Now Panama is finally coming to sense with real estate taxation. If this works out, the first $120,000 would be exempt – for life! The balance would be taxed at between 0.50 or 0.70 percent depending on what come of the proposals on the tables.
The association of private companies proposes applying a single rate of 0.5% on the surplus over $120 thousand for all property that is a main residence.
Panamanian businessmen believe that the bill that the government will be presenting, to raise the value of the houses that can be exempted from the payment of the property tax up to $120 thousand, is not equitable, and argue that the proposed rates are very high.
In this regard, they propose “… applying a single rate of 0.5% on the taxable surplus over US $120,000 for any property that qualifies as a main residence and 0.6% on the taxable surplus over US $30,000 for any other property that may belong to the taxpayer, be it other types of housing, commercial premises or other property”.
From a statement issued by the Chamber of Commerce:
The Chamber of Commerce, Industries and Agriculture of Panama, following a preliminary analysis of Bill 509, “That amends articles of the Tax Code in matters related to property taxes and dictates other provisions,” appealed to a search for a broad consensus among all sectors impacted, submitted recommendations for consideration and requested respect for legal certainty and commitments.
Applies only if you are married and living with children, not to single owners or retired people