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Contents of this guide
What a power of attorney in Panama is and before whom it is granted
A power of attorney in Panama is the usual form of the mandate contract: one person, the principal, entrusts another, the attorney-in-fact, to do something on their behalf. The Civil Code defines it in article 1400. The notary public attests the act, but only within his or her notarial circuit: what is authorized outside it is void.
Under the Civil Code, an express mandate can be given by public or private instrument, or even orally (article 1401). The notary can add it to the protocol as a public deed (article 1728) or authenticate the signature on a private document with an attestation before two witnesses (article 1730). If the signer does not speak Spanish, the deed requires an interpreter, on pain of nullity (articles 1746 and 1747).
Types of power: general, special and judicial
A mandate is general or special. A general one covers all of the principal’s business; a special one, one or more specific matters. A power in general terms covers only acts of administration: selling, mortgaging or settling requires an express mandate. The Code of Civil Procedure adds the power for proceedings, also general or special.
| Type | What it covers | Source |
|---|---|---|
| General | All of the principal’s business, acts of administration only | Civil Code, arts. 1403 and 1404 |
| Special | One or more specific matters, with the express authority written in | Civil Code, arts. 1403 and 1404 |
| General judicial | Representation in any proceeding; by public instrument registered in the Public Registry | Code of Civil Procedure, art. 130 |
| Special judicial | A specific proceeding; by public deed or a statement filed in person, among other routes | Code of Civil Procedure, art. 131 |
To receive, settle, withdraw or submit in a proceeding, the attorney needs express authority (article 145).
How a power is granted from abroad for use in Panama
A power meant to be exercised in Panama can be signed abroad without traveling. It is drawn up with the formalities of the place where it is granted and must arrive authenticated by Panama’s diplomatic or consular officer, or apostilled. Article 134 of the Code of Civil Procedure provides this and presumes it was issued under local law.
According to the HCCH status table, Panama acceded to the Hague Convention of 5 October 1961 on 30 October 1990 and it entered into force for the country on 4 August 1991. Between party countries, the apostille replaces consular legalization.
- Draft the power with the exact authority and state whether it is general or special.
- Grant it before a notary of the country of signing or before a Panamanian consul.
- Apostille it in the country of signing, or have it authenticated at the Panamanian consulate if the country is not party to the convention.
- Translate it into Spanish if it is in another language.
- Send it to the attorney-in-fact, who presents it to the bank, notary or court.
In a proceeding, documents in another language are filed with a translation within ten days (article 166). The Ministry of Foreign Affairs publishes a directory of authorized public translators, and Radar’s guide on apostille and official translation of documents covers the order of both steps.
How a Panamanian power is used abroad
A power granted in Panama for another country is apostilled at the Ministry of Foreign Affairs if the destination is party to the Hague Convention. The Ministry says apostilles are processed on Panamá Conecta. The foreign authority decides whether it also asks for a translation.
The schedule of procedures and stamps sets B/. 2.00 for each apostille or certification procedure and B/. 8.00 in stamps for any notarized private document. The schedule does not list powers by name, so the stamp for a power granted as a public deed is confirmed with the Ministry. Stamps are bought at Banco Nacional and Caja de Ahorros, per Panamá Digital.
Validity and revocation
The Civil Code sets no general expiry term for a mandate. Under article 1423, it ends by revocation, by the agent’s resignation, or by the death, judicial interdiction, bankruptcy or insolvency of either party.
The principal may revoke at will and demand the document back (article 1424). Appointing a new agent for the same matter revokes the earlier one (article 1426). What the attorney does without knowing of the principal’s death is valid toward third parties in good faith (article 1429).
Myths and facts
- Myth: a general power allows selling a property. Fact: acts of ownership require an express mandate (article 1404).
- Myth: a power signed abroad does not work in Panama. Fact: it works with the formalities of the place and an apostille or consular authentication.
Legal Solutions Panamá accompanies, according to its website, international entrepreneurs, investors and professionals who want to set up a company in Panama, and many cases can be started remotely. Its page on bank account opening says documentation changes by account type.
Frequently asked questions
What is a power of attorney in Panama?
It is the mandate that one person grants before a notary so that another acts on their behalf in one or several matters. The Civil Code regulates it from article 1400 and distinguishes a general from a special mandate.
Can a power of attorney be granted from abroad?
Yes. It is signed with the formalities of the country of signing and arrives apostilled or authenticated by a Panamanian consular officer. Article 134 of the Code of Civil Procedure presumes it was issued under local law.
Does a power of attorney need an apostille?
If signed in a Hague Convention country for use in another, yes: the apostille replaces consular legalization. In Panama, the Ministry charges B/. 2.00 per apostille procedure, plus stamps.
How long does a power of attorney last?
The Civil Code sets no general term: the power lasts until it is revoked, the agent resigns, or either party dies or is declared insolvent. The power may carry its own term.
How is a power of attorney revoked?
The principal may revoke it at will and ask for the document back. A general judicial power is revoked by public deed registered in the Public Registry, and toward third parties it takes effect from registration.
Related articles
- Apostille and official translation of documents for Panama: guide
- Kathia Rivera answers: setting up a company as a foreigner
- Opening a bank account in Panama from abroad: the firms that handle the opening
- How to open a company in Panama: steps and taxes
- Panama Public Registry online: company and property search
Sources
- Judicial Branch, Civil Code of the Republic of Panama (Law 2 of 1916), articles 1400 to 1430 and 1715 to 1752.
- Official Gazette 29887-A, 11 October 2023, Code of Civil Procedure, articles 130, 131, 134, 145 and 166.
- Hague Conference on Private International Law, status table of the Convention of 5 October 1961.
- Ministry of Foreign Affairs, schedule of procedures and stamps.
- Panamá Digital, authentication and legalization of documents.
- Ministry of Foreign Affairs, authorized public translators.
- Legal Solutions Panamá, setting up a company in Panama.
- Legal Solutions Panamá, bank account opening in Panama.
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