Panama Enacts Law Introducing Economic Substance Requirements for MNE Groups and Other Important Measures

Panama has published Law No. 526 of 28 May 2026 in the Official Gazette, introducing several important measures. One of the key measures is the introduction of new economic substance requirements that apply for members of MNE groups in Panama that derive passive income from abroad, including dividends, interests, royalties, capital gains, real estate income, and other movable capital income. One of the primary purposes of the introduction of the economic substance requirements is the removal…