ARTICLE
7 November 2024

Operation Of Multinational Companies In Panama

EP
ECIJA Panama

Contributor

ECIJA is one of the leading full-service firms in the Spanish market, consolidating its position as the Spanish firm with the largest presence in Latin America. ECIJA Panama evolved from being a boutique practice to one that now partners with the globally recognised Spanish-based law firm, that unites us with more than 200 partners in Latin America. Our practice is constantly moving forward and taking proactive steps to identify and embrace new and potential clients in innovative fields that cover culture, sports and entertainment,
Panama has established itself as a strategic investment destination for multinational companies due to its privileged geographic location, connecting North and South America and facilitating international trade.
Panama Immigration

Panama has established itself as a strategic investment destination for multinational companies due to its privileged geographic location, connecting North and South America and facilitating international trade. The Panama Canal, one of the world's main maritime routes, offers fast and efficient access to global markets, making the country a key logistics and transportation hub. This geographic access is an unparalleled advantage for companies looking to expand their operations in the Latin American region and beyond.

In addition, Panama has an attractive tax environment for multinationals, offering incentives such as free zones, special tax regimes and double taxation agreements with multiple countries. The Multinational Headquarters Law (SEM) and its preferential tax regime are examples of policies designed to attract foreign direct investment. These tax benefits, together with a dollarized economy, provide financial stability and legal certainty, factors that are fundamental for multinationals to establish themselves with confidence in the country.

Panama's business environment is also complemented by an ever-developing technological and telecommunications infrastructure. With a skilled workforce, a robust financial system and a series of trade agreements, Panama has positioned itself as a competitive country for companies seeking a Latin American hub. These advantages, coupled with a relatively stable political climate, make Panama an ideal location for investment and expansion of multinational companies.

Legal Framework for the Headquarters of Multinational Companies.

In Panama, the operation of multinational companies is mainly regulated by two legislations: Law 41 of 2007, SEM Law and Law 159 of 2020, EMMA Law.

The purpose of Law 41 of 2007 is to create the Special Regime for the Establishment and Operation of Headquarters of Multinational Companies, to attract and promote investments, the generation of jobs and the transfer of technology, as well as to make the Republic of Panama more competitive in the global economy, through the optimal use of its geographical position, its physical infrastructure and international services.

On the other hand, Law 159 of 2020 aims to create the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services Related to Manufacturing, in order to attract and promote investments in productive processes, job creation and technology transfer, as well as to make the Republic of Panama more competitive in the global economy.

Services of Multinational Companies Headquarters established in the legislation.

Law 41 of 2007 establishes specifications on the services of the headquarters of multinational companies that are subject to the legislation. It establishes in its article 5:

"The services provided by a Multinational Headquarters are those listed below or a combination of these:

  1. The direction and/or management for operations in a specific geographic or global area of a group company. Refers to strategic planning services, business development, personnel management and/or training, operations control and/or logistics.
  2. Logistics and/or warehousing of components or parts, required for the manufacture or assembly of products it manufactures.
  3. Technical assistance to companies of the corporate group or to customers who have purchased any product or service from the company and, therefore, are obliged to provide them with assistance services.
  4. Financial management, including treasury services, to the corporate group.
  5. Business Group accounting.
  6. The preparation of plans that are part of designs and/or constructions, or part of them, that constitute part of the typical line of business of the parent company or any of its subsidiaries.
  7. Electronic processing of any activity, including consolidations of corporate group operations. This service includes network operations.
  8. Consulting, coordination and monitoring of marketing and advertising guidelines for goods or services produced by its business group.
  9. Operations support and research and development of products and services of the business group.
  10. Any other analogous service previously approved by the Cabinet Council by means of a reasoned resolution, provided that it complies with the precepts set forth in this Law."

The delimitation of these services is crucial to understand which activities are regulated by the legislation and to understand more specifically their scope and the obligations of companies operating under this modality.

Obligations derived from the law for companies with a SEM License

As a consequence of operating the services established by law under an SEM License, companies are subject to certain obligations:

  1. Multinational companies that are covered by the Regime must operate as a foreign company registered in Panama or as a Panamanian company owned by the multinational company, its subsidiaries or its affiliates.
  2. The function of a Multinational Company Headquarters will be to provide services only to the corporate group to which it belongs, in accordance with the activities permitted by Law 41.
  3. The companies that establish themselves in Panama subject to the norms of Law 41 will have to present to the Technical Secretariat of the Commission of Licenses of Headquarters of Multinational Companies, an annual report containing the statistics concerning their operations within the national territory. This Secretariat will determine the information to be contained in such report and will include it in a form to be filled out by all the companies that are subject to the Special Regime created by the Law. The Head Offices of Multinational Companies will have the obligation to communicate immediately, to the Commission of Licenses of Head Offices of Multinational Companies, any change in the status of their operations in the country and of their personnel.
  4. The Head Offices of Multinational Companies are obliged to comply with the current requirements of information on payments made to third parties, whether natural or legal persons.
  5. Multinational Headquarters shall be required to immediately notify the Multinational Headquarters Licensing Commission of any change in the status of foreign personnel covered under Law 41.

Step by step to obtain SEM Licenses.

Law 41 of 2007 created the Multinational Company Headquarters Licensing Commission as the body in charge of managing all matters related to compliance with the regime described in the Law and grants the Technical Secretariat of the Commission, among other functions, to grant SEM Licenses to applicants that comply with the requirements established in the law, and to manage visas for personnel working in the companies covered by the regulations.

The procedure to apply for a SEM License is in charge of being established by the Multinational Companies Headquarters Licensing Commission, attached to the Ministry of Commerce and Industries. By analyzing the main legislation and the complementary publications by the Ministry, we can summarize the procedure in 6 steps:

1. Know the requirements and conditions

Before starting the process, make sure that your company meets the conditions established by Law 41 of 2007 to qualify as a Multinational Enterprise Headquarters (SEM). These conditions include the development of permitted activities, such as operations management, finance or logistics services for its subsidiaries, and the interest in establishing a regional or global presence from Panama.

2. Submit the application to the SEM Commission

Presentation of the Application Form prepared by the Technical Secretariat of the Licensing Commission, duly completed with the information requested, to which the following documents must be attached:

  1. Power of attorney granted to a qualified attorney of the Republic of Panama, duly authenticated before a Notary Public.
  2. Articles of Incorporation of the applicant company, where it is stated as its main purpose to establish itself as a Multinational Company Headquarters under the protection of Law 41 of 2007. In the case of a company already existing in the Republic of Panama, it must modify its Articles of Incorporation and comply with the requirement described above.
  3. Affidavit of the legal representative of the applicant company, stating the desire to establish in the Republic of Panama the company it represents as a Multinational Company Headquarters, the Business Group to which it belongs, the specific services it will provide as a Multinational Company Headquarters and stating that it complies with all the requirements to opt for this license, as established by Law. The signature of the legal representative must be duly authenticated before a Notary Public.
  4. Consolidated Financial Statements of the Corporate Group to which the applicant company belongs and which is referred to in the Affidavit, duly audited or certified by an independent Certified Public Accountant and apostilled. Reference may be made to the location of these Financial Statements in the Stock Exchange where the corporate group is registered. In the event that the Consolidated Financial Statements are in a language other than Spanish and/or in a currency other than the United States dollar, notes or annexes to the Financial Statements of the corporate group shall be submitted, duly translated into Spanish by a Certified Public Translator authorized in Panama, and the due conversion to the United States dollar certified by the National Bank of Panama.
  5. Bank reference letter from the applicant company or its parent company.
  6. Certification issued by the Treasurer or secretary of the applicant company, duly authenticated before a Notary Public, in which the shareholding of the companies of the Business Group is indicated, in conclusion to prove who the owners are.
  7. The applicant company whose Business Group wishes to perform or performs an activity regulated by the State, through the Superintendence of Banks, Superintendence of Insurance and Reinsurance, National Securities Commission or other regulatory entities, must submit, together with the other requirements, a note from the regulatory entity expressing its opinion regarding the services to be provided by the applicant company as SEM.
  8. Organization chart of the applicant company showing the relationship with the Business Group, its affiliates, subsidiaries or associated companies to which it will provide services.

The assets of the Business Group must be equal or greater than two hundred million U.S. dollars (US$ 200,000,000.00), or the applicant company must provide services to at least seven (7) affiliates, subsidiaries or associated companies.

In the event of establishing a Parent Company in Panama, it shall also be required to have a minimum initial capital of not less than two million dollars of the United States of America (US$ 2,000,000.00).

All documents coming from abroad must be duly legalized or apostilled. The document written in a language other than Spanish must be translated by a Sworn Translator Authorized in the Republic of Panama. The respective documentation must be supported in U.S. dollars.

The application and attached documentation must be submitted in its entirety, in original printed form; and accompanied by one (1) digital copy containing a scan of the information submitted.

3. Review and evaluation of the application

Once submitted, the application will be evaluated by the SEM Commission, which will review whether the company complies with all the requirements established by law. The Commission will evaluate aspects such as the financial solvency of the group, the nature of the services to be provided and their potential impact on the Panamanian economy.

4. Resolution granting the SEM license

If the Commission considers that the company meets the requirements, it will issue a resolution granting the SEM license. This document will allow the company to start operating under the special regime, enjoying the tax, labor and immigration benefits offered by law.

5. Registration with other authorities

Once the SEM license is obtained, the company must register with the corresponding authorities, such as the Dirección General de Ingresos (DGI) for tax matters and the Caja de Seguro Social to comply with labor obligations. It must also obtain immigration permits for foreign employees, if applicable.

6. Establishment of operations

Finally, the company must comply with the obligation to establish a physical headquarters in Panama and conduct its operations in accordance with the SEM regime, ensuring compliance with all applicable local regulations.

Tax regime applicable to SEMs.

The tax regime for companies operating under the Multinational Headquarters of Enterprises (SEM) license in Panama, established by Law 41 of 2007, offers a series of tax incentives designed to encourage foreign investment and facilitate the installation of multinationals in the country. One of the main benefits is that SEM companies do not pay income tax on the services they provide to related entities outside Panama. This means that income generated by international operations is exempt from taxation, as long as such activities are carried out from Panama for their business group.

In addition to the income tax exemption, SEM companies are exempt from the tax on the transfer of tangible personal property and the provision of services (ITBMS) when carrying out transactions related to their authorized activities within the regime. This represents a significant advantage for multinationals wishing to establish in Panama to provide support and management services to their subsidiaries in other jurisdictions. However, the law clarifies in its Article 22 the following:

"The services provided by a company with a Multinational Company Headquarters License established and with operations in the Republic of Panama, whether or not it is part of the same economic group, will cause Transfer Tax of Movable Goods and the Rendering of Services.

Companies with a Multinational Company Headquarters License are not exempt from the payment of the Tax on the Transfer of Movable Property and the Provision of Services for the purchase of goods or services in the Republic of Panama or for the imports they make."

Making the clarification that the exemption is in the case of profits obtained abroad as a result of the activities established in Law 41 that can be carried out by SEM companies from Panama.

In summary, the SEM regime offers an attractive tax environment for both companies and employees, facilitating the growth of multinational operations from Panama.

Migratory regime applicable to SEMs.

The immigration regime for companies operating under the SEM license in Panama, established by Law 41 of 2007, offers a simplified and favorable system to facilitate the hiring of highly qualified foreign employees. This regime allows multinational companies to bring their foreign personnel to perform key functions at the headquarters located in Panama, ensuring a smooth and agile integration with the local business environment.

One of the main immigration advantages is the creation of a special visa for workers of SEM companies. This visa allows foreign employees to work and reside in Panama for the duration of their contract with the company. Holders of this visa can obtain work permits without the restrictions that normally apply to foreigners in other regimes. In addition, this visa may be extended to the employee's dependents. The reference to the dependents of the holder of a Multinational Company Headquarters Permanent Personnel Visa refers to the spouse, minor children or children under twenty-five years of age who are students and the parents of such personnel, who remain in the national territory under the responsibility of the personnel of the Multinational Company Headquarters.

The foreign personnel and their dependents shall apply, through the Technical Secretariat, for the Visa of Permanent Personnel of Headquarters of a Multinational Company or of Dependent of Permanent Personnel of Headquarters of a Multinational Company. The foreign personnel who is granted a Multinational Company Headquarters Permanent Personnel Visa will have the right to work in the Republic of Panama, while working in the multinational company with a Multinational Company Headquarters License, as established in Law 41. The Visa of Permanent Personnel of Headquarters of Multinational Company will be granted for a term no longer than that established in the respective work contract, while working in the company, which cannot be longer than five years; the identification card to which he/she will be entitled by virtue of the visa, will be valid for five years, and will carry the right of multiple exit and return permit, valid for the term of the card.

Another immigration provision established in Law 41 refers to temporary personnel. The Head Office of the Multinational Company may manage, through the Technical Secretariat, a Temporary Personnel Visa of the Head Office of the Multinational Company for the foreign personnel that provides technical or training services to the Head Office of the Multinational Company for a term no longer than three months. Once the accompanying Multinational Company Headquarters Temporary Personnel Visa has been granted, it will not be necessary to carry out additional procedures or obtain any permission from any other state entity to work at the Multinational Company Headquarters, or to remain in the Republic of Panama, for the term granted in the visa.

Additionally, foreign employees of SEM companies residing in Panama under this regime are exempt from contributions to the Panamanian Social Security Fund and other social charges, as long as they maintain private medical insurance to cover their needs and those of their dependents. This comes down to reducing administrative and fiscal burdens for both companies and foreign workers, creating a competitive and flexible labor environment for attracting international talent. In summary, the SEM immigration regime facilitates the transfer of key personnel to Panama, offering an attractive and efficient legal framework for multinationals.

Services of Multinational Companies for the provision of services related to manufacturing.

Through Law 159 of 2020, the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services Related to Manufacturing is created, with the purpose of attracting and promoting investments in productive processes, the generation of jobs, the transfer of technology, and of course, to position Panama as an attractive environment for the investment of Multinational Companies. This legislative instrument is known as the EMMA Law.

Once again the legislation makes a detailed list of the services to which it refers with its provisions. Article 4 of Law 159 states:

"The services provided by a multinational company for the provision of manufacturing-related services are as follows or a combination of these:

  1. Services related to the manufacture of products, machinery and equipment provided to companies of the Business Group.
  2. Assembly services of products, machinery and equipment provided to companies of the Business Group.
  3. Maintenance and repair services for products, machinery and equipment provided to companies of the Business Group.
  4. Services related to the remanufacturing of products, machinery and equipment provided to companies of the Business Group.
  5. Services related to the packaging of products provided to companies of the Business Group.
  6. Product development services, research or innovation of existing products or processes provided to companies of the Business Group.
  7. Analytical, laboratory, testing or other services related to the provision of manufacturing-related services rendered to companies of the Business Group.
  8. Logistics services, such as warehousing, deployment and distribution center of components or parts, required for the provision of manufacturing-related services.
  9. Any other analogous service previously approved by the Cabinet Council by means of a reasoned resolution, provided that it complies with the precepts set forth in this Law."

The function of a multinational company for the rendering of services related to manufacturing will be to provide services only to the Business Group to which it belongs, in accordance with the activities permitted by Law 159.

Multinational companies that are covered by the regime must operate as a foreign company registered in Panama or as a Panamanian company owned by the multinational company, its subsidiaries or its affiliates.

Step by step to obtain EMMA Licenses.

This regime seeks to attract foreign investments through tax and labor benefits, with a focus on multinational companies dedicated to manufacturing related services. Making an evaluation of the legislation and based on our technical knowledge we can condense the process of obtaining an EMMA License in 6 steps.

1. Verify that the company qualifies for the EMMA scheme.

Before starting the process, make sure that the company fits into the activities allowed by the EMMA regime, such as manufacturing, assembly, maintenance, repair, conditioning and logistics services, among others related to the production chain. In addition, the company must be part of a multinational corporate group and provide these services to its own corporate structure or related companies.

2. Prepare the required documents and submit the application

Submit an application form prepared by the Technical Secretary of the Commission, completed with the information requested, and attach the following documents:

  1. Power of attorney granted to a qualified attorney of the Republic of Panama, duly authenticated before a Notary Public.
  2. Articles of Incorporation of the applicant company where the intention to establish itself as a Multinational Company for Manufacturing Services is evidenced. In case it is a company already existing in the Republic of Panama, it must modify its Articles of Incorporation and comply with the requirement described above.
  3. Certification issued by the Public Registry of Panama, where the validity and representation of the company is accredited.
  4. Affidavit of the legal representative of the applicant company, stating the desire to establish in the Republic of Panama the company it represents as a Multinational Company for the Provision of Manufacturing Related Services, the Business Group to which it belongs, the specific services it will provide as a Multinational Company, the amount of the assets of the Business Group, the affiliates, subsidiaries or associated companies to which the services will be provided, and stating that it complies with all the requirements to qualify for a license as established by Law. The signature of the legal representative must be duly authenticated before a Notary Public.
  5. Consolidated Financial Statements of the Business Group to which the applicant company belongs and which is referred to in the Affidavit, duly audited or certified by an independent Certified Public Accountant.
  6. Bank reference letter of the applicant company, or of its parent company or of those who appear as owners of the company applying for the License.
  7. Certification issued by the Treasurer or Secretary of the applicant company, identifying the majority shareholder or identifying that the company is listed on a local or international stock exchange.
  8. Organizational chart of the applicant company showing the relationship with the Business Group, its affiliates, subsidiaries or associated companies to which it will provide services.
  9. Explanatory presentation in digital format (PPT), with respect to the information contained in the license application form and other relevant information regarding the Business Group.

The assets of the Business Group must be equal to or greater than seventy-five million US dollars (USS 75,000,000.00), or the applicant company must provide services to at least three (3) affiliates, subsidiaries or associated companies.

3. Evaluation of the application

The EMMA Licensing Commission has up to 60 days to review and evaluate the application. During this period, it may request additional information if deemed necessary. The evaluation is based on the nature of the manufacturing activities, the economic solvency of the multinational group and the impact the company could have on the Panamanian economy.

4. Resolution and granting of EMMA license

If the Commission considers that the company meets all the requirements, it will issue a resolution approving the EMMA license. Once the resolution is issued, the company will be able to start operating under the EMMA regime and benefit from the tax, labor and immigration incentives it offers.

5. Registration with the corresponding authorities

After obtaining the license, the company must register with the Dirección General de Ingresos (DGI) for tax purposes and with the Caja de Seguro Social to comply with labor obligations. Immigration permits must also be arranged for foreign personnel working in the company under the EMMA regime, if applicable.

6. Establishment of operations in Panama

The company must establish its physical operations in Panama and commence authorized activities under the EMMA regime, ensuring that it complies with all local regulations and the provisions of Law 159 of 2020.

This regime offers significant tax and operational benefits, including tax exemptions similar to those of the SEM regime, making it an attractive option for multinationals engaged in manufacturing and related services.

Tax benefits applicable to EMMAs.

The tax regime applicable to companies operating under the EMMA license in Panama, established by Law 159 of 2020, offers a series of tax incentives designed to attract multinational companies providing manufacturing-related services. One of the main benefits is the income tax (ISR) exemption for income from manufacturing, assembly, maintenance and other activities permitted by the regime, when these services are provided to related entities outside Panama. This means that income generated by international operations performed from Panama is exempt from ISR.

In addition to the income tax exemption, EMMA-licensed companies are also exempt from transfer tax on personal property and the provision of services (ITBMS) on services provided to related companies within the multinational group, as long as they are activities related to manufacturing and other services allowed by the regime. This significantly comes down to lower operating costs, resulting in a highly competitive tax environment for multinationals wishing to establish manufacturing and related services centers in Panama.

Another relevant aspect is that EMMA companies are exempt from taxes on dividends, interest and royalties generated by operations under the regime. Likewise, transfers of goods between EMMA companies and other entities of the group, inside or outside Panama, are not subject to taxation, which facilitates logistical and commercial operations. Together, these tax advantages allow multinational companies to come down to reduce their tax burden, optimize their global operations and take advantage of Panama's strategic location as a manufacturing and distribution center in the region.

Migratory regime applicable to EMMAs.

The immigration regime for companies operating under the EMMA license in Panama, established by Law 159 of 2020, facilitates the hiring of foreign employees required to provide manufacturing-related services. EMMA-licensed companies have access to a streamlined immigration system that allows them to bring in highly skilled foreign personnel to perform key functions within their operations. This immigration regime aims to simplify the process of mobilizing international talent and ensure that companies can count on the specialized personnel needed for their productive activities in Panama.

As for the SEM regime, the EMMA legislation provides for different immigration permits, among them:

Temporary Multinational Company Personnel Visa for the Rendering of Services Related to Manufacturing: it will be granted to the foreigner who provides services, at an operational or training level, to the multinational company, for a term of two years, extendable. Once the Temporary Personnel Visa of a Multinational Company for the Provision of Manufacturing-Related Services is granted, the Ministry of Labor and Labor Development, through the same Multinational Companies Headquarters Migration Office or the One-Stop Investment Office of the Ministry of Commerce and Industries, will grant in a single procedure a work permit that grants the right to work in the Republic of Panama, while working in the multinational company with a Multinational Company License for the Provision of Manufacturing-Related Services.

Multinational Company Temporary Personnel Dependent Visa for the Provision of Manufacturing-Related Services: according to the legislation, temporary personnel dependent on multinational companies for the provision of manufacturing-related services:

  1. To the spouse or partners united for a minimum of five years under conditions of singularity and stability.
  2. To children under the age of eighteen and up to the age of twenty-five, provided that they are studying on a regular basis and are under the economic dependence of the temporary personnel of multinational companies, and to disabled children living with them.
  3. To the parents of such personnel, who remain in the national territory under the responsibility of the principal interested party.

Multinational Company Permanent Personnel Visa: foreign personnel granted a Multinational Company Permanent Personnel Visa will have the right to work in the Republic of Panama, while working in the multinational company with a Multinational Company License for the Provision of Services Related to Manufacturing, as established in Law 159 of 2020.

The Multinational Company Permanent Staff Visa based on the provisions of Law 41 of 2007 and the corresponding identification card will be granted for a term of five years, extendable for the same term, except in those cases in which the employment contract establishes a shorter term. Once the accompanying Multinational Company Permanent Personnel Visa has been granted, it will not be necessary to carry out additional procedures or obtain any permit from any other state entity to work in the multinational company for the rendering of services related to manufacturing or to reside in the Republic of Panama.

Permanent Residence of Personnel of Multinational Enterprises: foreign personnel who work or have worked for any multinational enterprise for the provision of manufacturing-related services may, after the expiration of a five-year term, counted from the approval of the first Multinational Enterprise Permanent Personnel Visa or Multinational Enterprise Temporary Personnel Visa for the Provision of Manufacturing-Related Services, apply for Permanent Residence.

The foreigner who obtains a Permanent Residence for Permanent Personnel of Multinational Companies may continue working for a company holding a Multinational Company License for the Rendering of Services Related to Manufacturing; however, he/she will be subject to the payment of income tax and social security and educational insurance fees, as applicable for the salary and other labor remunerations received, including salary in kind, in the Republic of Panama.

Persons holding a Permanent or Temporary Personnel Visa of a Multinational Company for the Rendering of Services Related to Manufacturing will not be subject to the provisions of Article 77 of Law 51 of 2005, regarding contributions to the Social Security Fund, as long as they do not apply for permanent residence in the Republic of Panama. These foreigners must have health and personal accident policies for themselves and their dependents. The multinational company for the provision of manufacturing related services for which they work will be responsible for this coverage.

Panama is an excellent scenario for the development of business activities of multinational companies.

With a robust legal framework that provides tax benefits and immigration facilities, Panama has become a favorable scenario for the success of multinational companies that decide to establish their operations in the country.

Panama has established itself as a strategic destination for multinational companies thanks to the incentives and benefits offered by the SEM (Headquarters of Multinational Companies) and EMMA (Multinational Companies for the Provision of Manufacturing-Related Services) regimes. Both regimes, established by Law 41 of 2007 and Law 159 of 2020, respectively, provide an attractive legal and tax framework that favors the growth, expansion and operational optimization of companies seeking to position themselves in Latin America and the world. These regimes combine tax, labor and immigration advantages that facilitate the installation and development of multinational operations in Panama.

The SEM regime offers key tax exemptions, such as no income tax on services rendered outside Panama and exemption from ITBMS on certain transactions. It also allows for the flexible hiring of foreign personnel through a simplified immigration system, making it easier for companies to attract and retain highly skilled talent. On the other hand, the EMMA regime, aimed at companies linked to manufacturing and related services, also offers substantial tax benefits, such as exemption from taxes on international income and transactions within the business group, in addition to a favorable immigration environment that allows the arrival of specialized foreign personnel.

Together, these regimes create a competitive environment that not only benefits companies in terms of operational efficiency and tax savings, but also strengthens Panama's position as an international business hub. Multinational companies that establish themselves under these regimes find a flexible and beneficial platform to expand their operations, connect global markets and optimize their corporate structures, all while taking advantage of Panama's logistical and financial infrastructure.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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