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It's baaaaack...The 20-Year Property Tax Exemption
New Properties Built by December 31, 2009, Will Be Exempt!
I just received this info and thought I'd share....
Good news to kick off the new year.
As you know, one of the big incentives to
buy property in Panama has traditionally been the
20-year property tax exemption law, first
passed in 1990 to encourage economic development and
investment. The exemption freed
buyers of new homes or condos from paying property
tax (improvements value) for up to 20
years.
> The exemption has been extended several times, but
> it finally expired August 31, 2007. The
> government introduced new exemptions of five to 15
> years, depending on the value of the
> property. Though real estate companies, construction
> companies, and developers lobbied for the
> return of the 20-year blanket exemption, the
> government refused. Until now...
>
> The government of Panama has had a change of heart.
> On Saturday, December 22, Housing
> Minister Balbina Herrera announced that the 20-year
> tax exemption has been extended through
> December 31, 2009. "We are doing this not only
> because the construction sector is important to
> the national economy, but also because 95% of the
> new construction is for nationals and only 5%
> for foreigners," said the Minister, seemingly in
> response to critics that say the exemption benefits
> wealthy expats rather than the struggling
> Panamanians it was intended to help.
>
> Bottom line: if construction on your new residential
> property is complete by December 31, 2009,
> you won't pay property tax for 20 years from the
> date of completion. Talk about mega-savings.
>
> Even if you buy a resale, the remaining exemption
> time is transferred to you. For example, if you
> buy a residential property that was built in 2000,
> you won’t pay property tax on it till 2020.
>
> Just remember, land itself is not exempted and will
> continue to incur property taxes if its value is
> above $30,000.
Terrific news!
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