Learn all the taxes and closing costs involved in purchasing property in Panama. Use this updated guide to calculate your investment.
If you’re considering buying property in Panama, it’s essential to understand all related taxes and expenses. Here’s a clear guide to help you estimate your true investment.
Real Estate Transfer Tax: This tax is normally paid by the seller, but it can be negotiated. It amounts to 2% of the higher value between the sale price and the cadastral value.
Notary and Public Registry Fees:
- Notary: 0.1%–0.5% of the price
- Public Registry: 0.1%–0.5%
- Estimated total: Approximately 0.5%–1%
Other possible costs:
- Bank fees (if using a mortgage)
- Property appraisals
- Municipal clearance certificates
- Certified translations (for foreigners)
Tax exemptions for new properties
Panama offers attractive tax incentives:
- Property improvement tax exemptions for 5, 10, or up to 20 years for new projects
- Low annual property tax (0%–1%)
Knowing these costs helps you avoid surprises and better plan your investment. At DOZE & CO Real Estate, we provide transparent guidance throughout the entire purchasing process in Panama.
