To Boost its Free Trade Zones, Panama Aims to Update its Legal Framework
In 2025, the special Free Zones regime generated $203.2 million in revenue for Panama and direct employment for more than 1,000 people.
With 19 free trade zones in operation and six more under development, Panama is consolidating this special regime as a key driver for attracting foreign investment and generating employment. Therefore, it is essential to update and strengthen the legal framework for the sector. Rodrigo Jaén, general director of Free Zones at the Ministry of Commerce and Industries (MICI), explained that the country’s logistical competitiveness depends directly on strict adherence to regulations.
Jaén participated in the conference “Free Zones in Panama 2026: Legal Framework and Criminal Liability” held at the National Bar Association. During his presentation, Jaén gave a comprehensive overview of the current regulatory framework of the Free Trade Zone Regime, highlighting the following key aspects:
- Competitive incentives: Tax, immigration, and labor benefits designed for global companies.
- Operation and supervision: Optimized administrative processes for the establishment of new businesses.
- Social impact: The 25 free trade zones (active and under development) are a strategic component for economic growth and the creation of local jobs.
In 2025, the Special Free Zones Regime generated $203.2 million in revenue for the country and direct employment for more than 1,000 Panamanians.
“Legal certainty, administrative efficiency and compliance with the regulatory framework are essential pillars for maintaining Panama’s competitiveness as a global logistics, trade and investment platform,” Jaén emphasized.
