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  • Writer's pictureCaribbean Properties for Sale

Will I pay annual taxes on my new property?

Property taxes in Bocas del Toro, Panamá

Rights of Possession "ROP" properties do not pay annual taxes as titled properties do.

Property taxes on a titled property is 2 %/year based on the purchase price indicated on the "Deeds Transfer Contract" that will be registered in the national registry. Property taxes will be generated after the "Deeds Transfer Contract" is registered in the national registry. It might take a few months before the tax payment is due.

If the property purchase price is less than $30,000us, the property will not generate property taxes.

If you register your property as "Family Patrimony," you will get a property tax exoneration on the initial $120,000us of the property's registered value.

Example using a titled property purchased for $200,000us:

- Property purchase price $200,000us less $30,000us (basic deduction) = $170,000us amount that will generate yearly property taxes if your property doesn't meet the "Family Patrimony" requirements.

- If your property meets the "Family Patrimony" requirements. Property purchase price $200,000us less $120,000us = $80,000us, is the amount which will generate a 2%/year property taxes. Our attorney will help you with this "filing" process.

Note: Please consult your attorney before purchasing a property in Panama, as Real Estate rules can be modified anytime.



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