Will I need to pay annual taxes on my property? If yes, how much?
ROP "Rights of Possession" 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 six months to one year before tax payment is due.
If the property purchase price is less than $30,000us, the property will not generate property taxes.
If you file your property as "Family Patrimony," you will get a property tax exoneration on the initial $120,000us of the registered value of the property.
Example using a 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 “Family Patrimony” filed: $200,000us less $120,000us = $80,000us amount that 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 could be modified at any time.