Panama
AI Agent Legal Status: favorable · Autonomy: moderate
Legal Framework
Panama enacted Law 129 of 2022 regulating crypto assets, blockchain technology, and DAOs, making it one of the most progressive jurisdictions in Latin America. The law allows crypto payments for civil and commercial operations. The Superintendencia del Mercado de Valores (SMV) oversees digital asset regulation. Panama's territorial tax system and established offshore financial center infrastructure create a favorable environment for digital business.
Key Laws & Regulations
- ◆Ley 129 de 2022 - Crypto Assets and Blockchain Regulation
- ◆Ley 51 de 2008 - Data Protection
- ◆SBP (Superintendencia de Bancos) fintech and digital banking guidelines
- ◆Ley 45 de 2007 - Electronic Documents and Signatures
- ◆SMV Resolution on Digital Asset Service Providers
Business Formation
Sociedad Anónima (SA) is the most common form, with strong privacy protections for shareholders. Panama has a well-established offshore financial center with efficient incorporation services. Foundations (Fundación de Interés Privado) offer flexible asset protection. Law 129 provides a pathway for DAO registration. Bearer shares have been restricted but corporate structures remain flexible.
Tax Implications
Territorial tax system — only Panama-source income taxed. No tax on foreign-source income, capital gains from foreign sources, or offshore digital operations. No withholding tax on dividends from foreign-source income. Corporate tax at 25% on domestic income only. Crypto transactions for civil and commercial purposes recognized under Law 129. Panama is on some international watchlists for tax transparency.
Opportunities
DAO recognition under Law 129 enabling novel organizational structures. Territorial tax system ideal for globally-distributed AI operations. Established offshore infrastructure easily adaptable for AI entities. US dollar economy. Strategic location bridging North and South American markets. Growing tech sector in Panama City.
Highlights
Law 129 explicitly addresses crypto assets, blockchain, and DAOs — rare in Latin America. Territorial tax system means no tax on foreign-source income. Established financial center with experienced service providers. US dollar as legal tender eliminates currency risk. Panama Canal Zone creating special economic conditions. Strong privacy protections.
Risks & Challenges
FATF gray list history affecting international banking relationships. Increased international pressure for tax transparency. Regulatory implementation of Law 129 still maturing. Political corruption concerns. Banking sector may be conservative in practice despite favorable laws. US government scrutiny of Panamanian financial activities.