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Colon Free Zone

Colon Free Zone - Panama Canal

The Colon Free Zone, created by means of Decree-Law No. 18 of 1948, is the first distribution center in the Western Hemisphere. Because of this there is constant modernization of warehouses, port and transit systems for all types of merchandise maintaining its position at the forefront of the modern technology and always ready to offer an ample range of excellent services.


Permitted Activities:

  • Exportation
  • Re-exportation
  • Importation
  • Manufacture
  • Sale, commercialization and distribution
  • Refining and processing of goods.
  • Operations, transactions, negotiations or incidental activities appropriate to establishment and operation of international free trade zones.


Fiscal Incentives:

  • 0%  taxes on incomes from operations abroad.
  • 0%  taxes on the products imported for re-exportation.
  • Exoneration of services that have effects abroad.
  • Highly competitive costs.


Migratory Incentives:

Expedited migratory procedures are granted for foreign executives and investors.


Ways of Establishing Operations:

  • Operation Permit.
  • Representation Agreement.
  • Lease of Premises.
  • Lease of Lot (land).
  • Public Storage.



The Colón Free Zone is located a few kilometers from the Panama Canal in the Caribbean sector, in the Colon Province and it is considered the first Free zone in the Western hemisphere and the second largest worldwide.