Panama is a hub for international business, and as so, draws a lot of interest in the trade markets. Importing and exporting in Panama are great options for diversifying any investment portfolio, as well as opportunities for new businesses. Panama has a thriving agricultural community, services industries, and favorable taxes for international business. It also has a truly unique strategic location that allows for efficient import and export logistics. In this blog post, we’ll examine importing and exporting in Panama, and how you can get the most out of both if you decide to jump into the import/export arena.
How to Start Importing and Exporting in Panama
To get started, you need to establish a legal business entity in Panama. This typically means registering a corporation (Sociedad Anónima) or a limited liability company (Sociedad de Responsabilidad Limitada) through Panama’s Public Registry. Foreigners can own 100% of a Panamanian company, and the process is relatively straightforward with legal assistance.
Once your company is registered, you must obtain a Taxpayer Identification Number (RUC) from the Dirección General de Ingresos (DGI), and register with the Panamanian Customs Authority (Autoridad Nacional de Aduanas). If you plan to operate in one of Panama’s free trade zones (like the Colón Free Zone or Panama Pacifico), you’ll need to meet additional registration and licensing requirements, which can offer major tax and customs advantages.
Working with a local customs broker is highly recommended for navigating the complexities of import/export documentation, duties, and logistics. These professionals are licensed by the government and act as intermediaries between businesses and customs authorities.
What You Can Import and Export
Panama imports a wide range of goods including automobiles, electronics, machinery, building materials, and consumer products. On the export side, Panama’s economy benefits from its agricultural and fishing sectors, producing high-demand items like coffee, bananas, seafood, sugar, and tropical hardwoods.
There’s also a growing niche market for value-added exports such as processed foods, specialty coffee, and sustainable products. Thanks to Panama’s network of trade agreements—including those with the U.S., European Union, and several Latin American nations—exporters can often access foreign markets with reduced or no tariffs.
If you’re importing, be mindful that Panama has a 7% value-added tax (ITBMS) on most goods, though some items like certain food products and medicines are exempt. Import duties vary by product classification, but many fall within the 0%–15% range. Certain items such as alcohol, tobacco, and luxury goods may be subject to higher excise taxes.
The Role of Panama’s Free Trade Zones
One of Panama’s biggest advantages for trade-based businesses is its free trade zones (FTZs). The Colón Free Zone—the second largest in the world—is particularly attractive to import/export companies looking to warehouse and redistribute goods regionally without paying import duties.
Businesses operating within a free zone benefit from:
- 0% import/export duties.
- Income tax exemptions on foreign operations.
- Streamlined customs procedures.
- Access to high-volume shipping ports and logistics services.
Panama Pacifico is another notable FTZ, especially for tech, logistics, and light manufacturing. These zones are ideal for companies that need a centrally located distribution base for Latin America.
Logistics and Infrastructure
Panama’s world-class logistics infrastructure is another key advantage. The Panama Canal remains the centerpiece of global shipping, facilitating fast and cost-effective trade between the Atlantic and Pacific Oceans. In addition, the country’s road and highway system connects ports on both coasts to inland cities.
The country’s main ports include:
- Port of Balboa (Pacific) – Container and general cargo.
- Port of Colón and Manzanillo (Atlantic) – Specialize in transshipment and bulk cargo.
- Tocumen International Airport – The region’s busiest air cargo hub.
Warehousing, bonded storage, and cold chain logistics are readily available, making Panama a reliable choice for perishable or high-value goods.
Importing and Exporting in Panama Efficiently and Wisely
Panama is not just a tropical retirement haven—it’s a serious gateway to global commerce. Its location, infrastructure, and trade-friendly laws make it a compelling choice for entrepreneurs and investors looking to import and export goods across the Americas and beyond.
Whether you’re interested in re-exporting electronics through the Colón Free Zone or exporting high-quality Panamanian coffee to European markets, Panama offers the foundation for a thriving international trade business. With the right strategy, legal setup, and logistics support, your business can take full advantage of what this global trade hub has to offer. Contact us now to learn more about how you can start importing and exporting in Panama.
