Sales
Property Type
All Regions
We found 0 results. View results
  1. Home
  2. Panama Real Estate Guides and News
  3. Property Taxes in Panama
Your search results
Property Tax in Panama

Property Taxes in Panama

Posted by regionpanamarealty on October 25, 2019
Panama Real Estate Guides and News
0

Per Law 66 of October of 2017, the property taxes in Panama for your main residence which value does not exceed US$120,000.00 is zero. But, keep in mind this value includes lot and construction. Moreover, you must register your property as your main residence to take advantage of this tax holiday.

Below are the rates for property taxes in Panama for main residence:

  • 0.0% if the registered value of your property is under US$120,000.00
  • 0.5% from US$120,001.00 to US$ 700,000.00
  • 0.7% From US$700,0001.00 and above

For any other properties (commercial, industrial, second home, raw land) the property taxes are as follows:

  • 0.0% if the registered value of your property is under US$30,000.00
  • 0.6% from US$30,001.00 to US$ 250,000.00
  • 0.8% From US$250,0001.00 to US$500,000.00
  • 1% From US$500,001.00 and above

If you are buying a house or a condo for the first time in Panama and it is your main residence, you are entitled to a 3-year property tax exoneration. However, the value of your home should be between US$120,000.00 and US$300,000.00. Keep in mind this is not automatic, you must file your property as your main residence. But don´t worry, in Region Panama, we can assist you with this process.

If you own a property in which occupation permit was issued prior to December 31st of 2012, you have a 20-year tax exoneration. It is applied to the value of the construction. Nevertheless, if the property registration date is between 2012 and 2019, the rax holiday applies as follows:

  • Up to US$120,000.00 the exoneration applied will be for 20 years
  • From US$120,000.00 to US$300,000.00 the exoneration applied will be for 10 years
  • From US$300,000.00 or more the exoneration applied will be for 5 years

Very important, once the term of the exoneration has expired, the tariffs will be according to Law 66 of October of 2017 above.

Paying property taxes in Panama is actually quite simple. If you have a user ID for the government´s DGI department https://dgi.mef.gob.pa/ , you can pull your property tax statement and go to any Banco General or Banco Nacional to pay them. You can also pay online if you are familiar with the system.

Setting up a user´s ID can take some time, especially if you don´t know the language. For this reason, at Region Panama, we can help you pay your property taxes which are due every quarter (April, August, and December). You can pay the year in advance at any given time. Keep in mind the Panamanian government does charge fees for late payment so it´s best to pay for the year before April. Ask us for our fees to provide this service and to make sure you don´t fall behind on your property taxes. Especially if you are thinking of selling your home in Panama

Please, don´t hesitate to let us know if you have more questions about Real Estate Taxes in Panama. At Region Panama we´ll be glad to assist you.

Compare Listings