Permanent Residence in Panama for Foreigners from SEM Companies

The regime of Multinational Company Headquarters (SEM) was established by Law 41 of 2007 and improved by Executive Decree No. 238 of 2019. This framework offers advantages both to companies operating in Panama and to their foreign collaborators. Among the benefits are tax incentives and access to simplified residence and work permits for foreign employees of these companies and their dependents.

One of the main benefits for foreign workers is the option to apply for Permanent Residence. However, you must meet certain specific requirements to qualify under this immigration subcategory, especially if you no longer work in an SEM company.

Option 1: Permanent Resident Permit for Ex-SEM

If you no longer work in an SEM company, you can choose permanent residence through Executive Decree No. 238, but it is essential to meet certain additional requirements:

• Have worked for at least 2 legal and continuous years in an SEM company.
• Documentation of work experience issued by the company.
• Bank certificate with appropriate balances.
• Proof of membership and payments to the Social Security Fund.

Option 2: Change of Migratory Subcategory

Another alternative is to change subcategories within Panamanian immigration laws, opting for regimes available to qualified professionals or investors. Each subcategory has specific requirements that a specialized lawyer can help you manage.

For those who are still working in an SEM company or are looking for permanent residence, these are the main requirements:

• Duly signed application form.
• Certified copy of the full passport.
• Labor certification issued by the company SEM.
• Proof of affiliation to the Social Security Fund in Panama.
• Bank certificate that guarantees your financial solvency.
• Criminal record of the country of origin.

It is important to have a lawyer specialized in migration to ensure that all documentation is properly submitted and to avoid errors that could delay the process.

Dependents (spouses and minor children) can also benefit from the SEM regime, but it's important to understand the legal implications:

1. Dependent residence

Direct dependents can apply for residency under the SEM permit holder, but they must meet basic requirements such as authenticated birth certificates and marriage certificates, as the case may be.

2. Work Permit for Dependents

Under the SEM regime, dependents do not have an automatic right to paid work. However, through an additional process, they can apply for work permits under Panamanian law. This process requires appropriate legal guidance.

Once approved your Permanent Resident Permit, it's important to consider if you need to apply for a Work Permit. Although permanent resident status allows you to settle in Panama, the right to work legally requires a separate and indispensable procedure.

How to manage it?

You must register your residence with the Ministry of Labor and manage a permit that, under the SEM category, has simplified processes for people who meet the requirements of the current immigration regime.