If you have purchased real estate in Panama, or are planning on doing so the following may significantly lower your property taxes
Law 21 of the fifteenth of April of 2008 establishes extensions to the tax exonerations set forth by Law 6 of 2005. These exonerations can be applied to any construction with construction permits issued before the 1st of July of 2009. These special exonerations are for a period of 20 years starting from the time that the improvements are inscribed, or when the authorities issues the certificate of occupancy, whichever of the two occurs first.
The exoneration will be applied if these properties with building permits issued before the 1st of July are duly inscribed in the public registry by the 31st of December of 2011.
Law 21 which was approved in April of 2008, is of public interest and has a retroactive effect by declaration of the same law.
Law 6 of 2005 stated that new construction with construction permits issued before the 1st of September of 2006, and who obtained their occupancy permits before the 31st of Agust of 2007 would be exonerated from property taxes for a period of 20 years.
Law 6 also established that real estate with occupancy permits expedited after the 31st of Agust of 2007 would be exonerated in the following manner:
- 15 years of property tax exonerations for Residential properties with a value up to 100,000 USD
- 10 years of property tax exonerations for residential properties with a value between 100,000 USD and less than 250,000 USD
- 5 years of property tax exonerations for residential properties with a value of 250,000 USD or more.
Law 21 of the 15th of april of 2008 was published in the Gaceta Oficial Digital No. 26020 of April 2008.