Panama is taking major steps to modernize its legal system — an effort that could bring faster, fairer, and more efficient justice for everyone, including the growing expat community that calls this country home.
For years, Panama’s court system has been known for its strong legal foundation but also for slow-moving cases and excessive formality. That reputation is now changing. The country has approved a new Code of Civil Procedure, which will take effect in October 2025, marking one of the most ambitious legal reforms in recent history.
A New Era of Efficiency and Accountability
The reform centers on a simple but powerful goal: to make the judicial process faster, more transparent, and more predictable without compromising fairness.
Here’s what’s new and why it matters:
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Strict time limits and accountability for judges:
The new code introduces clear judicial terms — deadlines that regulate how long each stage of a case can take. Most notably, if a judge fails to issue a ruling within one year from the notification of a lawsuit, they automatically lose jurisdiction, and the case is reassigned to another judge.
This rule (Article 202, C.P.C.) is a bold step toward accountability. It’s designed to guarantee that justice is delivered within a reasonable time, rather than allowing cases to sit idle indefinitely. -
Faster, more direct hearings:
Instead of relying on endless written submissions, hearings will now be conducted orally, giving judges more direct control over the process and reducing opportunities for procedural delay. -
Smarter evidence rules:
Under the new system, both parties can present or request evidence early — even from the moment the complaint is filed — and up to ten days before the preliminary hearing. Objections and challenges will be resolved on the spot during hearings, cutting out months of procedural back-and-forth. -
Digital justice is here:
The code introduces the Electronic Judicial File, allowing briefs and documents to be filed online through Panama’s Automated Judicial Management System. Submissions made up to 11:59 p.m. on the last day of a deadline will be considered timely.
This modernization aligns Panama with global standards for digital justice — making it possible to handle many procedures remotely and dramatically improving accessibility.
Why This Matters for Expats
These changes aren’t just legal technicalities — they reshape how daily life, business, and investment operate in Panama.
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Faster outcomes: Legal disputes, probates, and civil claims will move quicker and more predictably.
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More transparency: Clear rules and digital filings reduce opportunities for confusion or procedural surprises.
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Greater confidence in institutions: As judges are held to deadlines and digital systems reduce manual inefficiencies, Panama’s credibility as a place to live and invest strengthens.
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Ease of access: Expats won’t have to rely as heavily on physical paperwork or in-person procedures — a huge step forward for convenience.
A Step Toward Broader Modernization
Panama’s legal reform is part of a wider national effort to modernize government services and digital infrastructure. Supported by institutions like the Inter-American Development Bank, this push is helping Panama evolve into a more agile, tech-driven, and internationally competitive country.
For expats, these changes mean living in a nation that’s not only beautiful and business-friendly but also becoming more efficient, accountable, and forward-thinking. The modernization of justice isn’t just about courts — it’s about trust, time, and progress.
