# Creative Industries

> Panama offers a 25% cash rebate (proposed increase to 35%) on audiovisual production costs. Full tax exemption on production equipment, temporary visa for foreign crew, and permanent residency for $150K+ investment in the industry.

[Canonical page](https://investpanama.biz/en/invest/creative-industries)

Panama has developed a robust legal framework to attract international audiovisual productions. Law 16 of 2012 offers a 25% cash rebate on local production expenses, with proposals from the Mulino administration to increase it to 35%. Law 424 of 2023 promotes the Creative Economy as a strategic sector, including film, video games, performing arts, and gastronomy.

## Key figures

- **25%** — Production Rebate _(Source: Ley 16 de 2012)_
- **30-35%** — Proposed New Rebate _(Source: Viceministerio de Cultura 2025)_
- **$500K** — Minimum Budget _(Source: Ley 16 de 2012)_
- **$40M** — Maximum Budget _(Source: Ley 16 de 2012)_
- **$150K+** — Investment for Residency _(Source: Ley 16 de 2012)_

## Opportunities

- **Film Production** — Feature films, TV series, documentaries, and commercials with 25% rebate on local expenses.
- **Video Game Development** — Incentives extended to video game design and creation. The government is working on new specific incentives for gaming.
- **Post-Production and VFX** — Editing, visual effects, and sound services with access to National Incentives Registry benefits.
- **Music Videos and Digital Content** — Music videos, industrials, and digital content eligible for the incentive program.

## Resources

- [Variety - Panama Film Incentives 2025](https://variety.com/2025/film/global/panama-film-industry-new-incentives-1236360510/)
- [Entertainment Partners - Tax Credits](https://www.ep.com/production-incentives/latin-america/panama/)
- [Panama Film Commission](https://www.micultura.gob.pa/)