Panama Regulates New Economic Substance Requirements for Passive Income from Abroad

Panama has published Executive Decree No. 32 of 2 September 2026 in the Official Gazette, which establishes the framework for the regulation of the new economic substance requirements introduced by Law No. 526 of 28 May 2026. As previously reported, Law No. 526 introduced economic substance requirements that apply to members of MNE groups in Panama that derive passive income from abroad, including dividends, interest, royalties, capital gains, real estate income, and other movable capital i…