Investment Stability Law

The Investment Stability Law (Law No. 54 of July 22, 1998), guarantees all foreign and national investors equal rights in terms of investments and business practices, continuing Panama’s quote s long-standing policy of providing a foreign-investment environment that requires no special authorizations, permits or prior registration. The stability law requires a minimum investment of US$2 million. The benefits shall be granted for a period of 10 years and these are applied to natural and corporate persons of private right, national or foreign, that carries out investments within the national territory. The Investors’ Obligations are the registration of the investment that at legal, tax, customs, municipal and labor rules will remain identical to those in force at the time of registration. This is an important guarantee to secure no-changes will affect the amortization of investments. Up to date, more than US$2.5 billion have been registered under the protection of this legislation, ranging from energy and petroleum to industrial and tourism development projects.

Activities Permitted:

• Tourism
• Agricultural Exports
• Mining
• Commercial and Oil Free Zones
• Constructions
• Electric Energy Generation
• Industrials
• Forestry
• Export Processing Zones
• Telecommunications
• Ports and Railroads Development
• Irrigation and efficient use of the hydraulic resources Projects
• All the activities that are approved by the Cabinet Council previous recommendation by the Ministry of commerce and Industries

Benefits:

• Juridical Stability unless causes are related to public utilities or social interest,
• Tax Stability in the national order,
• Tax Stability in the Municipal order,
• Stability in the customs regimes that are derived from the Special Laws.

For more information, please contact us.