In Panama, there are plans to develop in Bocas del Toro, Chiriqui, Archipelago de las Perlas and Punta Chame, five lodging projects that seek to benefit from the Law on Incentives for Tourist Investments.

Law 122 of December 31, 2019, which dictates incentive rules for the promotion of tourist activities in the interior of the Republic, attracted projects for the country, for a total value of $371,843,971 in new tourist investments, to be built in areas with great tourist potential, informed the Presidency of Panama.

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In total there are five projects of public tourist accommodation outside the district of Panama, which were presented by investors to the Panama Tourism Authority (ATP) and entered in the National Tourism Registry, in compliance with the above-mentioned law, the official statement highlights.

The document outlines that the law “… grants a tax credit to the investor who is the first buyer of the bonds, shares and other financial instruments issued by the tourism company. The investor, whether national or foreign, may use this credit from the second year of the investment up to a maximum amount equivalent to 50% of its income tax, provided that it does not exceed 15% of the initial amount of the tax credit and until 100% is consumed, for a period of 10 years. Additionally, the credit may be assigned for the total or unused portion of the credit.”

See “Tax Incentives for the Tourism Sector”

This incentive will be granted until December 31, 2025, to investors who are not directly or indirectly linked to the tourism company that issues the financial instrument, according to the press release dated January 6, 2021

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