In Panama there is connectivity with the different markets of the region and the world thanks to its privileged location, it has a unique attraction for foreign investment. There are a variety of industrial parks in the country located at strategic points, taking into account the ease of access to the main industrial and logistics infrastructures.
A Free Zone is a geographical area delimited from the national territory, whose purpose is to promote and develop the process of industrialization of goods and the provision of services destined primarily to foreign markets. Free Zones have tax, foreign trade, credit and exchange benefits.
An Industrial Park (Industrial Zone) is an area planned, designed and reserved for industrial development; they are made with a focus on enhancing the country’s economic environment and working in harmony with urban areas.
These industrial complexes provide the ease of having shared basic services such as water and electricity.
In this sense, free zones always seek to promote industrial development, but with a different mentality, they aim to increase the volume of exports and boost the country’s competitiveness.
Unlike an industrial park, each company that establishes itself in a free zone must be in charge of obtaining the pertinent permits and hiring the water and electricity service.
One of the main advantages provided by the Free Zone Law are the tax incentives it provides to companies established in its customs territory. The main goal of the free zones is to increase the volume of exported products, the plants, factories and centers gathered within their area are focused on that objective.
Both areas are highly attractive for investment and have great profitability over time. However, as an entrepreneur you must be very clear about your approach: you want to grow in the national and international market, an industrial park is for you. If your goal is to increase your export volumes or conquer the foreign market, free zones are your allies.
Industrial parks are configured as spaces for storage and distribution, similar to large shopping centers in cities, but they have industrial-type business purposes.
These areas have specific uses, such as storage, logistics, manufacturing, wholesale and retail trade, workshops, communications, financial intermediation, and real estate, business, and rental activities.