Panama's Colon Free Zone Gives You Access to the World

In a land where economic growth overshadows the gloomy world economic outlook, Panama's Colon Free Zone (CFZ) is the perfect place for your business to thrive. While the US saw a record annual decline in retail sales last year, both annual and fourth quarter 2008 statistics were up over 10% in Panama. Thanks to the $ 5 B canal expansion project, future economic prosperity is almost certain - specifically for the CFZ.




Located on Panama's northern coast, where the canal meets the pristine Caribbean shoreline, the CFZ offers unparalleled access to world consumers. With over $ 7 B in trading activity, Colon is home to the second largest duty-free port in the world:


- Hong Kong is the largest importer of CFZ goods, giving you direct access to the growing Chinese consumer market


- Roughly 15,000 Panama Canal Tourists spend money on duty-free goods in Colon


- Over 1 million conventional tourists visit Colon each year and the free zone is the top attraction


- Proximity to Panama City (a scenic 45-minute drive), with the largest banking center in Latin America


The Colon Free Zone is treated as a special administrative region of Panama, one of the world's most business-friendly countries. Any foreign individual or corporation may operate here by presenting the necessary applications (found here), evidence of incorporation, and additional references (usually from a bank). Your main options include:


- Seek a 20-year land lease and build-to-suit (warehouse, etc.)


- Lease commercial space from the CFZ Administration


- Purchase existing commercial space from the CFZ Administration


- Purchase existing commercial space from another company (requires CFZ Administration approval)


The benefits of operating in the free zone are quite obvious:


- No commercial license required


- No minimum amount of start-up capital


- No taxes on imports and re-exports


- No corporate income taxes


- Sales of your goods are always tax-free


- Tax credits applicable if a Panamanian employee quota is met


If you thought doing business anywhere in Panama was seamless and inexpensive, then you'd be even more amazed at all that the CFZ has to offer. Along with a booming economy in a safe, strategic locale, the CFZ is unmatched anywhere else in the Americas.