Countries › Panama › Guide › 6. Taxes › Other business taxes in Panama: the Aviso de Operación tax of 2 percent of capital, property tax schedules, real estate transfer tax and monthly stamp tax returns

Other business taxes in Panama: the Aviso de Operación tax of 2 percent of capital, property tax schedules, real estate transfer tax and monthly stamp tax returns

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

Besides income tax and ITBMS, a business operating in Panama pays an annual tax on its Aviso de Operación equal to 2 percent of its capital, with a B/.100 minimum and a B/.60,000 cap, while free zone and special economic area companies pay 0.5 percent with a B/.50,000 cap. Commercial and industrial real estate pays a progressive property tax of up to 1 percent of cadastral value, and the transfer of real estate carries a 2 percent transfer tax. Stamp tax is declared and paid monthly.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates freely 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

Annual Aviso de Operación tax, share of capital	2 %Código Fiscal art. 1004, as of 2026-10-29 · in force
Maximum annual Aviso de Operación tax	60000 PABCódigo Fiscal art. 1004, as of 2026-10-29 · in force
Annual capital tax for free zone and special area companies	0.5 %Código Fiscal art. 1004, as of 2026-10-29 · in force
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 a registered primary residence	120000 PABCódigo Fiscal art. 766, as of 2026-10-29 · in force
Real estate transfer tax (general)	2 %Ley 106 de 1974 art. 1 as referenced in Código Fiscal art. 701 literal a, 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. The annual tax on the Aviso de Operación de Empresas is 2 percent of the company's capital, with a minimum of B/.100 and a maximum of B/.60,000; individuals and companies with invested capital below B/.10,000 are exempt. Businesses in the Colón Free Zone, free zones and special economic areas need no Aviso but pay 0.5 percent of capital a year, minimum B/.100 and maximum B/.50,000; Colón Free Zone companies with a valid operating code are excused from that 0.5 percent from 1 January 2023 until 1 January 2028 if they report the jobs they plan to preserve.
Cost to do it: 2 percent of capital a year, between B/.100 (US$100) and B/.60,000 (US$60,000).
Example: A company with B/.500,000 of capital pays B/.10,000 a year; one with B/.8,000 of capital is exempt. / US$500,000 of capital, US$10,000 a year.Código Fiscal art. 1004 as worded by Ley 412 de 2023 art. 19, art. 1004, 2023-11-21 official text · verified 2026-10-29 · changed: Ley 412 de 2023 added the temporary exemption for Colón Free Zone companies from 1 January 2023 to 1 January 2028.

2. Property tax on commercial, industrial and other residences, land and other real estate is 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. The base is the cadastral value of land and buildings including improvements.
Example: An office with a cadastral value of B/.1,000,000: B/.1,320 plus B/.2,000 plus B/.5,000, total B/.8,320 a year. / US$1,000,000 cadastral value, US$8,320 a year.Código Fiscal art. 766-A as worded by Ley 66 de 2017 art. 5, in force from 1 January 2019 (art. 21), art. 766-A, 2017-10-17 official text · verified 2026-10-29

3. A primary residence registered as patrimonio familiar tributario or vivienda principal 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; a first home of B/.120,000 to B/.300,000 so registered is exempt for three years.Código Fiscal art. 766 as worded by Ley 66 de 2017 art. 4, art. 766, 2017-10-17 official text · verified 2026-10-29

4. Real estate transfers carry the 2 percent transfer tax of Ley 106 de 1974 art. 1, paid with the income tax on the gain before registration of the deed; since 31 August 2026 the first sale of a new home within two years of the occupancy permit is exempt on the first B/.120,000 of the base.Código Fiscal art. 701 literal a; Ley 106 de 1974 art. 4 as worded by Ley 546 de 2026, art. 701 literal a; art. 4, 2026-08-31 official text · verified 2026-10-29 · changed: Ley 546 de 2026 replaced the new home transfer tax exemption with a B/.120,000 exemption and a preferential scale up to B/.200,000.

5. Stamp tax is paid through authorized paper, sworn returns or another system approved by the DGI; those liable pay it monthly by sworn return filed within 15 calendar days after the month ends, with interest on late filing.Código Fiscal art. 946 as worded by Ley 8 de 2010 art. 47, art. 946, 2010-03-15 official text · verified 2026-10-29

Band of cadastral value (B/.)	Rate	Tax on B/.1,000,000
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	2,000
Above 500,000	1.00 percent	5,000
Total		8,320

Property tax on commercial, industrial and other real estate under Código Fiscal art. 766-A (Ley 66 de 2017), with the tax on a B/.1,000,000 property.

Worked example

A trading company with B/.500,000 (US$500,000) of capital owns its warehouse, with a cadastral value of B/.1,000,000.
It pays B/.10,000 of Aviso de Operación tax and B/.8,320 of property tax a year, US$18,320 in total, on top of income tax and ITBMS.
The same business inside a free zone would pay 0.5 percent of capital, B/.2,500, instead of the Aviso tax.

Step by step

Obtain the Aviso de Operación before operating and calendar its annual tax.
Check the cadastral value of each property and apply the right schedule; register a primary residence to use the home schedule.
On a real estate purchase or sale, verify that the income tax advance and the 2 percent transfer tax appear in the deed before registration.
File stamp tax returns monthly within 15 days if the business pays stamp tax by declaration.

Common traps

The Aviso tax follows capital, not profit, so a highly capitalized company pays even in loss years, up to B/.60,000.
Free zone companies are outside the Aviso regime but not outside the 0.5 percent capital tax, apart from the temporary Colón Free Zone relief to 2028.
Property tax is based on cadastral value, which can be reassessed.
Clauses shifting the seller's transfer tax onto a new home buyer are void since Ley 546 de 2026.

Sources

Related: Panama country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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