
- Financial Management, for Companies/BPO.
- Internal technical assistance, advice and coordination of marketing and advertising.
- Administrative Direction of Regional Operations.
INCENTIVES
- Legal Stability of the investments referred to in Law 54 of 22 July 1998 and Executive Decree No. 9 of 22 February 1999.
- Reduced rate: 5% Income Tax in the Republic of Panama for services rendered.
- The services provided do not cause ITBMS if they are provided to the business group abroad.
- Permanent visa (5 years) for foreign executives in permanent positions and their dependents.
- Permanent residence for the permanent staff of the SEM Company.
- 3-month visa for foreign technical personnel hired for short periods for SEM company projects.
- SEM licensed companies can hire foreign executives they deem necessary for administrative positions.
- Income Tax Exemption, if the salary comes from a foreign source for foreign personnel.
- Tax exemption for the introduction of household items and vehicles for personal use of permanent foreign workers, however, the sales tax must be paid.
170+
Multinationals established in Panama since 2007.
5,500+
Jobs generated.
US $8,800+
Million Invested.
