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Benefits of establishing your company in the Special Economic Zone of Panama Pacifico

Panama offers various options to establish a company and obtain direct benefits. In addition to the well-known Colón Free Zone, there is also the Panama Pacific Special Zone, which offers advantages to companies that choose to establish themselves there. This zone was established in 2004 on a former US military base and not only focuses on economic activities, but also residences and recreation areas. It is operated by a multinational company and is located just 15 minutes from Panama City. The Zone is very extensive and there is no other duty free zone in the world that can compete with its size and benefits. Some companies that operate in this Zone are corporate offices, logistics centers, offshore services, technology industries, among others. Examples of companies that rely on this project are Dell Panama, 3M, Caterpillar and even Google is considering establishing a massive data center here.

Large corporations choose to establish themselves in the Panama Pacific Special Economic Zone for several reasons. Firstly, because there are no taxes, which makes them more attractive to operate there. They also have direct access to the main Internet, like other major cities such as Los Angeles, New York, and the United Kingdom. In addition, this area has a well-developed infrastructure thanks to its past as a United States Air Force base. It is also connected to companies in charge of public works related to the Panama Canal and has basic services such as drinking water, electricity and reliable Internet. Lastly, there is an efficient transportation system for employees in this economic zone.

The Panama Pacific Zone offers a wide range of incentives and advantages in fiscal terms, such as exemption from indirect taxes for all companies, tax exemptions for specific commercial activities and guaranteed legal stability for ten years. Additionally, businesses and individuals have easy access to various government entities, customs operations, and an on-site job training center. The greatest advantages are given to commercial activities such as distribution centers of international corporations, corporate headquarters, logistics services, among others. Specific tax benefits include exemption from taxes on income, international calls, dividends, remittances, exports and property. There is also a tax benefit on import duties.

Panama Pacifico also offers a series of benefits for those who wish to do business in the area, including friendly labor laws such as extra pay for working on Sundays and holidays, as well as the possibility of negotiating preferential days off and vacations. Additionally, there are immigration visa, family and work permit options for foreign workers in the Special Economic Zone. There are also attractive work incentives, such as fixed rates for overtime pay and holidays. Additionally, there is flexibility regarding hours of operation and hiring or firing employees due to market fluctuations.

If you are interested in doing business in this area, Contact Us!

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