Tel. (507) 264-4705
Tel. (507) 264-4722
Tel. (507) 264-4731
Fax: (507) 264-4680
Via España, Plaza Liza’s Building. 4th floor 
Panama City, Panama
P.O. Box 0816-02164 Zone 5

Panama Mining Law

The mining law of Panama (Código de Recursos Minerales) dates from 1963 but has been amended numerous times, including in 1988 when it was substantially modernized in order to stimulate foreign and local investments in mining. 

The present democratic government of Panama encourages a stable political and economic environment conductive to long-term mining investments.

The Code of Mineral Resource (Código de Recursos Minerales) of the Republic of Panama is administered by the General Directorate of Mineral Resources (Dirección General de Recursos Minerales), within the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias).

Relevant features of the Code of Mineral Resources include:

  • Exploration concessions, granted for a period of four years, extendible for two additional two-year periods upon application and approval.
  • Extraction concessions, granted for a period of 20 to 25 years depending on the class of mineral, extendible for three periods of ten, five, and five years, respectively.
  • Guarantee that, if an economic ore deposit is found in the exploration concession, the State is obliged to grant an extraction concession.
  • Royalties payable to Panama are 2% of gross production form mining of metallic minerals, or 4% for precious minerals in placers.
  • A depletion allowance deduction that can be applied annually based on the mineral reserves and the units extracted.
  • Use of accelerated methods of depreciation of physical assets.
  • Losses may be carried forward up to three subsequent years.
  • All equipment, spare parts, and materials required for a mining operation may be imported tax exempt.
  • All minerals produced in Panama may be freely exported and are exempted from any tax payment.
  • Amounts invested in infrastructure may be deducted from 25% of income taxes owing.


The fiscal environment for investment in Panama is generally favorable, with a maximum corporate income-tax rate of 30% of net profits, a 5% sales tax (but many items are exempt for mining projects), and of the US dollar as the national currency.

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