Colon Free Trade Zone
Known as the World’s second largest Free Trade Zones, the Colon Free Trade Zone is considered as Panama’s duty-free heaven. With over 3000 companies either represented or operating on its complex of more than 1065 acres, and a massive turnover of US$19 billion per year of imports and exports move in and out. Everything from the latest electronics from Japan, silks from Italy, designer perfumes from France, clothing, jewelry, computers, appliances and just about anything else you can think of from around the world, all at bargain basement prices, you can find it at the CFZ straight from the factory, could it get any better?
LatAm and Caribbean buyers prefer to buy at the CFZ instead of travelling to Asia. In the CFZ, buyers can get containers filled with a variety of items. In some Asian countries, they would likely have to buy containers filled with one product. For this and many other reasons, the CFZ is considered as a shopping heaven for buyers and wholesalers across the Americas.
For consumer retail companies, using the CFZ as a method for export in Latin America will experience the following benefits:
Companies operating from the CFZ enjoy many trade advantages along with special tax incentives such as tax credits, depending on the number of Panamanian employees, and special income tax rates on foreign trade operations. Companies in the free zone do not pay corporate income tax. Dividends paid on profits from foreign trade operations and from direct sales are subject to 5% to 10% of dividend tax respectively. Merchandise arriving at, stored in, or leaving the CFZ destined for a foreign country is exempt from taxes, charges or any type of tariff. Also, CFZ companies are not subject to any type of federal or municipal tax.
The existence of modern shipping ports with modern facilities, large facilities for containers, direct access by the Pan American highway, air and rail access transporting containers from the Pacific Ocean to the Atlantic Ocean daily, makes the Colon Free Zone the best place to invest for its many advantages over other areas free in the world.
Ways of Establishing Operations
The Colón Free Zone is located a few kilometers from the Panama Canal in the Caribbean sector, in the Colon Province and it is considered the first Free zone in the Western hemisphere and the second largest worldwide.
Other Free Trade Zones
Free Trade Zones are part of a special, comprehensive and simplified regime for the establishment and operation of companies that contribute to national development and the generation of employment and foreign exchange, incorporated into the global economy of goods and services, promoting investment and promote economic, scientific, technological, cultural, educational and social development.
The country has granted a total of 16 licenses to operate Free Trade Zones, between the cities of Panama and Colon.
The Panama Pacifico Area is one of the most important projects of the Panamanian Government that develops an international trade hub and attracts large multinational companies, logistics services, commerce and industry. The main objective of this Special Economic Area is the attraction of new direct foreign investment and the creation of jobs in Panama.
With this ambitious project, that includes economic and legal benefits, the Republic of Panama promotes the development of different industries such as logistics, sea and air transportation, high-technology, call centers, shared services, among others.
Tax incentives exemption from indirect taxes for all companies, full tax exemptions on income, dividends and transfer/withholding for 12 "Specific Business Activities" , legal stability for 10 years; one-stop-shop with access to 15 government entities; on-site customs operations; special labor incentives; expanded immigration benefits and on-site workforce training center are some of the benefits of operating an business in PPSEA.
Panama is considered the best logistic center in the Americas for its privileged geographical position and has adopted laws and regulations that encourage activities and proper integration of infrastructure and world-class logistics services, among which are included the Panama Canal, multiple ports in the Pacific and the Caribbean, Interoceanic Highway and Railroad, air Hub of the Americas, Free Trade zones and Special Economic Zones, among others.
Panama Logistics Park is a Real Estate Industrial Project and Logistics, developed with world class standards, strategically located in the east of Panama City a short distance from Tocumen Airport and fast connectivity with the rest of the infrastructure offered by the country.
Panama’s strategic location makes it the best destination in America to export and import products. It is situated between North and South America, bordered by the Caribbean Sea and the Pacific Ocean. A majority of Panama’s trade transactions are carried out in the Colón Free Trade Zone, which is one of the biggest free trade zones in the world.
During 2018, the value of exports, excluding those of the Colon Free Zone, totaled USD 672.3 million, 1.9% more than the previous year, according the Comptroller General of the Republic. The United States was our largest export partner. Other top export destinations of Panama are Netherlands, China (Continental), China – Taiwan and Costa Rica.
To view our Services in the Colon Free Zone, please Click Here
The BusinessPanama Group has an alliance partner in the Colon Free Zone that is a well-known and fully licensed company with complete warehouses and logistic services in the Colon Free Zone. Our Colon Free Zone Alliance Partner will act as the representative of your corporation.
If you want to set up your operations in the Colon Free Zone, the BusinessPanama Group and its alliance partner can provide you our well-known One Stop Shop services since we have licensed real estate agents, excellent lawyers, insurance specialists, investment advisors and other professionals to assist you on all your business needs.
We can help you with:
For more information, please contact us.
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