Law 314 of June 20, 2022, which amends Law 80 of 2012, which establishes incentive regulations for the promotion of tourism in Panama, is enacted.
Law 314 of June 20th, 2022 aims to encourage investment and financing for the development of new public tourist lodging establishments or expansions of existing ones, in order to consolidate Panama as a world-class tourism destination, building at least 5,000 new rooms in the countryside, where 80% of the country’s tourist resources are concentrated. The law supports the execution of the Sustainable Tourism Master Plan approved in 2021 by the Council, making tourism a State policy.
The new law repeals Law 122 and modifies Law 80, reducing the incentive from 100% to 60% tax credit of the total value of the project (excluding the value of the land and infrastructure), plus 5% of the value of the infrastructure of the Master Plan.
In addition, the period of the tax incentive is shortened to December 31st, 2024 (which is currently until 2025) and is limited to destinations or areas of tourist interest, outside the district of Panama.
