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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SHAREHOLDERS AGREEMENTS IN PANAMA: WHAT IT MUST CONTAIN AND HOW TO FORMALIZE IT
Panama’s sociedad anónima is minimalist by design. The pacto social doesn’t resolve what happens when shareholders disagree — that’s the role of a different document: private, and too often missing.
Continue Reading Ultimate Beneficial Owner Transparency: Obligations and Responsibilities in Panama
The term “ultimate beneficial owner” comes up often, but it is not always clear who must report it, how frequently, or what legal responsibility comes with keeping it current. Understanding these elements precisely is now a basic condition for operating any corporate structure in Panama with confidence.
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 ReadingPanama’s Economic Substance Law: What Your Business Needs to Know
A fundamental reform that changes the rules for multinational groups in Panama — and that is already in force.
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Economic Substance in Panama: What Bill 641 Means for Your Company
On May 21, Panama’s National Assembly Committee on Economy and Finance approved Bill 641 on first debate. The bill establishes an economic substance regime for passive income of foreign source earned by entities domiciled in Panama. The full Assembly has until June 5 to pass it into law.
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Panama’s Territorial Tax Principle: Origins, Current Relevance, and the Tensions of the International Debate
The legislative debate around Bill 641 exposes the structural tensions of Panama’s legal and financial model — and forces an answer to a question the country has deferred for decades.
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Regulatory Changes and Tax Trends in Panama for 2026: What Your Business Should Anticipate
Panama’s fiscal and regulatory environment is undergoing a structural transformation driven by technology, international transparency standards, and growing requirements for genuine economic substance.
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Estate Planning in Panama for Foreign Nationals: Will, Corporation and Private Interest Foundation
When a foreigner owns assets in Panama —real estate, company shares, bank accounts, contractual rights— one of the most important questions to address is how to legally organize the transfer of those assets after death.
Continue ReadingFamily Offices in Panama: Legal, Tax and Wealth Structuring
Professional family wealth management is increasingly important for Latin American business groups facing generational transitions and more complex cross-border assets.
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