{"id":15967,"date":"2026-08-27T17:05:00","date_gmt":"2026-08-27T22:05:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=15967"},"modified":"2026-08-27T14:22:29","modified_gmt":"2026-08-27T19:22:29","slug":"panama-approves-smart-1st-home-tax-exemption-for-new-buyers","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/panama-real-estate\/panama-approves-smart-1st-home-tax-exemption-for-new-buyers\/","title":{"rendered":"Panama Approves Smart 1st Home Tax Exemption for New Buyers"},"content":{"rendered":"\n

Panamanian lawmakers delivered a significant win for prospective homeowners this week when the National Assembly gave final approval to a measure establishing a first home tax exemption<\/strong> on property transfers valued at or below B\/.120,000. The legislation, which passed with 53 votes in favor, five against, and one abstention, eliminates the full 2 percent transfer tax<\/a> for qualifying purchases and introduces a graduated rate structure for homes priced slightly above that threshold. The vote comes as housing affordability remains a key persistent economic pressures facing Panamanian families, with construction sector jobs and consumer spending closely tied to real estate activity.<\/p>\n\n\n\n

Progressive Rates Replace Flat Transfer Tax Structure<\/h2>\n\n\n\n

Under current law, the Impuesto a la Transferencia de Bienes Inmuebles (ITBI)<\/a> applies a flat 2 percent rate on the greater of the sale price or cadastral value whenever property changes hands. The newly approved bill rewrites that formula by granting a 100 percent exemption on the first sale of new homes priced up to B\/.120,000. That means a qualifying buyer saves up to B\/.2,400 in taxes, money that can go toward closing costs, furnishings, or reducing mortgage debt.<\/p>\n\n\n\n