The Barú Free Zone is a strategic special economic, commercial, industrial, tourist, and logistics zone
located in Puerto Armuelles, Barú District, Chiriquí Province, Republic of Panama. Operating under a
highly competitive Special Fiscal and Customs Regime, it is specifically tailored to stimulate regional
development, foster private investment, and streamline cross-border trade.
Area covered by the Baru Free Zone
Key Structural Details
Establishment: Created under Law No. 19 of 2001 to catalyze regional economic growth near the
Costa Rican border.
Strategic Purpose: Designed to promote international tourism, retail/wholesale commerce, light
manufacturing, and a robust multimodal logistics infrastructure in Western Panama.
Location Advantage: Centered in Puerto Armuelles, capitalizating on immediate border proximity
and direct linkages to regional ocean and land transport corridors.
Regional Synergies: Integrates seamlessly with broader Chiriquí logistics initiatives, including the
modern Puerto Barú development in David, which bridges agro-industrial supply chains with
advanced cargo terminals
Tax Exemptions
In accordance with its special regime, all merchandise, raw materials, equipment, and trade effects
entering the designated trade sectors owned or operated by the Barú Free Zone are exempt at all
times from national taxes, duties, tariffs, or any other order. This comprehensive tax exemption covers
both the immediate introduction of goods into the zone and their long-term permanence within it.
Legal Framework & Investment Incentives
Businesses operating within the Barú Free Zone enjoy substantial fiscal exemptions and protections
under Panamanian law. Key applicable legislation and regulatory frameworks include:
>Law No. 19 of May 2001: The foundational legislation creating the Special Tax and Customs
Regime of the Free Tourist Zone and Multimodal Logistics Support in Barú.
>Law No. 120 of December 30, 2013: Amends Law No. 19 of 2001, modernizing tax incentives and
introducing updated fiscal provisions to accelerate zone operations.
>Law No. 80: Establishes specialized incentive rules and frameworks explicitly for the promotion and
development of tourism activities nationwide.
>Law No. 42 of 2000: Enforces strict compliance regulations for the prevention of money laundering
and terrorism financing, ensuring a secure and transparent business environment.
Contact Information
Click HERE to hear an interview with Gerente General Of Zona Franca de Baru, Zulma Guerra.
Click HERE to see what kinds of businesses qualify for Free Zone Benefits.
Click HERE to find out what types of businesses are currently in demand in Puerto Armuelles.
Click HERE to learn more about benefits of investing in Puerto Armuelles.
