Property Taxes in Panama

Primary Residences

Panamanian property owners can benefit from tax exemptions if they declare their property as "Tributary Family Patrimony" or "Primary Residence." The law allows for one property declaration based on the owner's situation, and once declared, the new property tax scheme applies. Under the new Tax Law 66, there is a full exemption for the first $120,000 of the property's registered value, and the tax rate varies from 0.5% to 0.7% for higher property values. This benefit extends to married couples, single parents, retirees, pensioners, and properties held within trust accounts.

Primary Residency Property Tax Rates

Property ValueProperty Tax RateProperty Tax (Yearly)
Up to $120,000 Exempt (0%)$0
$120,001- $700,0000.5%$2,900
U$700,001 and up0.7%0.7% of property value

Note: tax rates are based on the declared value of the property in the Panama Public Registry.

Practical example: If your property is worth $850,000, you'd be exempt for the first $120,000, then you'd pay $2,900 for the next tax bracket up to $700K and multiply the remaining property value to find out what the 0.7% would apply to ($850,000 - $700,000 = $150,000). So you multiply $150,000 x 0.7% and you get $1,050. Your yearly property tax would then be $2,900 + $1,050 = $3,950

Secondary Residences

Secondary Residences or vacation homes in Panama are taxed slightly  higher.

Secondary Residency Property Tax Rates

The Panama property tax rates for secondary properties, as of 1 January 2019 are:

Property ValueProperty Tax RateProperty Tax (Yearly)
Up to US$30,00Exempt (0%)US$0
US$30,001 to US$250,0000.6%US$1,320
US$250,001 to us$500,0000.8%US$2000
US$500,001 or more

Note: tax rates are based on the declared value of the property in the Panama Public Registry.

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The Law 28 of 2012 offers tax exemptions for new residential properties in Panama if they were constructed between 2012 and December 31, 2018. The tax exemptions apply only to the registered value of the construction improvements, not the land value.

For residential properties:

  • If the construction value is up to US$120,000, the tax exemption lasts for 20 years.
  • If the construction value is between US$120,001 and US$300,000, the tax exemption lasts for 10 years.
  • If the construction value is US$300,001 or more, the tax exemption lasts for 5 years.

Additionally, all other types of construction (e.g., commercial, industrial, etc.) are eligible for a 10-year tax exemption on the registered value of the construction.

To keep the granted tax exemptions in effect, the property owner must not register the property as a Tributary Family Patrimony or Primary Residence.It's essential to note that the tax exemption does not apply to the land value, and property tax would still need to be paid on the land if its value is above US$30,000.

HOw do i apply for primary residency status for my home?

In order to register a home as a Primary Residence, the owner must submit the following paperwork to the Dirección General de Ingresos (DGI):

The property’s rightful owner must present  a sworn signed declaration that the home will be used as a primary residence together with a copy of the owner’s cedula or passport and a copy of the property’s deed.  If it is a married couple that is requesting the Primary Residence, they must also attach a copy of their marriage certificate, and if the marriage was celebrated outside of Panama, the certificate must be validated by the Government of Panama.  If the couple has children, they must also attach a copy of their birth certificates. Slight variations apply in case of divorced, widowed or legal people.


Panamanian property taxes are paid in three installments: 

By the 30th of  April

By the 30th of August

By the 31st of December

You can either pay them online via the e-Tax 2.0 portal on the DGI website or directly at the DGI offices  on Avenida Balboa.  

You can pay them upfront on a yearly basis. Late payments will be charged a 10% penalty.


You can save 10% on your property taxes by paying them yearly upfront before the 30th of April in 2023 and 2024.
You can download this form, fill it in and request your discount at the DGI offices.