Embrace Panama's Attractive Property Tax Exemptions

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If you're considering moving to Panama, you're in for a pleasant surprise! The government of the Republic of Panama has introduced significant changes to property tax exemptions, making it even more appealing for potential residents. Legal@Work is here to help you understand these changes and assist you in taking advantage of these incredible opportunities.

Understanding the New Property Tax Exemptions

Panama's Official Gazette No. 28388-C, Law 66 of October 17, 2017, brought amendments to the Fiscal Code, which increased the property tax exemption range. The key changes include:

• Properties serving as the Main Residence or Family Tax Patrimony with a tax base, including improvements, not exceeding B/.120,000 are exempt from property tax.
• Properties with a cadastral value not exceeding B/.250,000 that serve as the main and permanent residence for a person with a disability are also exempt.

These changes apply to all eligible properties starting in 2019.

Breaking Down the Terminology

Before diving into the benefits, let's clarify some terms:

• ‍Family Tax Patrimony: A property intended for permanent use by the owner and their family, living under the same roof, for residential purposes.‍
• Main Residence: A property used permanently by the owner, a natural person, for residential purposes, among their residential real estate, that does not constitute family patrimony.

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The Benefits for You and Your Family

With these updated tax exemptions, Panama offers an attractive incentive for families, retirees, and individuals with disabilities seeking a new place to call home. If your property qualifies under the new guidelines, you can enjoy a 100% tax exemption on your property.

Moreover, if your property exceeds the exempt cadastral value of B/.120,000 but is still used for residential purposes, you can still benefit from the tax relief. Your property will be taxed only on the excess cadastral value, in accordance with the table established in article 766 of the Fiscal Code.

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How to Apply for the Tax Exemptions

To qualify for the tax benefits granted by the Family Tax Patrimony or Main Residence exemptions, follow these steps:

• Gather the necessary documents, as indicated in the executive decree issued by the Executive Branch.
• Submit a simple application to the General Directorate of Revenue, accompanied by the required documents.

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Why Choose Legal@Work to Assist You?

Navigating the process of moving to a new country can be both exciting and challenging. Our team of experts at Legal@Work is here to guide you every step of the way, ensuring that you can fully benefit from Panama's generous property tax exemptions. With our assistance, you can confidently make the move and embrace the opportunities that await you in this vibrant and welcoming country.

Contact us today to learn more about how Legal@Work can help you navigate Panama's property tax exemptions and embark on your new journey in this beautiful land.

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