PANAMA PACIFICO ZONE COMPLETE GUIDE 2026
Establish Your Business in Panama Pacifico Zone
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 & planning designed to attract international businesses, Panama Pacifico Zone has generated more than 10,000 jobs in Panama since its inception.
Panama Pacifico Special Economic zone is an autonomous entity of the Government of Panama responsible for implementing the special regime of this area. Panama Pacifico zone is a regional benchmark in economic and urban development of Panama with a focus on key sectors such as logistics, technology, financial services, and tourism.
Benefits of Panama Pacifico Zone for Workers
Companies that are established in Panama Pacifico Zone provide a great deal of benefits to foreign professionals and workers. For example there are tax exemption of income for foreign workers as well other incentives such as tax emption on duties.
Panama Pacifico Zone Special Immigration Process
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 Panama Pacifico zone is special immigration process for residency visa and work permit as long as they remain within ten percent (10%) of the total Panamanian employees of the company. This temporary residence permit is valid for up to five years, after which workers can opt for permanent residency in Panama. These labor incentives not only simplify international labor mobility but also attract global companies and qualified professionals.
- Special visa available for foreign employees and their immediate families, offering options for temporary / permanent residency.
- Tax exemption on imports of household goods up to US$100,000.
Panama Pacifico Zone 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.
- 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.
How to Establish a Company in Panama Pacifico Zone?
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 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 zone are granted the right to legal stability, ensuring that any legal changes enacted after their registration will not affect them for a period of ten (10) years.
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.
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