Legal Incentives


The Panamanian government offers fiscal incentives, laws, and tax breaks to foreign investors.

Law 8 1994 effective until 2015
Provides tax breaks and fiscal incentives for investment in Hotel and Resort Developments in Panama
Exemption of Import and Land Tax for 20 years.
Exoneration of tax on capital gain.
Exemption from payment of taxes of docking and landing at docks, airports or heliports owned by the company.
Rate of 10%, for the purposes of calculating the depreciation on real estate.


Law 54, 1998
The Investment Stability Law, was created for investors who invest more than 2 million USD in Panama, providing that all the legal, taxation, customs and labor requirements, guarantees and obligations existing at the time of the investment will remain the same, even if new legislation is enacted afterwards in these areas, for up to a decade after the initial investment is made.


Law 41, 2007
This law was created by the Panamanian government in order to create special conditions for the establishment of multinational companies in Panama. The benefits include exemption of taxes and special migratory conditions for the multinational employee including 5 years renewable visa. In less than 3 years more than 35 companies established their headquarters in Panama.

Enterprises such as CAT, Adidas, LG, Philips , Roche, Nestle, Maersk and John Hopkins Hospital have extended their activities in Panama.

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