Thread: Tax exemption for new houses

hi , friends are building a new house and I mentioned that i thought there is still a 20 yr tax exemption on new houses , she can not find anything out about this from her lawyer , does anyone know if it is still in affect ? thanks

Hi!

The 20 year exemption ended and now it is 15, 10, or 5 years depending on the value of the home. I think you had to have building permit by June 30 and occupancy by December 31, 2011. A good lawyer would know. I remember reading it in the Visitor about the changes a while back when they were changed. I think it was before they did away with bringing in a car every 2 years duty free. Don't believe everything on the internet from these offshore or relocation sites because they don't update information!

Try looking at this link for the information you are looking for: Clarification of the property tax exemption - Panama Investor Blog

I hope this helps.

Mary
www.whypanama.com

I believe that without the exemption, around 2% per year. That can be significant.

Hi!

There is a sliding scale on the property taxes. The first $30K is exempt, $30-$50K 1.75%, $50k-$75K 1.95%, $75K+ 2.1%. Those percentages can add up fast!! The exoneration stays with the house if you sell it.

Mary
www.whypanama.com

thanks for the info , i passed this link onto them and she can forward it to her lawyer who cant seem to find anything ( go fiqure ) LOL

Originally Posted by whypanama

Hi!

There is a sliding scale on the property taxes. The first $30K is exempt, $30-$50K 1.75%, $50k-$75K 1.95%, $75K+ 2.1%. Those percentages can add up fast!! The exoneration stays with the house if you sell it.

Mary
www.whypanama.com

As far as I know, the exemption for the first $30k is gone. I'm sure about condominiums but I'm not sure about houses.

The house thing is still in place. The condos taxes are a whole different ballgame.

Mary
www.whypanama.com

Hello everyone,.... I welcome to all of you here on this forum and i want to get information about this question to all of you. Our professor told us that there is a new computation for tax exemption. I've been trying really hard to find it but i just couldn't. can u please tell me how to compute for tax exemption this 2011.

Hi Culver!!

Look at post #2 above.

Here it is in a nutshell:

Unlike the previous schdule of exemptions which had September 1, 2005, as threshold date for construction permits which would qualify for the 20-year exemption, Bill 386 has a confusing text which applies :

• the normal 5-15 year exemption to residential improvements with building permits issued AFTER September 1, 2006,
• the 20-year exemption when the building permit was issued before JULY 1, 2009.

What happens with homes with building permits dated between September 1, 2006 and June 30, 2009? Presumably they would be subject to a 20-year exemption only if they register the improvements by the 2011 cutoff date. If they miss the 2011 date, the normal 5-15 exemption applies.


Despite this extension, residential improvements have the normal limited exemptions of:

• 15 years Up to US$ 100,000.00
• 10 years From US$ 100,000.00 to US$ 250,000.00
• 5 years Above US$ 250,000.00

Mary
www.whypanama.com

Mark:

I would assume you need to talk to a lawyer to make sure everything was filed correctly and you had your occupancy permit registered, etc. to qualify for the 20 year exemption. In developments they usually handled that stuff and there should be stuff stapled to your title/deed.

Mary

Panama Will Reinstate 20 Year Property Tax Exoneration - Panama Guide

Well did they reinstate it or if not when will they?