{"id":15706,"date":"2026-08-19T06:31:00","date_gmt":"2026-08-19T11:31:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=15706"},"modified":"2026-08-18T19:47:10","modified_gmt":"2026-08-19T00:47:10","slug":"new-airbnb-rental-tax-and-internet-orders-tax-at-garish-7-percent","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/business-economy\/new-airbnb-rental-tax-and-internet-orders-tax-at-garish-7-percent\/","title":{"rendered":"New Airbnb Rental Tax and Internet Orders Tax at Garish 7 Percent"},"content":{"rendered":"\n

A growing number of vacation rental owners across Panama could soon operate under a different tax reality. The Ministry of Economy and Finance (MEF)<\/a> has drafted legislation that closes the gap between the Airbnb rental tax framework and the rates paid by traditional hotels, part of a wider effort to modernize how the country collects taxes from digital platforms and cross-border commerce.<\/p>\n\n\n\n

\"AirBnb
AirBnb Logo By DesignStudio – Airbnb’s Design Department, Public Domain, https:\/\/commons.wikimedia.org\/w\/index.php?curid=34075388<\/figcaption><\/figure>\n\n\n\n

Closing the Cross Border Commerce Tax Gap<\/h2>\n\n\n\n

Shoppers in Panama have long navigated an uneven tax landscape. Buy a product at a local retail store and the ITBMS <\/a>applies without question. Order that same item from an international e-commerce platform and have it shipped to your door, and the tax often never gets collected. Minister of Economy and Finance Felipe Chapman described this disparity bluntly when explaining why the government is moving forward with new legislation. ITBMS is Panama’s version of VATax.<\/p>\n\n\n\n

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“What this seeks is to level the paying field” [Translated from Spanish]<\/p>\n<\/blockquote>\n\n\n\n

Chapman stressed that the initiative does not create any new tax. Instead, it closes an existing loophole in how the ITBMS applies to goods and services delivered through foreign platforms, apps, and other digital channels. The goal, he said, is ensuring that whoever receives a product or service in Panama pays the same tax regardless of where the transaction originated.<\/p>\n\n\n\n

\"A
A person using their credit card to make a purchase online \/ shopping online By \u00a9 European Union, 2026, CC BY 4.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=126939745<\/figcaption><\/figure>\n\n\n\n

Airbnb Rental Tax Parity With Traditional Hotels<\/h2>\n\n\n\n

Short-term rental properties marketed through platforms like Airbnb have operated under a different tax rate than licensed hotels, a discrepancy the bill aims to eliminate. Vacation rental operators would be required to comply with the same ITBMS obligations that hotels already meet, creating what officials describe as a more balanced hospitality sector.<\/p>\n\n\n\n

Camilo Vald\u00e9s, director of the General Directorate of Revenue (DGI), reinforced this position by appealing to a core principle of tax equity. Two taxpayers providing the same service, he argued, should carry identical tax responsibilities whether they do so through a traditional business or a digital platform. That principle anchors the Airbnb rental tax component within the broader reform package.<\/p>\n\n\n\n

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2 bedroom apartment<\/figcaption><\/figure>\n\n\n\n

Constitutional Substitute Revenue and ITBI Phaseout<\/h2>\n\n\n\n

The legislation also delivers a win for middle-income homebuyers by eliminating the Property Transfer Tax (ITBI) for properties valued at up to $120,000. But Article 276 of Panama’s Constitution carries a firm requirement. Any tax exemption or modification must come paired with a substitute revenue source.<\/p>\n\n\n\n

Chapman addressed<\/a> this directly, explaining that the MEF will present the substitute revenue bill to the National Assembly as part of the process. He repeated that nothing in the proposal amounts to a fresh tax burden. Rather, the substitute revenue mechanism is designed to offset the ITBI change while simultaneously fixing gaps in existing ITBMS enforcement.<\/p>\n\n\n\n

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