Ferguson & Ferguson

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:

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.

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