Panama approves bill to modernize film industry and attract international productions

The Panamanian Cabinet has approved Bill 40-26, a legislative initiative designed to modernize, unify, and strengthen the national film and audiovisual industry. The bill repeals Law 16 of 2012, which officials noted was drafted when the local cinema sector was still in its infancy.

Minister of Culture María Eugenia Herrera will present the proposal to the National Assembly. The new framework aims to provide greater legal certainty and competitive incentives comparable to leading Ibero-American nations such as Colombia, Mexico, Spain, and the Dominican Republic. The goal is to attract high-end international film productions, thereby generating technical and creative employment, boosting tourism, and stimulating economic growth in the country's interior.

Key provisions of the bill include fiscal and operational benefits intended to decentralize production. Specifically, the bill offers additional incentives for productions that utilize at least 80% Panamanian labor, as well as extra benefits for foreign shoots that ensure 30% of local hires are first-time employees.