As part of an incentive to attract foreign investment and promote international trade, Panama has different Special Economic Zones that regulate the commercial and industrial activities that take place and provide tax, migratory and labor incentives. Free Trade Zones are a type of SEZ in Panama regulated by Law 32 of April 5, 2011 that encourages the production mainly of exports and the generation of new jobs.
There are three types of Free Trade Zones:
1. PRIVATE
These are free trade zones where investors are natural persons or corporations, domestic or foreign . Their establishment, operation and management is under the power and responsibility of their owners, under the rules and principles of free enterprise and private property and other provisions set forth by the laws of the Republic of Panama.
2. State owned
Those where the sole investor is the Government. Their establishment, development, operation and management is responsibility of a Government agency or a private operator, who is granted a management contract pursuant to the legal provisions in force.
3. mixed
Their ownership is shared between the Government and national or foreign investors. Their development, operation and management is responsibility of a Government agency or a private company.
If you wish to learn more about the differences between the different Special Economic Zones in Panama, we invite you to read our post: List of activities allowed in the special economic zones of Panama.
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