Building Opportunities for Global Trade

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Panama stands at the crossroads of economic prosperity, offering the best investment climate in the region. Its strategic location as the gateway to 1.5 billion consumers, coupled with a dollarized economy, legal stability, and sustained economic growth, makes it a haven for global trade. One of the key contributors to this thriving ecosystem is the Panama Free Zone Regime, established by Law 32 of 2011.

The Hub of Hubs:

Panama is more than a geographic landmark; it is an ecosystem of opportunities for businesses seeking effective logistics solutions. Mauricio Claver-Carvone, President of IDB, aptly expresses his trust in Panama as a hemispheric axis of the world. The Panama Free Zone Regime, comprising licenses for promoters, operators, and companies, as well as various types of investments and incentives, serves as the linchpin for business success.

Key Sectors and Opportunities:

Investors exploring opportunities in Panama can tap into key sectors such as higher education, scientific research, health services, high technology, assembly, prosecution, environmental services, logistics, manufacturing, aviation, and more. This diverse range of sectors underscores the flexibility and potential that Panama offers to businesses looking to establish a presence in the region.

General Directorate of Free Zones:

At the heart of this ecosystem is the General Directorate of Free Zones, a steadfast ally for investors and exporters. Their role involves promoting commercial alliances, ensuring standardized processes, guaranteeing quality and operational efficiency, and providing guidance throughout the installation and development of investment projects.

Incentives of the Free Zone Regime:

1. Migration Incentives: The MICI provides a dedicated window for migration incentives, offering six categories of visas related to free zones. These visas cater to investors, qualified investors, trusted personnel, executives, experts, teachers, students, and researchers, facilitating the seamless integration of international talent into the workforce.
2. Work Incentives: The upcoming MITRADEL window within the MICI will streamline work-related procedures. With overtime rates, flexible rest days, and special considerations for Sundays and holidays, the regime ensures a balanced and conducive work environment for employees within the free zones.
3. Tax Incentives: Panama's Free Zone Regime is remarkably generous when it comes to tax incentives. With exemptions covering income tax, import tax on equipment and raw materials, dividend tax, complementary tax, withholding tax on interest income, capital stock tax, operation tax, royalties, capital gains on transfer of company shares, stamp duty, real estate tax, and municipal tax, businesses can operate with minimal fiscal burdens.

Panama's Free Zone Regime is the linchpin of a vibrant ecosystem that invites businesses to capitalize on a myriad of opportunities. As the Hub of Hubs, Panama beckons entrepreneurs to explore, invest, and thrive in a landscape characterized by legal stability, economic growth, and logistical efficiency. For those ready to embark on this journey, our legal firm stands ready to guide you through the complexities of the process. Contact us today to unlock the full potential of global trade through the strategic advantages of Panama's Free Zones.