Grants investment incentives to new tourism projects

On 2 January 2020, the new Law no. 122 was promulgated in Panama. It amends the incentive regime for investment in the tourism sector. Its goal is to promote investment and financing of new tourism projects or their extensions, but it is limited to investments outside the district of Panama. It provides that capital invested in bonds, shares and other financial instruments issued by tourism companies will be considered a 100% tax credit for income tax purposes.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Services (Arts, entertainment and recreation)

• Sources:

  • Gaceta Oficial, Ley N° 122 (De martes 31 de diciembre de 2019), https://www.gacetaoficial.gob.pa/pdfTemp/28932_A/GacetaNo_28932a_20200102.pdf, 02 Jan 2020
  • Dentons, Incentives for the promotion of tourism activity in Panama, https://www.dentonsmunoz.com/en/insights/articles/2020/january/20/incentives-for-the-promotion-of-tourism-activity-in-panama, 20 Jan 2020