Technology and Ecommerce in Panama – Panama Silicon Valley

Panama’s Silicon Valley

Tech companies, data centers, fintech, e-commerce platforms, infrastructure developers, mobile telecom providers, and entrepreneurs seeking an ideal location to establish operations will find “Panama’s Silicon Valley” to be one of the most strategic and attractive destinations in the Americas.

1. Snapshot

• Key Government Entities: Autoridad Nacional de Servicios Públicos (ASEP), Autoridad Nacional para la Innovación Gubernamental (AIG), Autoridad Nacional de Transparencia y Acceso a la Información (ANTAI)
• Digital Strategies: Digital Agenda 2020; Strategic Plan of the Government 2019–2024
• Telecommunications: Law No. 31 (1996); ASEP Law No. 10 (2006); Universal Services Fund Law No. 59 (2008); AIG Law No. 65 (2009)
• E-Government and Data Protection: Executive Decree No. 511 (2017); Law No. 81 (2019) on personal data protection; Law No. 83 (2012) on public sector database interoperability; National Cybersecurity Strategy (2013)
• Digital Economy: Panama Digital Hub Strategy (2018); Law on Multinational Company Headquarters, Law No. 41 (2007); Telework Law No. 126 (2020); Law on Electronic or Digital Means for Online Government Procedures
• Tech Startup Environment: E-Commerce Law No. 51 (2008); Entrepreneurship Companies Law No. 186

2. Infrastructure

Panama offers a wide range of advantages for technology-driven companies:

• US dollar-based economy
• Earthquake-free
• No hurricanes or active volcanoes
• No taxes on foreign-source income
• Excellent living conditions
• Highly skilled bilingual engineers
• Best submarine fiber optic access in the region
• Clean, low-pollution environment

Panama enjoys robust telecommunications infrastructure with multiple high-bandwidth continental fiber optic networks and an exceptionally low risk of natural disasters, ensuring high reliability and continuity of service. Its central location in the Americas makes it easily accessible from major markets worldwide.

The country’s strong experience in international banking and services has cultivated a skilled workforce with expertise in IT, e-commerce, and digital infrastructure management. Because of these advantages, Panama is ideal for:

• Internet service providers
• E-commerce platforms
• Broadband and media content providers
• Traffic exchange and data centers

Panama is positioning itself as a regional digital hub. Ongoing modernization efforts include the rollout of 5G networks, public and private digital literacy programs, and new regulations promoting transparency and data protection. Although progress continues, challenges remain in updating outdated legal frameworks and streamlining bureaucratic procedures.

3. Business & Investment Opportunities

3.1 Free Tech Zones

In early 2023, the Cabinet Council of Panama approved two new free zones — Tech Valley Free Zone and Panama Digital Gateway — to enhance Panama’s strategic role as a regional digital hub.

Tech Valley Free Zone

Authorized by Cabinet Resolution No. 7 of 2023, Tech Valley Free Zone spans over 75 hectares, with an investment exceeding US$100 million. It will feature research centers, commercial areas, and data centers, and aims to attract 120 companies in technology and creative industries, generating more than 1,100 direct and 3,500 indirect jobs.

Panama Digital Gateway

Authorized by Cabinet Resolution No. 8 of 2023, the Panama Digital Gateway includes a neutral data center and submarine cable landing station, integrated with Sparkle’s global network and Google’s Curie cable system connecting California and Chile. With an investment of US$19.5 million, it seeks to become the main digital hub for Central America and the Caribbean.

In 2023, InteRed signed an agreement with Sparkle to install an Internet Exchange Point (IXP) in the Panama Digital Gateway. Together, these initiatives reinforce Panama’s role as the technological heart of the region.

3.2 Semiconductors

The United States and Panama have partnered to strengthen the global semiconductor supply chain through the International Technology Security and Innovation Fund (ITSI Fund) created by the CHIPS Act of 2022. This initiative will help develop a resilient, secure, and diversified semiconductor ecosystem, supporting workforce development and advanced technology collaboration.

The partnership includes an assessment of Panama’s current capabilities, regulatory frameworks, and infrastructure needs to support future cooperation and investment in semiconductor manufacturing and research.

4. Cryptocurrencies, Virtual Assets, Blockchain, and NFTs in Panama

Currently, Panama has no specific legislation regulating virtual assets, cryptocurrencies, or blockchain-based operations. The Superintendency of Banks (SBP) and the Superintendency of the Securities Market (SMV) have clarified that they do not supervise or regulate cryptocurrencies.

As a result, companies can freely operate in the crypto sector, but the absence of regulation creates legal uncertainty in the event of disputes or compliance concerns related to anti-money laundering measures. Nevertheless, Panama remains one of the best jurisdictions for structuring crypto ventures through foundations designed for DAOs and NFTs. For more information, contact us.

5. Taxation

Panama’s tax system is based on the principle of territoriality — only income generated within Panama is taxable. This makes the country especially attractive for foreign investors and e-commerce companies seeking efficient tax planning structures.

With its stable economy, world-class logistics, and growing digital infrastructure, Panama provides an ideal base for technology-driven businesses. A company can, for example, manufacture in Mexico, manage distribution from Panama Pacifico, and handle e-commerce and payments from Panama Digital Gateway, efficiently serving customers in the Americas, Europe, and Asia.

These combined advantages position Panama as the emerging “Singapore of the Americas,” offering exceptional opportunities for innovation, digital transformation, and global business connectivity.