This tax is applied to the value of the property, which is not exonerated. We leave here a list of real estate taxes in Panama: 

Property tax

• 0.00% upon the taxable base from $0 up to $30,000.
• 0.60% upon the taxable base from $30,000 up to $250,000.
• 0.80% upon the taxable base from $250,000 up to $500,000.
• 1.00% upon the taxable base that exceeds $500,000.

Property Transfer Tax in Panama 

The transfer of property in Panama is 2% of the highest between the total value of sale or the registered value plus the value of any improvements as well as the 5% for each year after the property was obtained and the sale.

Tax Exemption Upon properties for 20 years 

Every apartment building recently constructed will be exempt from property taxes for 20 years since the date of first occupation. This exemption only applies to improvement and not the land. Since the exemption applies to the property and not the owner, the remaining years will continue with the property after it is sold. If the land is worth more than $30,000 USD then the property tax will apply.

We always recommend you consult with a specialist to better understand the buy and sell process of property in the country. The legislation might change. 

This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.