Economic Substance Law Panama: Requirements and Scope

The Economic Substance Law introduced by Law 526 of May 28, 2026, represents one of the most significant changes in Panama’s tax regime in recent years. This regulation introduces economic substance requirements applicable to certain foreign-source passive income and seeks to align Panamanian legislation with international tax standards. 1. Scope of the Law Article 707-A establishes that these provisions apply to entities incorporated or domiciled in Panama (corporations or foundations) that: • Form part of a multinational group, and • Earn foreign-source passive income. Accordingly, the Law does not have general application but is limited to structures with international presence and the generation of passive...

21 January

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Dissolve a Company in Panama: Legal Steps and Risks

Posted by Enrique Cajiga

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Introduction Dissolving a company in Panama is a legal process that must be handled properly to avoid future penalties and liabilities. How to properly dissolve a company in Panama is a common question among business owners and shareholders who have ceased operations or wish to close a corporate structure in an orderly and compliant manner. In this article, we explain when a company should be dissolved, the legal steps involved, and the consequences of failing to complete the process correctly. When Should a Company Be Dissolved in Panama? Some of the most common situations that justify the dissolution of a company include: • The...

03 September

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Offshore Company Taxes Panama: Complete Guide 2025

Posted by Enrique Cajiga

in Blogs

When setting up an offshore company, understanding offshore company taxes Panama is essential. Panama’s tax regime is based on territoriality, making it one of the most attractive jurisdictions for international investors. In this article, we break down exactly what taxes and requirements an offshore company in Panama must comply with in 2025. 1. Principle of Territoriality Panama’s tax system is based on the principle of territoriality: • Taxes are only paid on income from Panamanian sources. • Income earned abroad is not subject to taxation in Panama. This makes offshore companies especially attractive for international operations. 2. Annual Franchise Tax All Panamanian companies, regardless of whether...

27 August

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Panama Canal Neutrality Amid USA–China Rivalry

Posted by Enrique Cajiga

in Blogs, news

The Panama Canal neutrality is one of the cornerstones of international maritime law and global trade. As tensions rise between the United States and China, this small yet vital waterway once again finds itself at the center of geopolitics. Why Is the Panama Canal Neutral? The neutrality of the Canal is guaranteed under the 1977 Torrijos–Carter Treaties, which established that the Panama Canal would remain permanently neutral, open, and safe for all nations, regardless of political or military conflict. This principle ensures that global shipping routes remain stable and predictable. The Canal’s Strategic Importance The Panama Canal handles around 5% of global maritime trade,...

27 August

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Intellectual Property Protection in Panama | Trademarks & Patents

Posted by Enrique Cajiga

in Blogs

protección de propiedad intelectual en Panamá

Intellectual property protection in Panama is essential to guarantee that your ideas, products, and brands are legally secured. The country provides a solid legal framework for the registration of trademarks, patents, industrial designs, and copyrights, helping entrepreneurs and businesses protect their intangible assets effectively. What Is Intellectual Property? Intellectual property (IP) protects creations of the mind, including: • Trademarks: Names, logos, slogans, or symbols identifying your products or services. • Patents: Novel inventions and processes with industrial application. • Copyrights: Literary, musical, artistic works, and software. • Industrial Designs: The aesthetic appearance of products such as shapes, colors, or patterns. Trademark Registration in Panama Registering a trademark in...

Author: Enrique Cajiga

Economic Substance Law Panama: Requirements and Scope

Dissolve a Company in Panama: Legal Steps and Risks

Offshore Company Taxes Panama: Complete Guide 2025

Panama Canal Neutrality Amid USA–China Rivalry

Intellectual Property Protection in Panama | Trademarks & Patents