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.
Continue Reading
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.
Continue Reading
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.
Continue Reading
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.
Continue Reading
Annual Review of Your Panama Company: What to Check and When
Owning a company in Panama is not a one-time procedure. It is a structure with recurring obligations that must be reviewed every year and whenever the company’s circumstances change.
Continue Reading
Panama’s Law 526: The Three Economic Substance Requirements
The law is clear in its structure. What remains to be defined is its practical interpretation — and that is precisely where companies need to prepare with information, not assumptions.
Continue ReadingQualified Entity under Law 526: The Framework That Already Exists and What the Regulation Will Define
Law 526 established Panama’s economic substance framework, while the executive regulation will define the applicable thresholds. Companies can already assess the four confirmed pillars and prepare before the regulation takes effect.
Continue Reading
Does Law 526 Apply to Your Structure? The Analysis to Complete Before August
Law 526 has a specific applicability threshold. Before analyzing any pillar of economic substance, there is a prior question that determines whether everything else applies.
Continue ReadingPrivate Interest Foundations and Law 526: What the Family Office Client Needs to Know
Law 526 changed Panama’s tax landscape, but it did not eliminate patrimonial planning tools. The Private Interest Foundation remains valid — when you understand its position in the new framework.
Continue ReadingLaw 526 on Economic Substance: What Multinational Groups Must Do Before Fiscal Year 2027
The enactment of Law 526 on 28 May 2026 marked a turning point for corporate planning in Panama, yet the real challenge lies not in the wording of the statute but in the time remaining before it first applies.
Continue Reading