The Panama Tourism Authority (ATP) has officially ended the special tax benefits for Decameron Hotels in Rio Hato. A resolution issued in January 2026 declared the fiscal incentives, granted under a 1994 law, expired as of December 31, 2025.
This action concludes a 26-year period of state support for the all-inclusive beach resort located in Farallon, Cocle province. The project was originally developed on a concession basis with an option to purchase, utilizing specific land parcels for the public tourism lodging development.
Legal Basis and Timeline of Benefits
The incentives were initially provided under Article 17 of Law 8 of 1994 (Panama). This legislation promotes investment in national tourism development zones by offering significant tax exemptions. Benefits for qualified projects can include exoneration from property tax, income tax, import duties, and other tourism-related levies for periods up to twenty years.
Decameron’s benefits were first granted in 1999. The company maintained them after a 2007 legal name change from Hoteles Decameron, S.A. to Hoteles Decameron Sociedad de Responsabilidad Limitada. A subsequent law, Law 391 of 2023, later extended the validity of tourism registrations that had expired between 2014 and 2019. This extension ultimately pushed the final deadline for Decameron’s incentives to the end of 2025.
With that date now passed, the ATP’s Directorate of Tourism Investments moved to formalize the termination.
“The period to avail oneself of the benefits established in Law 8 of June 14, 1994, expired on December 31, 2025,” states Resolution No. 005/2026. [Translated from Spanish]
The document was signed by Tourism Investments Director José Tigert. It was published in Panama’s Official Gazette on February 24, 2026, making the decision a matter of public record.
Administrative Closure and Fiscal Implications
The immediate next steps involve notifying other government agencies. The ATP has ordered copies of the resolution sent to the General Comptroller of the Republic (Panama), the General Directorate of Revenue, the National Customs Authority, and the Ministry of Commerce and Industries. This notification allows those entities to begin their own administrative processes related to the change in the hotel’s fiscal status.
Once these formalities are complete, the ATP will close and archive the administrative file for this case. The resort will now be subject to standard taxation protocols applicable to all commercial tourism businesses in Panama.
For the Panama Tourism Authority, this action underscores a shift in policy focus. The agency appears to be enforcing sunset clauses on older incentive packages, potentially to make way for new development models or to apply benefits to different geographic areas. The move signals a maturing phase for Panama’s tourism investment strategy, where long-standing benefits are reviewed and concluded as planned.
The Decameron resort in Rio Hato remains operational. Its management has not yet issued a public statement regarding the financial impact of losing its tax-exempt status. Industry analysts will be watching to see if the change affects room rates or planned renovations at one of the country’s well-known all-inclusive destinations.