Free trade zone

Introduction

The Free Zones are included in a special, comprehensive and simplified regime to encourage the establishment and operation of companies that contribute to the development of the country through the generation of jobs and the contribution of foreign currency, and are incorporated into the global economy of goods and services. thereby seeking to promote investment and boost the economic, scientific, technological, cultural, educational and social development of the country. Currently, there are 11 active free zones, while another 9 are under development, located mainly in the cities of Panama and Colón.

The Free Zones in Panama are protected under Law 32 of April 5, 2011 and regulated under Executive Decree No. 62 of April 11, 2017, legal regulations in which the tax, immigration and labor benefits that make them attractive its development within the national territory.

Legal frame

Regulating Law 32 of April 5, 2011 that establishes a special, comprehensive and simplified regime for the establishment and operation of free zones and dictates other provisions

Executive Decree number 62 of April 11, 2017 that regulates Law 32 of April 5, 2011 that establishes a special, comprehensive and simplified regime for the establishment and operation of free zones and dictates other provisions

Types of companies

In the Free Zones they will have the power to establish natural or legal persons, national or foreign, which are destined to the following activities:

Las licencias que otorga el Ministerio de Comercio e Industrias (MICI) con referencia a las Zonas Francas son:

1. Licencia como Promotor y / o Operador de Zona Franca

2. Licencia de Operación como empresa establecida en Zona Franca

Benefits

According to legal regulations, there is a wide range of tax benefits in direct and indirect taxes, rates, rights and levies. These benefits can be summarized in:

Exemption from taxes and other import duties on raw materials and/or semi-finished products, in addition to the purchase and import of construction equipment and materials, machinery, spare parts, tools, accessories, inputs, packaging materials and all goods and/or service required for business operations.

Exemption from income tax on the leasing and subleasing of premises or land for free zone developers.

The exemption from income tax for Service Companies, Logistics Service Companies, High Technology Companies, Scientific Research Centers, Higher Education Centers, General Service Companies, Specialized Centers for the Provision of Health Services and Healthcare Companies. Environmental Services, for its operations, both external and mutual (according to Chapter V, Articles 31 – 37 of Law 32)

In turn, a special immigration regime is established, whose benefits consist of:

Igualmente, se establecieron disposiciones laborales especiales, que ofrecen ciertas flexibilidades a las empresas establecidas en estas áreas económicas que son distintas a las vigentes en el resto del territorio nacional:

Zonas Francas Activas

Albrook Free Zone (Albrook Export Processing Zone, S.A.)

Last updated: January 2022

Zona Franca de Chilibre (Expert Diesel, S.A.)

Zona Franca Colon Maritime Investor (Colón Maritime Investor, S.A.)

Zona Franca Estatal de Davis (Unidad Administrativa de Bienes Revertidos)

Zona Franca del Istmo (Zona Franca del Istmo S.A.)

Zona Franca Eurofusión (Eurofusión, S.A.)

Zona Franca Las Cabras

Zona Franca de Las Américas (Mi Morocho S.A.)

Zona Franca Marpesca/Corozal (Procesadora Marpesca. S.A)

Zona Franca Panexport (Inmobiliaria SUCASA. S.A.)

Panapark Free Zone

Statistics

Trade Balance of the Free Zones of Panama (2013-2021) Figures in US$
Destination of exports (2020)
Distribution by business activity
Panama Free Zones (January 2022)

Contact

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