Panama approves property tax reform
September 18th, 2017, The National Assembly of Panama approved bill 509, which reforms the country’s property tax.
The approval of bill 509, that came after three debates, will exonerate the payment of the tax for the first $120 thousand dollars on primary dwellings and for the first $30 thousand dollars on secondary dwellings.
The tax reform will take effect starting in January of 2019 and will represent a substantial reduction in property tax in Panama.
The reform also offers taxpayers amnesty for paying outstanding taxes until December 2017. If fines are paid prior to the new calendar year the reform offers taxpayers significant savings, waving fines and interest on current outstanding property tax.
The property tax reform will benefit property owner across the board including those that currently own a property that has a tax exemption, as when that tax exemption expires the reform will apply.
The new property taxes in Panama for 2019
$0 - $120,000 Exonerated
$120,001 - $700,000 = 0.5% tax
+700,000 = 0.7% tax
Secondary Residence, Commercial Properties, Industrial properties
$0 - $30,000 Exonerated
$30,001 - $250,000 = 0.6% tax
$250,001 - $500,000 = 0.8% tax
$500,000+ = 1.0% tax