Taxes
Panama — Tax: Capital Gains
Panama taxes real estate transfers at 2% plus a 3% income tax advance, with the gain taxed at 10%, and securities gains at 10% with 5% withheld.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — Panama, Individual, Other taxesLast reviewed: 2026-10-23
Key facts
- Real estate transfers pay a 2% transfer tax and a 3% advance income tax on the greater of the gross price or cadastral value; the 3% can be final, otherwise tax is 10% of the gain with the advance credited.
- For a qualifying first sale of new construction the 2% transfer tax does not apply, and the rate is 0.5%, 1.5% or 2.5% for residential property by value tier, or 4.5% for commercial.
- On securities the buyer withholds 5% of the gross price, and the gain is taxed at 10% with the withholding credited.
- Gains on fixed assets are taxed at 10% with no withholding.
Steps
- Determine if the property is a primary residence — If the property is a primary residence, exemptions and deductions may apply, but this is not guaranteed and subject to tax authority discretion.
- Consult a tax professional — It is highly recommended to consult a tax professional to determine the specific tax implications for the individual case.