In a move to increase foreign investment, The Government of the Republic of Panama has implemented a 20 year Property Tax exemption applicable to buildings (both residential and commercial) but not for the land. This exemption is limited to projects that have a construction permit before September 1, 2005 and have an occupation permit before August 31, 2006.

After those dates, the following exemptions will apply:

• Property Value up to $100,000: 15-year Property Tax exemption
• Property Value from $100,000 to $250,000: 10-year Property Tax exemption
• Property Value over $250,000: 5-year Property Tax exemption