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Taxes

Panama — Tax: Vat

Panama charges 7% ITBMS VAT, 10% on alcohol and hotels, 15% on tobacco, and a 2% real estate transfer tax.

VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — Panama, ITBMS and property taxesLast reviewed: 2026-10-23

Key facts

  • The general ITBMS rate is 7%, with 10% on alcoholic beverages and hotel accommodation and 15% on tobacco.
  • Exports are not taxed, and medicines, foods and certain baby products are not taxed.
  • Real estate transfers pay 2% transfer tax plus a 3% income tax advance on the greater of price or cadastral value.
  • Annual immovable property tax runs 0% to 1.0% depending on value and use.

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