Legal certainty as a driver of business growth

In Panama, we understand that investment decisions depend on more than incentives or location. What truly enables planning and growth is a framework of clear laws, coherent criteria, and transparent procedures. When rules are understood and applied consistently, they build trust—and that trust drives investment and sustainable growth.

To this end, Panama has Law 54 of 1998 (Legal Stability for Investments Law), which reaffirms the country’s commitment to investors who undertake projects here. The statute seeks to preserve the legal conditions under which an investment is made, thereby strengthening the credibility of the business environment and reinforcing respect for contracts.

Together with international treaties, and the constitutional recognition of the freedom of enterprise and the right to property, this legal architecture positions Panama as a reliable partner for trade and investment. It reflects the country’s commitment to legal certainty as a pillar of development.

This is aligned with what companies from the United States, the European Union, and other strategic partners expect and assess when selecting Panama as an investment destination:

• Clarity: what the law requires and how to comply, through accessible and comprehensible rules.

• Consistency: comparable criteria in similar cases, providing long-term predictability.

• Transparency: defined timelines, traceable procedures, and access to criteria and decisions.

When these elements are visible, we meet international standards, facilitate operations, and enhance confidence in Panama’s business environment.

In my experience, legal certainty is strengthened when public–private engagement is structured and goal-oriented. Within the Legislation and Tax Committee of AmCham Panama, I have convened working sessions, moderated discussions with subject-matter experts, distilled regulatory changes into executive briefs, compiled frequently asked questions, and coordinated written comments to bring companies closer to the rules governing their operations.

This continuous work, open sessions, concise and verifiable materials, and timely follow-up, helps more companies readily identify what has changed, when it applies, and how to comply. Ultimately, that is what enables confident operations and well-informed investment decisions.

There is no doubt that legal certainty is a national asset built day by day. By upholding clear laws, stable criteria, and transparent processes, we earn the trust of those who choose Panama. In a demanding global environment, that certainty enables us to continue doing business with vision and responsibility.

Paula Alzate

Partner & Director, Corporate Department

palzate@cedeymen.com