Does Panama offer any tax exemptions to foreign buyers?
Yes. This tax exemption is an exciting benefit of buying property in Panama and applies to nationals and foreigners who buy property in Panama. A major incentive to buy any property in Panama is the 20-year property tax exemption law. The law was first passed by the Panamanian government in 1990 as a way to encourage economic growth and investment. The exemption mandates that buyers of new homes or condos do not have to pay property tax for up to 20 years. In late December, 2007, Panama extended the 20-year tax emption until the end of 2009. This means buyers who close on a property before December 31, 2009 are exempt from paying property tax for 20 years. Maybe it’s time to take another look at Panama properties. Of course, buyers should check with a project’s developer and/or their personal accountant to ensure that this law applies to their purchase.
Yes. This tax exemption is an exciting benefit of buying property in Panama and applies to nationals and foreigners who buy property in Panama. A major incentive to buy a condo hotel unit, or any property for that matter, in Panama is the 20-year property tax exemption law. The law was first passed by the Panamanian government in 1990 as a way to encourage economic growth and investment. The exemption mandates that buyers of new homes or condos do not have to pay property tax for up to 20 years. After several extensions to the law, it finally expired on August 31, 2007. But, the government saw the benefits of the exemption and introduced new ones of 5 to 15 years depending on a particular property’s value. Developers, real estate agents, and construction companies lobbied the government for the return of the 20-year ‘blanket’ exemption, but the government wouldn’t budge, until now. In late December, 2007, Panama extended the 20-year tax emption until the end of 2009. This means buyers
