Ensure That Your Property in Panama Is Exempt from Paying Taxes
It’s not a secret anymore that the new properties that lie within the territory of Panama are entitled to 20 years of property tax exoneration. In fact, this is actually the key factor that is attracting many investors to invest in this beautiful land. However, it is a common misconception among many people that this exoneration is applied automatically after once they purchase the property and this is why they don’t seem to give much priority to this concern.
Nevertheless, when taking handle over the sales of our clients’ property, we have often come across the fact that the registration of tax exoneration was never done properly and the present owner instead owes money for the unpaid taxes that should have been absolutely exempted. This can turn out to become a really serious circumstance for the property’s owner who is attempting to make a sale successfully. The only two alternatives available in this case are to either don’t consider of making the sale as long as the property is legally registered for the exoneration, or to choose to sale and make payments of the due taxes and sale your property on its own and let the new buyer to register for the tax exoneration. Whenever you choose to buy a property qualifying the tax exemption, you should ensure that the title transfer has been accordingly updated on the Ministry of Economy and Finance records, and also make sure that the tax exoneration has been properly completed. It’s an undeniable yet bitter fact that many developers don’t let their clients know about the truth that properly tax exoneration will not be automatically applied once the property is bought. Perhaps that is why many property owners assume that this issue doesn’t exist at all when purchasing the property. If you want to ensure whether or not your property is also facing such an issue then you can contact us at and we will let you know if there is any tax exoneration issue related to your property.