Tax Incentives for the Tourism Sector

In Panama, a bill was approved that will grant tax exemptions until 2025 to those who make investments in hotels and recreational activities.

Tuesday, January 7, 2020

On December 31st, President Cortizo sanctioned the bill that provides tax incentives to the tourism sector by modifying some of Law 80 of November 8th, 2012.

You may be interested in "Central America: $766 million in Tourism Projects"

With the approved changes, Article 9 of the Law states that "... In order to encourage investment and financing for the development of new tourism projects or new stages and extensions of existing tourism projects, in both cases located outside the district of Panama, the sums invested by natural or legal persons in the acquisition of bonds, shares and other financial instruments by the tourism company shall be considered 100% of the tax credit for income tax purposes."

The text adds that "... This incentive will be granted until December 31, 2025, to investors who are not directly or indirectly linked to the tourism business that issues the financial instrument and who are the product of the division of a business into several legal entities or are affiliates or subsidiaries of tourism businesses."

See full publication in La Gaceta.

More on this topic

El Salvador: Incentives for Tourism Investments Extended

August 2015

Tourism investments above $25000 and categorized as of national interest will be able to enjoy tax incentives for another five years.

"... They shall be entitled to the following incentives: exemption from taxes on real estate transfer, exemption from customs duties on the import of their goods, exemption from payment of income tax for a period of ten years and partial exclusion of municipal duties imposed for the period of 5 years from the start of operations relating to tourism activities for up to 50% of its value. "

Panama: Law on Incentives for Tourism Takes Effect

March 2015

The new executive order establishes the requirements which must be followed in order to qualify for government incentives to develop tourism activities.

Entrepreneurs interested in applying for these benefits "... must submit to the Directorate General of Revenue a certificate from a competent authority to verify that they have made an investment related to tourism."

El Salvador: Tax Breaks for Tourism Projects

October 2014

$91 million is the estimated amount of the investment projects which have already been approved or are pending which will receive the tax incentives offered by the government for investment in the tourism sector.  

From a statement issued by the Ministry of Tourism of El Salvador (MITUR):

Nicaragua: $56 million in Tourism Exemptions

June 2014

Up until May incentives have been authorized for 22 tourism investment projects, including the construction of the airport in Costa Esmeralda, for $12 million.

Tourism growth and incentives granted to investment projects in the tourism sector are boosting investment in the country, which, according to estimates by the Nicaraguan Institute of Tourism, will amount to $400 million in the year.