If you’re thinking about starting a trading, wholesale, or distribution business in Panama, the Colón Free Zone is one of the most strategic places to do it. It’s a major global hub for import/export, re-exports, and bulk purchasing especially for businesses serving Latin America and the Caribbean.
Here’s a simple breakdown of how to establish your company there, what your setup options are, and the typical costs involved.
Your 4 Main Setup Options
To operate inside the Free Zone, your company must register under at least one approved operational plan with the Administration. The most common options are:
1. Lot Rental Contract
You rent land directly from the Administration and build or place your own facility or structure.
Best for: Larger operations, container-level buyers, logistics and storage businesses.
2. Locale (Commercial Space) Rental Contract
You rent an existing warehouse, office, or commercial unit inside the zone.
Best for: Most wholesalers, distributors, and mid-size trading companies.
3. Operations Permit Contract
This gives your company legal authorization to operate commercially within the Free Zone.
Important: This is required regardless of whether you rent a lot, a building, or use a warehouse provider.
4. Public Warehouse Services
Instead of renting your own space, you can use an established public warehouse inside the zone.
Best for: New importers, smaller buyers, or businesses testing the market before scaling.
Core Annual Fees
Here are the standard yearly administrative costs:
- Operations Permit: US$2,400 per year
- Operations PIN (business operating code):
- Main Users: US$3,000 per year
- Represented Companies: US$2,500 per year
- Public Warehouse Users: US$2,500 per year
The Operations PIN is essentially your company’s operating ID inside the Free Zone system. It’s used for transactions, entries, and cargo processing.
Monthly Rental Costs (By Area)
These are just estimates at the time of creating this post. Please contact the Zona Libre Admin office in Colon for updates fees.
Rental rates are typically charged per square meter and vary by zone:
Buildings & Commercial Spaces
- Colón Commercial Area: $4.00/m²
- France Fiel: $2.75/m²
- José Dominador Bazán: $1.75/m²
Lots & Land
- Colón Commercial Area: $1.00/m²
- France Field: $0.60/m²
- José Dominador Bazán: $0.60/m²
- Coco Solito: $0.40/m²
- Mar Manglar: $0.40/m²
Required Monthly Service Fees
All operators should budget for basic zone services:
- Garbage Collection: $30 – $120 per month
- Security Rate: $50 – $150 per month
One-Time Initial Costs
When you first establish your company, expect these upfront expenses:
- Operations Permit Guarantee Deposit: US$5,560
- Rental Deposit: Equal to 3 months’ rent (if renting space or land)
- Notary services & fiscal stamps: Varies
Small Administrative & Entry Fees
You’ll also run into minor processing charges such as:
- Forms & printouts: $12.50
- Goods entry processing: $10–$50 depending on method (air, land, maritime)
- Document authentication: $5
Is Setting Up in the Free Zone Worth It?
For the right type of business especially wholesale, distribution, retail resale, and export, the Colón Free Zone offers:
- Strong global supplier access
- Re-export advantages
- Logistics infrastructure
- Competitive storage and space costs
- Strategic shipping location
There is an upfront investment, but for many traders and distributors, the access and scale opportunities make it worthwhile.
Need Products From the Free Zone Without Setting Up a Company?
If you’re not ready to establish a company but still want to buy products from the Colón Free Zone, I offer wholesale product sourcing and container services for businesses and individuals.
I can help you find suppliers, source goods, and coordinate the buying process from inside the zone without you having to navigate it alone.
Reach out through my booking link or contact page and tell me what you’re looking for.