The Minister of Economy and Finance (MEF), Dulcidio De La Guardia, announced the presentation of a new bill on property taxation in Panama, specifically affecting families.
The proposal consists of a 100% property tax exemption for houses value up to 120,000.00 USD as long as they are used for Family Patrimony.
The intention behind the new bill, is that the main dwelling of Families will not be subject to appraisals and property value updates by the National Land Administration Authority (ANATI).
The new bill will also create a tax table that will benefit and apply to those whose property’s are not eligible to receive the Family Patrimony Status, resulting in a reduction of the property tax rate for them as well.
Currently without the new bill in place, the initial value of 30,0000 USD for properties are except from property taxes. The new bill would up the tax free value from 30,000.00 USD to 120,000.00 USD for homes that fall under the family patrimony category. From the value of 120,000.00 USD – 250,000 USD a tax rate of .5% would be assessed. For any values above 250,000.00 USD a tax rate of .9% would be assessed.
For all other properties, including businesses, industries and second homes the initial value of 30,000.00 USD would be except from property taxes. The value from 30,000.00 USD through 250,000.00 USD would be taxed at a rate of 0.6%, and any value above 250,000.00 USD would be assessed a property tax rate of 1% .