By establishing a special economic system, which states Colon’s city as a free zone. Panama aims to invigorate the touristic, economic and commercial life of the Atlantic’s coast.
Once it has been established –in the next four months- the law known as Colon’s free port will allow all the people that visits colon –Panamanians and foreigners- to acquire tax-free products. Natives will have access to this tax-free products top to a thousand Balboas, twice a year, while foreigners will have no purchase limits.
The Law number 7, passed by the president Juan Carlos Varela, and enacted by April 4 of the running 2016, contains the long-waited provisions that complement that Colon’s free zone. The benefits of such law will extent to the existing 16 streets of Colon, looking forward to turn the city in a touristic attraction.
Exemption from taxes, levies, duties, and customs arrives along with a government’s new project called “Colon’s Urban Renewal” for the construction of houses, health care centers, schools, sports centers, a new sewer system and the restoration of historical buildings.
A budget of 800 million Balboas is projected in the city’s reconstruction and the development of security and social programs, an effort Panama expects to be rewarded with an adequate attitude from the public employees, the private entrepreneurs and the people of Colon.
Also the investors will be able to enjoy too of the benefits conceived in the Law 136 from December 31, 2013 (which updates the tax regime applicable for rehabilitation and enhancement of the Panama’s Old town historical monument) which will be applicable for all 16 streets and avenues at Colon city.
This law grants tax benefits and incentives for entrepreneurs to actively participate in the rehabilitation and enhancement of Colon. Furthermore: contrary to what happens with Panama’s old town, residents of Colon’s free port will not have to move. In other words, they will be able to continue living in their homes, if they prefer it and they comply with the law.
The opportunity of shopping at a beautiful and tax free zone, is a soon to be need for tourists and travelers. And also the investors, that could enjoy of a series of taxing benefits like deduction of tax income for building, reconstruction, restoration, maintenance, lightning and enhancements of parks, murals, green zones, temples and other public areas.
Also it includes the tax exception, for the period of 30 years, of the property tax that falls upon the constructed, reconstructed or restored buildings that own the occupancy permit, and also from the customs of equipment and materials used in the labors.
These are just few of the reasons that explain that attractiveness that Colon’s free port will have, in addition to the benefits that offers the zone to traders and investors from all around the world and we, at Coronell & Lam –with 47 years of experience- will feel very pleased to offer you our professional services. Contact us now! We are here to help!
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