Foreign Pensions not Taxed by Panama
Panama does not tax foreign-source income. Funds from pensions or interest received from the US or other jurisdictions outside of Panama are not subject to taxation .
IResident liability for Panama source income
An individual is considered "resident' if he is present in Panama for more than 180 days in any one tax year. Individuals, like businesses, pay income tax on Panama-source income. 'Panamanian-source' means that the services rendered are provided within Panama.
Real Estate Tax
Property is taxed if the title is registered in the Public Registry. Certain properties are exempt from land tax. This includes properties whose tax basis, including improvements, does not exceed $30,000.00.
The tax basis (value of the land plus the improvements) is:
a. 1.40% over
the excess of $10,000.00 of the tax basis, up to $20,000.00 over the tax
.Real estate taxes have priority over all encumbrances on the property
Exemption from Property Taxes on New Homes
Panama law grants up to a 20 year exemption from property taxes on the construction of new homes and condos.
This tax incentive has been extended by the government of Panama. It is now valid for homes and condos purchased, or with a valid building permit, from September 1, 2005 to August 31, 2006.
Contact us if you want further information regarding Panamanian tax issues..
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