Kasardas Notes

PhD John Kasarda with comments and positive opinion about Panatropolis.



The Panamanian government offers fiscal incentives laws and tax breaks for foreign investors.

Law No. 54, 1998
The Investment Stability Law, was created for investors who invest more than 2 million USD in Panama, providing that all the legal, taxation, customs and labor requirements, guarantees and obligations existing at the time of the investment will remain the same, even if new legislation is enacted afterwards in these areas, for up to a decade after the initial investment is made. 

Law No. 8 de 1994
Provides for tourism activities to be promoted in the Republic of Panama, law benefits:

  • Exemption of Import and Land Tax for 20 years.
  • Exoneration of tax on capital gain.
  • Exemption from payment of taxes of docking and landing at docks, airports or heliports owned by the company.
  • Rate of 10%, for the purposes of calculating the depreciation on real estate.

Law 41, 2007
This law was created by the Panamanian government in order to create special conditions for the establishment of multinational companies in Panama. The benefits include exemption of taxes and special migratory conditions for the multinational employee including 5 years renewable visa. In less than 3 years more than 35 companies established their headquarters in Panama.

Enterprises such as CAT, Adidas, LG, Philips , Roche, Nestle, Maersk and John Hopkins Hospital have extended their activities in Panama.