In Panama, a bill was approved that will grant tax exemptions until 2025 to those who make investments in hotels and recreational activities.

On December 31st, President Cortizo sanctioned the bill that provides tax incentives to the tourism sector by modifying some of Law 80 of November 8th, 2012.

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With the approved changes, Article 9 of the Law states that “... In order to encourage investment and financing for the development of new tourism projects or new stages and extensions of existing tourism projects, in both cases located outside the district of Panama, the sums invested by natural or legal persons in the acquisition of bonds, shares and other financial instruments by the tourism company shall be considered 100% of the tax credit for income tax purposes.”

The text adds that “… This incentive will be granted until December 31, 2025, to investors who are not directly or indirectly linked to the tourism business that issues the financial instrument and who are the product of the division of a business into several legal entities or are affiliates or subsidiaries of tourism businesses.”