Panamanian free trade zones in 2024

Register Panama free zone company

  1. The Panamanian Government operates 12 Free Zones in the country, the two most prominent being: i) Colon Free Zone and ii) Panama Pacifico Area;
  2. The Colon free zone offers investors several benefits including i) 100% exemption from all national and provincial taxes and ii) the option of using lease back system. The key tax exemptions are on import and export duties, as well as on corporate taxes.
  3. Panama Pacifico Area offers varied benefits including i) exemption from all direct and indirect taxes ii) increase in maximum number of foreign employees to 15% of the workforce and iii) availability of 5-year investor visas, rather than the usual 2 years available elsewhere.

Comparison of different Panama FTZs

Free zone comparison Colon Free Zone Panama Pacifico Area
FTZs used mostly for what purpose? Wholesale Trade Logistics
Size of the area 1,065 acres 3,450 acres
Average annual Industrial space rent per 1000 sq. m. US$15,000 US$12,000
How long to set the company up? 2 months 2 months
How long to open company bank account? 3 weeks 3 weeks
Quality of Utilities Good Good
Allowed to sign sales contracts with local Clients? Yes Yes
Allowed to invoice local Clients? Yes Yes
Tax exemptions from all direct and indirect taxes Yes Yes
Corporate tax payable in Panama 0% 25%
Corporate bank account HSBC Citibank
Physical office space required Yes Yes
Allowed to import raw materials? Yes Yes
Allowed to export goods? Yes Yes
Goods are exempt from charges and tariffs Yes Yes
Can be wholly foreign owned Yes Yes
Can the entity hire expatriate staff in Panama? Yes Yes
Minimum number of directors 3 3
Minimum number of shareholders 1 1
Individual shareholders allowed Yes Yes
Corporate shareholders allowed Yes Yes
Corporate director(s) allowed No No
Public register of shareholders and directors No No
LLC company allowed? Yes Yes
Annual audited financial statements Yes Yes
Minimal setup and operational costs Yes Yes
Strict privacy regulations NA Yes
Ideal location for wealth management corporations NA Yes
Close proximity to Panama City Yes Yes
Close proximity to other big cities (i e Houston and Miami) Yes Yes

Contact us

For additional information on our free zone company registration services in Panama, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!
ministry of foreign affairs ministry of economy and finance panama tourism sumarse - corporate social responsibility tourism authority of Panama ministry of commerce and industry