J. Soto Law

Panama’s New Civil Procedure Code: What Changed in Civil Cases

Jenny Soto Fernández — Sun, 06 Sep 2026 10:00:00 +0000

Law in Panama

Panama’s New Civil Procedure Code: What Changed in Civil Cases

Jenny Soto Fernández
Published Sep 6, 2026 · Reviewed Sep 6, 2026

Key Takeaway

Panama’s new Civil Procedure Code changes how civil and commercial cases are managed, heard, proved, and resolved in court. Adopted by Law 402 of 2023 and fully effective from October 11, 2025, it emphasizes oral proceedings, judicial case management, procedural economy, and timely resolution.

The reform is properly called the Civil Procedure Code (Código Procesal Civil). It governs the procedure used to handle civil and commercial disputes; it is not simply a rewrite of the substantive Civil Code that defines many private rights and obligations.

For clients, the practical message is that preparation, evidence organization, hearing strategy, and early evaluation of settlement options matter from the beginning of a dispute. This guide provides general information and cannot predict how the new rules will apply to a particular case.

When Did the New Code Take Effect?

Panama adopted the new code through Law 402 of October 9, 2023. The law was published on October 11, 2023, and its main provisions became fully effective on October 11, 2025. The Judicial Branch’s Civil Procedure Code portal explains the implementation timetable and provides access to the code and supporting materials.

Transition questions can depend on when a claim was filed, the type and stage of the proceeding, and the specific provisions in force. Existing and new matters should therefore be reviewed individually rather than assuming one procedure applies to every case.

What Principles Shape the New System?

The reform is designed around a more active and efficient model of civil justice. The official code and Judicial Branch materials emphasize principles including oral proceedings, immediacy, concentration of procedural activity, judicial direction of the case, equality of the parties, contradiction, legal reasoning, and procedural economy.

Law 402 also directs courts to promote agreement through the mechanisms recognized by the code. That does not mean every dispute should settle; it means negotiation and other resolution options should be evaluated alongside litigation strategy.

How Can Oral Proceedings Affect a Civil Case?

A system built around hearings places greater weight on having the legal theory, documents, witnesses, and disputed facts organized before appearing in court. Parties and counsel may need to address procedural issues, evidence, and possible resolution within a more concentrated schedule than under a heavily written model.

Orality does not eliminate written preparation. Contracts, payment records, communications, expert material, corporate records, property documents, and a clear chronology remain central. The difference is that those materials must support focused presentation and decision-making at the appropriate stage.

Which Disputes Can Be Affected?

The code governs the way civil and commercial causes within the civil jurisdiction are processed. Depending on the claim, this can include contract disputes, debt recovery, property conflicts, damages claims, enforcement matters, and other private-law controversies. The correct route depends on the remedy requested, the evidence available, jurisdiction, amount, parties, and any special law that applies.

J. Soto Law’s Civil Law practice covers litigation, debt recovery, contract disputes, summary proceedings, and mediation. Related business or property disputes may also involve the firm’s Business Law or Real Estate Law services.

What Should a Client Do Before Filing or Responding?

Preserve evidence
Keep contracts, invoices, messages, notices, payment records, photographs, corporate records, and original documents.
Build a chronology
Record the key events, promises, breaches, payments, demands, and responses in date order.
Identify deadlines
Do not assume informal negotiations pause a filing or response period.
Define the objective
Clarify whether the priority is payment, performance, possession, an injunction, damages, settlement, or another remedy.
Review procedure early
Determine the court, process, evidence plan, interim needs, and transition rules before taking a position.

Does the New Code Make Every Case Faster?

The reform aims to simplify procedures and support more timely resolution, but no responsible adviser can promise the duration or outcome of a specific case. Complexity, service of process, evidence, expert work, court capacity, appeals, interim applications, and the conduct of the parties can all affect timing.

What clients can control is preparation: obtaining an early case assessment, preserving evidence, responding promptly, and aligning litigation decisions with a realistic business or personal objective.

Official Sources Reviewed

Reviewed September 6, 2026. This article is general information, not legal advice. Procedure, transition rules, deadlines, and available remedies must be assessed against the facts of each matter.

Need Guidance on a Panama Legal Matter?

Request a consultation with Jenny Soto Fernández to discuss the documents, facts, and next steps relevant to your situation.

The post Panama’s New Civil Procedure Code: What Changed in Civil Cases appeared first on J. Soto Law.

How to Buy Property in Panama as a Foreigner

Jenny Soto Fernández — Sun, 06 Sep 2026 10:00:00 +0000

Property Guide

How to Buy Property in Panama as a Foreigner

Jenny Soto Fernández
Published Sep 6, 2026 · Reviewed Sep 6, 2026

Key Takeaway

Foreigners can generally buy titled property in Panama, but every purchase should begin with ownership, title, lien, boundary, and use checks. The transaction is completed through a public deed and registration, and special constitutional restrictions apply to land near Panama’s international borders.

Buying a home, investment property, or parcel of land in Panama is a legal transaction as well as a financial decision. The safest process starts before a deposit becomes non-refundable: identify the property’s registration status, confirm the seller’s authority, review restrictions and debts, and make the purchase agreement conditional on satisfactory due diligence.

This guide explains the usual legal checkpoints for foreign buyers. It is general information, not a substitute for advice based on a specific property, ownership structure, or financing arrangement.

Can Foreigners Own Property in Panama?

Foreign individuals and foreign-owned companies may generally acquire titled private property in Panama. One important exception appears in Article 291 of Panama’s Constitution, which restricts foreign ownership of land located within ten kilometers of the country’s international borders. Islands and certain specially regulated areas may also require additional analysis.

Before relying on a listing description, confirm whether the interest offered is registered title, possession rights, a concession, shares in a property-holding company, or another arrangement. Those interests are not interchangeable and may require different documents and risk checks.

What Should Be Checked Before Signing?

Seller and authority
Confirm the registered owner and, if a company or representative is signing, the authority and corporate status behind the signature.
Public Registry record
Review the property folio, ownership history, mortgages, liens, annotations, easements, limitations, and any pending filings.
Physical property
Compare the registered description with surveys, boundaries, access, improvements, permitted use, and the property actually being delivered.
Taxes and other balances
Check the property tax position, condominium or association balances, utilities, and the certificates required for transfer.
Contract protections
Define the deposit, due-diligence period, financing conditions, closing documents, default remedies, possession date, and allocation of costs before signing.

How Does the Purchase and Registration Process Work?

A typical transaction begins with a reservation or promise-to-purchase agreement, followed by legal and technical due diligence. The final sale must be documented in a public deed for registration. The Public Registry’s qualification manual states that an immovable-property sale must appear in a public instrument, specifically a public deed, to be registered.

Before closing, the parties and their advisers assemble the certificates, tax filings, corporate approvals, payment arrangements, and deed language required for that transaction. Panama’s Directorate General of Revenue identifies a property tax clearance certificate as a requirement for an immovable-property transfer. After the deed is signed and filed, registration is what places the transfer in the public record.

Should You Buy Personally or Through a Company?

Either structure may be possible, but the right choice depends on the buyer’s goals, financing, estate planning, reporting obligations, and the property’s intended use. Buying shares in an existing property-holding company can also transfer liabilities that do not appear as a mortgage on the real-estate folio. Corporate, tax, and succession consequences should be reviewed before the contract fixes the buyer structure.

For a coordinated review, see J. Soto Law’s Real Estate Law services, Business Law services, and Inheritance Law services.

What Are Common Warning Signs?

Pressure to pay a large non-refundable deposit before title review.
A seller name that does not match the Public Registry record.
Unclear access, boundaries, improvements, condominium balances, or permitted use.
A proposal to transfer company shares without reviewing the company’s obligations.
Promises that registration, taxes, permits, or foreign-buyer restrictions do not need legal review.

A concern does not always end a transaction, but it should be identified, documented, and resolved before closing funds are released.

Foreign Buyer Checklist

Before closing, confirm the buyer identity or entity, the seller’s authority, the registered folio, liens and restrictions, physical boundaries and access, tax and association balances, contract conditions, funds and escrow instructions, public-deed terms, and the registration plan. If the property will be rented, developed, financed, or held for succession planning, review those goals at the same time.

You can browse the site’s property listings and request a property-specific legal review through the contact page.

Official Sources Reviewed

Reviewed September 6, 2026. Laws, administrative requirements, and individual transaction facts can change. Obtain advice for the specific property before signing or transferring funds.

Need Guidance on a Panama Legal Matter?

Request a consultation with Jenny Soto Fernández to discuss the documents, facts, and next steps relevant to your situation.

The post How to Buy Property in Panama as a Foreigner appeared first on J. Soto Law.

2026 Friendly Nations Visa: Complete Guide To Panama’s Most Popular Residency Program

Jenny Soto Fernández — Fri, 28 Aug 2026 09:00:00 +0000

Immigration

2026 Friendly Nations Visa: Complete Guide To Panama's Most Popular Residency Program

Jenny Soto Fernández
Aug 28, 2026

Key Takeaway

The Panama Friendly Nations Visa offers a residency pathway to eligible nationals who can meet current economic-tie and documentation requirements. Eligibility, qualifying activities, document rules, fees, and procedures can change, so applicants should verify the current law and obtain advice for their circumstances before filing.

Panama’s Friendly Nations Visa (Visa de Países Amigos) continues to be the most popular residency pathway for foreign nationals in 2026. Created in 2012, the program was designed to attract citizens of nations with strong diplomatic and economic ties to Panama.

Whether you’re planning to relocate, start a business, invest in real estate, or simply want a legal base in Central America, the Friendly Nations Visa offers a straightforward route. Here’s everything you need to know about the program as it stands in 2026.

Who Is Eligible?

Citizens of approximately 50 nations are eligible, including the United States, Canada, United Kingdom, most EU countries, Australia, Japan, South Korea, and several Latin American nations. The complete list is maintained by Panama’s National Immigration Service (SNM).

Applicants must demonstrate an “economic tie” to Panama, which can be satisfied through employment by a Panamanian company, ownership of a Panama corporation with business activity, or ownership of real property titled in their name.

Requirements

Valid Passport
From an eligible friendly nation, valid for at least 6 months.
Criminal Background Check
From your country of origin, apostilled and translated to Spanish.
Proof of Economic Tie
Employment letter, corporate documents, or property title in Panama.
Bank Reference & Deposit
A bank reference letter and minimum $5,000 balance in a Panamanian bank account.

Timeline & Costs

The typical processing time for a Friendly Nations Visa is 3–6 months from application filing to the issuance of a temporary cédula. Government processing fees total approximately $800–$1,200 depending on the number of dependents.

After receiving your temporary permit, a permanent residency card is typically issued within 1–2 years. After 5 years of permanent residency, you may apply for Panamanian citizenship through naturalization.

Need Legal Guidance?

Schedule a consultation to discuss your situation and the appropriate next steps.

The post 2026 Friendly Nations Visa: Complete Guide To Panama’s Most Popular Residency Program appeared first on J. Soto Law.