RSSPanama offers a great potential for tourism related investments and projects. The present Government in Panama aims at creating solid foundations to promote and attract tourism investments to the Republic of Panama.
The present Tourism law establishes three basic principles: Accordingly the tourism industry is declared an industry of national interest and of public utility and the bureaucratic procedures involved in it are reduced. Moreover the executive branch is obliged to support the tourism Bureau on feasible tourism projects on designated tourist enterprises such as Hotels, motels, apart hotels, Cabins, Time share projects, Condominium for tourism, Camping sites, Restaurants and Discotheques, theme parks including zoos, Family hotels, lodges and convention centers.
A tourist enterprise can engage in activities such as construction and rehabilitation as well as those projects located in declared historic sites, including maintenance of public parks, national parks and historic monuments.
The law establishes tax incentives and benefits granted for tourism activities. Accordingly, all types of public lodging enjoy a 20 years of exemption of import taxes and duties on the introduction of materials, boats etc., for the construction of the project and the development of the same. Also a 20 year exemption of real estate tax and a three year exemption of income tax are also applicable. A 10 years real estate tax exemption over the land and 30 years tax exemption over the improvements built is also applicable.
Receptive tourism agencies shall enjoy an import tax exemption every 3 years over all types of transportation vehicles and spare parts. Collective transportation business for tourism is exonerated from import taxes. Restaurants, discotheques and night club investments are granted with import tax exoneration over materials, equipment, appliances necessary for the development of the business, if not produced or manufactured in Panama in the necessary quantities.
Investments into production of films, documentaries, international sports or artistic events to be transmitted or sold abroad are granted income tax exoneration over the income generated, Exoneration of income tax to all principal actors or sportsmen participating in the event and temporary tax exemptions over introduction of all equipment necessary for filming or transmission
Convention centers, thematic parks, zoos, ecotourism projects, marinas, tourism centers obtain a 3 years import tax exemption of materials and equipment, 20 years real estate tax exoneration and 10 years depreciation of assets for construction, rehabilitation of building, roads of access, equipment and operation.
Panama tourism Board is granted powers to create new special tourist areas. Investments in such areas will obtain a 15 years income tax exemption, 20 years real estate tax exemption over the land and improvements, 20 years tax exoneration on import taxes, 20 years tax exemption over manna or airport taxes and a 20 years income tax exemption over interests payable to creditors.
