Properties with Rights of Possession (ROP) are not required to pay annual taxes, unlike titled properties. On the other hand, titled properties are subject to a yearly property tax based on the purchase price indicated on the "Deeds Transfer Contract" registered in the Panama national registry. The payment of property taxes for titled properties will be generated after the "Deeds Transfer Contract" is registered. It may take a few months before the tax payment is due.
Table for Property Tax for other Properties that do not qualify for "Primary Residence"
Property Value Tax rate Yearly Property taxes
Up To $30,000us (Exempt) (0%) $0
$30,001us to $250,000us 0.6% $1,320us
$250,001us to $500,000us 0.8% $2000us
$500,001us or more 1% $5000us
Property taxes will not be generated if the property purchase price is below $30,000.
Registering your property as "Family Patrimony" will result in a property tax amnesty on the initial $ 120,000 of the property's registered value.
Example using a titled property purchased for $200,000us:
1) The property purchase price is $200,000 less $30,000 (basic deduction), which is the $170,000 amount that will generate yearly property taxes if your property doesn't meet the "Family Patrimony" requirements.
2) If your property meets the "Family Patrimony" requirements, the property purchase price, $200,000 less $120,000, the amount of $80,000 will generate property tax. Our attorney will help you with this process.
Note: Please consult your attorney before purchasing a property in Panama, as Real Estate rules can be modified at any time.
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