Same-sex sexual activity was legalized in Panama through a presidential decree on July 29th, 2008, repealing a 1949 law which would incur those convicted with a 500$ fine or prison sentence. The age of consent was equalized at 18 and homosexuality was declassifed as a mental illness subsequently.

Article 58 of the 1972 constitution defined marriage as a different-sex union.

Article 34 of the Family Code (1994) establishes that people of the same sex cannot marry each other.

In 2018, the Inter-American Court of Human Rights ruled that the American convetion on Human rights mandates the recognition of same-sex marriage, recommending that countries issue decrees until legislation was brought into place. In March 2023, after seven years of delay the court ruled that there is no positive right to same-sex marriage in Panama under the constitution, halting any potential change for the time being through the courts.

In Panama, there are no laws restricting the discussion or promotion of LGBTQ+ topics. No Laws protecting LGBTQ+ spaces from banning or governmental harassment. The constitution does not mention the LGBTQ+. There is a law against public peace disturbance that mentions homosexual behaviour as a disturbance and indecent behaviour

Since 2006, transgender individuals have been able change their legal gender and name after undergoing gender affirming surgery and potentially humilitating doctor's inspection as reported by some trans activists, according to Article 121 of The Civil Registry Law (Law No. 31).
In 2016, a transgender woman was able, through court permission, to change her legal name according to her gender identity, without the need to undergo surgery.

Panama does not recognize genders other than male and female.

The Anti-discrimination law (Law No. 7 2018) does not explicity include sexual orientation and gender identity as protected categories. However, there are legal provisions in specific laws that explicitly mention sexual orientation and gender identity as a category protected against discrimination:

- Law 6 (2002) that dictates rules for transparency in public management, establishes the action of Habeas Data and dictates other provisions, establishes sexual orientation as confidential information, which may not be disclosed under any circumstances by State agents.

Law 16 (2002) that Regulates the right of admission in public establishments and establishes measures to avoid discrimination, prohibits discrimination based on sexual orientation.

- Law 12 that Regulates the activity of insurance and dictates other provisions (2012), establishes that the sexual orientation of the contracting party or insured is understood as confidential information.

-Law 6 (2017) that creates the National Mechanism for the Prevention of Torture and other Cruel, Inhuman or Degrading Treatment or Punishment, establishes that confidential information is understood to be all types of data and information that are relevant to people's medical and psychological data, the private life of individuals, including their gender identity or sexual orientation.

-Law 81 (2019) on the Protection of Personal Data, personal data that may reveal aspects related to sexual preference or orientation are considered sensitive.

There are no laws protecting LGBT people from discrimination in employment. The Anti-discrimination law (Law No. 7 2018) does not explicity include sexual orientation and gender identity as protected categories.

There are no laws protecting LGBT people from discrimination in housing. The Anti-discrimination law (Law No. 7 2018) does not explicity include sexual orientation and gender identity as protected categories.

Article 55 of the General Adoption Law establishes that joint adoption will be constituted when the applicants are spouses or cohabitants in a de facto union and of different sex.

Bill No.121 was passed in 2021, the bill was criticzed as cruel and banned same-sex couples from adopting children, but allowed single parents to adopt. Single LGBT individuals may be able to adopt under this technicality.

Surgery on intersex infants is legal in Panama but not widely practiced.

Panama abolished its military in 1989 following the overthrow of military dictator Manuel Noriega.

Article 133 of the Disciplinary Regulations of the National Police (1997) considers practicing lesbianism and homosexuality to be very serious misconduct.

LGBT Panamanians and foreigners are ineligible to donate blood in Panama.

Conversion therapy is legal and common in Panama.

The age of consent was set equally at 18 with the decriminilization of homosexuality in 2008.