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Legal Services
REAL ESTATE LEGAL SERVICES
At Panama Prime Estates, we help investors, buyers, and property owners navigate Panama’s legal and tax landscape with confidence.
Our network of experienced lawyers and consultants ensures smooth transactions, compliance with regulations, and strategic tax planning for both residents and international clients.
1. Real Estate Law
Contracts & Legal Structures
We work closely with trusted law firms specializing in real estate law in Panama, assisting clients with:
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Drafting and reviewing purchase and sale agreements, lease contracts, and investment documents.
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Establishing corporate entities for property ownership, investment, or development projects.
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Handling title verification, due diligence, and registration with Panama’s Public Registry.
Our goal is to ensure your investment is legally protected and every transaction is handled with transparency and precision.
2. Guide to Panama Real Estate Taxes
Understanding Panama’s tax system is crucial for investors.
Below is a concise overview of the main taxes related to property ownership, sales, and rental income in Panama.
For personalized advice, we recommend consulting a qualified Panamanian tax professional.
1. Property Taxes (Impuesto de Inmuebles)
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Taxes apply to all properties based on the combined land and building value (as appraised by the Oficina de Catastro).
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When property is sold above the appraised value, the sale price becomes the new taxable base.
Exemptions:
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Properties valued under $30,000 USD (including improvements).
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Agricultural land valued under $150,000 USD, registered with the Ministry of Agriculture.
Tax Exonerations on Improvements:
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Up to $120,000 USD → 20 years
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$120,000–$300,000 USD → 10 years
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Over $300,000 USD → 5 years
2. Property Sales Tax
Sellers pay tax on the difference between the sale price and the registered value, calculated based on ownership period. The process typically takes up to six months and may involve legal fees.
3. Rental Income Tax
Rental income is subject to income tax, but certain deductions apply for maintenance, repairs, and depreciation.
4. Value Added Tax (ITBMS)
A 7% sales tax applies to rental income, except when:
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Monthly revenue is below $3,000 USD, or
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Annual revenue is below $36,000 USD.
5. Real Property Transfer Tax
A 2% tax applies to the higher of the sale price or registered value, plus 5% per year of ownership.
6. Capital Gains Tax
A 10% tax is levied on the net gain from property sales.
Tax Payment & Verification
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Obtain a Taxpayer ID (NIT) at no cost via etax2.mef.gob.pa.
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Taxes are due three times per year: April, August, and December.
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Payments can be made at Banco General, Caja de Ahorros, or Banvivienda.
Invest confidently in Panama’s real estate market with expert guidance on your side.
3. Residency & Visa Programs
Panama offers several residency and investor visa programs designed to attract foreign investors, entrepreneurs, and retirees.
Explore the most popular options below:
Panama Investor Visa (Golden Visa)
Also known as the “Red Carpet Visa,” this program offers permanent residency through direct investment.
Investment Options:
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Real Estate: Purchase property worth $500,000 USD (or $300,000 for a limited time).
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Stock Market: Invest $500,000 USD in Panamanian securities.
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Bank Deposit: Fixed-term deposit of $750,000 USD in a Panamanian bank.
Benefits:
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Permanent residency in as little as 30 days.
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Enjoy all rights of Panamanian residents.
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Application can be initiated from abroad.
Contact us for expert assistance with the Panama Golden Visa and start your residency process today.
Panama Friendly Nations Visa
A streamlined path to permanent residency for citizens of 50 friendly nations with economic and professional ties to Panama.
Eligibility:
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Must hold citizenship from one of the 50 eligible countries.
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Purchase property in Panama worth $200,000 USD or more.
Benefits:
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Fast approval (typically within months).
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Grants permanent residency.
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Includes dependents (family members).
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Access to local business and investment opportunities.
Panama Pensionado Visa
A top choice for retirees looking to live comfortably in Panama with significant lifestyle benefits.
Requirements:
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Verifiable lifetime pension of at least $1,000 USD per month, plus $250 per dependent.
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Pension can come from government or private sources.
Benefits:
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Permanent residency for life.
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Discounts up to 50% on healthcare, entertainment, and utilities.
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Fast processing and minimal paperwork.
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Low cost of living and excellent quality of life.
Panama Digital Nomad Visa
Perfect for remote workers and freelancers looking to live and work from Panama while employed abroad.
Requirements:
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Minimum annual income of $36,000 USD (or $3,000 per month).
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Valid employment contract with a foreign company.
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Health insurance coverage during the stay.
Details:
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Valid for 9 months, renewable once (up to 18 months).
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No local taxes on foreign income.
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Application can be submitted online and approved within weeks.
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Affordable fees: $250 application + $50 visa card.
Enjoy Panama’s beaches, connectivity, and modern lifestyle while working remotely.
Ready to Start Your Panama Journey?
Whether you’re investing, retiring, or relocating, Panama Prime Estates offers trusted legal and immigration guidance through every step.
Our team ensures your investments and residency applications are handled with professionalism, clarity, and care.
📞 Contact us today to receive personalized legal support for your real estate or residency process in Panama.
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