Wealth Planning: Why Panama Is Emerging as a Safe Haven in Latin America?
April 2, 2026
In any one-off transaction, neither party wants to hand over their money or asset first. An escrow account solves that dilemma.
By: Estefanía Alemán – General Manager
When two parties negotiate a purchase, a merger or any one-time transaction, the same tension always arises: the buyer doesn’t want to pay before receiving what was agreed, and the seller doesn’t want to hand over the asset without certainty of payment. An escrow account, or guarantee deposit account, exists precisely to resolve that dilemma.
Below we explain what an escrow account is, how it works in practice, and why Icaza Trust Corporation, the trust arm of Icaza, González-Ruiz & Alemán, is a trusted escrow agent for local and international transactions.
What is an escrow account?
An escrow account is used to receive assets or funds for the purpose of facilitating or guaranteeing a one-off
transaction, such as a sale. The account is opened in the name of Icaza Trust Corporation (ITC), acting as escrow
agent, not in the name of the parties.
The funds remain in the custody of an independent escrow agent, who administers and disburses them solely in
accordance with the instructions and conditions agreed by the parties in the escrow agreement. ITC is a licensed
trust company, regulated and supervised by the Superintendency of Banks of Panama.
Neither party hands over money or an asset without certainty of receiving what is owed: the exchange
takes place simultaneously and conditionally
How it works?
The mechanism is simple, secure and contractually defined, in four steps:
1. Escrow agreement
The parties and ITC sign the agreement defining conditions, timelines and disbursement instructions.
2. Deposit of funds
The buyer or payer deposits the funds or assets into the escrow account in the name of ITC.
3. Verification
ITC verifies compliance with the agreed conditions (delivery, transfer, contractual milestones).
4. Disbursement
Once conditions are met, ITC releases the funds to the beneficiary in accordance with the instructions.
Why use an escrow account?
- Efficiency: No need to open dedicated accounts, when the parties do not have bank accounts in their own name.
- Independent third-party administration: Ensures compliance with the agreed terms and conditions.
- Counterparty risk mitigation: The exchange takes place simultaneously and conditionally.
- Certainty and traceability: Funds are managed according to written, verifiable instructions, with a complete documentary record.
Transactions we facilitate
An escrow account can be adapted to any one-off transaction that requires conditional payment:
Real estate purchases
Custody of the purchase price until the transfer is recorded with the Public Registry.
Asset purchases
Vessels, aircraft, loan portfolios, equipment and other highvalue assets.
Settlements and judicial transactions
Custody of disputed sums, settlement agreements and arbitration proceedings.
Share purchases and M&A
Closing payments, holdbacks and post-closing price adjustments.
Financing
Administration of disbursements subject to milestones or conditions precedent.
International operations
Cross-border transactions with parties in multiple jurisdictions.
Your transaction, in safe hands
Icaza Trust Corporation acts as an independent escrow agent in local and international transactions, providing the neutrality, regulatory security and experience of more than a century of the Icaza, González-Ruiz & Alemán group’s track record. Whether it’s a real estate purchase, an M&A transaction or milestone-based financing, our team manages your funds with the certainty and traceability the transaction demands.
