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Getting the Deal Through – Loans & Secured Financing 2016 with contributions from Ms. Ivette Martinez. Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Loans & Secured Financing 2016, (published in August 2015; contributing editor: George E Zobitz, Cravath, Swaine & Moore LLP) For further information please visit Click Here
Tax Regulations in Panama: The Place to invest in the Americas by Elias Solis Gonzalez. This article appeared in the Lawyer Issue Magazine 2015 Click Here
The International Comparative Legal Guide to Shipping Law 2015 with contributions from Ms. Khatiya Asvat and Ms. Nadya Price

"This article appeared in the 2015 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd
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Getting the Deal Through - Aviation Finance and Leasing 2015 with contributions from Ms. María de Lourdes Marengo.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Aviation Finance & Leasing 2015, (published in June 2015; contributing editor: Mark Bisset, Clyde & Co LLP). For further information please visit
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Adding new talents

Ensuring our firm’s commitment for continued growth, we are pleased to announce the addition of new associates and assistant attorneys to strengthen our legal team to guarantee our customers an efficient and timely service.

We welcome Demetrio Rodriguez, Harry Aswani, Jorge Ventre and Michele Hibbert, who with their talent, experience and dedication will join the legal teams in the Practice Areas of Administrative Law, Commercial Law, Immigration and Labor Law, Real Estate and Corporate Law, among others.
This article appeared in the 2014 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd, London (http://www.glgroup.co.uk/)
Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Aviation Finance & Leasing 2014, (published in June 2014; contributing editor: Mark Bisset, Clyde & Co LLP) For further information please visit www.GettingTheDealThrough.com
This article appeared in the 2014 edition of The International Comparative Legal Guide.
New Law To Regulate Spin-Offs As Corporate Reorganization Scheme.
Securities Update: Regulation Of Forex Activities In Panama
Securities Update: Recognized Jurisdictions
Solar Energy Article
AMP Newsletter
This article was first published in Getting the Deal Through – Restructuring & Insolvency 2013, (published in November 2012; contributing editor: Bruce Leonard of Cassels Brock & Blackwell LLP). Reproduced with permission from Law Business Research Ltd. For further information please visit www.GettingTheDealThrough.com
A Practical Insight to Cross-Border Securitisation in 41 Jurisdictions
Tax update: Law 31 of 2011
Panama Chapter RI 2011
PMA Tax Update - Ley 49 - 2009
Offshore Banking Regulations in Panama
Hedge Fund Admin. Roundtable
Article published in Global Property Guide
Panama’s New Limited Liability Corporation Law
Article was first published in Getting the Deal Through – Restructuring & Insolvency 2009
Newsletter Immigration Law
"This article appeared in the 3rd edition of The International Comparative Legal Guide to: Securitisation ; published by Global Legal Group Ltd, London www.iclg.co.uk"

Administrative Law

Insurance, Reinsurance and Captive Insurance

The Republic of Panama has one of the more active and diversified insurance sectors in the region. Other regulated services are reinsurance and captive insurance, which offer significant tax advantages and that positions our country as one a center with the highest potential for the establishment of captives throughout Latin America.

Under legislation enacted in 1996 on insurance, reinsurance and captive insurance companies, substantial reforms were introduced in this sector. The legislation in force encourages autonomy of management administration and preventive control and supervision of the financial solvency of sureties. Currently, the legislation is subject to review in order to adjust it to recent trends and international standards.

1. Insurance

Law No. 59 of 29th July, 1996 supersedes the previous 1984 legislation on insurance. We summarize its most relevant aspects as follows:

  • An insurance company is defined as the legal person constituted in accordance with the laws of Panama and authorized by the Superintendence of Insurance and Reinsurance, which carries out insurance and/or bond operations.

  • Another concept provided by the law is the insurance companies administrator, which must be also constituted in accordance with the laws of Panama and authorized by the Superintendence in order to manage insurance companies established within or outside Panama.

  • The minimum paid in capital to be deposited in cash by companies requesting authorization to operate is US$2M. This requirement is also applicable to foreign branches. Such minimum capital must be free of encumbrances at all times.

  • Additional reserves are required and up to 25% of these reserves may be invested abroad.

  • A 2% tax is levied upon insurance companies for net premiums received for local risks.

  • Customers of fire insurance policies pay a tax of 5%.

  • The authorization to operate is granted separately for the branches of life, general and surety.

  • In addition to enhancing the authority of the Insurance Superintendence, Law No. 59 regulates extensively for the first time all matters in connection with voluntary liquidation, intervention, reorganization, dissolution, insolvency and bankruptcy of insurance companies.

2. Reinsurance

Authorization to operate will be issued for: (1) General reinsurance license, to those companies in Panama engaged in the reinsurance of local or foreign risks; (2) International reinsurance license, to those companies which contract exclusively, through an office established in Panama; the reinsurance of foreign risks; (3) Reinsurance Administrator license, to those companies in Panama that represent other companies which contract reinsurance of local or foreign risks.

Local risks are defined as those related to persons, movable property or real estate property physically located in Panama; vehicles registered or licensed in Panama; tort liabilities derived from damages incurred in Panama and the transportation or merchandise which final destination is Panama. All other risks are presumed to be foreign, unless proven otherwise.

As tax incentive to foster the establishment of reinsurance companies in Panama, neither the premiums nor the income derived from the reinsurance of foreign risks are taxable in Panama. In addition, technical and other kinds of reserves are deductible for income tax purposes.

3. Captive Insurance Companies

By means of Law No. 60 of 29th July 1996 captive insurance companies are regulated in Panama for the first time. Captive insurers are defined as those companies seeking to operate exclusively, from an office established in Panama, the activities of insurance or reinsurance of foreign risks.

Authorization to operate may be granted for long term risks (to insure or reinsure Life both individual, collective or group, including hospitalization and pensions or life annuities) or general risks (to insure or reinsure all those risks that are not included in the long-term risks)

Both the premiums and the income derived from the captive insurance company activities are not taxable in Panama. Minimum paid in capital requirements range between US$ 150,000 and US$250,000.

Initial Contact


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