New Regulations for Superyachts and Nautical Tourism

• Republic of Panama | Ministry of Commerce and Industries

• EXECUTIVE DECREE No. 4 of February 11, 2025

• The President of the Republic | In use of his constitutional and legal powers,

CONSIDERING:

That the Republic of Panama has significant geopolitical and economic importance due to its strategic geographic location, making it a natural bridge between two oceans: the Atlantic and the Pacific, its location and infrastructure are key to international trade, offering advantages for tourism and global connectivity;

That it is the duty of the Panamanian State to strengthen global visibility for the development of tourism and logistics, in order to strengthen the country as an ideal route for maritime mobility, linking administrative and inter-institutional actions, so that Nautical Tourism is promoted and encouraged at the national and international levels in the Republic of Panama, establishing the corresponding regulations;

That the Executive Branch, through the corresponding authorities and their dependencies, has the function of developing, adopting, and implementing strategic plans that promote tourism development, which includes, as one of our main attractions, the tourist offer of recreational nautical activities, whose significance significantly impacts local commerce;

That Law 80 of November 8, 2012, partially amended by Law 391 of July 27, 2023, which establishes incentives for the promotion of tourism activities in the Republic of Panama, declares tourism as a national priority and instructs central government entities, decentralized entities, and municipalities to adopt the necessary measures to incorporate the objectives and strategies set for the national development of tourism, including sport fishing and Nautical Tourism in its definitions, and promotes fiscal incentives for Marinas and docks;

That in accordance with Decree Law No. 4 of February 27, 2008, which creates the Tourism Authority of Panama (ATP) and establishes other provisions, among the main functions of this entity is the planning, design, and development of the national tourism policy, through the elaboration, adoption, and implementation of strategies that promote and increase tourism activities at the national and international levels, which implies coordination with the private sector and/or relevant state institutions;

That the Panama Maritime Authority (AMP), created by Decree Law No. 7 of February 10, 1998, has as its main objective the administration, promotion, regulation, projection, and execution of policies, strategies, legal and regulatory norms, plans, and programs that are directly, indirectly, or related to the functioning and development of the maritime sector. This includes, among other things, the coordination of activities with authorities linked to Tourism and with any other institution and authority related to the maritime sector, with the aim of promoting the socioeconomic development of the country.

That Law No. 56 of August 6, 2008, establishes as part of its objectives concordant with the National Maritime Strategy, the promotion of the economic and social development of the country and the promotion of the efficient use of port facilities, guaranteeing sustainable benefits and adequate returns to the State, the community, concessionaires, and maritime service providers, through port activities and the provision of Auxiliary Maritime Services. Among the related activities, those related to "tourist activities" are contemplated, providing support and adequate attention to tourism vessels, passengers, yachts, and mega-yachts in areas declared as tourist regions and destinations.

That Cabinet Resolution No. 14 of February 7, 2017, amended by Cabinet Resolution No. 96 of October 8, 2024, declares regions and tourist destinations or areas of tourist interest in the Republic of Panama, which is fundamental in the coordination between state entities for the development of projects related to tourist products, ensuring a safe and pleasant experience for visitors.

That Law No. 204 of March 18, 2021, regulates fishing and aquaculture in the Republic of Panama and establishes other provisions.

That in response to the need to incorporate measures and strategies for the national development of Nautical Tourism and Sport Fishing Tourism, and based on the considerations outlined above,

DECREES:

Article 1. For the purposes of the provisions of Law No. 80 of November 8, 2012, partially amended by Law No. 391 of July 27, 2023, the regulation, administrative and interinstitutional coordination, and technical coordination for the development of Nautical Tourism programs and projects are established, with the purpose of developing in the Republic of Panama all recreational and/or sports activities carried out in the maritime environment, primarily using vessels regardless of the flag under which they are registered.

Article 2. For the purposes of the application of this Executive Decree, the following terms shall be understood as follows:

1. Nautical-Sports Activity: Any activity related to the navigation of pleasure vessels, such as yachts and/or mega-yachts, for recreational purposes and/or the practice of sports activities at sea.

2. Boat Rental or Nautical Charter: The leasing of vessels for recreational purposes, Sport Fishing, and/or any other type of Nautical Tourism activity.

3. Vessel: For the purposes of this Decree, it shall be understood as any boat, yacht, and/or mega-yacht for recreational purposes.

4. Vessel in Transit: A vessel that remains in Panamanian waters for a period not exceeding 24 months.

5. Marina: A port facility and its land and water areas, whose specialized purpose is the provision of Auxiliary Maritime Services to recreational or sports vessels.

6. Mega-Yacht: A motor and/or sail vessel of 24 meters or more in length, with the capacity for its occupants or passengers to live and stay overnight, for recreational, leisure, and/or nautical-sports activities.

7. Yacht: A motor and/or sail vessel less than 24 meters in length, with the capacity for its occupants or passengers to live and stay overnight, for recreational, leisure, and/or nautical-sports activities.

8. Auxiliary Maritime Services: Any complementary service provided to vessels, with the purpose of meeting their basic needs, including provisioning, supply, equipment, and any requirements of the vessel, its passengers, or maritime, port, dock, and Marina facilities.

9. Public Service: A service that, by its nature, aims to provide support and satisfy the collective needs that the State must guarantee to the population.

10. Nautical Tourism: Any recreational and/or sports activity developed at sea, such as Sport Fishing, diving, snorkeling, sailing, surfing, water-skiing, kite-surfing, maritime tours, using recreational vessels, yachts, and/or mega-yachts, whether owned or chartered.

11. Sport Fishing: Fishing activity authorized by the State in continental waters or waters under the sovereignty or jurisdiction of the Republic of Panama, carried out by natural or legal persons, national or foreign, for sport, leisure, recreation, tourism, or hobby purposes, but not for the sale of fish, as determined by the Aquatic Resources Authority of Panama.

Article 3. The State shall guarantee attention in Marinas and tourist docks, through the efficient functioning of the government institutions in charge of controlling and carrying out the necessary procedures for the entry, whether in person or through online management, regarding the stay and departure of vessels, their captains, and crew members using Marinas and docks.

Government authorities shall receive the digital documentation provided by transit vessels, whether national or foreign-flagged, for the procedures they must manage in our country.

All these responsibilities shall be carried out in accordance with the principles of speed, timeliness, proportionality, justice, and equity, uniformly in all maritime control posts.

Article 4. That nautical-recreational and/or sports activities include Sport Fishing, the use of yachts and/or mega-yachts, including their temporary stays in Marinas, docks, and/or ports, for the practice of leisure, tourism, and ecotourism activities, as well as the rental of recreational vessels for transportation or nautical charter.

Article 5. The Tourism Authority of Panama (ATP), in coordination with the Panama Maritime Authority (AMP), is responsible for the development of Nautical Tourism throughout the Republic of Panama.

To achieve this objective, these entities may sign cooperation agreements with all relevant public and private entities, aimed at promoting, strengthening, and enhancing Nautical Tourism at the national and international levels throughout the Panamanian territory, especially in areas with potential for this type of maritime activities.

These agreements shall include annual operational plans, with the purpose of establishing programs, projects, actions, and any activities whose execution is beneficial for Panamanian commerce and tourism.

Article 6. In order to promote and strengthen Nautical Tourism in the Republic of Panama, the Tourism Authority of Panama (ATP) shall develop strategic plans to attract Nautical Tourism, through marketing, advertising, and project development programs that encourage national and international interest in all nautical-sports activities, Sport Fishing, Auxiliary Maritime Services, and related activities, positioning the Republic of Panama as a Nautical Tourism destination with competitive potential compared to other countries in the region and the world.

These projects shall promote nautical fairs, "Boat Shows," exhibitions, Sport Fishing tournaments, recreational activities in Marinas and public and concession ports, whose operational capacity allows for the development of local tourism.

Article 7. The Panama Maritime Authority (AMP), in order to enhance the national and international projection of Nautical Tourism, shall adapt the regulations related to Nautical Tourism, establishing benefits for ports, docks, and Marinas, whether public or private, in order to provide a nautical-tourist experience in line with the needs of users. Additionally, it shall oversee and ensure compliance with current regulations, concordant regulations, and all benefits arising from inter-institutional agreements and/or with private entities, including modifications to tariffs for vessels and/or ports, docks, and Marinas, so that these adjustments serve as an attractive element for the development of Nautical Tourism in our country.

Article 8. The Nautical Tourism Office is created, attached to the general administration of the Panama Maritime Authority (AMP). Its organizational structure, human resources, objectives, and functions shall be developed by the Board of Directors of the Panama Maritime Authority.

The Nautical Tourism Office shall be responsible for ensuring the coordination, cooperation, control, monitoring, nautical-tourist logistics, and other functions that the Panama Maritime Authority (AMP) must execute in accordance with the provisions of this Executive Decree.

Article 9. The staff working in the Nautical Tourism Office shall receive periodic training, for which the Tourism Authority of Panama (ATP) shall train human resources in tourism matters, mainly in the relevant aspects of the tourist activity regulated by this Executive Decree, and the Panama Maritime Authority (AMP) shall plan, promote, organize, and develop technical and specialized training sessions, provided by qualified personnel from public and/or private entities, in everything related to Nautical Tourism and Marinas, at the national and international levels.

Article 10. For the purposes of the activities described in the previous articles, the creation of a Single Registry Window for vessels entering the Republic of Panama for the development of Nautical Tourism and/or Sport Fishing activities is authorized. This window shall be located in state and/or concession ports, Marinas, and/or docks that, due to their strategic location, are easily accessible to receive vessels whose purpose is the development of nautical-tourist activities.

It shall be the responsibility of the Panama Maritime Authority (AMP), through the Nautical Tourism Office, to establish the location and placement of the Single Registry Windows in state and/or concession ports, docks, and Marinas, for which area inspections shall be carried out, taking into consideration the technical evaluations issued by the General Directorate of Ports and Auxiliary Maritime Industries for such purposes.

For the purposes of the previous paragraph, in the case of concession ports, docks, and/or Marinas of a private nature, the corresponding contractual adjustments shall be made to regulate the location of these Public Services in the granted concession perimeters.

Article 11. In Marinas and tourist docks, a physical area shall be designated at no cost, which shall be made available to state institutions for the exercise of public competences, as appropriate. Likewise, the State shall guarantee the necessary officials in these physical areas to carry out the required procedures and online management in a timely and expeditious manner.

Article 12. The entities that shall integrate the Single Registry Window for vessels are: the National Migration Service, the National Customs Authority, and the Panama Maritime Authority (AMP), which shall coordinate it. This is without prejudice to the inclusion of any other state institution that, in the opinion of the Nautical Tourism Office, is required for the better exercise of the functions of said Single Registry Window and to provide all possible facilities to the vessels received, especially when dealing with vessels that are not Panamanian-flagged.

They shall be established in a single location.

Article 13. The Single Registry Window for vessels entering the Republic of Panama shall maintain a Single Payment Regime, which shall be duly administered by the Panama Maritime Authority (AMP). Additionally, it shall be responsible for keeping records of entry, stay times, and departure of vessels, without prejudice to the fact that, during the stay of said vessels in Panamanian jurisdictional waters, whether in port, dock, or Marina, they may be crewed or uncrewed.

Article 14. The captain or operator of transit vessels, whether national or foreign-flagged, shall be responsible for the technical direction of navigation and, as a representative, shall carry out the procedures for said Vessel and its crew before government authorities, in compliance with the requirements established by regulations.

In the event that the replacement of the captain of a foreign-flagged Vessel is required, the procedure may be carried out at the Single Registry Window of the Nautical Tourism Office. To accredit the new captain of said foreign-flagged Vessel, the latter must comply with the procedures for obtaining a temporary permit to operate vessels in accordance with the corresponding procedures at the Directorate of Seafarers of the Panama Maritime Authority.

Once the requirements are met, the Nautical Tourism Office shall accredit the new captain within a maximum period of forty-eight hours and notify the port captaincy and the Marina. Replacement captains may be either national or foreign for the remainder of the Vessel's stay.

While the replacement procedure is being carried out, the Vessel may remain in national waters and shall resume navigation once the accreditation of the new captain is completed. The procedures indicated in this article may be carried out by the authorized shipping agent.

Article 15. The Panama Maritime Authority (AMP) shall determine the concession and/or state ports whose operations are compatible with the development of tourism and ecotourism, which are obliged to carry out all activities related to Nautical Tourism in the Republic of Panama. Likewise, the Panama Maritime Authority (AMP) shall establish the anchoring areas intended for the stowage and unstowage of vessels. The Board of Directors of the Panama Maritime Authority (AMP) shall regulate the use and tariffs for such purposes.

Article 16. For the development of nautical-sports activities in the Republic of Panama, the Panama Maritime Authority is authorized, through its Board of Directors, to establish, among others, the following benefits:

1. Special free navigation permit in jurisdictional waters for the first three (3) months of stay, for vessels dedicated to carrying out nautical-sports activities and/or whose purpose is to promote Nautical Tourism and/or Sport Fishing within the jurisdictional waters of the Republic of Panama.
2. Special free navigation permit for the rental of recreational vessels or nautical charter, with foreign registration or Panamanian registration with an international service navigation patent that, during their temporary stay in the Republic of Panama, are made available to operating companies for local charter leasing that maintain a valid operating license for the Auxiliary Maritime Service of vessel leasing in jurisdictional waters of the Republic of Panama.

The above must be duly supported by a special charter contract, of a temporary nature, and comply with all regulations and technical safety requirements for navigation.

Without prejudice to the above, the exemption of any kind of taxes, fees, and services for arrival and anchoring, even those indicated by custom, is maintained for foreign yachts and mega-yachts dedicated to the development of nautical-sports activities and/or whose purpose is to promote Nautical Tourism and/or Sport Fishing within the jurisdictional waters of the Republic of Panama, whose stay does not exceed the period of one year, in accordance with the provisions of paragraph c, numeral 4, article 8 on incentives for tourist products, of Law No. 80 of November 8, 2012.

All state entities are authorized, within the framework of their powers, to establish any other benefits that contribute to the strengthening, growth, and competitiveness of commerce and the development of Nautical Tourism in the Republic of Panama.

Article 17. This Executive Decree shall enter into force upon its promulgation.

LEGAL BASIS. Political Constitution of the Republic, Law No. 80 of November 8, 2012, partially amended by Law No. 391 of July 27, 2023, Decree Law No. 4 of February 27, 2008, Law No. 56 of August 6, 2008, Law No. 204 of March 18, 2021, and Decree Law No. 7 of February 10, 1998.

• COMMUNICATE AND COMPLY. Given in the city of Panama, on the eleventh (11th) day of the month of February of the year two thousand twenty-five (2025).
• JOSÉ RAÚL MULINO QUINTERO President of the Republic
• JULIO A. MOLTÓ A. Minister of Commerce and Industries