A lot of visitors and business acquaintances are asking about the requirements to obtain a “pensionado” (pensioner or retiree)visa in Panama. The benefits and discounts of a Pensionado in Panama are well documented on a number of websites and blogs online (here is one).
We would like to point out a pensionado benefit that (for some reason) is often overlooked or not understood: Property Tax Freeze.
As a Pensionado (Pensioner), you are entitled to request the freezing of Property Taxes on your primary residence. This is done by applying to to the Ministerio de Economía & Finanzas, Dirección General de Ingresos (Ministry of Economy & Finance, Income Tax Department).
There are a number of requirements which must be met:
1. The property must be in your personal name. This means that you should not hold the property through a corporation or Panamanian Foundation. Proof of this must be provided, through a Certificate from the Public Registry ;
2. It must be your residence (it cannot be just a beach getaway or weekend house) and must be your only property (the aforementioned Certificate from the Public Registry must indicate that this is the only Panamaproperty which you own);
3. Copy of your Pensionado Card, showing your Panama permanent residency and Panama pensioner status.
Upon sale of your Panama property, capital gains taxes are due on the seller’s part. Also property taxes will once more be due thereon, and the buyer does not acquire the right to the exemption.
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