Panama law · Overview
Panama is a civil-law country whose statutes are published in the Official Gazette. This overview summarizes the laws foreigners ask about most — companies, property, residency, labor, tax and disputes — with the governing statute for each.
The essentials. Corporations: Law 32 of 1927. Private foundations: Law 25 of 1995. Immigration: Decree Law 3 of 2008 and its decrees. Labor: Labor Code of 1971. Tax: territorial system under the Fiscal Code. Arbitration: Law 131 of 2013. Court work requires a lawyer admitted in Panama.
| Area | Main statute | Key point |
|---|---|---|
| Corporations (S.A.) | Law 32 of 1927 | Panama corporation |
| Private-interest foundations | Law 25 of 1995 | Asset holding and succession |
| Immigration and residency | Decree Law 3 of 2008 and executive decrees | Residence categories |
| Labor | Labor Code (1971) | 48-hour week, 13th month, seniority premium |
| Family | Family Code (Law 3 of 1994) | Marriage, divorce, support |
| Property and registry | Civil Code and Public Registry rules | Deed + registration |
| Ship registry | Law 57 of 2008 | Open registry, resident agent |
| Arbitration | Law 131 of 2013 | UNCITRAL model |
| Criminal | Criminal Code (Law 14 of 2007), CPP (Law 63 of 2008) | Accusatory system |
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Message us on WhatsAppA civil-law system: codified statutes (codes and laws published in the Official Gazette) are the primary source, applied by courts. Precedent guides but does not bind in the common-law sense.
The Civil Code (Law 2 of 1916), Commercial Code (1916), Labor Code (1971), Family Code (Law 3 of 1994), Criminal Code (Law 14 of 2007), Judicial Code, the Code of Civil Procedure (Law 402 of 2023) and the Criminal Procedure Code (Law 63 of 2008), among others.
Law 32 of 1927 on corporations (sociedades anónimas), still in force, complemented by later rules such as resident-agent and accounting-records requirements. Private-interest foundations are governed by Law 25 of 1995.
Foreigners may generally own titled real estate with the same protections as nationals; restrictions exist near borders and over untitled or concession land. Purchases are closed by public deed before a notary and registered at the Public Registry.
Immigration is governed by Decree Law 3 of 2008 and its executive decrees, which create residence categories; work permits are issued by the Ministry of Labor under separate rules. Categories and requirements change by decree, so they must be checked as of the application date.
The Labor Code sets a 48-hour maximum ordinary workweek, overtime surcharges, paid vacations, a thirteenth-month bonus, severance rules and a seniority premium for indefinite contracts.
Panama taxes on a territorial basis: income earned from Panamanian sources is taxed, while foreign-source income generally is not. Substance, reporting and AML rules have tightened in recent years; specific cases need written analysis.
State courts, and arbitration under Law 131 of 2013, which follows the UNCITRAL model; awards are enforceable and foreign awards are recognized under the New York Convention.
Court representation and many registrations (companies, vessel registration, residence applications) must be handled by a lawyer admitted in Panama (idóneo). Notaries formalize deeds but do not give party advice.
We quote in writing after reviewing the matter. Official fees and taxes are additional.
Related: Panama corporation · private foundation · immigration · lawyers in Panama · ship registration
General information based on the statutes named above as verified in our repository against the Official Gazette and Infojurídica (laws read in their published text; later amendments noted where read). Requirements change by decree and regulation, so each case must be confirmed as of its date. This page is not individual legal advice.