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Panama Overview

Tax Advantages

Property Taxes for Residential Properties:

1.75% from US$30,000 to US$50,000

Up to US$30,000 – NO TAX

From US$30,000 to US$100,000 – 15 year exemption

From US$100,000.01 to US$250,000 – 10 year exemption

From US$250,000.01 and up – 5 year exemption

Non-Residential Properties:

Tax exempted for 10 years after the first US$30,000

Land:

There is no exemption for land. Property taxes are due if the registered value is more than $30,000.

Panama Law 8 provides a 20-year property tax exemption for all real estate involved with tourism development. This includes tourist lodgings such as hotels and motels. Law 8 also provides for all investments in historic monument areas authorized by the national Cultural Institute (with a minimum investment of US$100,000 excluding the value of the land) and are exonerated for 10 years on the land and 30 years for the improvements. Casco Viejo, the historical district in Panama City, also has its own 30-year tax exemptions for investments made by August 2007.

All exemptions remain with the property (not the owner) so if you transfer title to another person, the remaining exemption years from property taxes will not change.