In Panama, the National Assembly approved Law 63, which promotes and encourages the construction of underground parking spaces through tax benefits.
The law initiative approved on February 12 contemplates the following tax incentives:
| Investment Amount |
Exoneration time |
Exoneration percentage |
| $0 to $200 thousand | 5 years | 80% |
| $200.001 to 500 thousand | 10 years | 75% |
| $500.001 onwards | 15 years | 65% |
From the National Assembly statement:
The approval in the third debate of Law 63, which promotes and encourages the construction of spaces for underground parking, is directed in two lines, one to alleviate the problem faced daily by motorists and the second to create a level of competition for private companies, which are currently engaged in this activity.
The project seeks to create more spaces for public parking to solve a big problem faced by car owners, as stressed on several occasions by its proponent, Deputy Ivan Picota.
The initiative offers tax incentives to investors participating in the business. The concessions will be granted by the country’s municipalities.
A Municipal Planning Board will be created in the municipalities, which in turn may create a Municipal Technical Commission to establish and implement a plan for the development of these infrastructures.