RESIDENCE PERMIT FOR WORKERS OF MULTINATIONAL COMPANIES IN PANAMA

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

The Permit is requested for foreign personnel who will conduct an activity within the company for a short time. They are generally granted for a period of three (3) months, extendable for a period of three (3) more months. A foreigner with this type of visa does not need a work permit.

Workers who come to the country for a specific event must request this type of visa, provided they need a visa to enter Panama due to their nationality.

The cost for the Permanent Resident Permit application as an SEM worker comprises the following expenses: (notarial, registry, stamps, transactional, transportation, certificates, kinship certificate, SNM registration, etc. including processing card, residence card, and visa multiple) and legal fees.

The total cost amounts to US$ 1,565.00. Below we break down the cost:

• Expenses: US$ 365,00 (three hundred sixty-five US dollars).
• Legal fees: US$ 1.200,00 (one thousand two hundred American dollars). ITBMs tax is not included.

The total cost does not include the payment of:

• Certified check for US$ 250.00 (two hundred and fifty US dollars) in favor of the National Treasury.

The requirements to apply for the Permanent Resident Permit as a SEM worker are the following:

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 (checked before a Panamanian notary or responsible authority, a copy of the complete passport is required).
4. Criminal Record Certificate duly apostilled from the applicant's country of origin. It must not be more than three (3) months old when the documents are submitted. If it does not exist in the applicant's country of origin, a certification from a Diplomatic Agent or consul must be presented from their country of origin accredited in the Republic of Panama that certifies the non-existence of said document.
   If the applicant provides the Criminal Record Certificate from their country of residence, they must attach documentary evidence proving residence in said 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 present a Criminal Record Certificate issued by the Judicial Investigation Directorate (DIJ) of the Republic from Panama.
5. Suitable Medical Health Certificate in Panama (we can help obtain it).
6. Sworn Statement on the applicant's Personal History which the National Immigration Service will provide.
7. A SEM Letter of employment and responsibility authenticated before a notary, signed by the legal representative or person empowered for that purpose.Aspects that the Letter in question should mention:
   1. Name of the employee and their generals.
   2. Position or job that the employee will perform in the Company.(In Spanish)
   3. Duration of the contract.
   4. Assigned functions.
   5. Salary to be earned.
   6. Source of the salary, whether local or foreign.
   7. 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, collective or individual.
   9. Certification issued by the Technical Secretariat of the Multinational Company Headquarters Licensing Commission,in which it is accredited:
   • That the applicant is covered by individual or group health insurance.
   • That the company is authorized under the special regime established in Law 41 of 2007.
   • In the concept of rights for applying to a migratory category, B/250.00 must be paid in favor of the National Treasury. (You can change).

The SEM visa is how the Permanent Personnel Visa of the Multinational Company Headquarters is known, which can be requested by any foreigner, or foreign personnel who is hired by a multinational company that holds the Multinational Company License, in accordance with what is established in Law 41 of August 24, 2007.

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

An important issue is that any worker hired under this visa can request a visa for his dependents. The SEM visa allows the foreigner who works or has worked under the umbrella of a SEM visa , after the period of five (5) years, to opt for Permanent Residence in Panama.

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

The 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 dictates 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. That is, by granting a series of fiscal, migratory, and commercial benefits, Panama seeks to attract and promote investment, thus achieving the generation of jobs, as well as the transfer of technology.

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

A SEM company is one that has obtained a License as a Multinational Company Headquarters. To obtain the said license, the company has had to comply with a series of parameters at the time of the request, such as: the assets of the Multinational Company, the places or headquarters of the company's operation, commercial operations, the share price on the local or international stock market, as well as any other element that the Commission decides to establish as a requirement.

The body in charge of establishing the necessary requirements is the Multinational Company Headquarters Licensing Commissionwhich is attached to the Ministry of Commerce and Industry of Panama.

The cost of a SEM visa is divided into out-of-pocket expenses and the attorneys’ fees working on the case. The total of the same varies according to the situation of the interested party.