{"id":15221,"date":"2026-08-03T06:23:00","date_gmt":"2026-08-03T11:23:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=15221"},"modified":"2026-08-02T19:41:38","modified_gmt":"2026-08-03T00:41:38","slug":"panama-tourism-incentives-overhaul-excludes-tax-credits","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/travel-tourism\/panama-tourism-incentives-overhaul-excludes-tax-credits\/","title":{"rendered":"Panama Tourism Incentives Overhaul Excludes Tax Credits"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tourism_in_Panama\" target=\"_blank\" rel=\"noopener noreferrer\">Panama&#8217;s tourism authority<\/a> is drafting a new set of Panama tourism incentives that will not include tax credits, marking a sharp break from earlier programs that sparked fierce debate over state subsidies for private ventures. The legislation, still being reviewed by the <a href=\"https:\/\/expat-times.com\/panama\/crime-safety\/ministry-investigates-recruitment-of-citizens-for-russia-ukraine-war\/\" rel=\"internal\">Ministry<\/a><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Economy_and_Finance_(Panama)\" target=\"_blank\" rel=\"noopener noreferrer\"> of <\/a><a href=\"https:\/\/expat-times.com\/panama\/business-economy\/presidential-rescue-saved-panamas-banana-economy\/\" rel=\"internal\">Economy<\/a><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Economy_and_Finance_(Panama)\" target=\"_blank\" rel=\"noopener noreferrer\"> and Finance<\/a>, targets investors willing to build attractions well beyond traditional hotels, especially in the country\u2019s interior regions. Tourism Administrator Gloria De Le\u00f3n confirmed the direction just as Panama reported welcoming 1.75 million visitors during the first half of the year, a 17.4 percent jump that underscores the sector\u2019s momentum.<\/p>\n\n\n\n<iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/oxnLAjj5pW8?cc_lang_pref=en&#038;hl=en&#038;cc_load_policy=1\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\">Shifting the Focus of Panama Tourism Incentives to Regional Projects<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than relying on credit mechanisms that once covered the bulk of development costs, the new framework will offer exemptions on income tax, real estate taxes, and import duties for materials linked to qualifying tourism products. De Le\u00f3n said the goal is to channel capital into the interior, where infrastructure gaps have long limited visitor dispersal beyond the capital. The National Tourism Council, which brings together private sector leaders and government representatives, has already reviewed the draft and agreed on this geographic emphasis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials argue that competing for international investors requires a toolkit that matches what neighboring countries put on the table. Panama\u2019s pitch now zeroes in on marinas, piers, and even wave pools, alongside hotels. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cWhen we go out to compete internationally, we are not just competing with tourists who want to go to other destinations, but also with investors who decide to go to a neighboring country or prefer to come to Panama to build hotels, marinas, tourist infrastructure,\u201d De Le\u00f3n explained. <\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">She added that the bill avoids credits entirely, a direct response to the cancellation of several hotel projects after previous regimes repealed two controversial laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Learning from the Tax Credit Experiment<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The decision to exclude tax credits from Panama tourism incentives did not emerge in a vacuum. Under the administration of former President Laurentino Cortizo, Laws 122 of 2019 and 314 of 2022 allowed the state to effectively finance up to 100 percent of a private project\u2019s costs if an investor fully utilized the approved credits. That ceiling was later lowered to 60 percent, but the approach still drew heavy scrutiny. Critics questioned the fiscal sacrifice and the government\u2019s ability to police potential abuse, leading to the repeal of both statutes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fallout was tangible. Multiple hotel developments stalled or were scrapped entirely, chilling investor confidence at a time when the sector needed stability. Law 80 of 2012, which provided import duty exemptions, property tax relief, and other benefits, expired on December 31, 2025. That law leaned heavily on hotel construction. The new proposal expressly widens the aperture, treating a marina or a surf pool with the same seriousness as a tower of rooms. De Le\u00f3n stressed that no future legal instrument will revive credit-based subsidies for any company or project, drawing a clear line under a polarizing chapter.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-1024x683.webp\" alt=\"hotel sign\" class=\"wp-image-8583\" srcset=\"https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-1024x683.webp 1024w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-300x200.webp 300w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-768x512.webp 768w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-150x100.webp 150w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800-450x300.webp 450w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/hotel-sign-1200x800.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">hotel sign<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Toolbox Panama Will Use Instead of Tax Credits<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the old Law 80 structure, investors could tap exemptions on import duties, real estate taxes, pier and airport charges, income tax, capital tax, and a special interest compensation fund. The draft legislation retains several of these levers but pairs them with a deliberate shift toward experiential infrastructure. The idea is to generate attraction clusters that make tourists linger longer and spend more, a calculation that resonates in a country where the capital\u2019s skyline and canal visits still dominate itineraries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">De Le\u00f3n pointed out that simply renewing a hotel-focused incentive program would overlook how the travel market has evolved. Modern visitors look for activities, she noted, and the new Panama tourism incentives are designed to answer that demand. Marine infrastructure, adventure tourism anchors, and themed leisure facilities all fall under the proposed umbrella. By exempting import costs for specialized construction materials, the state hopes to lower entry barriers for novel concepts that might otherwise seek a home in <a href=\"https:\/\/en.wikipedia.org\/wiki\/Tourism_in_Costa_Rica\" target=\"_blank\" rel=\"noopener noreferrer\">Costa Rica<\/a> or the Dominican Republic.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-1024x683.webp\" alt=\"tax dgi\" class=\"wp-image-8950\" srcset=\"https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-1024x683.webp 1024w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-300x200.webp 300w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-768x512.webp 768w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-150x100.webp 150w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800-450x300.webp 450w, https:\/\/expat-times.com\/panama\/wp-content\/uploads\/2025\/10\/tax-dgi-1200x800.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">tax dgi<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Legislative Timeline and What It Means for Investors<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The bill is scheduled to go before the Council of Cabinet on August 4, after which it moves to the National Assembly for debate. Private sector associations, seated on the National Tourism Council, will continue to press for clarity on implementation rules, but the broad contours are set. No tax credits. A strong tilt toward interior development. And a flexible menu of exemptions that mirror the spirit of Law 80 while shedding its limitations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Panama\u2019s 17.4 percent spike in visitor arrivals during the first half of the year gives policymakers a tailwind but also raises expectations. Sustaining that trajectory means spreading tourism revenue beyond the Panama City bubble, a task that requires beds, certainly, but also boat slips, surf breaks, and signature experiences. The government\u2019s wager is that a cleaner incentive structure, free of the baggage that sank its predecessors, will convince cautious capital to bet on the country\u2019s provinces. In summary, the overhaul represents both a rebuke of past excesses and a deliberate pivot toward regional competitiveness, betting that the absence of tax credits will not deter serious investors when paired with targeted fiscal relief and a clear geographic mission.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Panama&#8217;s tourism authority is drafting a new set of Panama tourism incentives that will not include tax credits, marking a sharp break from earlier programs that sparked fierce debate over state subsidies for private ventures. The legislation, still being reviewed by the Ministry of Economy and Finance, targets investors willing to build attractions well beyond<\/p>\n","protected":false},"author":1,"featured_media":15220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[35,28,30,36,29],"tags":[5812,5813,157,5814],"class_list":["post-15221","post","type-post","status-publish","format-standard","has-post-thumbnail","category-travel-tourism","category-news","category-business-economy","category-investments","category-politics-government","tag-credits-will","tag-investors-incentives","tag-panama-tourism","tag-tourism-incentives"],"_links":{"self":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/15221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/comments?post=15221"}],"version-history":[{"count":1,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/15221\/revisions"}],"predecessor-version":[{"id":15222,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/15221\/revisions\/15222"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media\/15220"}],"wp:attachment":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media?parent=15221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/categories?post=15221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/tags?post=15221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}