Insights

Artificial Intelligence in Business: Five Legal Risks You Should Not Overlook

15Oct

Mario Alberto Arias Corporate and M&A

Artificial Intelligence in Business: Five Legal Risks You Should Not Overlook

Artificial intelligence has entered the business world faster than legal awareness of how to use it responsibly has developed. In this article, I share, from my experience as a corporate lawyer, five key legal risks every business owner should consider before allowing AI to influence their contracts, data, and decisions, along with three practical steps to govern its use without sacrificing the speed that makes it so valuable.

Panama Makes Foreign-Source Income Tax Exemption Conditional on Genuine Economic Substance in the Country

15Sep

Mario Alberto Arias Corporate and M&A

Panama Makes Foreign-Source Income Tax Exemption Conditional on Genuine Economic Substance in the Country

Law 526 of 2026 does not eliminate Panama’s territorial taxation principle. It makes it conditional. The law applies to Panamanian structures linked to entities in other jurisdictions, takes effect beginning with the 2027 tax year, and its implementing regulations, which were due by August 26, have yet to be issued.

Cryptoassets, Non-Custodial Platforms, and Legal Certainty in Panama: Scope and Limits of the Securities Market Law

28Aug

Carlos Abrego Dávila Banking and Finance

Cryptoassets, Non-Custodial Platforms, and Legal Certainty in Panama: Scope and Limits of the Securities Market Law

Through Opinion No. 04-2025, Panama’s Superintendency of the Securities Market (SMV) addressed a regulatory inquiry concerning a non-custodial platform facilitating cryptocurrency exchanges. The SMV concluded that, under the specific business model examined, the exchange of native cryptocurrencies such as Bitcoin and Ethereum does not constitute securities intermediation or another regulated securities market activity under Panamanian securities law. Accordingly, the platform does not require an SMV license or fall under its supervision, provided it operates strictly within the parameters assessed. The opinion does not extend to activities involving asset custody, investment services, derivatives, or other financial products, which require separate regulatory analysis.

Employment Contract Duration for Foreign Workers in Panama: Legal Requirements and Key Considerations

04Aug

Rodrigo E. López Employment and Immigration

Employment Contract Duration for Foreign Workers in Panama: Legal Requirements and Key Considerations

Hiring foreign employees in Panama requires employers to understand how work permits and employment contracts interact. Under Panama's labor and immigration framework, work authorization varies according to the employee's immigration status and permit category. This article explains the key considerations when determining contract duration, the circumstances in which indefinite work permits may be available, and the requirements employers should review to ensure compliance with Panamanian labor regulations.