What happened with the Panama company dissolutions in 2026?

On February 23, 2026, Panama's Ministry of Finance announced it would begin dissolving suspended companies from February 27, 2026. Phase 1 executes administrative resolutions issued by the DGI back in 2016, which placed a dissolution marginal on 290,534 companies for unpaid Tasa Unica. The first block was announced as 180,883 companies whose records had been reconciled. When execution formally began on February 27, the Ministry reported that dissolution had started on 180,346 companies.

If my Panama company was dissolved, what happens to my residency?

If your residency was tied to a Panama company, particularly through the Friendly Nations Visa employment pathway, and if that company was dissolved, your residency may be at risk. You should get advice from a Panama immigration specialist immediately to assess your status and determine whether your cedula is still valid or needs to be renewed through a different pathway, Ask us we are here to help and our legal team is at your disposal.

How do I check if my Panama company is still active?

The Ministry of Finance published the list of suspended companies in the dissolution process through the Registro Publico website, and you can also search the registry directly by company name or folio number. An active company shows current status and a valid resident agent. A dissolved company shows a dissolution date and reason. Your resident agent should also be able to confirm status.

What are the ongoing compliance requirements for Panama companies?

Panama companies must maintain a registered resident agent, pay the annual Tasa Unica, file accounting records with the resident agent, keep basic accounting records, and comply with economic substance requirements if applicable. Companies with bank accounts also face ongoing bank KYC reviews. Failing any of these can lead to suspension and eventually dissolution.

Should I dissolve my Panama company if I no longer need it?

Yes, if you no longer need it. Abandoned companies that are not formally dissolved accumulate unpaid annual fees and create compliance exposure. A formal dissolution through your resident agent closes the company cleanly, ends the ongoing fees, and removes your name from compliance risk. The process is straightforward and costs a few hundred dollars.

Panama Dissolves 180,346 Companies: Check Yours

📄 Quick Links: Full Cost Breakdown | Dissolution Guide | Free Assessment

UPDATE: Panama's Ministry of Finance began dissolving suspended companies on February 27, 2026. Phase 1 covers 290,534 companies flagged in 2016, and the Ministry reported that the first block of 180,346 entered dissolution on the opening day. Phase 2 has not been published yet. (Official MEF announcement)

What "Since 2016" Actually Means

The government is not targeting companies created after 2016. In 2016, the DGI issued resolutions placing a dissolution marginal on 290,534 companies that were already delinquent on Tasa Unica payments. Those companies sat in that status for a decade without clearing the debt.

Phase 1 executes those 2016 resolutions. Your company could have been created in 2005, 2010, or 2015. If it was flagged in 2016 for non-payment, it is in this wave. The Ministry announced 180,883 companies as reconciled and ready, then reported 180,346 actually entering dissolution when the process opened on February 27, 2026.

Phase 2 will target companies that became suspended after 2016 under the updated rules (Law 52 of 2016, Law 254 of 2021). If your company was created for Friendly Nations residency (program started 2012) or any other purpose and you have stopped paying since then, you are likely in Phase 2. That list has not been published.

The Wake-Up Call

Your Panama company may already be on the dissolution list. Here is how to find out.

If you opened a Panama company for Friendly Nations residency, business, investment, or any other reason, and have not touched it since, that company owes money every year. Miss payments and Panama does not send reminders. It suspends your corporate rights, then dissolves the company entirely.

Panama has now started doing exactly that. The first block is gone. The next one has not been announced. Here is what you are facing and what to do about it.

What Changed

Panama enacted Law 254 in 2021, strengthening accounting record requirements. Executive Decree 177, issued December 2024, added enforcement teeth. In February 2026, the Ministry of Finance (MEF) moved from rules to execution and began mass dissolution of non-compliant companies.

New requirements:

All companies must submit annual accounting records to their Resident Agent by April 30

A new July tax declaration is now required (as of 2024)

Companies that fail to comply face fines from $5,000 to $1,000,000 USD

Non-payment for 3+ years triggers suspension, and suspension leads to dissolution

Annual Costs

'Inactive' does not mean 'free.' Even dormant companies owe money every year:

Requirement	Annual Cost
Franchise Tax (Tasa Unica)	$300 USD
Accounting Filing	~$65 USD
Resident Agent Fee	$150 to $500 USD
July Tax Declaration (new)	~$65 USD

A company from 2018 that never filed could now owe $5,000 USD or more.

Want to know exactly what you owe? We break down every government fine, penalty, and professional fee, with real examples. See the Full Cost Breakdown

The Timeline to Forced Dissolution

This is not theoretical. Here is the sequence:

Status	What Happens
Year 1 missed	$50 penalty added
Year 2 missed	$300 penalty + $1,000 reactivation fee
Year 3 missed	SUSPENDED, corporate rights frozen
Suspended 2 years	Government dissolution window opens
After 2 years suspended	FORCED DISSOLUTION

Phase 2 is coming. Phase 1 targeted companies flagged in 2016. Phase 2 will target companies suspended under Law 52 of 2016 and Law 254 of 2021. That list has not been published, so the absence of your company from the first list tells you nothing about the next one.

Why Friendly Nations Visa Holders Should Pay Special Attention

These laws apply to ALL Panama companies. But Friendly Nations visa holders face extra risk:

Most opened companies specifically for residency, not business

Many were never told about ongoing filing requirements

Non-compliance creates a permanent DGI record visible to immigration

Citizenship applications review your compliance history

Thousands of 2012 to 2021 visa companies are now delinquent

If you obtained residency through the Friendly Nations visa program, your company almost certainly has compliance obligations, whether you knew it or not.

Own Property Through a Panama Corporation?

If your company is suspended, you cannot sell, refinance, transfer, sign contracts, or defend legal claims on that property. Your asset is frozen inside a company you no longer control.

A $300 per year oversight can turn into a $10,000+ legal problem to untangle.

Registered Agents Are Dropping Clients

Here is something most people do not know. If a Resident Agent does not receive accounting records from a company, the agent is exposed to the fines that follow.

Many firms are resigning as Resident Agents to avoid that exposure. Under Panamanian law they must give you 90 days notice before resigning. If your contact details are out of date, you may never see the notice.

If your agent resigns and you do not replace them within 90 days, your company becomes even more vulnerable to suspension and dissolution.

Can You Just Walk Away?

No. Walking away is a trap.

DGI record is permanent. Your RUC and any debts stay in the system. Future agents, banks, and immigration can see it.

Citizenship complications. Panama reviews your compliance history during naturalization. Outstanding company debts raise red flags.

Future company blocked. Want to open a new Panama company later? You may need to clear old debts first.

Banking red flags. Panama banks run AML checks. A delinquent company history can affect account approvals.

Forced dissolution does not erase your problems. It creates new ones.

Thinking of just letting the government handle it? We have documented exactly what happens: debts that follow you, director liability that remains, citizenship complications, and more. See the full consequences

Your Options

There is no third option. Ignoring this makes it worse.

Bring your company into compliance. Pay back taxes, file accounting records, maintain a Resident Agent. This makes sense if you still need the company or own property through it.

Properly dissolve the company through legal channels before penalties escalate further. This is the clean exit, but you still need to clear outstanding obligations first.

Thinking about dissolution? It is not just one form. There is a specific process involving the Public Registry, DGI, MICI, and more. Typical cost: around $535. See Exactly What Is Involved

How We Can Help

Plan B Expat works with trusted Panama attorneys and accountants who specialize in:

Free compliance status check. We will look up your company in the Public Registry and DGI

Full cost estimate. We will tell you exactly what you owe before you commit

Company compliance audits

Back-filing of accounting records

Franchise tax catch-up payments

Proper company dissolution

Property transfer coordination if you need to move assets before closing

Not sure where you stand? Start with the two guides below.

Full Cost Breakdown covers every fee, fine, and penalty with real examples

Dissolution Guide covers the step-by-step process, timeline, and cost

Important: We do NOT recommend attempting compliance yourself or ignoring this issue. The penalties are real, enforcement is active, and the government has already dissolved the first block.

Next Steps

Phase 1 has already executed. Phase 2 has not been published. If you have a Panama company, especially one opened for Friendly Nations residency, contact us for a compliance assessment.

You can check whether your company was on the published list at the Registro Publico.

Get Free Panama Compliance Assessment

Do not wait until your company is on the next dissolution list.