TAX INCENTIVES

With Law 82 of 2019, we have the renewal of incentives to facilities and

constructions of tourist accommodation located outside the district of Panama that

are new or that are operating registered in the national tourism registry in order to

encourage investment and improvements to the facilities and constructions of

tourist accommodation whose minimum investment is $250,000 in new

constructions and $100,000 in new constructions in projects in indigenous areas

and $100,000 in remodeling and equipment that meet the minimum requirements

for the operations of these tourist structures, the following tax incentives are

granted:

 Total exemption from import tax for a term of 5 years in construction

materials and 10 years for the distribution of materials, fixtures, furniture and

equipment and others.

 Total exemption for a period of 15 years from the property tax on the land

and improvements used in tourism development activities, registered in the

national tourism registry.

 Exoneration for the term of 15 years of taxes, contributions or levies or

rights of any kind denominations that fall on the use of docks or airports built

by the companies.

 Exemption from income tax caused by the interest accrued by creditors

originating from the first financial operation destined to investment in the

tourist activity to which they will be engaged in multi-purpose projects where

the facility of public or tourist accommodation occupies a total percentage of

construction.

There is also the incentive for accreditation in the certification of tourism quality.

The tourist accommodation facilities established according to the tourist laws that

do not enjoy tax incentives at the time of the entry into force of this law that have a

maximum number of up to 50 rooms throughout the Republic of Panama and are

subject to the regulations of Tourism quality implemented by the Tourism Authority,

obtaining the corresponding certification, may enjoy the following tax incentives:

 Total exemption from import tax

 Total exemption for the term of 10 years from the property tax

 Total exemption for the term of 5 years from the income tax of the tourist 

activity operated by the company.