Economic Substance in Panama: The Two Tiers Under Executive Decree 32
Executive Decree No. 32 implementing Law 526 does not hold every entity to the same standard. We explain the two tiers of economic substance in Panama — reduced and complete — the 15% penalty for non-qualifying entities, and what to review before fiscal year 2027.
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Law 546: 2% ITBI Exemption for First-Time New Home Purchases in Panama
Law 546 exempts the 2% Real Estate Transfer Tax on first new homes valued up to $120,000, with staggered relief up to $200,000. We explain what the benefit covers, the two-year window from the occupancy permit, and what buyers and developers should review.
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Panama Adds Ecuador to Its Friendly Nations List: What It Means for Ecuadorian Citizens
Through Executive Decree 16 of 2026, Panama added Ecuador to its friendly nations list. We explain what the Friendly Nations Visa is, which economic pathways lead to permanent residency, and what Ecuadorian citizens should review before settling, investing or working in Panama.
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Panama Regulates Law 526: How Companies Must Demonstrate Economic Substance
Executive Decree No. 32 of 2026 regulates Law 526 on economic substance for passive income. We explain the five criteria covering personnel, facilities, decision-making, expenses and documentation that multinational group entities must meet from fiscal year 2027, and the 15% rate applied when they fall short.
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