Panama Property Tax Guide 2026
Panama imposes several property-related taxes: registration fee 2%, stamp duty 2%, CGT 10% on gain, and annual property tax of 0.5-1% (progressive). Primary residence is exempt from CGT and has reduced annual tax rates.
Transfer Taxes (Acquisition)
When purchasing property in Panama, the buyer incurs two main transfer taxes:
- Registration fee: 2% of the registered property value — paid to the Public Registry
- Stamp duty (Timbre): 2% of the property value — paid on the deed of sale
These are one-time taxes due at closing. Additional notary and legal fees apply separately.
Annual Property Tax
Panama imposes an annual property tax (Impuesto de Inmuebles) on real estate. The rates are progressive:
- 0%: First PAB 30,000 of taxable value
- 0.5%: PAB 30,001 – PAB 50,000
- 0.7%: PAB 50,001 – PAB 75,000
- 0.9%: PAB 75,001 – PAB 250,000
- 1.0%: Over PAB 250,000
Primary residences benefit from a reduced rate on the first PAB 80,000 of taxable value (exempt).
Capital Gains on Property
See the Capital Gains Guide for details. CGT on real estate is 10% of the gain. Primary residence is exempt. A 3% withholding at notary acts as an advance payment.