Panama: Incentives for Updating Property Value

Property tax would decrease from 2% to 1% for those who willingly update the value of their properties in the civil registry.

Wednesday, July 22, 2009

With these modifications to property taxes, the government of Panama is looking for taxpayers to update the value of their lots and properties, in order to increase collection. With the modifications, an estimated $250 million could be collected, up from the $80 million being collected now.

"A rule from Law 6 from 2005 will be mantained in this project: those who willingly update the registered value of their property will pay a preferential 1% tax rate. The current rate is 2%", published Prensa.com. "Expert Osvaldo Lau gives a positive evaluation fo the measures. The 2% real estate property tax 'is the highest of the region, we will be more competitive with the 1% tax incentive'".

More on this topic

Panama: Request to Modify Cadastral Revaluations

September 2014

A proposal has been made to change the tax exemption bracket from over $30,000 to $120,000 and for the rate for amounts above that figure to be set at 0.25%.

Although the process of cadastral appreciation in the capital city was suspended in November 2013, the private sector claims that the rule remains in effect and proposes amending it in order to minimize the impact of appraisals in the payment of property tax.

Panama: Land Revaluation Suspended in the Capital

November 2013

The measure will only be suspended in the capital until they manage to redefine the revaluation process, and will still be in effect at the beaches.

From a press release by the Ministry of Economy and Finance:

The Ministry of Economy and Finance wishes to make public its willingness to suspend the process of cadastral appreciation in the capital. In the meantime, the measure will continue to be upheld in the beach areas.

Cadastral Valuation Updates in Panama

February 2013

The Ministry of Finance has initiated a cadastral revaluation of properties that have never updated their value.

The Ministry of Economy and Finance (MEF) began the process of updating cadastral in various parts of the province of Panama, including the area of beach that stretches along the development centers, located from Punta Chame to Buenaventura, covering Pacific beach fronts and the Interamerican Highway, reports Panamaamerica.com.pa.

Costa Rica: Luxury Residences Tax Comes Into Effect

October 2009

Today, a new tax for residences worth more than $170.000 (¢100 million) comes into effect in Costa Rica.

The law, dubbed 'Solidary Tax' ('Impuesto Solidario'), will tax luxury houses for ten years.

"Every three years, on the first 15 days of January, homeowners will have to update the fiscal value of their property by means of an electronic statement. It won't be deductible from income taxes", reports Nacion.com.

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