Panama has established itself as a regional leader in digital law, primarily driven by its role as a global logistics and financial hub. The legality of electronic signatures in Panama is centred on the principle of “technological neutrality” and “functional equivalence,” ensuring that a digital document carries the same weight as a physical one, provided certain criteria are met. 

The Panamanian system is highly regulated, overseen by the National Directorate of Electronic Signature (Dirección Nacional de Firma Electrónica), which falls under the Civil Registry of the Electoral Tribunal. Panama distinguishes between a simple “Electronic Signature” and a “Qualified Electronic Signature,” with the latter providing the highest level of legal certainty and an automatic presumption of authenticity. 

Legal Framework 

A. Law 51 of July 22, 2008 
This is the foundational legislation for electronic signatures in Panama. It defines the legal effects of data messages and electronic signatures. Law 51 establishes that: 

• i. An electronic signature has the same legal validity as a handwritten signature. 
• ii. Data messages (electronic documents) are admissible as evidence in court. 
• iii. The “Qualified Electronic Signature” (QES) is the legal equivalent of a notarized handwritten signature. 

B. Law 82 of November 9, 2012 
This law granted the Electoral Tribunal (Tribunal Electoral) the authority to act as the Root Certifying Authority for the Republic of Panama. It also regulated the “Qualified Electronic Signature” more strictly, defining it as a signature supported by a certificate issued by a registered and accredited Certification Service Provider (PSC). 

C. Executive Decree No. 241 of 2014 
This decree provides the regulatory details for the implementation of Law 51 and Law 82, outlining the technical requirements for Certification Service Providers and the procedures for auditing and registering electronic signature services. 

D. Definitions of Signatures 
i. Electronic Signature (Simple): Any electronic method used by a person to identify themselves and indicate approval of the information contained in a data message. Examples include scanned signatures, “click-to-sign” boxes, or standard email signatures. 
ii. Qualified Electronic Signature (Firma Electrónica Calificada): A signature created using a secure signature creation device and based on a qualified certificate issued by an accredited provider. This signature provides: 
iii. Authenticity: Proof of the identity of the signer. 
iv. Integrity: Assurance that the document has not been altered since it was signed. 
v. Non-repudiation: The signer cannot deny having signed the document. 

Documents That Can Be Signed Electronically 
In Panama, the majority of private and commercial documents can be signed using either a simple or qualified electronic signature: 

i. Commercial Contracts: Most B2B and B2C agreements, including supply contracts, service agreements, and purchase orders. 
ii. Banking and Financial Documents: Since the adoption of the Fintech-friendly regulations, many bank account applications and loan agreements are processed digitally. 
iii. Labor Contracts: Employment agreements can be signed electronically, though for evidentiary purposes in labor courts, a Qualified Electronic Signature is highly recommended. 
iv. Government Procedures: Many interactions with the Social Security Fund (Caja de Seguro Social), the General Directorate of Revenues (DGI), and the Panama Maritime Authority (AMP) now accept or require Qualified Electronic Signatures. 
v. Board Resolutions: Corporate minutes and resolutions can be signed digitally, provided the company’s articles of incorporation do not explicitly forbid it. 

Documents That Cannot Be Signed Electronically 
Despite the broad acceptance of digital signatures, Panamanian law maintains strict “physicality” requirements for certain acts, usually those requiring the intervention of a Notary Public to be recorded in the Public Registry: 

i. Public Deeds (Escrituras Públicas): Any act that must be executed as a public deed—such as the transfer of real estate or the constitution of a mortgage—currently requires a physical signature before a Notary. 
ii. Acts of Family Law: Marriage certificates, adoptions, and certain divorce-related documents generally require physical presence and handwritten signatures. 
iii. Wills and Estates: The creation of a formal will (testamento) remains a solemn act requiring physical presence and traditional signatures. 
iv. Documents Requiring “Vivos Voce” Notarial Certification: If a specific law requires a Notary to certify the physical state or a verbal declaration of a person in a specific moment, electronic signatures are typically insufficient. 
v. Certain Negotiable Instruments: While progress is being made on “Electronic Invoices,” some traditional negotiable instruments, like physical checks, still follow traditional physical signature laws. 

Notable Changes and Modernization 
5.1 The Electoral Tribunal’s Role 
The centralization of electronic signatures under the Electoral Tribunal was a unique move in the region. By linking the Qualified Electronic Signature to the national identity card (Cédula), Panama has created a highly trusted ecosystem. Citizens can now obtain their signature directly through the Civil Registry. 

5.2 Pandemic-Era Acceleration 
The COVID-19 pandemic led to several temporary and permanent administrative resolutions that expanded the list of “digitally acceptable” documents. Notably, the General Directorate of Revenues (DGI) transitioned almost entirely to electronic signatures for tax representatives and corporate filings. 

5.3 Judicial Branch Digitalization 
The Panamanian Judiciary has implemented the “Electronic Judicial File” (Expediente Judicial Electrónico). Lawyers must now use Qualified Electronic Signatures to submit filings in many jurisdictions (Civil and Commercial), significantly reducing the need for physical visits to courts. 

Conclusion 
Panama offers a secure and legally sound environment for electronic signatures. For everyday business operations, simple electronic signatures may suffice, but they carry a higher burden of proof if challenged in court. For high-value transactions, government filings, or documents with significant legal risk, the Qualified Electronic Signature is the gold standard, as it shifts the burden of proof; the signature is presumed valid unless the challenging party can prove otherwise. 

Disclaimer 
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a legal practitioner in your area. 

References 

1. Ley 51 de 22 de julio de 2008: Define y regula los documentos y firmas electrónicas y la prestación de servicios de almacenamiento tecnológico. 
2. Ley 82 de 9 de noviembre de 2012: Otorga al Tribunal Electoral la autoridad de registro y regula la firma electrónica calificada. 
3. Decreto Ejecutivo No. 241 de 16 de septiembre de 2014: Regula la Ley 51 de 2008 y la Ley 82 de 2012. 
4. Código Civil de la República de Panamá: Normas sobre la validez de los contratos y obligaciones. 
5. Reglamento de la Dirección Nacional de Firma Electrónica:  Normativa técnica  para proveedores  de  servicios de certificación.