The Panama Investor Blog had a useful document on taxation in Panama posted yesterday. The report, which is in .pdf format and published in English, is produced by the audit and tax advisory firm KPMG, and can be found here. The document provides an in depth look at Panama’s tax regime, and how it effects foreign investors in a variety of industries, including real estate and construction.
Here are a few excerpts from the report that may be interesting to real estate investors:
- Chapter 2, which begins on page 11 of the report outlines different the different economic sectors foreign investors may be interested in investing in. Page 20 in this chapter has information on the construction industry, and discusses related tax exemption laws for new construction.
- Chapter 4, beginning on page 39 of the report discusses special economic zones in Panama, several of which provide exemption from real estate tax. Page 45 specifically discusses tax provisions for investing in tourism.
- Chapter 8, which starts on page 87 has information on taxable income on individuals, including capital gains taxes. Chapter 9 discusses other taxes, including real estate tax, which is included on page 100 of the report.
The report provides a solid background on tax laws in Panama, yet given the 2006 publication may now be out of date. Some laws, such as the tax exemption on new construction, have been changed extended and updated since the document was written. As a result, the information in the document should not be taken as legal advice, but instead as a good in depth brief on Panama’s tax regime.
Here’s a link to the Panama taxation document.
