The Panamanian government grants incentives (tax and otherwise) for the investment in and development of tourism based activities on the land. Incentives are applicable to the construction of hotels, golf courses, tennis courts, restaurants, bars, nightclubs and any activity related to the hotel facilities or public service.
Incentives range from import duty exoneration to property tax exemption.
Panama passed several laws which were targeted to stir people’s interest into making investment in the country. Among these, Law 8, passed in 1994, offers tax exemption in several regions of the country known to be the Special Tourism Zones. Pedasi is in one such designated region -100% release is offered under this law in the criterions of income tax for 15 years and for 20 years on the basis of interest in the tourism activity investment; of property tax including land, of import tax including the sales tax for 20 years and lastly, of liens due to the apply of shipyards or airports built by the firm.