Special Zones

Special Economic Zones in Panama

Panama offers three main economic zones — each designed for a different type of company, with unique tax exemptions and operational advantages.

The Three Strategic Zones

Panama has created three special economic zones that serve as engines for attracting foreign investment. Each is designed for a different company profile, with specific tax, immigration, and operational benefits.

Whether your company is focused on international trade, technology and logistics, or research and innovation, there is a zone designed for you.

Colón Free Zone

The largest free zone in the Western Hemisphere and the second largest in the world, behind only Hong Kong. Specialized in import, re-export, and continental-scale distribution.

  • Full exemption from import and export taxes
  • Income tax exemption on foreign operations
  • Over 2,500 companies established
  • Trade volume of $20B+ annually

Panama Pacifico

Former Howard Air Force Base converted into a world-class logistics, aerospace, and technology hub, with grade-A offices and top-tier infrastructure.

  • Reduced income tax for qualified companies
  • Import tax exemption on equipment and materials
  • Special visa for employees and their dependents
  • Flexible labor regime — adapted to international operations
  • Dell, 3M, and Caterpillar among its main tenants

City of Knowledge

Panama's hub for innovation, R&D, and the knowledge economy. Home to startups, NGOs, research centers, and international organizations.

  • Incubation and acceleration programs for startups
  • Tax exemptions for research and technology companies
  • Connected with universities and international organizations
  • Ideal for companies focused on R&D, edtech, and sciences

Zone Comparison

Colón Free Zone

Trade / Distribution

Full exemption from import and export taxes. Ideal for re-export and regional distribution operations.

Panama Pacifico

Logistics / Tech / Services

Partial income tax exemption + import exemption. Flexible labor regime and special visa for employees.

City of Knowledge

R&D / Innovation / Tech

Exemptions for research and technology. Incubation programs and university connections.

Contact

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Panama City, Panama