Guide · Business and employment
Panamá Pacífico: Special Economic Area for Companies
What the Panamá Pacífico Special Economic Area is, which activities it accepts, what tax, customs and immigration incentives it offers and what it requires.
- Location
- Former Howard base, Panamá Oeste
- Managed by
- Panamá Pacífico Agency
- Access
- Company registration
- Updated
In short
Panamá Pacífico is a special economic area on the former Howard Air Force Base, west of Panama City. Companies that set up there to carry out activities permitted by its law can access tax, customs, labor and immigration incentives, in exchange for registering with the agency that manages it and operating with real activity inside the area.
What is it and who manages it?
It is a special economic area created by law on the grounds of the former Howard Air Force Base, in the province of Panamá Oeste, next to the Canal. It is promoted, managed and supervised by the Panamá Pacífico Agency, an autonomous state entity, and its development combines public and private investment: there are business parks, logistics warehouses, an airport and residential areas.
Which activities does it accept?
- Logistics, storage and regional distribution.
- Manufacturing, assembly and product processing.
- Aviation maintenance and services.
- Business services: shared service centers, call centers and technology.
- Regional headquarters and offices of business groups.
The law lists the eligible activities and the agency decides each registration: confirm that your activity is included before planning your investment.
What incentives does it offer?
- Customs: exemptions on importing goods, equipment and materials for the registered activity.
- Tax: exemptions and specific treatment for permitted operations, different from the general income tax regime.
- Labor: a labor regime with specific rules for companies in the area.
- Immigration: visas for foreign staff of registered companies and their families.
The scope of each exemption depends on the activity and the current regulations, and some operations remain subject to the general regime. Review it in detail before setting up.
What does it require of companies?
- Registering with the Panamá Pacífico Agency for the specific activity to be carried out.
- Operating through a Panamanian company or a branch of a foreign company.
- Having facilities and real activity inside the area: the agency verifies the economic substance of registered companies.
- Meeting accounting, tax, labor and reporting obligations.
- Bearing in mind that what is sold or provided to the rest of Panama does not benefit from the area's exemptions.
Panamá Pacífico, the Colón Free Zone or the SEM regime?
- Panamá Pacífico: for operations that need facilities in the area, such as logistics, manufacturing or services, including for medium-sized companies.
- Colón Free Zone: focused on trade, storage and re-export of goods.
- SEM regime: for headquarters that provide services to the companies of a multinational group, with no specific location required.
Frequently asked questions
Can a small or medium-sized company set up there?
Yes, if its activity is eligible and it meets the registration and substance conditions. Unlike the SEM regime, it is not reserved for large multinational groups.
Do Panamá Pacífico companies pay income tax?
It depends on the activity: some permitted operations have exemptions or special treatment, and others are taxed under the general regime. It is one of the points to review before setting up.
Can I hire foreign staff?
Yes. The area has its own visas for foreign staff of registered companies, as well as a specific labor regime. For local staff, see hiring employees in Panama.
Does living in Panamá Pacífico give any residency rights?
No. The area has residential zones, but living there does not in itself give you residency or the incentives, which are for registered companies and their staff.