Those who are in the process of buying a new home for the first time will now have to budget extra money to pay the 2% Property Transfer Tax (ITBI), which was exempt for more than 50 years and was only charged on used or secondary market homes. “Panamanians earning above $1,000 per month are the ones who could save for the down payment and pay the tax, but it would take them approximately 10 months to accumulate that money, because they also have part of their income committed,” explained economist Eric Molino Ferrer, while presenting the implications of the tax at Convivienda. Developers and builders are requesting a reconsideration of exempting new homes from property taxes.
