The Panama Pacifico Free Zone is located close to the Pacific entrance of the Panama Canal, in the former Howard US Air Force Base. It is the newest Special Economic Zone created in Panama, with mixed-use real estate developed by London & Regional Properties, the world’s largest real estate developer. It is a special economic zone with residential and recreational areas, as well as Industrial Zones with approximately 140 established companies. Out of this, 90 companies are fully operational. With an approximate working force of about 5,500 direct employees, an approximate of 90% is Panamanian. Among those multinationals it can be mentioned Dell, Caterpillar, Procter and Gamble, and 3M.
The vision of Panama Pacifico is to be Latin America’s first complete master-planned community. The project is expected to cost USD 405 million in real estate development. The plan includes 20,000 new residences and 40,000 permanent jobs.
With this ambitious project, that includes economic and legal benefits, the Republic of Panama promotes the development of different industries such as logistics, sea and air transportation, high-tech, etc.
Any type of business can relocate to Panama Pacifico. There are several options to lease or buy an operational base in one of the following environments:
- International Business Park: Ideal for headquarters, call centers, offices and light assembly plants. Construction is already underway
- PanAmerica Corporate Center: Ideal for logistics, assembly, freight management and manufacturing operations. Construction is already underway.
- Town Center – Retail Opportunities
- Fiscal Benefits of Operating in Panama Pacifico
Certain business activities are exempt from all Panamanian fiscal taxes. These include multimodal and logistics services, high-tech product manufacturing, call centers, aviation maintenance and repair and others as defined in Law 41 from 2004 and it’s modification in Law 31 of 2009. For companies that do not fall into these categories, there are still tax incentives for operating within Panama Pacifico.
Tax Incentives for Operating in the Panama Pacifico
- Exemption from import duties (unless goods are sold within Panama)
- Exemption from export or re-export taxes.
- Income tax exemption for specific business activities as described in Tax Law 41
- Dividend tax exemption for specific business activities
- License tax exemption
- Real estate property tax exemption
- Exemption from taxes on international phone calls.
- Municipal tax stability guaranteed for 10 years from date of registration
- Exempt from withholding tax on royalties paid to foreigners for specific business activities
- Exempt from capital gains tax on company stock transfer
- Stamp tax Exemption
Employment Benefits of Operating at Panama Pacifico
- 25% fixed surcharge for overtime
- Weekly resting day doesn’t have to be Sunday like in the rest of Panama.
- Companies may remain open on Sundays and holidays
- Negotiable vacations
- Increased freedom for terminating labor contracts
- Allowance for foreign specialized workforce of 15%
If you want to set up your Business in Panama Pacifico, we have licensed real estate agents, investment advisors and we work closely with Pardini & Asociados, a law firm with 40 years of experience for all legal matters to assist you on all your business needs.
The BusinessPanama Group provides a convenient One Stop Shop offering the services of
- Setting up the company or branch
- Locating office and living premises in Panama City for the company and its executives
- Setting up all operations, contracts, permits, etc.
- Accessing special tax incentives
- Applying for visas, work and residence permits
- Relocation services
For more information, please contact us.