Advantages of Panama Pacifico’s Special Economic Area

Panama Pacifico is a Special Economic Area with specific benefits that ensure the viability and success of companies that establish in this new master-planned community.

Advantages of the Special Economic Area created by Tax Law 41 of 2004 include:

One Stop Shop:

  • A single, onsite government office fast-tracks the process of establishing a business in the area. This ‘one-stop-shop’ streamlines coordination of 15 government offices into one location, including all visas and work benefits. This saves considerable time and money for companies.

Labor Benefits
  • 25 percent 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
  • Fluctuation in market conditions or demand are cause for labor contract terminations
  • Allowance for foreign workforce of 15 percent, with expanded opportunity to increase this in the first three years, if a certain position cannot be met with local talent.

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 paid by all onsite companies, except those established by Tax 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