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Judicial Auctions in Panama

Since 1917, the Panamanian Judicial Code has recognized Judicial Auctions as a way for plaintiffs to execute their credits and recover the funds owed. By initiating a judicial process called “Executive Process”, in which there are no disputes over the facts and applicable right...

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International Succession Laws - Panama

Pardini & Asociados is proud to announce that the law firm has contributed to the Panama chapter of the International Succession Laws book in collaboration with the Society of Trust and Estate Practitioners (STEP) and Bloomsbury Professional. The article was written by Dr. Juan Francisco Pa...

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Tax incentives and new regulations for Free Trade Zones

Since the late 1950’s Panama has been at the forefront of developing its logistics and trading capacities through the creation of especial free zones regimes. Traditionally and until 2011 the Rep. of Panama had created 4 different trade zones via especial laws regime, all of which are state...

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Pardini & Asociados as a Regional IP Service Partner

Intellectual property (trademarks, copyright, ...

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Intangible Assets

  In this hectic and material world, the goods that are marketed fall into two broad categories: tangible and intangible, which in turn have subcategories.    ...

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Precautionary Measures in Panama for a Foreign Arbitration Process

According to Panama Arbitration Law, the rules established on itself will only apply to Arbitrations handled at Panama Arbitration Courts. Nonetheless it has an exception which comprehends a few articles that will also apply to cases that are or will be handled at a foreign Arbitration Court....

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Real Estate Investment Companies (REITs)

We should begin by understanding the kind of company that the wording of Law 8 of 2010, as amended by law 114 of 2013 and regulated by Executive Decree 199 of 2014, are referring to, according to the conditions to be met: Inc...

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Law 52 introduces the obligation to carry accounting records and other measures

ACCOUNTING RECORDS All companies especially those whose operations are not carried from the Republic of Panama are required to maintain accounting records and all supporting documentation. The accounting records are to be maintained for a period of no less tha...

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United Airlines wins Landmark Antitrust Claim

Last December 28, 2015, the Ninth Court of the Civil Circuit of Panama, resolved an Antitrust Claim, filed by the Panamanian Authority of Consumer Protection and Defense of Free Competition (also known as ACODECO) against some international airlines like American Airlines, Delta Airlines, Taca In...

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Cargo Claims in Panama: General Considerations

Panama's carriage of goods by sea legislation dates from 1916 when the original Code of Commerce was enacted. Since then its carriage of goods chapter has not suffered any amendments. The Republic of Panama, a strategically located country with a historical tradition for being a pas...

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Panama Ratifies Convention for the International recognition of Rights over Aircrafts

The Convention for the International Recognition of Rights over Aircraft's, approved in Geneva in 1948, was formally ratified trough Law No. 23 of April 27, 1998 issued by the Republic of Panama. This International Convention covers several principal matters: ...

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New Law 85 of 2012 regulates corporate split-ups and allows for the restitution of dissolved compani

By means of Law 85 of 2012, regulations were introduced regarding corporate spin-offs, mergers and transformations of commercial companies in Panama.  Law 85 provides the legal framework for the demerger or spin-off of companies as a form of business reorganization and also allows the reacti...

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Amendment to the Code of Commerce Creates a Legal Penalty for Late Payment

By means of Law No. 7 of May 17, 2000, article 233A is added to the Code of Commerce to create a legal surcharge or penalty upon late payers in connection with the financing of services and wholesale goods. The amendment provides that the obligations that arise out of wholesale purchase...

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New Law on Financial Crimes in Panama

By means of Law No. 45 of June 4, 2003 , published in the Official Gazzette No. 24,818 of June 9, 2003 , the Republic of Panama updated its criminal legislation by incorporating to XII Title of the Second Book of the Criminal Code, a Chapter VII, named Financial Crimes. ...

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Panama Coordination Centres

Panama has been chosen by numerous companies dedicated to all kinds of commercial activities as a profit centre and a real base to coordinate their multinational or regional operations. Among the important considerations to justify the setting up of a Panama Coordination Centre are: Pan...

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Recent Improvements to Panama's Corporation and Trust Law

By means of Law Decree No. 5 of July 2nd, 1997, the President of Panama in use of his extraordinary legislative powers granted by the Legislative Assembly has established innovative ammendments to our Commerce Code with respect to our corporations, securities and trusts regimes. It is worth menti...

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The legal stability regime

"A new instrument to promote and protect investments in Panama" As part of its efforts to consolidate its Economic Reforms Plan, which has led to the establishment of several bilateral commercial agreements to promote both domestic and foreign investments, and based upon ...

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Antitrust Consideration of Mergers or Acquisitions in Panama

A. Introduction Panama enacted for the first time its antitrust legislation in 1996, by means of Law No.29 of February 1, 1996, "whereby antitrust provisions and other measures are taken" (hereinafter "the Antitrust Law"). The Antitrust Law, which al...

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Antitrust Developments Update

A. Investigations, litigation or inquiries from Government Agencies Not many cases have been filed for investigation in connection with competition issues. The most relevant cases filed during the calendar year 2000 were the following: 1. Investigati...

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Arbitration in Panama

Panama’s geographic location, international banking center, flexible corporate regime, and its Canal, are what make this country interesting for foreign and domestic investors. These investors need fast and effective mechanisms to solve any controversies that may arise due to their business...

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Free Trade Zone Legislation Changes

Since April 6th, 2011, the legislation about free zone areas was modified by means of Law 32 of 2011. The new regulation contemplates many changes in regards to the definition of free zone area as well as its fiscal benefits and requirements for getting established. The new law unifies ...

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Minimum Wage changes in The Republic of Panama

By means of executive decree No. 182 of December 30th of 2013, President Martinelli´s approved the new minimum wage that will enter into effect as of January 1, 2014   Legal basis and historical reference According to article 66 of th...

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Tax Effects of the Dissolution of Companies

We had to deal recently with the responsibility arising out of unpaid taxes when a company is dissolved having retained earnings subject dividend taxes. Article 528-A of the Commercial Code, added by Act 85 of 2012, deals with the dissolution of companies and explains causes and effects...

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Bankruptcy: Legal Considerations

The Bankruptcy process applies in Panama to merchants and non merchants that cannot repay their debts as they become due, if and only if these debts are product of an act of commerce. This way the bankruptcy in fact arises to the judicial world when the judge declares it. This process c...

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Tax and Investment Incentives for Hydro, Wind and Solar Energy in Panama

The consistent economical growth of Panama has brought to the table in public and private forums the irrefutable reality of an existent need of continuous and reliable source of energy that could guarantee a peaceful performance of national economy for the next years. Nevertheless, although we al...

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New Bill proposing Tax Incentives to Hydroelectric Generation Plants

The former legislative period 2002-2003 ended with the merger of three (3) bill proposals, all of which provides tax incentives for the establishment of hydroelectric power plants in the country of Panama. This unified text for one single Bill came as a result of a meeting held bet...

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Recent Significant Changes in Panama's Mining Law

1-   Law 11 of 2012 establishes a special regime of social interest over mineral, hydro and environmental resources located within the Ngabe Bugle indigenous reservation and adjacent areas (the “reservation”). ...

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Panama Enacts New Environmental Legislation

By means of Law 41 of July 1, 1998 (the Environmental Law) the framework legislation whereby the standards of protection, conservation and recovering of the environment was enacted. It immediately created the Environmental National Authority ("ANAM", for the Spanish acronym) as an auton...

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New Securities Law in Panama

In 1999, the Republic of Panama enacted the Law Decree No.1. The country entered into the new millennium with a strong, updated and modern legislation of securities. However, the changes on international markets forced the Republic of Panama to change its securities legislation once again. ...

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New Legislation on Insurance, Reinsurance and Captive Insurers

Under the recently enacted legislation on insurance, reinsurance and captive insurance companies, the Panamanian Government has instituted substantial reforms in this important sector. The goal sought by these reforms is to bring the insurance business up to the modern economic trends, encouragin...

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Panama Introduces New Financial Leasing Law

Since 1983, several draft bills of laws were proposed to regulate leasing business in Panama, but failed to call the attention of Panama Legislative Assembly during previous governments, and thus, leasing operations were carried on an unregulated environment and faced different problems...

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Mergers and Acquisitions in Panama

Most acquisitions in Panama in the late 90’s resulted from the government's privatization program, such as the purchase of control of the electric generation companies by affiliates of Enron Corporation, El Paso/Hydro-Quebec and AES Corporation, the acquisition of the electric distribut...

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Petroleum Free Zones of Panama

When the original Petroleum Free Zones legislation was passed back in 1992, we said that Panama was poised to become a major oil and downstream products redistribution centre for two main reasons: one is the existence of the Panama Canal creating a natural bunkering market as well as a transshipm...

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Some Considerations About Oil Exploration in Panama

1. INTRODUCTION Oil companies started exploring certain regions of Panama since 1917. Some of them were the Royal Dutch Shell Company. British Controlled Oil Fields Ltd., Gulf Oil Company, the Texas Company, Cities Service Company and Sinclair Oil Corporation. Explorations and...

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New Incentives for Call Centers in Panama

In the last two (2) years, different foreign companies such as MasterCard, Dell Computers and call center operators such as Atento, Sitel, BT and others have visited Panama, interested in setting up and operating call service centers, since there is a good amount of bilingual young people, compet...

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New Panama Immigration Regulations introduce the Best Program Ever

By means of Executive-Decree 343 of 2012 has improved the immigration legislation by creating a new Permanent residency category denominated as “Foreign applicants from countries with harmonious professional, friendly, economical and/or investment relations with the Republic of Panama&rdquo...

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Permanent Residency option for applicants under specific labor programs

Any applicant hired by a company within the 10% of the Panamanian payroll or 15% (Technicians) will be entitled to opt for a permanent residency status as long as the process is completed. The migratory process starts by filing an initial temporary residency application at the National ...

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New Definition for Wholesale activity

The enactment of Panama-USA free trade agreement has requested the modification of several national and traditional legislations. As an example, a significant change has been performed to the definition of Wholesale business. By means of Law 62 of 2012 the definition of wholesale busine...

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Guide of Double Taxation Treaties signed by Panama

In the last twenty months, the Republic of Panama has signed several double taxation treaties with countries such as Mexico,  Barbados, Netherlands, Portugal, Spain, Singapore, France, Ireland, Israel, Italy, South Korea, Czech Republic, Qatar, United Arab Emirates and  Barbad...

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Regulation to avoid double taxation in accordance to the international agreements signed by Panama

By means of Resolution No. 201-10861 of 2013 the Panama Government established the procedures for the procurement of the tax benefits before the National Authority of Public Income. Certification  •Any natural person or corporation must process before the National Autho...

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Canada Panama Free Trade Agreement

Since Canada and Panama launched their free trade negotiations , both countries announced on August 11, 2009, the conclusion of negotiations towards a free trade agreement (FTA), as well as agreements on labour cooperation and the environment.The main elements covered by the FTA include: ...

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Panama as a Regional Headquarters for Multinationals

Panama has been chosen by numerous Fortune 500 companies dedicated to all kinds of commercial activities as a profit center and a real base to coordinate their multinational or regional operations. Multinational companies have established their operations base in Panama to provide their...

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Trademarks and Copyrights in Panama

In the beginning of the 90's, the Republic of Panama joined with the World Trade Organization. One of the most important requirements required by the international Organization was for Panama to amend and update  its  intellectual property laws. The purpose was the harmonization of ...

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New Legislation Affects Tax Advantages Regarding Intellectual Property Transactions

New rules approved by means of Law 27 of 2015 further regulated by Executive Decree 263 of 2015 impact directly the tax advantages of intellectual property transactions to persons located within Panama. These rules consider taxable income in the Republic of Panama, all income received b...

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Use or Registry: Which guarantees protection of a trademark?

Confusion may arise as to deciding when to register a trademark, when is protection granted or really needed.  Trademarks are registered every day in many countries around the world and many treaties have been signed to extend this protection worldwide.  Nevertheless, the specific time ...

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IP Piracy and Enforcement in Panama

I. Introduction By means of Law No. 23 of July 1997, published in Official Gazette No. 23,340 of July 26, 1997, Panama adopted the Marrakech Protocol, the Panamanian Accession Protocol with its annexes and the Panamanian list of commitments. This law also included new r...

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Panama as an Internet Gaming Jurisdiction

The privatization of the gaming industry in1998, Panama has turned into one of the most successful gaming jurisdictions in the region. The passing of new gaming laws and regulations have provided for security in investments by major international gaming operators and thus, provided fans with the ...

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President exercises Veto to Bill for Criminal Penalties for Violators of IP Law

The previous Legislative Period ended with the approval in Third Debate of a Bill whereby the Criminal, Commercial and Judicial Codes, as well as Laws 15 of 1994 and 35 of 1996, regarding industrial property rights, were to be modified. This initiative to amend the Criminal Code goes in...

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New Legislation imposes Criminal Penalties for Violators of IP Law

At the end of June 2003, the Legislative period ended with the approval in Third Debate of a Bill whereby Articles 382, 383, 384 and 389, contained in the Chapter IV to be titled "Crimes against Industrial Property Rights" of the Criminal Code of the Republic of Panama are to be modifie...

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Panamanian Facts for Patents and Industrial Designs

▪ The registration and regulation of Patents is provided by Law No. 35 of May 10, 1996, whereby “Provisions regarding Industrial Property are issued”. ▪ To patent an invention in Panama it must be a new invention, be a result of an inventive activity and be subject to an...

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Panama's New E-Commerce Law: The First One in the Region

According to renowned "E-Readiness Report" presented earlier this year by the prestigious McConnell International - "in every country, a relationship of trust, accountability and predictability between public and private sectors is essential. For nations with a market-oriented econ...

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Personal data Protection in Panama

Rrecently enacted a special law to regulate and establish personal data protection.  Additionally, the Political Constitution of the Republic of Panama, as well as other legal instruments, also provide protection for the personal data of natural and legal persons. Th...

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Internet Gaming in Panama

The privatization in 1998 of the gaming industry in Panama resulted in Panama becoming in one of the most successful gaming jurisdictions in the region. The approval of new gaming laws and regulations have provided for security in investments by major international gaming oper...

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Change in Belize legislation regarding Bearer Share Certificates

The International Financial Services Practitioners (Code of Conduct) Regulations of Belize has been amended and now requires that “A registered agent shall at all times retain physical possession of the bearer shares certificate, whether he deals directly with the end-user customer or with ...

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Belize has now adopted a new Accounting Records Preparation and Retention Law

Under pressure from the OECD and related international bodies, Belize has now adopted an Accounting Records (Maintenance) Act. The requirements of this law are similar to that imposed under similar pressures by recent legislation in other offshore jurisdictions , such as the BVI and Seychelles. O...

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Taxation of Capital Gains on the Sale of Stock and Securities

In the past, we have commented on the tax rules on the sale of stocks, bonds or participation shares issued by legal persons, and warn the danger of failing to pay the advance tax on capital gains established by Law 18 of June 19 of 2006. Panama does not escape the rejection of the tax ...

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Public Land and Private Ownership in Panama

By means of  Court Judgment dated December 23, 2013, issued by the Panamanian Supreme Court of Justice, it was declared unconstitutional the phrase “given in concession” of Numeral 3 of Article 2 of Law 31 of June 18, 2010, which creates the Horizontal Property Regime that could ...

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Withdrawal of the Bill that Modify the Appraisal of Properties in Panama

It is not a secret that Panama has been experiencing a real estate boom. Some others disagree with this “boom” qualification, because that phenomenon is distinguished by an abnormal growth of the real estate market, producing an increase in values which upon ending of the cycle proper...

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The Most Unique Foreigner Friendly Laws in the World

One reason for Panama's successful economic growth has been its carefully planned and enlightened laws that are almost unique in the world. These laws welcome foreigners who wish to move to Panama for a second home or retirement, establish a business or make investments. There are a...

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Good Reasons to Purchase Property in Panama

Since 2006 the average price was $1780 to 2008 the average price is $2890 per square meter giving a 25% increase in price per year. Rental demand continue to increase. Hotels have an 80% occupancy levels and room fees have nearly doubled in the past few years. Shorta...

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Purchasing Property in Panama

When someone is planning to retire in a tropical paradise like Panama, owning a home, investing in land for reforestation, acquiring a beach-front property are only some of the reasons why it is important to learn the rules about purchasing property in the Republic of Panama. No matter ...

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The Forgotten Trust

Juan F Pardini details the advantages of the Panama trust In these times of uncertainty about the future of certain centres, Panama is coming back as a jurisdiction of choice.  Moreover, Panama has been recently awarded 'Investment Grade&...

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Structured Solutions for Estate Planning

Pardini & Asociados has prepared this document to assist our clients in the evaluation of alternatives offshore structures for the better planning of their assets, estate and business transactions. Please click here: ...

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Family Offices

Introduction China and India might still look as the flag holders on top of the BRICS; yet it is these two emerging superpowers that initially gave Singapore its allure, but a change of tides, led by the resurgence of commodity markets, has placed the spotlight on Latin...

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Judicial Sale of Vessels and Other Assets in Panama

Marine related creditors may primarily pursue arrest and seize assets such as vessels cargo, and freight. If by the time the court reaches a decision favorable to a claimant and the defendant has not been able to replace any of the seized properties then the court will have to dispose of the prop...

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Anatomy of an Arrest in Panama

Introduction Panama is one of the most transited maritime routes in the world.  For almost a hundred years, it has been an obliged passage for vessels. Over 14,000 vessels cross the Panama Canal every year.  During the last few years, Panam...

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Panama's NEW Tax Discounts for FLEETS

In a move that recognizes both, that other registries are in the market and that there is competition between the more serious registries, Panama approved Law 25 of 3rd June 2002 which modifies and supplement Law 36 of 1995, implementing a package of tax incentives to offer the international ship...

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Interruption of Time Bars in Panama

Maritime related time bars are regulated in Panama by article 1651 of the Commercial Code which establishes that the general statute of limitations for maritime transactions is of one year. This time limitation is applicable to all sorts of claims, be it in personam or in rem claims, with the fol...

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Regulations and Amendments Introduced for the Maritime Industry

The following amendments have been introduced by the Board of Directors of the Republic of Panama Maritime Authority: 1- Certifications of title of ownership , and of liens and encumbrances are now permitted to be officially issued in the english language . The certification is issued b...

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Panama Adopts New Legislation to Supress Money Laundering, Terrorism Financing and Massive Weapons

By means of Law 23 of 2015, the Government of Panama has promoted a new legislation to combat money laundering, terrorism and weapons acquisitions. The Law responds to the continuous international claims and the listing of Panama in the FATF gray list. Law 23 uses as template the F...

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Maritime Injunctions in Panama

Injunctions Requests before the Panama Maritime Court In Panama, shipping is one of the most important economic engines of the country. The Canal, the State of the Art Container Ports of Balboa, Cristobal, Evergreen and Manzanillo, the expanding multimodal activities an...

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Panama enacts new Tourism Law: Law 431 of 2012

Almost twenty years have passed since the enactment of Law 8 of 1994, which until the end of the year 2012 regulated tourism investments and incentives in the Republic of Panama. This body of law responded to a national strategy and a master plan oriented towards promoting tourism related investm...

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New Permanent Residency Category for Foreign professionals

By means of Executive-Decree No. 804 of 2012 a new migratory category has been created allowing applicants from any country with a College, University, Master or Doctorate degree to apply for a permanent residence in the Republic of Panama. Highlights of new category...

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More nationalities become part of the new residency program

By means of Executive-Decree No. 806 of 2012 the government modifies Executive-Decree 343 of 2012 and Executive-Decree No. 416 of 2012 by increasing and unifying the list of countries that can apply for permanent residency in accordance to the immigration residency program of “Forei...

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Industrial Property Legislation Improvements

By means of Law 61 of 2012 Industrial property legislation (patents, trademarks and others) was modified in order to comply with the new international tendency.   Most significant changes The Industrial property office will accept the re...

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Lease Purchase Contracts

The new economical fluctuations are constantly demanding property developers and owners a more extensive range of services that may help potential buyers to fulfill their needs with lower risks. In regards to this matter, Panama’s real estate market never fluctuates or gets influe...

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Panama’s New Tax Law Reform

By means of Law 8 of March 15th, 2010, the Panamanian parliament members approved a substantial modification of our tax legislation in accordance to the guidelines established by President Ricardo Martinelli and its Minister of Economy and Finance, Mr. Alberto Vallarino. The ...

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Panama Limited Liability Companies

Panama enacted a new Law 4 of 2009 regulating Limited Liability Companies (LLCs), replacing legislation on the subject dating back to 1966. Highlights LLCs can engage in any lawful activity in the world. An LLC must be incorporated by at lea...

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Real Estate Buyer Rights in Panama: Recent Developments

Today, Panama is one of the world's top retirement destinations as well as a world class tourist location. Many buyers acquired pre sale apartments in Panama City because of its skyline reminiscence of Manhattan or Singapore: the high rise buildings facing th...

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Estate Planning in Panama

Since 2006 the Republic of Panama has been experiencing a fast growth in different types of investments. Particularly, in the property market, this “Boom”, driven by the interaction of buyers and sellers in real estate transactions in Panama City, the beaches, islands and mountains ha...

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Court of Appeals Rules in Favor of Real Estate Investors

According to the Third Court of Appeals decision dated November 27, 2007, all property purchase and sale agreements must follow new rules in regards of the conditions agreed between developers and buyers, affecting all new property sellers and buyers from what is called Abusive Conditions. ...

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New Regulatory Framework of Civil Aviation in Panama

I. Introduction Through Laws No.21, 22 and 23 of 29th of January, 2003, the Republic of Panama adopted new regulations for civil aviation inits territory. Law No.21 of January 23, 2003, which entered into force on April 1 st , 2003, repeals Cabinet Decree...

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