PANAMA PACIFICO IMMIGRATION & WORK COMPLETE GUIDE 2025
Panama Pacífico Economic Area (AEEPP) is a special economic zone established in 2004 to attract foreign investment, promote job creation, and enhance economic development in Panama through various tax exemption & incentives and special immigration regulations.
Panama Pacifico special zone constitute the legal framework that regulates the development of this zone, located at the former Howard Air Force Base west of the Panama Canal in Arraijan. With quality infrastructure designed to attract international businesses, the Panama Pacifico Zone has generated more than 10,000 jobs since its inception, significantly contributing to the economic development of the country and Latin America.
Panama Pacifico Special Economic Area is an autonomous entity of the Government of Panama responsible for implementing the special regime of this area by promoting, managing, supervising, and overseeing its comprehensive development. Among its key functions is attracting world-class operators and developers to foster the area’s sustainable growth. This multisectoral planning has established the Panama Pacifico Special Economic Area as a regional benchmark in economic and urban development with a focus on key sectors such as logistics, technology, financial services, and tourism.
To attract foreign investment and promote economic development, Law 41 of 2004 and its amendments, establish a comprehensive set of incentives for companies operating in the Panama Pacifico Special Economic Area, grouped into the following categories:
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PANAMA PACIFICO IMMIGRATION REGULATIONS
The Panama Pacifico special zone immigration is designed to facilitate the acquisition of work permits and visas for workers and their families. The Panama Pacifico Agency, utilizing quality infrastructure, centralizes the management of these processes to guarantee fast and efficient procedures.
One of the main benefits of these immigration regulations is the Panama Pacifico Area Worker Visa, granted to foreign workers as long as they remain within ten percent (10%) of the total ordinary employees of a company, developer, or operator. This temporary residence permit is valid for up to five years, after which workers can opt for permanent residence in Panama. These labor incentives not only simplify international labor mobility but also attract global companies and qualified professionals.
- Special visas are available for foreign employees and their immediate families, offering options for temporary or permanent residency.
- Tax exemption on imports of household goods up to US$100,000.
PANAMA PACIFICO TAX EXEMPTION
- Tax exemptions for manufacturing, import, export, logistics, and telecommunications activities.
- Tax exemption from import duties on goods, equipment, and materials used within the Panama Pacifico Special Economic Area.
- Tax exemption from all taxes, fees, duties, levies, withholdings, or similar charges on payments to foreign creditors for interest, commissions, royalties, etc.
- Tax exemption from stamp and commercial License Tax.
- Tax exemption from property tax on commercial and industrial improvements, as well as from the Real Estate Transfer Tax, until January 1, 2030.
- Tax exemption from the Transfer Tax on Tangible goods and services (ITBMS).
- Tax exemption from withholding tax on remittances or transfers abroad on payments for commissions, royalties, technical assistance services, or other concepts.
How to Establish a Company in Panama Pacifico
Currently, there are more than 365 national and multinational companies established in Panama Pacifico free zone. Multinational companies such as Dell, 3M, BASF, and Caterpillar, operating in sectors such as technology, manufacturing, and logistics.
To register a business in Panama Pacifico, it is necessary to follow certain legal requirements. Individuals must provide valid identification, including proof of citizenship or residency status. Legal entities must provide documents such as the articles of incorporation and a certificate of good standing. In addition, a description of business activities, projected employment and planned investment is required. The registration process is completed with a resolution issued by the Panama Pacifico administration.
The future of business in the Panama Pacifico special economic area looks promising, with a continued focus on attracting high-quality investments and promoting sustainable development.
PANAMA PACIFICO FREE ZONE COMPANY BENEFITS
Companies that establish themselves can engage in various commercial and industrial activities, as long as they are not prohibited by national health, safety, and public order laws. The Panama pacifico functions include the creation of a special entity with legal, fiscal, customs, labor, and immigration regulations that facilitates the free flow of goods, services, and capital.
Implementation of a one-stop shop to streamline the process of establishing operations in the Panama Pacifico Special Economic Area, by integrating the coordination of 15 government entities in a single location, facilitating the issuance of immigration, labor, customs, and other permits.
- Companies registered in the Panama Pacifico Special Economic Area are granted the right to legal stability, ensuring that any legal changes enacted after their registration will not alter the applicable conditions for a period of ten (10) years.
Panama Pacifico is a Free Zone
The Panama Pacifico Agency provides a supportive environment for free trade through its regulations in different areas. With 2,200 hectares of land, including 800 hectares dedicated to mixed development and 600 hectares of protected area, this free trade zone plays a fundamental role in Latin America, allowing local and foreign companies to establish and operate their businesses with ease.
Additionally, Panama Pacifico offers a multi-use setting where it is possible to live, work, and enjoy. For this reason, the first sustainable community in Latin America will be created there, in a natural context that balances urban development with ecological preservation.
Workforce Regulations and Incentives
In Panama Pacifico, work regulation incentives fixed rates of 25% for overtime and 50% for work on free days, along with special permits for expatriate employees. Payment for night and mixed hours is also allowed according to the hours worked, and there is the possibility of establishing a different weekly rest day other than Sunday.
The trade zone facilitates the hiring of a higher percentage of expatriate employees without considering their salary and simplifies immigration and labor procedures. Additionally, a single window is available for the management of all necessary permits, which speeds up administrative processes. These conditions create a dynamic business environment that stimulates investment and economic development.
Panama Pacifico Legal Assistance for Companies & workers
If you are considering establishing your company in Panama Pacifico or need assistance with immigration and labor regulations, or any other aspect related to the operation of free zone companies in Panama, our experts Panama immigration lawyers are here to assist you.
Get in touch with us today to learn more about how we can establish your business in Panama Pacifico zone as well as immigration and visa issues.
