Panama Pacifico is a massive planned community currently under construction just off of the west bank of the Panama Canal. The master plan includes the full spectrum of office parks, commercial centers, and retail outlets balanced with diverse residential choices to satisfy all income levels and lifestyles. 650 of the new community’s 1,400-hectares are dedicated to preserving the site’s natural beauty, and to building new parks and open space. All the conveniences of modern life are also included in the design – a Greg Norman championship golf course, walk-able neighborhoods, and all the community amenities one would expect to find in a world-class city.
Included in the master plan of Panama Pacifico are the following developments:
- Commercial and Business Districts
- Airport
- Town Center
- Residential Neighborhoods
- Greg Norman Designed Championship Golf Course
- Among many other world class amenties
Panama Pacifico is part of a special economic area – or ‘free zone’ – with specific benefits that ensure the viability and success of companies that build or relocate on the site.
Advantages of the special economic area created by Tax Law 41 include:
Streamlined Process:
•A single, onsite government office fast-tracks the process of establishing a business in the area. This ‘one-stop-shop’ streamlines coordination of 15 government offices into one location, including all visas and work benefits. This saves considerable time and money for companies.
Tax Benefits as listed in Tax Law 41:
•Exempt from import duties (unless goods are sold within Panama)
•Income tax exemption for specific business activities (see Tax Law 41 comparison download to the right)
•VAT/ITMBS (sales tax) exemption for specific business activities
•Dividend tax exemption for specific business activities
•Exempt from withholding tax on interest income for companies in the area, and on payments made to foreign creditors
•Exempt from license tax
•Exempt from real estate property tax
•Municipal tax stability guaranteed for 10 years from date of registry
•Exempt from withholding tax on royalties paid to foreigners for specific business activities
•Exempt from capital gains tax on company stock transfer
•Exempt from stamp tax
•Exempt from special interests compensation fund (FECI), if the loan is for foreign operations financing.
Labor Benefits
•25 percent fixed surcharge for overtime
•Negotiable weekly resting day
•Companies may remain open on Sundays and holidays
•Vacations are negotiable with employees
•Fluctuation in market conditions or demand are cause for labor contract terminations
•Allowance for foreign workforce of 15 percent, with exemptions made for additional hires that train Panamanians
Immigration
•5-year ordinary work visas
•3 to 5-year special visas
•5-year investor visas, with investment of $250k
•Family visas extended to spouse, dependents and financially-dependent parents
•Tax-free import of up to $100k of personal items
