Incentives for Investment in Panama

 

This is a brief summary of the incentives for investment in Panama, which is among the most attractive programs in the world for foreign investors.

Foreign investor protection (Law No. 54)

Issued on July 22, 1998, this law grants foreign investors and their companies within the country the same rights and freedoms enjoyed by Panamanian investors and companies. It has no other limitation than those established in the Political Constitution and the law. This includes references to freedom of trade and industry, import and export. They are also given the right to dispose of their investment earnings and repatriate their interest, profits and dividends.

1. Panama Real Estate Laws

Real estate in Panama boasts exquisite natural settings, including the Caribbean and Pacific coasts, highlands, rainforests, islands, and mountains. Panama properties are affordable and located in popular locations, and there are always great options to choose from. Additionally, investing in property in Panama receives considerable attention from the Panamanian government, resulting in a series of incentive regulations.

1.1 Private property (Article 44)

This section of the Panamanian constitution guarantees the protection of the rights of owners of both Panamanian nationals and foreigners.

1.2 Investment in reforestation (Law No. 24)

This law grants benefits that include a 25-year income tax exemption for investors who acquire properties for reforestation purposes. Issued by the Legislative Assembly on November 23, 1992, the law regulates everything related to reforestation.

Note: Investors interested in this option can enter the country with a specific visa related to reforestation. There are two kinds:

Reforestation Visa: Requires a $100,000 investment in a government certified reforestation project and after a few years, you will be entitled to permanent residency and eventually citizenship.

👉We have agreements with reforestation companies that offer programs for you to INVEST IN REFORESTATION AND OBTAIN PERMANENT PANAMANIAN RESIDENCY WITHOUT LOSING YOURS.

1.3 Islands and Concessions Title Law (Law No. 2) 1.3 Islands and Concessions Title Law (Law No. 2)

1.3 Islands and Concessions Title Law (Law No. 2)

This law gives foreigners the right to buy property on the island, provided it is used for tourism purposes and certain conditions are met. This had never happened before in the history of Panama law. Concessions or leases for state land may also be granted for tourism purposes. Law No. 2 was issued by the National Assembly on January 7, 2006.

1.4 Development of Casco Viejo (Law No. 9)

On August 27, 1997, this decree was issued by which special incentives were established for the reestablishment of the Casco Antiguo of Panama City. For this reason, certain tax reductions and exemptions were created for this purpose. Renovation costs are 100% tax deductible while property sales or rental income is exempt for 10 years. The property itself is subject to 30 years of tax exemption. Please note that the previous laws applied in the Old Town have been modified so that additional areas are added for their protection. This includes part of the neighborhood of Santa Ana, Salsipuedes and part of Terraplén.

Incentives for investment in Panama in other businesses.

Panama uses the US dollar as its currency, therefore there are no exchange controls to limit the amount of currency that can be traded.

2. Incentives for investment in other businesses in Panama

Panama uses the US dollar, therefore there are no exchange controls to limit the amount of currency that can be traded.

2.1 Colon Free Zone (Law No. 18)

Located at the Atlantic entrance of the Panama Canal, the Colon Free Zone is a free port that is home to more than 2,500 companies, employs more than 28,000 people, and ships more than $16 billion a year. Companies operating within this zone are both foreign and domestic, most of which enjoy tax exemption, on the condition that they meet a certain set of requirements. These include employing at least 5 local Panamanian workers, maintaining certain reporting criteria, and exporting a minimum of 60% of their merchandise.

2.2 Special, Comprehensive and Simplified Free Trade Zone Regime (Law No. 32)

This law authorizes the establishment of duty-free zones in any part of Panama, as long as they do not interfere with the local ecosystem. To date, there are 14 registered free zones and nine of them are already in operation. Read more about Law No. 32

2.3 Panama Pacific (Law No. 41)

This law establishes a special regime for the establishment and operation of a Panama-Pacific Special Economic Area and an autonomous government entity called the Panama-Pacific Special Economic Area Agency. Formerly Howard Air Force Base, this duty-free zone attracts certain categories of businesses. To name a few: corporate headquarters, call center, film industry, distribution and logistics centers, technology manufacturing, and naval and aviation goods and services. The area also features a one-stop shop that houses 12 government agencies under one roof to make it easy to do business, obtain permits, and more.

2.4 Manufacturing and processing industry (Law No. 3)

Manufacturing and processing companies that export all of their products are exempt from most direct taxes and import duties on equipment and machinery. The eligibility of companies for these incentives under Law No. 3, it is necessary to register in the Official Registry of National Industry, a department of the Ministry of Commerce and Industry.

Source: https://gancot.ngontinh24.com/

For more information https://wa.me/50768925558

Incentives for investment related to tourism in Panama

 

Recent years have seen a boom in the tourism sector, accompanied by the development of economic regulations that promote investment throughout the country.  To date, there are policies that encourage foreign investment in Panama's tourism sector.  According to the website of the Tourism Authority of Panama, Law No. 80 of November 8, 2012 defines all incentives for foreign investment, while other laws complement these incentives with the main objective of promoting the development of tourism in Panama.  2.1 Tourism investment (Law No. 8, 1944) With an investment of $500,000 ($300,000 in metropolitan areas), interested investors who wish to start a tourism-related business can benefit from a series of tax exemptions.  These incentives include import and property taxes, taxes related to the use of airports or docks and, in some cases, even income tax.

 ✅ Promotion of tourist activities (Law No. 80)

 To qualify for Panama's incentives to develop tourism activities, interested entrepreneurs must send to the General Directorate of Revenue a certificate from a competent authority to clarify that they have made an investment related to tourism.

 Law No. 80 only includes incentives for the interior of Panama and grants a total exemption from import tariffs for five years on construction materials and 10 years for the introduction of furniture, materials, accessories and equipment, among other items.

  Law No. 80 also provides incentives for the buildings of marinas and tourist docks.

 This incentive is primarily aimed at hotel investments of more than $250,000 and includes no import tax on building materials and no tax on land and improvements for a period of five years.

 ✅ Incentives for the development of tourist activities outside of Panama City (Law No. 58)

 This law provides incentives for the construction or renovation of lodging facilities that are located outside the Special Tourism Zones of Panama.  Investments in regions such as mountainous areas or islands can benefit from duty-free import of materials, equipment and vehicles.  A 20-year tax exemption on property taxes also applies.

Source: https://gancot.ngontinh24.com

Panama Real Estate Investment Destination

Panama has maintained a growth trend, positioning itself as one of the most attractive economic platforms in the region, which is why countless investors have set their sights on the country and the real estate market.

Currently, there are increasingly competitive projects, accompanied by a wide range of laws with incentives aimed at the tax, labor, immigration and customs sectors, which include the implementation of special economic zones, which with a special regime favor the establishment of companies, whose operation generates jobs and contributes to the economy of goods and services, positioning the country with a strong level of development that is conducive to investment.

Our country is a safe option for many investors, not only because of its geographical advantages and having the best connectivity in the region, but also because of the tax subsidies, added to the benefits for everyone who chooses Panama as their investment destination, which are highly competitive when compared to other destinations in Latin America.

General data:

Population: 4.2 million (2020)

Political Division: 10 provinces and 5 indigenous regions

Gross Domestic Product:

US $ 68,536 billion (2019) Gross Domestic Product (Nominal) per capita: US $ 16,245 (2019)

Inflation Rate -0.4%

Unemployment rate 7.1% (2019)

Exports US $ 713.3 million (2018) Imports US $ 12.8 million

Currency: US dollar (since 1904)

Why Panama?

• Privileged geographic position
• World-class logistics platform
• The dollar legal tender
• International banking and financial center
• Political and legal stability
• Excellent living conditions
• Medical services with high technology and international prestige
• Stability in the investment regime
• World-class communication infrastructure
• Free from natural disasters
• Commercial opening and access to markets
• Language: Spanish (official), English (commercial)

Source: Panama Tourism Authority