Panama, a country recognized for its dynamic economy and strategic position in international trade, has strongly committed to the development of free trade zones as part of its strategy to attract foreign investment and promote international trade. In this context, Panapark Free Zone emerges as a key player, offering a solid platform for companies wishing to establish themselves in the region. But what exactly is the free trade zone regime in Panama, and how does it work? In this article, we will explore this topic in detail, as well as the benefits that Panapark Free Zone provides to companies choosing to operate under this regime.

What is the Free Trade Zone Regime in Panama?

The free trade zone regime in Panama is a system designed to promote foreign investment and international trade by offering a series of tax incentives and operational facilities to companies that choose to establish themselves in areas designated as free trade zones. These zones are subject to special regulations that allow them to operate with a high degree of autonomy and flexibility, aiming to foster competitiveness and economic growth.

How is the Free Trade Zone Regime in Panama Composed?

The free trade zone regime in Panama consists of a series of laws and regulations that establish the legal and operational frameworks for the functioning of these zones. Some of the key elements of this regime include:

  • Law 32 of April 5, 2011: This law establishes the legal framework for the creation and operation of free trade zones in Panama, as well as the tax and customs incentives applicable to companies operating in these zones.
  • Free Trade Zones Regulation under Executive Decree No. 62 of April 11, 2017: This regulation details the requirements and procedures for the creation and operation of free trade zones, including aspects related to infrastructure, company registration, and tax and customs obligations.


Panapark Free Zone: Compliance and Benefits for Companies

Panapark Free Zone, located in the province of Panama, is a clear example of how free trade zones in the country offer a conducive environment for the establishment and growth of international companies. Operating under the free trade zone regime, Panapark Free Zone complies with all the regulations established by Law 32 of 2011 and the Free Trade Zones Regulation, thus guaranteeing a safe and transparent environment for the companies operating there.

Benefits of Establishing in Panapark Free Zone through the Free Trade Zone Regime:

  • Tax Incentives: Companies operating in Panapark Free Zone under the free trade zone regime enjoy a series of tax incentives, including exemptions from income tax, import and export taxes, as well as additional benefits for investment in research and development.
  • Operational Facilities: Panapark Free Zone offers first-class infrastructure and support services for business operations, including modern facilities, comprehensive logistics services, and access to a highly qualified workforce.
  • Access to International Markets: Thanks to its strategic location and existing trade agreements, companies established in Panapark Free Zone have privileged access to key markets in Latin America, the Caribbean, and beyond.


The free trade zone regime in Panama, supported by initiatives like Panapark Free Zone, offers companies a solid platform to expand their operations and take advantage of growth opportunities in the region. With tax incentives, operational facilities, and access to international markets, Panapark Free Zone positions itself as a strategic partner for companies looking to establish themselves in Panama and expand in the global market. In an increasingly competitive world, Panapark Free Zone plays a crucial role in driving economic development and attracting foreign investment to Panama.