What Is A Panama Free Zone Company? How To Incorporate?

There are several free zones in operation in Panama.
The Colon Free Zone (CFZ) and the Panama Pacifico Special Economic Zone (PPSEZ) seems to be the most recognized because of the attractiveness in doing business in those locations.

Part of the attractiveness of the CFZ is the amount of business generated in the zone. The Colon Free Trade Zone surpasses 5 billion dollars annually, which is directed towards a market of more than 525 million consumers.

Additionally, the ease of transport to businesses in the zone is notable with the access to six airports, five ocean ports equipped with up-to-date cargo handling facilities, spacious container terminals, the Pan-American highway originating in Alaska and the trans-isthmus highway which extends from the Caribbean to the Pacific.

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The Centennial Bridge, Panama is part of the Pan-American Highway.

The trans-isthmus railway and the Panama Canal, which receives over 12,000 merchant vessels from 75 different countries from around the world, further strengthen the benefits.

There are numerous tax benefits as well, which makes operating a Panama free zone company very attractive.

Our team of corporate professionals in Panama can help you set up your company in Panama. Let us know what you need.

Special investment zones called free zones
Panama legislation allows for the establishment of special investment zones called free zones. The zones are designed to facilitate investment in goods and services and also to develop the incubation of certain technologies in spheres such as IT, education and others.

The biggest free zone in Latin America is in Colon, a province of Panama. This free zone has thousands of retailers and wholesalers which sell goods to Latin America.

Another zone is the Ciudad De Saber (City of Knowledge) which was designed as a free learning center. In Ciudad del Saber you will find universities, blockchain and cryptocurrency start-ups and many other innovative projects.


At present, legislation is under review to license crypto currencies and other related businesses. However, under current law, such technologies are neither regulated nor forbidden, which means they are allowed.

There are a number of crypto start-ups and blockchain businesses operating in Ciudad del Saber . Panama is currently a crypto friendly country, although banks will not work with crypto funds now due to the absence of regulation.

Establishing your company in the free zone
Establishing your company in the free zone simply means obtaining an office there and permission from the free zone authority.

Once that is done you are automatically part of a regime which offer many benefits including:
Zero customs duty and VAT on entry and exit of all goods and services for re-export.

Preferential visa regimes for staff and relaxed work visa issuance as well as faster processing times.

A presumption of export and therefore presumption of zero tax regime.

Other benefits which can be negotiated with the regulator.

In certain cases, some areas of land can be designated free zones by agreement with the Panamanian authorities, thus enabling the creation of special zones.

Panama free zone company setup
Our team of corporate professionals in Panama can help you set up your company in Panama. Let us know what you need.

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Ships at the Panama Canal.

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