Panama real estate has been receiving great attention in the recent years. It’s only rightly so since investors are always looking to invest on a stable government and on a stable economy. With the interest on Panama property, Panama real estate market is even getting stronger. This even makes almost every Panama property more attractive and a good investment.
The good thing about investing in Panama real estate is the support you get from government. Since the Panama government gives you tax exemptions in certain Panama real estate investments, more and more investors are interested in buying a Panama property.
Panama Real Estate That Improve Panama Tourism
Surrounded by many white sand beaches and magnificent mountains, many investors buy a Panama property to develop their property for tourism purposes. Of course their investment in Panama real estate is quite worth it as many people come to Panama for vacations.
The market for such development in Panama real estate is really there. As more tourists come to Panama, the more they earn on their facilities. What even makes developing a Panama property a very good investment is the tax exemption offered by the government.
If the development of the Panama property is Panamanian Institute for Tourism approved, all income on the Panama property development are exempted from tax for 15 years. This includes income on the hotels, restaurants, golf courses, tennis courts and other facilities on the Panama property.
Of course, there are also some tax benefits and exemptions for smaller investors who want to help develop Panama real estate. For a minimum investment of $50,000 (exclusive of land value) on Panama real estate , investors are given a 20-year tax exemption on importation of materials, vehicles and equipment. They also get a 20-year tax exemption on real estate taxes on all the enterprise’s assets. Aside from that they are also exempted from airport and pier use taxes.
Panama Real Estate Property Taxes
A Panama property (inclusive of improvements and construction) valued at $30,000 or less is exempted from taxes. Agriculture land valued at $150,000 and less, and registered with the Ministry of Agriculture and Development is tax exempt as well.
This makes owning Panama property more attractive even more. This also shows how much the government supports and welcomes Panama real estate purchase and development.
Even taxable Panama properties are taxed at low rates. Properties valued between $30,000 and $50,000 is taxed at a 1.75% of the value of the whole property (land plus improvements). For properties valued between $50,000 and $75,000 the tax rate is 1.95%. Properties valued at $75,000 and above are taxed at 2.1%.
At such rates, it’s still less burden on the part of the investor. And with the great potential gains, it’s certainly a great investment.
Income and Capital Gains Taxes
Income earned outside Panama is not taxed in Panama. However, income taxes still apply for certain incomes made in the country. On the other hand, a flat 10% income tax is applied on capital gains made by individuals who occasionally sell Panama real estate. Professional real estate dealers are taxed up to 27%.
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Panama property.
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