A Free Trade Zone is a geographically delimited area within the national territory, where industrial activities of goods and services or commercial activities are developed, and governed by a special regulation in tax, customs and foreign trade matters.Among the immediate objectives of the Free Trade Zones in Panama we can find:
- Job creation
- New capital investments
- Development that promotes competitiveness
- Promote the generation of economies of scale
- Simplify operational procedures
These areas allow the entry of raw materials and products for manufacturing operations, storage with added value and redistribution of products to the region, offering migratory, labor and tax incentives such as tax exemption and import duties on raw materials, purchase and importation of products depending on the industry to which the company belongs.
In Panama, the Law No. 32 of April 5, 2011 defines Free Trade Zones as: "Free enterprise zones, specifically delimited, within which all infrastructure, facilities, buildings, systems and support services are developed, as well as operational organization and administrative management that are necessary to establish companies from all over the world whose activities are the production of goods, services, high technology, scientific research, higher education, logistics services, environmental services, health services and general services."
Zona Franca del Istmo is a special economic area developed for the operation of the Free Trade Zone in Panama, with 14.5 hectares, offering lots for sale, infrastructures with connections on site, warehouses for lease, and industrial buildings built to order.
If you have questions or are looking for support to see if your company can benefit from a Free Trade Zone, don´t hesitate to contact us.