Countries › Panama › Guide › 11. Real estate and land › Property tax in Panama (impuesto de inmuebles): 0.6 to 1 percent on investment property, up to 0.7 percent on a registered home, exemptions and payment dates

Property tax in Panama (impuesto de inmuebles): 0.6 to 1 percent on investment property, up to 0.7 percent on a registered home, exemptions and payment dates

Last verified: 2026-10-29 · Status: Stable

Panama's national property tax applies to land and buildings on their cadastral value, set by ANATI at 60 percent of market value. Commercial, industrial, second home and land holdings pay nothing up to B/.30,000 and then 0.60, 0.80 and 1.00 percent by band; a home registered as family patrimony or main residence pays nothing up to B/.120,000, then 0.50 and 0.70 percent. The tax can be paid in three instalments by 30 April, 31 August and 31 December, with a 10 percent discount for paying the full year by the end of April.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Top property tax rate on commercial and industrial real estate	1.0 %Código Fiscal art. 766-A, as of 2026-10-29 · in force
Property tax exempt band for commercial, second home and land holdings	30000 PABCódigo Fiscal art. 766-A, as of 2026-10-29 · in force
Property tax exempt band for a registered primary residence	120000 PABCódigo Fiscal art. 766, as of 2026-10-29 · in force
Top property tax rate on a registered primary residence	0.7 %Código Fiscal art. 766, as of 2026-10-29 · in force
Cadastral value as a share of market value	60 %Código Fiscal art. 768 parágrafo 1, as of 2026-10-29 · in force
Discount for paying the full year by 30 April	10 %Código Fiscal art. 786 parágrafo, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. Commercial, industrial, other residential, land and other real estate pays a progressive combined rate of 0 percent on the taxable base up to B/.30,000, 0.60 percent on the excess up to B/.250,000, 0.80 percent on the excess up to B/.500,000 and 1.00 percent above B/.500,000.
Cost to do it: Up to 1 percent a year of cadastral value.
Example: Cadastral value B/.400,000: B/.1,320 plus B/.1,200, total B/.2,520 a year. / US$400,000 cadastral value, US$2,520 a year.Código Fiscal art. 766-A as worded by Ley 66 de 2017 art. 5, in force 1 January 2019 (art. 21), art. 766-A, 2017-10-17 official text · verified 2026-10-29

2. A property under the family patrimony (patrimonio familiar tributario) or main residence (vivienda principal) benefit pays 0 percent up to B/.120,000, 0.50 percent on the excess up to B/.700,000 and 0.7 percent above B/.700,000; the taxable base is the cadastral value of land and buildings including improvements. A first home bought and registered under the benefit with a cadastral value between B/.120,000 and B/.300,000 is exempt for three years from the occupancy permit or registry date, whichever comes first.
Example: A main residence with a cadastral value of B/.400,000: B/.1,400 a year. / US$400,000 main residence, US$1,400 a year.Código Fiscal art. 766 as worded by Ley 66 de 2017 art. 4, art. 766 and parágrafo 1, 2017-10-17 official text · verified 2026-10-29

3. To use the home benefit, the owner files a sworn declaration and a simple application with the DGI; if the DGI does not decide and notify within three months, the application is deemed accepted. Companies, private interest foundations and trusts may hold the home if the individual beneficial owners are identified and swear the home is their family patrimony or main residence. Registered homes cannot have their cadastral value raised by official reappraisal. Splitting values or simulating the benefit is fined B/.1,000 to B/.10,000.Código Fiscal art. 764-A as worded by Ley 66 de 2017 art. 2, art. 764-A, 2017-10-17 official text · verified 2026-10-29

4. Exempt from the tax are, among others, State and municipal property, places of worship, charities, property covered by treaties or contracts approved by law, any property with a taxable base up to B/.30,000, a family patrimony or main residence up to B/.120,000, farms used for agriculture with a cadastral value up to B/.350,000, and the main home of a person with a qualifying disability up to B/.250,000. No property may enjoy two exemptions at once.Código Fiscal art. 764 as worded by Ley 66 de 2017 art. 1 (numeral 9 as worded by Ley 49 de 2018 art. 1), art. 764, 2018-09-11 official text · verified 2026-10-29

5. Agricultural farm exemptions require a certification filed with the Ministry of Economy and Finance and may be extended for successive five year periods; while an extension is processed the farm does not accrue the tax.Código Fiscal art. 764 numeral 9 as worded by Ley 49 de 2018 art. 1, art. 764 numeral 9, 2018-09-11 official text · verified 2026-10-29

6. The cadastral value, the base of the tax, is set by ANATI's cadastral and appraisal office by official appraisal as 60 percent of market value, considering supply, location, land use, topography, frontage, depth, shape, drainage and environmental and social factors; improvements are valued at cost less depreciation over a 75 year useful life at 1.33 percent a year.Código Fiscal art. 768 parágrafos 1 and 2 as added by Ley 66 de 2017 art. 6, art. 768, 2017-10-17 official text · verified 2026-10-29

7. The annual tax may be paid in three instalments, due by 30 April, 31 August and 31 December; if the yearly tax is B/.10 or less it is paid in one instalment by 31 December. Late instalments carry a 10 percent surcharge. Paying the whole year's tax within the first four month period, by the last day of April, earns a 10 percent discount.
Cost to do it: 10 percent surcharge on late instalments; 10 percent discount for paying the full year by 30 April.
Example: A B/.2,520 annual tax paid in full by 30 April: B/.2,268. / US$2,520 tax, US$2,268 if paid early.Código Fiscal art. 786 as worded by Ley 66 de 2017 art. 7, parágrafo as worded by Ley 208 de 2021 art. 9, art. 786, 2021-04-06 official text · verified 2026-10-29 · changed: Ley 208 de 2021 art. 9 moved the 10 percent early payment discount deadline from the end of February to the end of April.

8. Banks, financial entities, cooperatives and other mortgage lenders act as withholding agents of property tax on the properties they finance, except properties registered as family patrimony or main residence; they report and deposit the amounts withheld.Código Fiscal art. 764-A parágrafo as worded by Ley 66 de 2017 art. 2, art. 764-A parágrafo, 2017-10-17 official text · verified 2026-10-29

9. Improvement exemptions granted under earlier laws stay in force for their term; condominium units whose improvements are still exempt pay 1 percent a year on the land value until that exemption ends, then the general schedules apply. Property owned by companies in free zones under Ley 32 de 2011 is exempt for ten years from establishment, and property of companies already established in the Panamá Pacífico area keeps its exemption until 31 December 2029.Ley 66 de 2017 art. 18; Código Fiscal arts. 766 and 766-A parágrafos transitorios, art. 18, 2017-10-17 official text · verified 2026-10-29

10. The DGI states that the tax applies to all land in Panama and the buildings on it, whether or not title is registered, and that taxpayers manage their property account in e-Tax 2.0 using the finca number and location code; it confirms the schedules, the three due dates and the 10 percent discount for paying by 30 April.Dirección General de Ingresos, impuesto de inmuebles page, Concepto and Cálculo, 2026-10-29 official text · verified 2026-10-29

Schedule	Band of cadastral value (B/.)	Rate	Tax on B/.400,000
Commercial, second homes, land (766-A)	0 to 30,000	0 percent	0
	30,000 to 250,000	0.60 percent	1,320
	250,000 to 500,000	0.80 percent	1,200
	Above 500,000	1.00 percent	0
Registered home (766)	0 to 120,000	0 percent	0
	120,000 to 700,000	0.50 percent	1,400
	Above 700,000	0.70 percent	0

Property tax schedules under Código Fiscal arts. 766 and 766-A (Ley 66 de 2017), with the tax on a B/.400,000 cadastral value.

Worked example

An investor owns a rented apartment with a cadastral value of B/.400,000 (US$400,000).
Under art. 766-A it pays 0.60 percent on B/.220,000 (B/.1,320) plus 0.80 percent on B/.150,000 (B/.1,200), B/.2,520 a year, or B/.2,268 if the full year is paid by 30 April.
If the same apartment were the owner's registered main residence, art. 766 would give 0.50 percent on B/.280,000, B/.1,400 a year.

Step by step

Register the property in e-Tax 2.0 with the finca number and location code and confirm ANATI has current cadastral values.
For a home, file the sworn declaration and application for family patrimony or main residence with the DGI; silence for three months means acceptance.
Pay the full year by 30 April for the 10 percent discount, or calendar 30 April, 31 August and 31 December.
If the property is mortgaged, check whether the bank is withholding the tax.

Common traps

A second home or a home held for rent does not qualify for the B/.120,000 home band; it pays under the commercial schedule.
Condominium units with exempt improvements still pay 1 percent of the land value each year.
Unpaid instalments carry a 10 percent surcharge, and the discount is lost if any arrears remain.
Splitting a property's value to fit an exemption is fined up to B/.10,000.

Sources

← Title registration and due diligence in Panama: the Registro Público, priority by presentation, registry fees and the checks before closingReal estate transfer tax in Panama: 2 percent paid by the seller, and the 2026 relief for the first sale of new homes →

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