Panamanian free trade zones in 2023

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 comparisonColon Free ZonePanama Pacifico Area
FTZs used mostly for what purpose?Wholesale TradeLogistics
Size of the area1,065 acres3,450 acres
Average annual Industrial space rent per 1000 sq. m.US$15,000US$12,000
How long to set the company up?2 months2 months
How long to open company bank account?3 weeks3 weeks
Quality of UtilitiesGoodGood
Allowed to sign sales contracts with local Clients?YesYes
Allowed to invoice local Clients?YesYes
Tax exemptions from all direct and indirect taxesYesYes
Corporate tax payable in Panama0%25%
Corporate bank accountHSBCCitibank
Physical office space requiredYesYes
Allowed to import raw materials?YesYes
Allowed to export goods?YesYes
Goods are exempt from charges and tariffsYesYes
Can be wholly foreign ownedYesYes
Can the entity hire expatriate staff in Panama?YesYes
Minimum number of directors33
Minimum number of shareholders11
Individual shareholders allowedYesYes
Corporate shareholders allowedYesYes
Corporate director(s) allowedNoNo
Public register of shareholders and directorsNoNo
LLC company allowed?YesYes
Annual audited financial statementsYesYes
Minimal setup and operational costsYesYes
Strict privacy regulationsNAYes
Ideal location for wealth management corporationsNAYes
Close proximity to Panama CityYesYes
Close proximity to other big cities (i e Houston and Miami)YesYes

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