Market Intelligence
Travel and Tourism Panama Central America Government, Law and Regulation

Panama Foreign Investment in Tourism

The Government of Panama approved Law 122 to promote foreign investment in tourism. This law will grant important benefits, such as:

•    Imports tax exoneration for hotel investors for construction products for up to five years and operation products acquired for up to ten years.
•    Tax exoneration for hotel buildings for up to 15 years.
•    Tax exoneration for investments in airports and docks for 15 years. The Government must be allowed to use the airport.
•    Rent taxes exoneration for the first loan acquired. The company will have a tax-deductible expense on the financial statements. 
•    Tax rent exoneration for fifteen years for hotel revenue. 
•    Tax exoneration for the certificate of existence for up to five years, among others

Law 122 benefits will boost the construction of over five thousand hospitality rooms and millions of dollars in investments. Additionally, it contributes to the Sustainable Tourism Master Plan (PMTS) for 2020-2025. The PMTS goal is to concentrate on investment promotion to ensure the use of Panamanian products and services. Likewise, enhance environmental, social, and cultural sustainability and guarantees tourist safety. 

For more information, contact Diana Lozano, Commercial Specialist by e-mail at