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Property Taxes in Panama
By The Panama Gringo | June 25, 2007
Land in Panama is not taxable if the value of the property is $30,000 or less. Property valued above that is taxable. Improvements like a house may have an exoneration for up to 20 years so this comment is only about the land not the improvements. In the past it has been a benefit to both the buyer and seller to minimize the on paper value of a land sale. Lower captial gains for the seller, lower or no property taxes to the buyer.
Enter change. Property owners have until December 2007 to have their property reappraised to market value. This provides the owner a tax free increase in basis which will reduce the capital gains on sale, but if the new price is above $30,000 the triannual property tax will start. Properties not volunatrily reappraised will be appraised by the government.
Rates for real estate tax
Taxable Amount Rate percentage (%) Accumulated (US$)
Under US$30,000 zero zero
US$30,001 to US$50,000 1.75% $350
US$50,001 to US$75,000 1.95% $837.5
Over US$75,000 2.1%
Through an attractive addition on 2005, an alternative combined progressive real estate tax, up to taxpayer, is established on the following terms (see below):
Alternative rates for real estate tax
Taxable Amount Rate percentage (%) Accumulated (US$)
Under US$30,000 zero zero
US$30,001 to US$50,000 0.70% $140
US$50,001 to US$75,000 0.90% $365
Over US$75,000 1.00%
To qualify for the new rate your property must be reappraised before the end of 2007.
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April 5th, 2008 at 8:49 pm
We’re looking for something for sale by owner.
We had heard that there’s no real estate tax for
the first 20 years. I’m confused.