I have been asked by several people about the status of the 20 year tax exoneration so I asked my freind in Panama City what he knew. Kent Davis is well versed in the subject which is one of the main selling features of a residence in Panama and one that kept the condo boom alive in the City. Here is what he sent me.
Property Tax:
According to Law No. 21 of 2008 the tax exemption for property has change as follows:
All of those properties which construction permit has been issued from September 2006 and upon the registration of the improvements on the Public Register will be exempt as follows:
Worth Tax Exempt
US$ 100,000.00 15 years
US$ 100,000-US$ 250,000.00 10 years
US$ 250,000.00 5 years
Those projects which construction permit is issued before July 1, 2009 and the correspondent improvements are duly register at the Public Register before December 31, 2011 will be tax exempt for 20 years.
If you get an appraisal on the property and it does not fall within the exoneration, you’re looking at the following:
| Registered Value of Property | Yearly Tax Percentage |
| Under 30,000 | 0% |
| 30,001 – 50,000 | .70% |
| 50,001 – 75,000 | .90% |
| OVER 75,001 | 1.0% |
A $100,000 property under the alternative property tax calculation would be as follows:
0.00% on the first $30,000 = $ 0.00
1.75% on the next $20,000 = $140.00
1.95% on the next $25,000 = $225.50
2.10% on the next $25,000 = $250.00
Total Tax Burden = $615.00