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Medicinal cannabis in Panama under Ley 242 de 2021: manufacturing and research licences, the B/.150,000 fee and cultivation permits

Last verified: 2026-10-29 · Status: Changing

Ley 242 de 2021 allows medicinal and therapeutic cannabis through two licences issued by the Ministry of Health only to companies: a manufacturing licence for derivatives and a scientific research licence. The manufacturing licence lasts 10 years, extendable for the same period, costs a one off non refundable B/.150,000, and was capped at seven licences for the first five years after the law, a period that ended in October 2026. Seeds and cultivation need Ministry of Agriculture authorisation, available only to manufacturing licence holders, under security controls.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

One off fee for a medicinal cannabis manufacturing licence	150000 PABLey 242 de 2021 art. 61, as of 2026-10-29 · in force
Manufacturing licence term	10 yearsLey 242 de 2021 art. 19, as of 2026-10-29 · in force

The rule

1. A licensing regime is created with two licences: manufacturing of medicinal cannabis derivatives and scientific research on medicinal cannabis. Licences are granted only to legal persons and cannot be transferred or assigned.Ley 242 de 13 de octubre de 2021 (Gaceta Oficial 29398-B), art. 14, 2021-10-13 official text · verified 2026-10-29

2. The manufacturing licence, authorised by the Ministry of Health, covers acquiring and importing cannabis to manufacture derivatives, plus storage, transport, sale and export; it lasts 10 years from issue, extendable for the same period, with renewal requested in the six months before expiry.Ley 242 de 2021, art. 19, 2021-10-13 official text · verified 2026-10-29

3. The Ministry of Health may set the number of licences, but until five years after the law's promulgation no more than seven manufacturing licences could be authorised; after that period the Ministry cannot reduce the number already approved.Ley 242 de 2021, art. 21, 2021-10-13 official text · verified 2026-10-29 · changed: The five year cap of seven manufacturing licences ran from promulgation on 13 October 2021 to October 2026.

4. Using seeds and growing plants needs Ministry of Agriculture authorisation, issued only to manufacturing licence holders, coordinated with the Ministry of Public Security; no cultivation in protected areas, and no other area limits.Ley 242 de 2021, arts. 31, 32 and 34, 2021-10-13 official text · verified 2026-10-29

5. Applying for a manufacturing licence carries a one off, non refundable payment of B/.150,000, due once the licensee is notified of the resolution granting the licence; proceeds go 40 percent to the Mental Health Institute, 40 percent to the National Pharmacy and Drugs Directorate, 10 percent to the National Oncology Institute and 10 percent to the national cannabis programme.
Cost to do it: B/.150,000 one off manufacturing licence fee.
Example: B/.150,000 for a 10 year licence, about B/.15,000 a year. / US$150,000, about US$15,000 a year over 10 years.Ley 242 de 2021, arts. 61 and 62, 2021-10-13 official text · verified 2026-10-29

6. The Ministry of Health regulated Ley 242 by Decreto Ejecutivo 6 de 4 de abril de 2025.Decreto Ejecutivo 6 de 4 de abril de 2025 (Gaceta Oficial 30251-B), whole decree, 2025-04-04 official text · verified 2026-10-29

Worked example

A Colombian producer setting up a Panamanian S.A. to make cannabis oils needs the Ministry of Health manufacturing licence (B/.150,000, US$150,000) and a Ministry of Agriculture cultivation authorisation if it wants to grow locally.

Step by step

Incorporate a Panamanian company; individuals cannot hold licences.
Apply to the Ministry of Health with the plans, security measures and fee receipt required by the law and Decreto Ejecutivo 6 de 2025.
Pass the pre licence inspection and pay B/.150,000 once notified.
Obtain Ministry of Agriculture authorisation before importing seeds or planting.

Common traps

Licences cannot be sold or assigned; a change of control needs care.
Cultivation authorisation is only for manufacturing licence holders, not for research only licensees.
The fee is not refundable once the licence is granted.

Sources

← Fisheries and aquaculture in Panama under Ley 204 de 2021: fishing licences, aquaculture concessions and finesRegulatory compliance essentials in Panama: who enforces what, key thresholds and deadlines →

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