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Contents of this guide
Five criteria to compare
An innovation ecosystem brings together space, rules, people and funding. For a startup, a useful comparison does not put venue names in a column but criteria that can be checked against a source. The table lists the five that weigh most and where to verify each one.
| Criterion | What to verify | Where to check |
|---|---|---|
| Legal regime | Whether the base operates as a free zone and which category of the law fits the activity. | Law 32 of 2011 and MICI |
| License | Whether the developer shows its license and which procedure falls on the startup. | MICI and the developer’s document |
| Incubation | Whether incubation or acceleration programs exist and who backs them. | SENACYT and the program itself |
| Public funds | Which calls exist, who can apply and when they open. | SENACYT website |
| Community and building | Who makes up the community, which events exist and what state the space is in. | The venue’s website and a visit |
The order matters: the legal regime and the license define what the company can do inside the zone, and everything else is assessed on that basis.
The layers of Panama’s ecosystem
Official sources allow the ecosystem to be split into four layers. None replaces the others, and one startup can rely on several at once.
| Layer | What it provides | Official source |
|---|---|---|
| Free zone legal framework | A special, comprehensive and simplified regime, with categories for high technology, services, scientific research and higher education. | Law 32 of 2011, MICI |
| Incubation and training | A program to strengthen incubator methodologies, with the Ciudad del Saber Innovation Center as host and the University of Texas at Austin as partner, signed in 2022. | SENACYT |
| Non-reimbursable funds | The Panamá Innova 2025 call, with up to B/.60,000 in seed capital and up to B/.150,000 in the second category. It closed on September 11, 2025. | SENACYT |
| Innovation base with a free zone | ISD, inside Green Valley Panamá, with buildings for innovation companies, according to its website. | ISD |
Data from SENACYT, 2022, SENACYT, 2025 and the ISD website. The amounts of the call belong to the 2025 edition and are not the current offer.
What the free zone regime offers
Law 32 of 2011 admits production, services, logistics, higher education, scientific research and high technology activities in free zones. MICI collects in its document on company categories that a high technology company is one that produces goods and services with high added value, such as hardware, software, supplies and data centers. The services category includes those provided to users abroad, among them telecommunications and computer services for data capture, processing, storage and transmission, and e-commerce services.
For a startup, the practical consequence is that the company needs its own free zone company license, which the National Free Zones Commission approves within a maximum of ninety days (article 26), and that the law keeps taxes on operations aimed at Panamanian territory (article 33). A startup that sells mainly to customers in Panama should review that point with an accountant before choosing a base. The law also provides a temporary resident permit for trusted, executive, expert or technical staff hired by free zone companies (article 44) and a permanent resident permit for foreigners who prove a minimum investment in free zone companies (article 43), whose current validity and conditions should be confirmed in the law now in force.
MICI keeps a directory of active free zones with each one’s stated purpose. Several combine technology, services, medical innovation or research, so the comparison criterion is the use the zone declares and the license behind its promoter. For a view of the alternatives outside this regime, the comparison of Panama’s special regimes is a starting point.
SENACYT support and public funds
According to SENACYT’s note on Panamá Innova 2025, published on August 14, 2025, the call supported innovative projects with a scientific and technological base through competitive non-reimbursable funds. Universities, research centers, public interest associations, micro, small and medium-sized enterprises, nonprofit foundations and large companies could apply. The seed capital category covered up to B/.60,000 for early-stage projects, lasting up to eighteen months, and the second category, aimed at innovation in processes, services or products, reached up to B/.150,000 for up to twenty-four months.
At the same event, SENACYT and the Fundación Ciudad del Saber signed an agreement to build an inventory of ventures with incubation potential, train entrepreneurship managers and prepare the ecosystem for future incubators and technology transfer offices. Earlier, in 2022, SENACYT had signed with the same foundation, through its Innovation Center, the program to strengthen incubator methodologies and training, developed with the Global Innovation Lab of the University of Texas at Austin. Its goals included diagnosing Panama’s entrepreneurship ecosystem and improving the capacities of those who run incubators.
Calls change name, amounts and deadlines with each edition. Current information is found on SENACYT’s website, and no base guarantees access to these funds.
What ISD presents on its website
ISD’s About page describes an ecosystem for four groups: startups that need resources to scale, investors, corporations that want to innovate and talent. It states that ISD holds a free zone license issued by the National Free Zones Commission of MICI, that the companies and startups located there receive tax and immigration benefits under Law 32 of 2011 and that the project covers 129,872 m² in Green Valley Panamá. According to the same page, ISD brings together companies in architecture, telecommunications, the Internet of Things, artificial intelligence and blockchain.
Among the arguments for choosing Panama, ISD cites the dollar as legal tender, the country’s role as an air and logistics hub and the presence of more than 200 multinationals. These are ISD’s claims, not data verified by Radar. The Marie Curie reservation page presents the first building as a space to create, work and share with other founders, with networking and ecosystem events. The home page indicates an opening in 2026 and the website plans 24 buildings in total. The terms of each space are defined with the ISD team, and the current status of the building is confirmed with them.
ISD presents its innovation ecosystem inside Green Valley Panamá, with a free zone license and the Marie Curie building as its first space. Information on each building and the reservation form are on its official website.
Eight steps to decide
- Define the main activity. Software, data, services or research determine the category under article 24 of Law 32.
- Separate the market. Estimate what share of revenue comes from abroad and what share from Panama, because the taxes differ (article 33).
- Ask for the base’s license. The developer should be able to show its free zone license; ISD states that it publishes its own as a PDF.
- Know the company’s own procedure. The company license has required documents and a maximum of ninety days; the guide on how to open a company in Panama covers the earlier steps.
- Review the incubation support. Verify who backs the program and what it offers, using SENACYT as a reference.
- Check current calls. Public funds are requested through calls, and conditions change.
- Visit or request the description in writing. Building status, delivery dates, shared services and events should be in the contract.
- Consult a lawyer or accountant. A short review avoids category or license mistakes before signing.
Available talent also weighs on the decision. The note on whether Panama can be a digital hub without digital talent covers that debate, and the guide to the Panamanian digital hub describes the connectivity infrastructure. This content is informational and does not replace advice from a lawyer or accountant.
Frequently asked questions
What is an innovation ecosystem in Panama?
It is the set of spaces, rules, support programs and community around startups and technology-based companies. In Panama it involves the MICI free zone framework, SENACYT programs and funds, and private bases such as ISD.
What public funds exist for startups in Panama?
SENACYT opens calls for competitive non-reimbursable funds. The Panamá Innova 2025 call offered up to B/.60,000 in seed capital and up to B/.150,000 in the second category, and its deadline closed on September 11, 2025.
Can a startup set up in a free zone in Panama?
Yes, if its activity fits the categories of Law 32 of 2011, such as high technology or services, and it obtains the Free Zone Company License, which the National Free Zones Commission approves.
What does ISD say about its free zone?
According to its website, ISD holds a free zone license issued by the National Free Zones Commission of MICI, and the companies located there receive tax and immigration benefits under Law 32 of 2011.
How can two innovation bases in Panama be compared?
With five verifiable criteria: legal regime, the developer’s license, incubation support, accessible public funds and the real state of the building and the community. Each has a source where it can be checked.
Related articles
- Panama as a digital hub: submarine cables, data centres and what it means for a technology company
- Panama’s special regimes: Colón Free Zone, Panamá Pacífico, SEM and EMMA
- How to open a company in Panama: steps, Notice of Operation and taxes
- Can Panama be a digital hub without digital talent?
Sources
- ISD, About: free zone license, Law 32, project area, sectors and location arguments.
- ISD, Marie Curie reservation and ISD home page: description of the first building and planned date.
- SENACYT, Panamá Innova 2025 call: categories, amounts, who can apply and agreement with Ciudad del Saber.
- SENACYT, agreement with the Fundación Ciudad del Saber for the incubator program.
- Law 32 of April 5, 2011, MICI and company categories and license, MICI.
- MICI, active free zones.
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