Yes, it is the right time to buy real estate in Boquete, Panama! Here is the reason why …

Blog by Manzar Lari

Ok, so I am slightly biased, I happen to own a property and business in Boquete and I would obviously want someone to buy a home and get settled in an area of Panama that has long been named as the land of “eternal spring”. Now there are some latest property tax changes that are coming soon that will be a game changer for anyone on the fence about renting or buying in Panama.  Finally there is some data to support my bias!

There are many wonderful and competitively priced homes for all tastes and budgets available for sale in the Boquete area. While most of them are listed with at least one (or more of the realtors in the area), many of them are available “For Sale by Owners” as well (we know many of the owners so contact us if you are interested!).

If you have done your research and have visited Boquete at least once and are ready for an overseas adventure, why not consider making Boquete your “forever” home?

Here is the latest info on tax relief by Panama Government:

National Assembly approves reform that reduces property tax in Panama!

Tue, 09/19/2017

The National Assembly approved Monday in the third and final debate a controversial bill that reforms the Tax Code on Property Tax (IBI), considered by the Government as the “most important” reduction of this tax in 40 years.

The reform establishes that properties that register as main dwelling will benefit from a reduction of more than 60% of the tax and owners of a primary residence with a registered value of $120,000 or less, will be exempted from paying real estate taxes FOREVER! What a game changer for property owners in Panama!

The MEF said that this project “constitutes the most important comprehensive reform of the IBI in the last 40 years and establishes a greater fiscal balance, which benefits the majority of the owners.”

 Any amount from $120,000 up to $700,000 will be taxed at only 0,5%. Leaving a home owner to only pay the bare minimum per year in real estate taxes once the tax exoneration period is over.  

 From a press release by the Assembly:

Money collected from the taxes will be given to municipalities to secure resources for decentralization.

Having been established, the progressive rate combined with the tax benefit known as family property tax or the main dwelling will be: 

  1. 0.00% on the taxable base up to $120,000.00
  2. 0.5% on the taxable base over $120,000.01 and up to $700,000.00
  3. 0.7% on the taxable base over $700,000.00The combined progressive rate on commercial real estate, industrial, other residences and others is as follows:

     1.    0.00% on the taxable base up to $30,000.00

    2.   0.6% on the taxable base over $30,000.01 and up to $250,000.00                                                     0.8% on the taxable base over $250,000.01 and up to $500,000.00 

    1. 1% on the taxable base over $500,000.01
  1. This is about a 70% reduction in yearly taxes or no taxes for the vast majority of Panamanians… I am guessing this will greatly stimulate an inflow of people who were on the fence about living in Panama, or who wanted to move to any tropical country but could not afford to pay or didn’t want to waste a lot of their money just on taxes before. This is great news!

     This truly is amazing! I think it goes into effect almost immediately (January 2018?). Why not take advantage of it? We routinely have guests at the B&B who are at various stages of relocation to Panama. Most of them end up taking my “Boquete Overview Tour”, designed for someone contemplating a move to Boquete. This 3.5 hour tour is packed with information that only a resident of Boquete can give you. Not to mention the various neighborhoods, developments and gated communities we visit during the tour. Boquete landscape, its people and the community are exceptional. I cannot wait to show you the area! Please book directly  with us to qualify for the current specials. See you soon!

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