Panama

Rental Income Tax, Effective Tax Rates (%) - Panama Compared to Continent

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Argentina	21.00%
Brazil	15.00%
Chile	35.00%
Colombia	28.56%
Costa Rica	30.00%
Ecuador	25.00%
El Salvador	22.36%
Honduras	4.44%
Mexico	25.00%
Paraguay	17.50%
Peru	24.00%
Uruguay	10.27%
Venezuela	22.16%

 

 

Panama: Rental income taxes (%).

The tax levied on the average annual income on a rental apartment/property in the country.

Assumptions:

• Gross rental income is €/US$1,500/month
• The property is personally directly owned jointly by husband and wife
• Both owners are foreigners and non-residents
• They have no other local income
• There is no mortgage, i.e., no loan is taken for the purchase

In arriving at the pre-tax profit figure, we calculate, and deduct:

• Depreciation / capital allowances – if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.

We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.

Our rental income tax figures are provided by accountants (see list of contributors). For more details see the Data FAQ.

Source: Global Property Guide Research, Contributing Accounting Firms

 

Panama has no house price statistics. Panama has some very basic financial statistics at the Superintendencia de Bancos de Panamá. General statistics are to be found at the Direccion de Estadística y Censo under the Controlaría General de la República de Panamá, which also has links to a number of other data areas with time-series.