EMMA Regime in Panama: Opportunities for Multinational Companies

The Special Regime for Multinational Companies Related to Manufacturing (EMMA) is pioneering legislation established by the Government of Panama. Its purpose is to promote the arrival and expansion of multinational companies that carry out manufacturing, assembly, remanufacturing and logistics services activities in the country.

Key pillars of the EMMA Regime:

• Flexibility: Designed for companies that offer specific services related to manufacturing processes.
• Competitive environment: It promotes Panama as a key destination in the global supply chain.
• Tax and migratory attractiveness: It includes economic incentives and ease for the mobility of foreign talent.

Panama, with its strategic location and legislative commitment, is positioned as a reference point for international manufacturing operations.

The EMMA Regime encompasses a wide range of services designed for multinational companies that want to expand their reach:

• Technical advice: Provide specialized manufacturing and product development support
• Development and remanufacturing: Transformation, recycling and improvement of pre-existing goods.
• Assembly: Activities related to the assembly of components and final products.
• Logistic services: Efficient management of warehousing, distribution and international transport.
• Maintenance and repair: Ensure that products meet operational standards.

If your company plans to carry out any of these operations, operating under EMMA can help optimize costs, reduce delivery times and access a global market from a strategic point of view.

To take advantage of the benefits of the EMMA Regime, your company must meet certain requirements:

Legal form:

Companies must be incorporated as a public limited company under Panamanian laws, ensuring a solid legal structure for their operations.

Request for a license:

• Submit a formal request to the Ministry of Commerce and Industries (MICI).
• Demonstrate minimum operations related to manufacturing or logistics services.

Operational Commitments:

Companies must also maintain a significant volume of international operations to qualify and preserve the benefits of the regime.

Panama offers a set of unique benefits to attract multinational companies under the EMMA Regime:

Tax benefits:

• Income Tax Exemption for services provided to entities outside of Panama.
• Exemption from taxes on the import of raw materials and goods necessary for the operation.
• Transfer taxes on movable property or services do not apply.

Migration facilities:

• Granting of residence and temporary work permits to key executives and collaborators.
• Exemption from standard work permits under certain conditions.

These benefits make Panama a preferred destination for companies seeking fiscal efficiency and ease in mobilizing global talent.

At Limitless Legal, we understand that each client has unique needs. Our team of experts is dedicated to helping you with:

• Personalized advice: We identify how your operation can benefit from the EMMA Regime.
• License and permission management: We take care to submit the correct requests and ensure compliance with legal requirements.
• Tax optimization: We design strategies to maximize the tax benefits available under this regime.
• Migration support: We manage everything related to residence and work permits for your team.

With us, your transition to Panama will be smooth and smooth.