Starting 2019, Panama has updated its property tax regime, by reducing rates per brackets and creating new ones. On top of that, a more beneficial rate and bracketed system has been created for what’s considered Family Patrimony or Main Dwelling. Let’s examine each regime.
Based on the official value of the property, you’ll end up paying taxes calculated according to the following chart:
0% From $ 0.00 to $ 30,000.00 0.6% From $ 30,000.00 to $ 250,000.00 0.8% From $ 250,000 to $ 500,000.00 1.0% From $ 500,000.00 on.
Being this a progressive formula, taxes are calculated per bracket, hence in order to estimate the tax to be paid, the value of the object property must be segmented, as well. Let’s say we want to calculate what taxes are on a $ 300k apartment, we know that the first segment up to $ 30k will be exempted, but then, taxes on the second bracket – this is, from $ 30k to $ 250k – would be 0.6% of $ 220,000.00 (difference between $ 30,000 and $ 250,000); the result for the second bracket would be $ 1320.00. Now, we still have $ 50k to complete the value of the examined property, this will fall