The existing legislation on incentive investment in tourism provides, among others, the following incentives:
- Total exemption for the duration of the contract from import duties or from any other taxes affecting the importation of machinery, equipment, spare parts and construction materials to be used in a project to be carried out in areas designated by the authorities as "special tourist zones".
- Total exemption for the duration of the contract from import duties or from any other taxes affecting the importation of machinery, equipment, hotels, apartment hotels, restaurants, and other facilities to be built or for tourism services to be started in areas designated as "special tourist zones", provided that such goods are not manufactured, or are not manufactured in sufficient quantities in Panama.
- Total exemption for the duration of the contract from property taxes on the land and buildings located in "special tourist zones".
- Total exemption for a period of 13 years, starting as of the date of the signing of the contract, from income taxes on the profits of the corporation obtaining the incentive.
- Authorization to carry forward losses for the next three fiscal years. Such carryover of losses is not normally allowed under current tax practices.
- Total exemption for the duration of the contract from all taxes on the capital of the assets of the corporation, with the exception of fees for commercial or industrial licenses.
- Total exemption for the duration of the contract from all taxes, contributions, duties, or other levies on the use of docks or airports built or rebuilt by the corporation obtaining the incentives.
- Interest from loans to the tourist industry are exempt from income tax as long as the interest does not exceed the usual rates charged for similar types of operations or the rates established by the National Banking Superintendency.
- Profits resulting from the contribution of real estate located in "special tourist zones", which are contributed as capital of corporations engaged in the tourist industry, are not taxable.