If you’re planning to sell real estate in Panama, it’s important to understand the tax responsibilities that come with the transaction. At United Country Real Estate Panama, we help homeowners, investors, and expats navigate the process smoothly — from listing to closing — and that includes making sure you’re informed about Panama’s real estate taxes.
Below is a clear breakdown of the main taxes sellers must pay when selling property in Panama, including Transfer Tax, Capital Gains Tax, and Outstanding Property Taxes.
💰 1. Real Estate Transfer Tax (Impuesto de Transferencia de Bien Inmueble – ITBI)
When you sell a property in Panama, the seller is responsible for paying a 2% Transfer Tax.
Key points:
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The rate is 2% of the sale price or the registered cadastral value, whichever is higher.
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This tax must be paid before the title transfer can be completed at the Public Registry of Panama.
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Without proof of payment, the buyer cannot register ownership of the property.
✅ Tip from United Country Real Estate Panama:
Ensure your property’s registered value is updated before the sale. Outdated cadastral values can lead to paying more tax than necessary.
📈 2. Capital Gains Tax (Impuesto sobre la Renta por Ganancia de Capital)
Panama’s Capital Gains Tax applies to the profit you make from selling your property. Sellers have two payment options:
Option 1: 3% Advance / Definitive Tax
You can choose to pay a 3% tax on the greater of the sale price or cadastral value. This can be treated as your final tax, with no further calculations needed.
Option 2: 10% on Actual Net Gain
Alternatively, you can pay 10% on the actual capital gain — that’s the difference between your selling price and the property’s adjusted cost basis (which includes your purchase price, allowable expenses, and annual adjustments).
💡 However, you must always pay the 3% advance at the time of sale.
If your actual 10% tax calculation is lower than the 3% paid, you may request a tax refund or credit from Panama’s Tax Authority (DGI).
🏡 3. Outstanding Real Estate Taxes (Impuesto de Inmueble)
Before selling, make sure all your annual property taxes are up to date.
You must:
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Pay any unpaid property taxes and accumulated fines.
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Obtain a Certificate of Good Standing (Paz y Salvo) from the Panama Tax Authority (DGI).
Without this certificate, the title transfer cannot proceed at the Public Registry.
⚖️ Important Notes for Sellers
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Taxable Base: For the 2% Transfer Tax, the taxable base is the greater of the sale price or the official cadastral value.
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Seller’s Responsibility: In Panama, the seller is legally responsible for paying both the 2% Transfer Tax and the 3% Advance Capital Gains Tax.
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Buyers typically cover notary fees, registration costs, and legal expenses.
🌎 Why Work With United Country Real Estate Panama?
Selling real estate in Panama can seem complex — especially with tax obligations, documentation, and government filings involved.
At United Country Real Estate Panama, our local experts specialize in:
✅ Preparing your property for sale
✅ Handling all necessary paperwork and tax compliance
✅ Ensuring a smooth, transparent closing process
Whether you’re a Panamanian seller or an international investor, we make selling your property in Panama simple, secure, and profitable.
📞 Contact United Country Real Estate Panama Today
Ready to sell your property in Panama?
Our team is here to guide you through every step — from valuation to closing.
📞 +507 6653-3197