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| The Return of Panama’s 20- Year Property Tax Exemption |
One of the main incentives to buy property in Panama was the 20-year property tax exemption law, first
passed in 1990 to encourage economic development and investment. The exemption freed buyers of new
homes or condos from paying property tax for up to 20 years.
The exemption had been extended several times, but finally expired Aug. 31, 2007. The government
introduced new exemptions of five to 15 years, depending on the value of the property. Though real estate
companies, construction companies, and developers lobbied for the return of the 20-year blanket
exemption, the government refused. Until now...
Law No. 9 - The World’s #1 Retirement Program
Make this stunning tropical retirement haven your new home, and the mercifully low cost-of-living will help
you save a considerable amount of money:
And amazingly, when you take advantage of Law No. 9, you’ll pay even less than this for most of your
everyday necessities--enabling you to enjoy an incredibly low cost-of-living while living in one of the
Western Hemisphere’s most fascinating and beautiful countries.
In fact, I don’t know of a comparable law in existence anywhere else in the world. When it comes to
affordable overseas living, the benefits contained in Law No. 9 remain unparalleled. Read about Law No. 9
here.
The government of Panama had a change of heart. On Saturday, December 22, Housing Minister Balbina
Herrera extended the 20-year tax exemption until December 31, 2009. “We are doing this not only because
the construction sector is important to the national economy, but also because 95% of the new construction
is for nationals and only 5% for foreigners,” said the Minister, seemingly in response to critics claiming the
exemption benefits wealthy expats rather than the struggling Panamanians it was intended to help.
Bottom line: if construction on your new residential property is complete by December 31, 2009, you won't
pay property tax for 20 years from the date of completion.
Even if you buy a resale, the remaining exemption time is transferred to you. For example, if you buy a
residential property that was built in 2000, you won’t pay property tax on it until 2020.
Just remember, land itself is not exempted and will continue to incur property taxes if its value is above
$30,000.
passed in 1990 to encourage economic development and investment. The exemption freed buyers of new
homes or condos from paying property tax for up to 20 years.
The exemption had been extended several times, but finally expired Aug. 31, 2007. The government
introduced new exemptions of five to 15 years, depending on the value of the property. Though real estate
companies, construction companies, and developers lobbied for the return of the 20-year blanket
exemption, the government refused. Until now...
Law No. 9 - The World’s #1 Retirement Program
Make this stunning tropical retirement haven your new home, and the mercifully low cost-of-living will help
you save a considerable amount of money:
And amazingly, when you take advantage of Law No. 9, you’ll pay even less than this for most of your
everyday necessities--enabling you to enjoy an incredibly low cost-of-living while living in one of the
Western Hemisphere’s most fascinating and beautiful countries.
In fact, I don’t know of a comparable law in existence anywhere else in the world. When it comes to
affordable overseas living, the benefits contained in Law No. 9 remain unparalleled. Read about Law No. 9
here.
The government of Panama had a change of heart. On Saturday, December 22, Housing Minister Balbina
Herrera extended the 20-year tax exemption until December 31, 2009. “We are doing this not only because
the construction sector is important to the national economy, but also because 95% of the new construction
is for nationals and only 5% for foreigners,” said the Minister, seemingly in response to critics claiming the
exemption benefits wealthy expats rather than the struggling Panamanians it was intended to help.
Bottom line: if construction on your new residential property is complete by December 31, 2009, you won't
pay property tax for 20 years from the date of completion.
Even if you buy a resale, the remaining exemption time is transferred to you. For example, if you buy a
residential property that was built in 2000, you won’t pay property tax on it until 2020.
Just remember, land itself is not exempted and will continue to incur property taxes if its value is above
$30,000.
Article