TAXATION IN PANAMA
IN PANAMA, PROPERTIES NEWLY BUILT ARE EXEMPT FROM TAX UP TO 15 YEARS
While many tax exemptions are offered in Panama, new constructions can give you between 5 and 15 years of exemption from property taxes on improvements. It is also important to understand that the state requires the participation of all residents in the country to survive, so it has specific tax rates that must be met to obtain legal documents in any transaction.
TDI Real Estate we have specialists in the tax issue to meet the requirements established by the Tax Code of taxes in Panama, on the properties we offer to our customers.
TAXATION IN PANAMA: REAL ESTATE
Article 764 of the Tax Code of Panama indicates that the properties are exempt from property tax. These properties include:
- All properties registered in the amount of $ 30,000 or less, including improvements on the land, ie construction.
- Land used exclusively for agriculture and registered with the Ministry of Agriculture and Development at less than 150,000 USD.
The real estate tax base should be the sum of the value of the land plus improvements, including any construction on the land.
EXEMPTIONS FOR NEW BUILDINGS
Depending on the value of construction and, whether residential or commercial, the following terms apply:
OUSING CONSTRUCTION worth up:
- $120,000 USD has 20 years of property tax exemption on improvements.
- $ 120,000 USD to $ 300,000 USD receives 10 year exemption from property taxes on the improvements.
- $ 300,000 USD or more, gets 5 year exemption from property taxes on the improvements.
OTHER IMPROVEMENTS: buildings for the development of commercial, industrial, agro-industrial activities and generally non residential.
- Any value has 10 years of property tax exemption on improvements.