Taxes in Panama
Livtopia-Panama works with the finest tax lawyers and accountants familiar with the Panamanian system so we are happy to refer you, or to help you navigate the Panamanian landscape. These are the basics to know before you get started.
Property taxes are calculated on a sliding scale. Those worth less than US$30,000 do not pay tax. Those worth between US$30,000 & $50,000 pay 1.75%, those worth between US$50,000 & $75,000 are charged 1.95% and all those worth more than US$75,000 are charged 2.1%
Transfer Taxes must be paid by the seller of real estate, 2% of the updated registered value of the property or the sale price (whichever is higher). The updated value is the registered value plus 5% for each year of ownership. Your lawyer may be able to help you to avoid some of the transfer tax.
Capital Gains Tax is charged at a rate of 10% on gross profits if you do not sell more than 2 properties in the year. This tax is charged at the same time as the Transfer Tax. Those selling more than 2 properties the gains must be reported in the annual tax return and are taxed at the same level as income tax.
Rental Income Tax is charged up to the maximum income tax level of 27% on returns over US$200,000.
For questions on these, and any tax-related issue, Livtopia-Panama will be happy to refer you to a qualified accountant or lawyer.