Panama Property Tax
Table of Contents
About the Panama Property Tax
The Panama property tax applies to all types of properties unless the property value is less than $ 30,000.00.
There are two tax tariff that apply to properties.
Tributary Family Patrimony or Primary Residence
Is the Property intended for housing purposes by the owner and his family.
Owners can declare only one property as Tributary Family Patrimony or Primary Residence.
To have the benefits of this tariff you have to apply for it.
It´s not automatic.
The tariff is as follows:
- Between $ 0 and $ 120,000 = exonerated.
- Between $ 120,001 and $ 700,000 = 0.5% of the value.
- At more than $ 700,000 = 0.7% of the value.
If your property has a tax exemption, you must choose one of the two benefits
Panama property tax exemptions for new construction
New Panama residential constructions with construction permits issued between 2012 to the 31st of December 2018 benefit from the following tax exemptions:
Construction value up to $ 120,000.00 exemption of 20 years.
$ 120,001 to $ 300,000 tax exemption of 10 years
$ 300,001 onwards, tax exemption of 5 years.
Land value is not exempt, only the construction value (mejoras)
Second residence, commercial and industrial properties
Secondary residences (not declared as Tributary Family Patrimony), commercial properties, and industrial properties must pay property taxes following this scale according to their declared value in the Panama Public Registry:
- Between $ 0 and $ 30,000 = exonerated.
- Between $ 30,001 and $ 250,000 = 0.6% of the value.
- Between $ 250,001 and $ 500,000 = 0.8% of the value.
- At more than $ 500,000 = 1.0% of the value.
Paying property Taxes in Panama
Panama property taxes are paid in 3 installments: April 30th, August 30th, and December 31st.
Payments after each due date have a 10% surcharge. There is also a 10% discount if you pay the full yearly cost of property taxes before March 1st.
