Bill to lower property tax in Panama
The Ministry of Economy and Finance presented on Thursday, August 10, 2017, the bill to reduce the property tax in Panama. This bill reformed the Tax Code to exempt from tax the homes registered as Family Tax Patrimony. This law seeks to achieve fiscal equity and at the same time protect the permanent housing of the family.
This initiative seeks to establish an exemption of property tax for housing up to $ 120,000 and a reduction in homes that have a higher cost. Properties costing $120,000 to $ 250,000 would pay 0.6% tax and more than $ 250,000 would pay the 0.9%.
For those properties that are intended for commercial purposes, there is also a reduction of the tax rate. Properties that have a value of $ 30,000 do not pay tax, and properties whose value is more than $ 250,000 pay 1.25% tax.
Dulcidio De La Guardia, Minister of Economy and Finance, said: “We present a project that permanently and indefinitely protects the family home and guarantees the collection of funds from the decentralization in order to continue bringing development to the most remote sites of the provinces”. He also explained that the bill brings other benefits, such as that it extends to retirees and pensioners in the country.
It also includes the possibility for taxpayers to cancel the property tax within two months of each fiscal year with a discount of 10%, this with the aim of encouraging the payment of property tax.