Panama Launches New Free Zone Model to Attract Investment

Panama is reinforcing its position as an international investment destination with the launch of a new free zone model tailored for small and medium-sized enterprises, modern service companies, and businesses with a strong focus on innovation. This move marks a significant step in the evolution of the country's free zone regime and its adaptation to new business dynamics. The model is based on collaboration and the integration of local service providers to create an enabling business ecosystem. The International Free Zone Authority (IFZA), an international free zone operator founded in the United Arab Emirates in 2017 and now operating in over seven countries, is introducing this model to Panama. IFZA specializes in supporting companies through all stages of their lifecycle, from creation to international expansion via subsidiary establishment. Local firms such as legal advisors, financial consultants, and real estate agents play a pivotal role in assisting companies within the free zone, generating local employment and contributing market knowledge and operational expertise. Panama combines stability, connectivity, and security, along with a legal and fiscal system designed for free zone enterprises, making it an ideal hub for accessing North and Latin American markets. The government's efforts to strengthen the service export sector—including technology, software, and professional services—by optimizing regulatory processes and facilitating company incorporation and residency applications further enhance these advantages. "This model is based on collaboration," stated Markus Raiser, director of IFZA Panama. "Working hand-in-hand with local service providers and professional partners allows us to create an environment where companies can establish themselves in Panama more efficiently and operate with confidence, while also strengthening the local business ecosystem."