[search]

[site map]

[Up]
[Wills & Testaments]
[Formalities of Wills]
[Conflict of Laws]
[Intestate Probate]
[Probate Process]
[Estate Taxes]
[Types of Wills]
[Disinheritance]

Estate Taxes in Panama 

Taxes in Panama are defined in the Tax Code, which was updated as recently as February 2005.  The taxes which exist here are established in Article 683 of the Tax Code: 

Artículo 683.
Son impuestos nacionales los siguientes:
1. El de Importación.
2. El de la Renta.
3. El de Inmuebles.
4. El de Naves.
5. El de Timbre.
6. El de Licencias Comerciales e Industriales.
7. El de Bancos, financieras y Casas de Cambio.
8. El de Seguros.
9. El de Consumo al Combustible y Derivados del Petróleo.
10. El de Transferencias de Bienes Corporales Muebles y la Prestación de 
Servicios.
11. El Selectivo al Consumo de ciertos Bienes y Servicios.
12. El de Transferencias de Bienes Inmuebles.

These are: 

1. Import Duties
2. Income Tax
3. Real Estate Taxes
4. Maritime Duties
5. Stamp Duty
6. Commercial and Industrial Licenses
7. Banking, Finances and Currency Exchange duties
8. Insurance Duties 
9. Petrol and Derivative Products Taxes
10. Transfer of Personal Property and Services Taxes (GST or VAT) 
11. Consumption of certain goods and services (luxuries) 
12. Transfer of Real Estate

As you will notice, no mention is made here of Estate Duties or Taxes. 

Furthermore, if we look at the Tax Code, regarding Income Tax, we can see that the following income is exempt from Income Tax: 

Artículo 708.
No causarán el impuesto:

i. Los bienes que se reciban a título de herencia, legado o donación;

The translation of the above is: The following shall not result in the tax (Income Tax): 

i. The assets which are received as inheritance, legacy or donation;  

Therefore, you can expect that there will not be a particular Estate Tax due during the probate process, nor will the assets received from an estate be considered to be income.  

The civil court judge, that overseas the probate process, with issue an order for the transfer of title of the deceased's property in accordance with the Last Will & Testament provisions or the intestate probate provisions of the Civil Code, and the Public Registry will proceed to register any real estate properties in the name of the heirs and successors.  There is no land transfer tax payable in this scenario. 

[ Administrative Law ] [ Billing Info ] [ Civil Law ] [ Commercial Law ] [ Real Estate ] [ Corporate Law ] [ Immigration ] [ Offshore ] [ Other Topics ]

[ Wills & Testaments ] [ Formalities of Wills ] [ Conflict of Laws ] [ Intestate Probate ] [ Probate Process ] [ Estate Taxes ] [ Types of Wills ] [ Disinheritance ]

Last modified 26-Sep-2007 17:38 -0400

Copyright - Disclaimers - Privacy Statement

Copyright © 2000 - 2007, Beth Anne Gray J.

For questions or comments, please write to the webmaster

Last modified 26-Sep-2007 17:37 -0400