Property
Panama — Property: Property Taxes
Panama's annual immovable property tax runs from 0% to 1.0% by value and use, with a 2% transfer tax and a 3% income tax advance on property transfers.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries, Panama corporate other taxesLast reviewed: 2026-10-26
Key facts
- Immovable property tax is an annual 0% to 1.0% depending on the property's value and use.
- Real estate transfer tax is 2% of the greater of the gross amount or cadastral value; it does not apply to new housing sold within two years of the occupancy permit.
- An income tax advance of 3% applies to property transfers (may be treated as definitive, or tax assessed at 10% of the gain with the 3% credited).
- Capital gains on fixed assets are taxed at 10%.
Steps
- Obtaining a property tax assessment — The property owner must request a tax assessment from the local municipality, which will then determine the taxable value of the property.