Law 546 of August 31, 2026, sets the exemption from the Real Estate Transfer Tax (ITBI, Transferencia de Bienes Inmuebles) on the purchase of a first new home. This rule took effect on September 1 and reforms article 4 of Law 106 of 1974, providing that the initial B/.120,000 (or USD) of the taxable value stays free of tax and only the amount above that figure pays, under a lowered scale.
After approval in the National Assembly and the signature of President José Raúl Mulino, Law 546 of 2026 pursues two aims at once: to place a home of one’s own within reach of middle income families and to revive the construction sector, which sustains much of Panamanian employment.
What Law 546 of 2026 Establishes
The relief under Law 546 of 2026 carries one central condition. For the first sale of a new house to qualify as exempt from ITBI, the deal must close within the two years that follow the signing of the occupancy permit by the competent authority. Once that happens, the initial B/.120,000 of the taxable value remains fully clear of this levy, no matter the total cost of the property.
Previously, that first handover of a recently built dwelling paid the tax on the whole assessable base under the general regime, since the earlier waiver had expired. The new rule not only restores that break for the opening fraction of the price, but also introduces a table of preferential rates for mid range properties.
How the Tax Is Calculated Between B/.120,000 and B/.200,000
When the price of the property falls between B/.120,000 and B/.200,000, Law 546 of 2026 taxes only the portion that passes the exempt floor. In practice, the rule keeps the lower brackets gentle. A progressive scale replaces the general charge:
| Taxable base of the transfer | Rate on the excess above B/.120,000.00 |
|---|---|
| More than B/.120,000 and up to B/.130,000 | 0.50% |
| More than B/.130,000 and up to B/.150,000 | 1.00% |
| More than B/.150,000 and up to B/.170,000 | 1.40% |
| More than B/.170,000 and up to B/.190,000 | 1.60% |
| More than B/.190,000 and up to B/.200,000 | 1.80% |
Under Law 546 of 2026, the rate touches solely what climbs past the threshold, and the owner keeps the benefit in every case. In other words, the measure frees the opening B/.120,000 from any charge even in the highest band of the table.
What happens with homes valued above B/.200,000
The preferential rate in the table above only applies up to B/.200,000. Above that figure, the exemption remains in place and the excess is taxed under the general regime. In other words, for a home worth more than B/.200,000, two things happen at the same time:
- The first B/.120,000 remains exempt, regardless of the home’s value. The benefit has no cap on the home’s value.
- The excess is taxed at the ITBI general regime rate, which is 2%, no longer the reduced scale shown in the table above.
Formalities to Access the Benefit
The procedure rests on the seller, who declares in the public deed of sale, under oath, three points: that the property is new, that this marks the inaugural transaction, and that the signing takes place within the term. The date and details of the occupancy permit go into the same instrument. Without that record, the benefit of Law 546 of 2026 does not apply.
On the buyer’s side, there is no need to arrange any prior exclusion certificate before the General Revenue Directorate (DGI), since the relief switches on by itself. That said, whoever sells must report to the DGI through the channels it defines, for registry and oversight purposes.
Filing false statements or claiming the benefit without meeting the requirements carries harsh consequences, such as mandatory collection of the omitted tax, surcharges, interest, and the applicable fines. Likewise, in contractual terms, any clause that tries to shift payment of the ITBI from the seller to the buyer is void as a matter of law.
Transitional Regime of Law 546 of 2026
Law 546 of 2026 foresaw a bridging rule. Deals closing on or after September 1, 2026, reach the benefit even when the occupancy permit predates it, provided the signing arrives within the thirty months that follow that document.
Handovers signed before that date stay under the former rules. With this bridge, Law 546 of 2026 closes gaps and gives certainty to those already negotiating when the norm shifted.
Real Estate and Tax Advice in Panama
To make the most of Law 546 of 2026, precision matters in the deed, in the deadlines, and in the notice before the General Revenue Directorate. At Kraemer & Kraemer we accompany purchasers and sellers, review the sale contract, confirm the occupancy permit, and arrange the formalities before the competent bodies. Contact us today, we assess your case and apply the tax saving with professional backing in Panama real estate.
To read the full text of Law 546 of 2026, you can download them here:
