Panama’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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Tax Contingencies in Corporate Structures: Diagnosis, Prevention and Correction
Tax contingencies often arise when structures designed for an earlier regulatory context are not updated as operations evolve. Timely diagnosis helps prevent, correct, and document risks before an audit.
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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.
Continue ReadingTax Incentives in Panama: When an Advantage Becomes a Liability
Panama maintains one of the most competitive tax incentive frameworks in Latin America. Its special regimes — SEM, EMMA, Panama-Pacific, and Free Zones — were designed to attract investment, promote skilled employment, and position the country as a regional business hub.
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Legal Consequences of Structures Without Economic Substance
Structures that exist only on paper face growing legal and tax exposure. Companies in Panama must be able to demonstrate real operations, decision-making, and economic substance.
Continue ReadingRisks of Non-Compliance with Economic Substance Requirements in Panama
In recent years, economic substance has evolved from a theoretical concept associated with international standards into a practical enforcement criterion used by tax authorities worldwide. Panama is no exception.
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