Panama Pacifico

Benefits

The government of Panama created the Special Economic Area Panama Pacifico under the Law 41 of July 20, 2004. This area offers special corporate benefits for companies established in this economic zone:

  • One Stop Shop (11 government offices into one location)
  • Special Immigration and Labor Standards
  • Special Custom Regime
  • Tax Incentives, exemption from certain taxes or no taxes at all
  • Investment Stability Law
  • Single Registration
  • Training Center

Labor Benefits

  • 25% fixed surcharge for overtime, instead of a sliding scale up to 250% elsewhere in the country
  • Negotiable weekly resting day
  • Companies may remain open on Sundays and holidays
  • Allowance for foreign workforce of 15%

Immigration

  • All workforce visas are obtained in the onsite government office (One Stop Shop)
  • 3 to 5-year work visas, instead of the usual one-year visa elsewhere in the country
  • 5-year investor visas, with investment of 250k
  • Family visas extended to spouse, dependents and financially-dependent parents
  • Tax-free import of up to 100k of personal items per employee

Onsite Customs Office

  • Customs is onsite and operates out of the One Stop Shop
  • Available 24/7 by request
  • Designed to allow free flow of goods into and out of Panama Pacifico
  • System based on post-audits of inventories

Fiscal Benefits

Within the Republic of Panama, there are two types of national taxes - indirect and direct.

  • All companies registered in Panama Pacifico are exempt from indirect taxes
  • There are six direct taxes normally owed to the Republic of Panama by any company in the country. At Panama Pacifico, only three direct taxes are owed by onsite companies. These three direct taxes are exempted to companies established in the special area and considered by Law 41 of 2004 as "Special Business Activities"
    • Income
    • Dividend/Complimentary
    • Transfer/Withholding
  • Panama Pacifico falls within the District of Arraijan (like a municipality). So, companies pay municipal taxes to Arraijan which are determined in advance for up to ten years
    • Onsite companies operating with these activities as the main purpose of business pay no federal (fiscal) taxes to the Republic of Panama
      • Corporate headquarters
      • Back Office operations

Also Panama benefits from five of the major submarine telecommunications loops traversing through the country. The physical location of these fiber-optic lines provides unlimited connectivity capability for global communications. Panama Pacifico benefits from one of these loops being located onsite in the new global business hub.

The incentives are directed to attract the following specific business activities

  • Corporate Headquarters
  • Back office operations
  • Call Centers
  • Multimodal and logistics services
  • High-tech manufacturing and process manufacturing
  • Aviation industry services
  • Offshore services
  • Film industry
  • Data, radio, television, audio and video transmission
  • Transfer of inventory between companies in-site
  • Transfer of goods and services to ships, aircrafts and their passengers
  • Imports and Reexports