Glossary · Taxes
Transfer tax (2%)
Definition
In Panama, transferring real estate pays a 2% tax, calculated on the greater of the sale price or the updated cadastral value. By law and custom, it is the seller's obligation, not the buyer's.
In practice
Together with the 3% capital-gains advance, it forms the seller's tax package that must be paid before the deed can be recorded. For the buyer, the practical effect is one of timing: those payments and their receipts are part of the closing file. For a foreign seller, it pays to calculate both taxes before setting the asking price — our tax guide walks through the numbers.
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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