Exoneration Tax Real Estate

It is important for people interested in purchasing Real Estate in Panama to know that the Law 34 as of November 9, 2005 granted an exoneration of the Real Estate Tax for a period of 20 years for new constructions whose construction permits are dated before September 1, 2006.

This tax exoneration applies for such constructions only if they are finished, registered at the Public Registry and with an occupation permit before August 31, 2007.

For properties with construction permits approved on and/or after September 1, 2006, the tax exemption will apply as follows:

1. For constructions and improvements of residential use:

a. Costs up to $100,000.00, 15-year exoneration.
b. Costs of more than $100,001.00 and up to $250,000.00, 10-year exoneration.
c. Costs of more than $250,001.00, 5-year exoneration.

2. Other improvements: buildings for the development of industrial, commercial and agro-industrial activities, among others).

(a) Any value, 10-year exoneration.

You must request a copy of the construction permit of your new property in order to verify if you are subject to receive the referred exonerations.