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Always seek professional advice on taxation issues.

-There is NO wealth or inheritance tax in Panama

- VAT is currently 5% (10% for imports)

- Income tax: 6.5 % ($6000 annual) to 30% (over $200,000 annual), certain deductions like medical and mortgage interest are allowed.

Note: Income from foreign sources is not taxed, a foreigner working in Panama would pay taxes, but a retired person receiving investment or pension income would not be liable.

- Social security rate: 8.5% for the employee, the employer pays an additional 12.5%

Taxes on property:

- Transfer of property title is approximately 2%, the seller must pay but the parties may negotiate, attorney's fees would be additional if you use one.

- Property tax 'impuesto terretorial' (annual) - properties under $20,000 declared value are exempt. 1.4% to 2.1% of assessed property value.

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Information courtesy of American-European Real Estate Costa Rica and Rhino Real Estate, Panama. Visit their websites to find prices and photos for 400+ properties in the most popular areas of Costa Rica and Panama.

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