What tax exemptions does Panama’s new tourism incentive bill offer, and who qualifies?
The Cabinet Council approved Proyecto de Ley 31-26 on August 25, 2026, creating a single legal regime of tax incentives for tourism investment. New tourist lodging projects in the Panamanian Caribbean would receive 15 years of income tax and property tax exemption. Projects elsewhere outside the district of Panama would receive 10 years.
The qualifier that matters most: purely real estate developments, shopping centers and residential activity that does not add direct value to the tourism plant are excluded from these benefits entirely.
What the Bill Actually Grants
| Benefit | Panamanian Caribbean | Outside the district of Panama |
|---|---|---|
| Income tax exemption | 15 years | 10 years |
| Property tax exemption | 15 years | 10 years |
| Construction materials imports | 5 years | 3 years |
| Equipment imports | 10 years | 5 years |
ATP administrator Gloria De León described the tiering as a territorial development tool: the incentive is deliberately largest where the investment gap is widest, which she identified as the Panamanian Caribbean.
The Five Categories Covered
The bill organizes benefits around five areas: new tourist lodging establishments; renovation and modernization of the existing tourism plant; development of new tourism products and experiences; nautical tourism and marinas; and congresses, conventions and international events.
Note what is absent from that list. There is no category for residential construction, condominium development or second homes. De León was explicit that the government does not want a law that benefits real estate development such as shopping centers and other activities not directly linked to tourism.
For a buyer looking at a beachfront condominium in Bocas del Toro or Portobelo, this bill does not reduce their income tax or property tax. It may, however, improve the hotels, marinas and infrastructure around that property, which is a different and slower kind of benefit.
Why the Government Is Moving Now
The previous framework, Ley 80 of 2012, reached the end of its term on December 31, 2025 for registering companies outside the district of Panama in the National Tourism Registry. Since then there has been no equivalent incentive regime in force, and Proyecto de Ley 31-26 is designed to replace it while consolidating scattered special laws into one instrument.
The new regime also carries controls the old one lacked: technical evaluations, classification targets, a performance bond, joint oversight by the ATP and the Ministry of Economy and Finance, separate accounting for incentivized activities, and safeguards against claiming duplicate benefits. Renovation and hotel infrastructure incentives are limited to a maximum of two uses within any five-year period, subject to a prior technical audit. The bill also creates a Ventanilla Única Turística, a single window intended to shorten permitting times.
The Demand Side: Cruise Traffic Is Up Sharply
The investment case rests on visitor numbers, and those are moving. According to the Panama Maritime Authority, the National Port System handled 488,567 cruise passenger movements between January and July 2026.
| Measure | Jan-Jul 2025 | Jan-Jul 2026 | Change |
|---|---|---|---|
| Cruise passenger movements | 401,608 | 488,567 | +21.6% |
| Cruise ship arrivals | 119 | 143 | +20.1% |
| Transit passengers | 196,591 | 216,805 | +10.2% |
| Crew members attended | — | 105,021 | +20.2% |
That is 86,959 additional cruise passengers year over year. The split between the two directions is close to even: 247,353 disembarkations and 241,214 embarkations.
Why the Even Split Matters More Than the Total
A near-equal balance between embarkations and disembarkations indicates Panama is functioning as a home port, where passengers begin or end a cruise, rather than only as a port of call where they step off for a few hours.
The economic difference is large. A passenger starting or finishing a voyage in Panama typically needs a hotel night, ground transport, meals and often a few extra days in the country. A passenger on a transit stop spends a fraction of that. Ibis Pérez of the AMP’s Planning Office framed the figures as consolidating Panama’s position as a strategic hub for the industry.
The 2026-2027 season begins in October, with the Amador Cruise Terminal on the Pacific and Colón 2000 on the Atlantic preparing to receive visitors under both port-of-call and home port arrangements.
This Is Not Law Yet
Cabinet approval is not enactment. The bill must go to the National Assembly for three debates, then receive presidential sanction and be promulgated before it has force of law. Once promulgated in the Gaceta Oficial, the Executive has a maximum of 60 business days to publish the operating regulations.
Anyone modeling an investment on these exemptions should treat the percentages and terms as a proposal that can still change in debate.
Casa Solution Can Help
Tourism incentives, cruise growth and hotel investment reshape the areas around them, which affects property values even when the tax benefits themselves are out of reach for a residential buyer. If you are looking at the Caribbean coast, Bocas del Toro, or any area where this bill would apply, Casa Solution can help you understand what is actually being built nearby and what it means for a specific property.
Article written: September 5, 2026
Proyecto de Ley 31-26 has not been enacted. Tax regulations and individual circumstances can vary. This article is intended as general information and should not replace advice from a qualified Panamanian attorney or tax professional.
