The Casco Antiguo (Old Quarter) or Casco Viejo location is a greatopportunity for make an Investment and receive Incentives and Tax Exception in San Felipe. The new Panama City was constructed in 1673 after the pirate Henry Morgan destroyed the first Panama City, located 13 kilometers from the first city in Panama.
After the Casco Antiguo was designated a World Heritage Site in 1997, the Panamanian government created a law to encourage the development of the Old Quartier. The Casco Antiguo law stimulates the construction, reconstruction, purchase, and restoration of the Old Quartier estate and commercial activities.
The investments located in the Historical Monumental Complexes, which the National Historic Heritage Directorate authorizes over the Old Quartier, with a minimum amount investment of USD$50,000 excluding the land, will receive the following incentives:
• Banks have incentives to offer preference interest rates in loans issued to restore, construct, rebuild, or purchase real estate assets in Casco Antiguo and adjacent areas until 3% under market interest rate.
• Commercial or Residential mortgages have preference interest rates until 3% under the market interest rate.
• (10) Ten years tax exemption from the property tax on the land and, for thirty (30) years, on the property improvements.
• Tax exemption from income tax on company profits during the first five (5) years of commercial activity.
• After the period of the point before, during the following five (5) years, you may deduct as an expense the losses suffered during the three (3) fiscal years following the fiscal period in which such losses occurred.
• Tenants of a built, reconstructed, or restored building located in the Old Town intended for housing can deduct the income rental fee paid from their gross rent during the first (5) years counted from the occupancy permit.
• Natural or legal persons who, as owners, promoters, or tenants, allocate fourth-order buildings or vacant land and buildings that comply with the regulation’s manual of the Old Town of Panama City in whole or in part to serve as parking areas of vehicles. Will be exempt from the income tax generated by this activity for (10) years, counted from the occupancy permit or the land in question.
If you want detailed information on the law and incentives, please fill out the form and download the law.