As of March 15th, 2010 the new “Tax Reform Law” has been put into place in Panama and as a result the amount due for importing a car to
Panama has changed. In the past retirees were able to bring cars into Panama tax free, but now they will be required to pay regular importation taxes on any vehicles brought into Panama. For retirees hoping to be able to bring over there car without any taxes, those days have ended as of March 15th.
The new car import taxes are as follows:
- All passenger cars (Sedans, SUVs, etc) regardless of class must pay:
- 15% tax if they are valued under $8,000
- 18% tax if they are valued between $8,000 and $20,000
- 23% tax if they are valued between $20,000 and $25,000
- 25% tax if they are valued at more than $25,000
- Electric and hybrid cars are not required to pay any tax until December 31st, 2012, and 5% from then on.
- Cargo vehicles pay 10% tax
- Commercial vehicles pay 12% tax
- Public transportation vehicles pay 10% tax
- Motorcylces greater than 125cc, boats, yachts, aquatic vehicles and outboard motors greater than 75cc pay 10% tax
There is also a minimum tax on all cars depending on the year of manufacture.
- Older than 12 months: $750
- Older than 24 months: $1,000
- Older than 36 months: $1,500
On top of these new taxes there is the standard 7% ITBMS, which is the Goods and Services tax.
And if that wasn’t enough, all of the percentages listed above are applied to the car per the value that Panama Customs applies to the car, not the Blue Book or any other reference value. In general customs tends to assign a higher value to vehicles than dictated by the market (as has been my experience in other countries), which can be a real pain when it pushes you into the next percentage bracket. The process of valuation by Panama Customs is long and tedious, as is pretty much everything having to do with Panamanian government.
These new taxes will eventually cause prices to rise at the dealer in Panama as well, as it is unlikely that they will just cover the additional costs of importation.
What has yet to be seen, or at least what I am unaware of, is if retirees who got their status before March 15th will be Grandfathered in, or if they will have to pay the taxes as well.
If you are seriously thinking of importing your car to Panama, you might want to consider purchasing this guide: How 2 Panama.
Can you explain what happens when you drive your car into Panama and you are a permanent resident and plan to use the car in the country? I have read that you don’t pay any import fees until you go to sell it. Is this true?
Thanks,
Melanie
Melanie,
That was true back in 1987 when I was there. But I would imagine that loophole has been closed. (As a military person we were also able to have one vehicle shipped in duty free.)
Hey, well im looking to buy a car which is about $51,000 here in Panama
If i order it from USA, the same car will cost me $36,750 and i wouldnt have to pay taxes according to the state law of Florida, since im not going to title, or register the car within the US
Well the thing is, if i must pay 25% of $36,750. it will be
$36,750 + $9,187 = $45,937
Also since the car is coming out of the US, i will not have a warranty, and I’d rather buy the car here in Panama for 51,000 with the warranty.
But let me get to the point, well my plan is to let my grandpa buy the car for me, since hes 74 years old, and hes been a foreign resident in Panama for over 30 years now. Is there a way he can import the car without paying any taxes if the car goes under his name?
Thankyou,
Atish
We bought a new car in August 2007 and duty tax was subtracted from the price. We now want to sell and we have been told we will have to pay the tax since it is a deferred tax not duty free at all. Others have said there is a time limit before selling without taxes. What’s the real answer
Thanks,………………..Mike
I have a 2001 GMC Savana , work van. I want to bring it, packed with my tools. I have two other friends that want to share a container. I am not a resident here in panama. but have my business and land in a panama corp.. The van is worth about $2,500.00 in canada but runs great. i want to give it to my foreman.
What are the taxes on the van and the tools?