Panama has reinstated the Transfer Tax on Immovable Property (ITBI) for the first sale of new homes. The tax itself was not new; rather, an exemption that had existed for over 50 years expired. As a result, the tax now applies to new housing as well. The Ministry of Economy and Finance is willing to analyze proposals from the National Housing Council (Convivienda) regarding the tax's impact. Convivienda representatives argue the tax will increase housing costs, potentially leading to the loss of 762 mortgages and reducing economic activity by up to $1.3 billion, while the tax revenue would only be $37 million. Minister Felipe Chapman reiterated that the ministry is open to dialogue but stated that reducing subsidies is not viable due to global uncertainty and rising fuel prices.
