Glossary · Taxes
Property tax exemption
Definition
In Panama, a primary residence is exempt from property tax on the first $120,000 of registered value (regime current as of July 2026). Additionally, new-construction improvements may enjoy temporary exemptions depending on the project and its permit date.
In practice
Two different exemptions get mixed up: the primary-residence one ($120,000, permanent while it's your declared residence) and the new-improvements one (temporary, inherited when you buy, with remaining years that run out). In pre-construction, 'exempt for X years' is a sales pitch: verify how many years actually remain and on what amount, because the exemption runs from the occupancy permit, not from your purchase. Land is generally taxed separately from improvements.
Related terms
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Panama property tax guide →General information, not legal or tax advice. Every transaction is confirmed with an attorney and accountant.
Term reviewed as of July 2026 · Vaca Group Real Estate, Lic. PN 5904