The Wake-Up Call
Panama is enforcing company filing requirements. ALL Panama company owners are affected - but Friendly Nations visa holdersFriendly Nations visa holders are especially at risk because most were required to open a company for residency and may not realize they have ongoing obligations.
What Changed
Panama enacted Law 254 in 2021, strengthening accounting record requirements. Executive Decree 177, issued December 2024, added enforcement.
All companies must now submit annual accounting records to their Resident Agent by April 30 each year. Companies that fail to comply face fines from $5,000 to $1,000,000 USD.
Annual Costs
Even inactive companies owe money every year:
A company from 2018 that never filed could now owe approximately $4,400 USD or more.
Why Friendly Nations Visa Holders Should Pay Special Attention
These laws apply to ALL Panama companies - Panamanian-owned, expat-owned, offshore entities. Anyone with a company holding assets like a house or car must comply.
But Friendly Nations visa holdersFriendly Nations visa holders face extra risk:
If you obtained residency through the Friendly Nations visa programFriendly Nations visa program, your company almost certainly has compliance obligations - whether you knew it or not.
What Happens Without Compliance
After three years of unpaid franchise tax, the Public Registry suspends corporate rights. You cannot sell property, get certificates, or conduct official business. Eventually, forced liquidation is possible.
Registered Agents Are Dropping Clients
Many law firms are resigning as Resident Agents to avoid liability. If your agent resigns, your company becomes even more vulnerable.
Can You Just Walk Away?
No. Forced liquidation does not erase your debts. Fines remain outstanding. You may be blocked from forming new companies or face immigration consequences.
Your Options
1Bring your company into compliance - pay back taxes, file accounting records, maintain a Resident Agent
2Properly dissolve the company through legal channels before penalties escalate further
How We Can Help
Plan B Expat works with trusted Panama attorneys who specialize in:
Important: We do NOT recommend attempting compliance yourself or ignoring this issue. The penalties are real and enforcement is increasing.
Next Steps
If you have a Panama company - especially one opened for Friendly Nations residency - contact us for a compliance assessment.
Don't wait until enforcement catches up with you.
