Is there self-employment tax for real estate investors in Panama?
There are no “self-employment” taxes for real estate investors in Panama, however, local real estate investors are taxed on their income the same way any other person would be taxed on locally generated income, and they are required to file annual tax declarations. Please note that income taxes on real estate purchases and sales can generally be avoided through certain structuring techniques using Panamanian corporations and private interest foundations.
No. There is no “self-employment” tax for real estate investors in Panama. However, local real estate investors pay their normal income tax where declarations are made about their income from real estate business. These can also be avoided through certain structuring techniques through use of Panamanian corporations and private interest foundations. Q: What would happen if I were to perish (die), and I have real estate in my personal name in Panama? Are there inheritance taxes in Panama, whereby the Panamanian government would keep a certain percentage of my beneficiaries’ inheritance? A: Yes. If you own assets in your personal name, you could lose as much as half of your properties to the Panamanian government when you die. For this, we recommend our clients to hold their properties under Panamanian corporations and use a Panama Private Interest Foundation to hold the shares of each corporation. This enables them to distribute their assets to their beneficiaries, avoiding all inherita
