Are there property title transfer taxes in Panama?
Yes, the government of Panama charges 2% of either the updated registered property value or the sales price — whichever is higher. This is why most sophisticated investors utilize Panama corporations to hold ownership to property, so that when they sell the property, they simply sell the shares of the corporation as a whole, therefore avoiding a title transfer, and avoiding the 2% title transfer tax.
Yes, the government of Panama charges 2% of the registered property deed value each time you transfer title from one name to another name. This is why most sophisticated investors utilize Panama corporations to hold ownership to property, so that when they sell the property, they simply sell the shares of the corporation as a whole, therefore avoiding a title transfer, and avoiding the 2% title transfer tax.
Yes there are. Government of Panama charges 2% of the value registered in the deed every time a title transfer takes place. This is the reason why most investors make use of a Panamanian corporation in real estate transactions. The corporations own the property and the seller simply sells his/her shares only. Since no transfer of titles takes place the 2% title transfer tax need not to be paid.
