In Panama, property tax is based on the assessed value of the property, with a rate of 0.5% per year. The assessed value is usually around 30% of the market value.
Capital Gains Tax (CGT)
Capital gains tax in Panama is calculated as 10% of the sale price. This tax is levied on the difference between the purchase price and the sale price, with the exception of the first $30,000.00, which is exempt from CGT.
Inheritance tax is not levied in Panama.
Gift tax is not levied in Panama.
Tax on Property Income
Income from property rental is taxed in Panama, with a rate of 10%.
Tax Advantages in Buying a House in Panama
- No property taxes for the first five years of ownership
- No inheritance tax
- No gift tax
- Incentives for retirees, such as a tax-free income of up to $1,000 per month.
Local Lenders that Provide Mortgages in Panama
- Banco General
- Banco Nacional de Panama
Links to websites of local lenders in Panama: