Panama, with its strategic Panama Canal, stands as a global economic hub with favorable geography, territorial taxation, and corporate laws. The nation’s policy encouraging foreign investments has led to the establishment of diverse free economic zones. Today, they attract dozens of foreign and national businesses in various market sectors.
With a score of 0.805 in the Human Development Index (HDI), Panama is classified as a highly developed economy. The average annual income of 16,750 USD places Panama among high-income countries.
In the past two decades, the largest growth has come from investment. The country’s success lies in its economic prowess, legal and personal security for foreign investors, tax incentives, and lenient migration legislation.
Exploring Panama’s Special Economic Zones
Panama boasts 21 special economic zones, including the Colon Free Zone, Panama Pacifico Special Economic Zone, and 19 free trade zones. Concentrated in Panama City, along the Panama Canal, and the city of Colon, these zones play a crucial role in the country’s economic landscape.
Regulated by distinct laws, each free trade zone has specific permitted activities and functions. The policy aims to increase the number of resident companies, stimulate production facilities, and create more jobs, contributing to overall economic growth.
The active zones, mainly concentrated around Panama City, the city of Colon, and the Panama Canal, include the following:
- Colon Maritime Investor
- Panapark
- De Albrook
- Marpesca/Corozal, City of Knowledge
- PANEXPORT
- De Chilibre
- Las Américas
- Del Istmo
- Estatal de Davis
- Eurofusión
The following eight free economic spaces are still under construction:
- Isla Margarita
- Las Cabras
- Global Logistics
- Aristos
- ZITI WAREHOUSE
- DE LA INNOVACIÓN
- BPO
- Agroindustrial De Panamá
Here is a brief description of the most significant free economic spaces in Panama today:
- Colon Maritime Free Zone (Zona Libre de Colón): Established in 1948, one of the world’s largest free economic zones covers 1,400 hectares, facilitating seamless movement of goods through sea terminals, airports, and highways.
- Panapark: Located near Tocumen International Airport, the largest private free trade zone offers top-notch infrastructure and tax exemptions.
- De Albrook: Specializing in medium and high-tech companies, De Albrook, established in 1998, provides tax exemptions, high-quality infrastructure, and proximity to the Panama Canal.
- Marpesca/Corozal: Focused on food processing and perishable goods, it supports technological enterprises engaged in research and development.
- PANEXPORT: The first Panamanian free industrial zone, PANEXPORT offers logistical advantages, high-quality infrastructure, and tax exemptions.
- De Chilibre Free Zone: Established near FEZ De Albrook, De Chilibre specializes in catering to companies with medium and high technologies. It hosts only five companies: three working in product assembly and two focusing on processing ready-made and semi-finished products. Logistical services are also available.
- Las Américas Zone is dedicated to light industry, assembly, and processing of ready-made or semi-finished products. It is open to high tech, logistics, technological and medical innovations, research, education, and environmental services.
- Del Istmo Free Zone: Established in April 2011 near the Pan-American highway, Del Istmo spans 14.5 hectares. Offering tax, immigration, and work incentives, it aligns with other Panamanian FEZs.
- Estatal de Davis: Founded in the province of Colon, Estatal de Davis accommodates three companies engaged in the assembly, production, and processing of ready-made and semi-finished products.
- Eurofusion Free Trade Zone: Specifically designed for Eurofusión S.A., Eurofusion focuses on the processing of ready-made and semi-finished products, showcasing a tailored approach to meet the needs of a singular company.
Panama Pacifico Special Economic Zone
Panama Pacifico, vital for the Panamanian government, lures global corporations in trade, logistics, and manufacturing. Situated 15 km from Panama City on the former Air Force base, it ensures efficient logistics via the Pan-American highway, linking to crucial ports and airports.
Managed jointly by the government and private entities, Panama Pacifico, covering 1,400 hectares, focuses on industries like transportation, logistics, call centers, high-tech ventures, and services. It offers facilities through a leasing model, and foreign investors need a minimum of 250,000 USD for a visa. Similar to the Colon FEZ, Panama Pacifico’s special zone provides income tax exemptions. Advantages include easy company registration, specific labor rules, tax exemptions, and developed social infrastructure. As of 2023, the zone hosts 232 companies, including eight Fortune 500.
De Barú
De Baru Free Zone, established in 2001, aims to foster industrial development in Panama. Situated in the western part of Panama, near the Costa Rican border, this distinct natural zone seeks to attract private investments that will generate positive economic impacts and reinvigorate the business landscape.
Foreign investors in the De Baru zone enjoy advantages in terms of tax relief, customs benefits, and streamlined migration processes.
The City of Knowledge
The City of Knowledge on the former Clayton military base near the Panama Canal’s Pacific entrance specializes in projects connected with science, culture, and international connections in humanities, education, and technology. Covering 120 hectares, just 15 minutes from Panama City, it hosts 221 companies (as of January 2023) with diverse facilities, including offices, business centers, and schools.
The key advantages of the City of Knowledge encompass tax and migration benefits, direct access to five international fiber optic cables passing through Panama, top-notch infrastructure, electricity supplied by its thermal power station, and the presence of higher education and research centers and laboratories.
Conclusion
Registering a Private Foundation or a Panama corporation, particularly in the country’s free economic zones, accelerates business growth for foreign investors. You can find more information and expert support for starting a company in the country on our site.
Panama excels in speedy company registration, typically within a few days. The state refrains from discrimination and imposes no restrictions on investment capital movement. Panamanian laws provide foreign assets protection and ensure investor confidentiality. The enterprise registration process in Panama is remote, with no need for a physical visit. The country offers enticing tax incentives and favorable migration rules. After five years of residence, foreign individuals can apply for Panamanian citizenship.
Sharon Howe is a creative person with diverse talents. She writes engaging articles for WonderWorldSpace.com, where she works as a content writer. Writing allows Sharon to inform and captivate readers. Additionally, Sharon pursues music as a hobby, which allows her to showcase her artistic abilities in another creative area.