Panama’s twenty year tax exemption law renewed

The 20 year tax exemption rule for Panama property purchasers which expired last year has been renewed in a bid to keep the country’s property market growing.

When the law expired, there were fears that if it was not renewed, some investors who had bought real estate but had yet to start building on it, would have scrapped their property plans and moved on to pastures new. However the Panama government has chosen to restore the 20 year property tax exemption on all new constructions with building permits issued before 31 December 2009.

The news has been welcomed by investors as it is expected to keep Panama’s property market on the up. And the law doesn’t just help those constructing properties – if you buy a fairly newly constructed property, any tax exemption left on the building will transfer to it’s new owner. It should be noted, however, that real estate itself is not exempt and continues to have taxes levied on it if it’s value is over $30,000.

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