ITBI
Also called Impuesto de transferencia de bienes inmuebles, transfer tax
The 2% tax charged on the transfer of Panamanian real estate. It is the seller's to pay, not the buyer's.
What it means when you are buying
ITBI is charged at 2% on the transfer, and it sits on the seller's side of the table.
It is not the only charge on a sale. A separate 3% advance against capital gains is withheld as well, which is why sellers quote the two together and buyers assume both are theirs. Neither is.
What the buyer actually pays
Notary fees, registration fees and legal fees. Those are the buyer's costs, and they are the ones worth getting quoted in writing before you sign.
The 3% is an advance against the tax rather than the tax itself. A seller whose real gain is small can file to recover the difference.
What that is in money
Percentages are easy to nod along to. Here is what the two charges come to against the median asking price in the areas we list, so a seller can see the number and a buyer can see what is not theirs.
| Area | Median we list | 2% transfer tax | 3% advance |
|---|---|---|---|
| El Cangrejo | $291,000 | $5,820 | $8,730 |
| Coronado | $311,000 | $6,220 | $9,330 |
| Obarrio | $328,500 | $6,570 | $9,855 |
| San Francisco | $420,000 | $8,400 | $12,600 |
| Costa del Este | $642,500 | $12,850 | $19,275 |
| Punta Pacífica | $1,200,000 | $24,000 | $36,000 |
Source: Panama Property Guide listings, September 2026. Areas with fewer than five listings are excluded. These are asking prices, so treat them as the scale of the charge rather than a quote.
Frequently asked questions
Who pays the transfer tax in Panama, the buyer or the seller?
The seller. The buyer pays notary fees, registration fees and legal fees, which are separate and smaller.
Is the 3% capital gains advance the same thing as ITBI?
No. They are two separate charges on the same sale, and both sit with the seller. Sellers often quote them together, which is where the confusion starts.
Can a seller get the 3% back?
It is an advance against the tax rather than the tax, so a seller whose real gain is smaller than the advance can file to recover the difference.
Should a buyer ever agree to pay the seller's transfer tax?
It is negotiable like any other term, but it should be a priced concession written into the promesa de compraventa, not something discovered at the notary.
Sources
- Leyes aplicables a la transferencia de bienes inmuebles, 16 July 2025 — Infante & Pérez Almillano (IPAL), September 3, 2026
- Published resolution confirming the 3% capital gains advance on real estate sales — Tribunal Administrativo Tributario de Panamá, September 3, 2026