Panama: Colon Investment Incentives Come into Effect

With the entry into force of the law firms operating in Colon Free Zone will be able to open a retail sales branch in the 16 streets which make up the ´Casco Antiguo' area.

Monday, August 8, 2016

In order to implement the law the Secretaría de Colón Puerto Libre was formed, which will execute the strategy and facilitate the process for companies wishing to benefit from the incentives created. 

The bill will modernize the legal framework of the Colon Free Zone,  incorporating concepts of the procurement law and allow for the consolidation of businesses operating under other schemes. See "Panama: New Law for Colon Free Zone" reports that "...The Secretaria will have the job of promoting, developing, facilitating and executing the implementation of Colon Free Port. Similarly, an office will be created for services for investors and beneficiaries of the system, and to ensure interagency integration of administrative procedures, safeguarding the benefits and incentives established by the law. "

When the law was passed in March, entrepreneurs from the Colon Free Zone (CFZ) agreed with it, but noted that other additional measures were also required, such as reducing the charge for rent.

More on this topic

Panama: More Incentives for Investment in Colón

August 2017

The government plans to grant exemptions and other tax incentives to banks that finance investment projects in the Colón Puerto Libre commercial zone.

The objective of the Ministry of Commerce and Industries is to facilitate commercial investments in Colón Puerto Libre, through the exemption of several taxes, for banks that grant loans to companies interested in settling in the duty-free zone. 

Panama: Incentives for Investment in Colón

March 2016

Companies in the Colon Free Zone will be able to open retail sales branches in the 16 streets of the 'Casco Antiguo' area.

From a statement issued by the Ministry of Commerce and Industry in Panama:

The full National Assembly approved on its third reading Bill No. 222, which amends and adds articles to Law 29 of December 30, 1992, for the effective implementation and operation of a Special System for the province Puerto Libre of Colon.

More Companies Leaving Colon Free Zone

February 2016

The lack of tax incentives has led to 55 companies leaving the free zone in January 2016, on top of the 125 who ceased operations last year.

In total, from 2015 to now, about 180 companies requested the removal of their key operations in order to cease doing business in the Colon Free Zone (CFZ), according to the Association of Users of the CFZ.

Free Zone Expands in Ciudad Colón

June 2015

A bill put forward by the Executive extends the benefit of the Colon Free Zone to the streets of the city, and another supports the implementation of the Special System of Freeports in the province.

From a statement issued by the Government of the Republic of Panama:

An investment of $600 million has been announced, in 22 projects in the province of Colon.