Tax Breaks for property owners in Panama
Exoneration of Real Estate Tax in Panama
For all people interested in acquiring Real estate in the Republic of Panama, be informed that by means of the Law 34 of 9 November 2005 an exoneration of the Real Estate Tax for a period of 20 years for new constructions whose construction permits are dated before September 2006 was approved.
This tax exoneration applies for mentioned constructions only if they are finished, registered at the Public registry and with an occupation permit before 31 August 2007.
For Real Estate with construction permits approved on and after 1 September, 2006 the tax exemption will apply as follows:
- For constructions and improvement of residential use:
- Costs up to USD100,000.00 and up to USD250,000.00, 10 years of exoneration.
- Costs of more than USD250,000.00, 5 years of exoneration.
- Other improvements: (buildings for the development of industrial, commercial and agro-industrial activities, among others).
- Any value, 10 years of exoneration.
We recommend you to always ask for a copy of the construction permit when you are buying Real Estate in Panama.