Panama advances digital service taxes and housing tax exemptions

Panama is advancing several legislative measures aimed at tax reform and economic stimulation. The National Assembly is debating Bill 30-26, which proposes applying a 7% tax on digital services and international e-commerce platforms, such as streaming and productivity tools, to create a more equitable playing field for local businesses.

In the real estate sector, Bill 661 has passed its first debate. The project seeks to exempt the first purchase of new homes valued up to 120,000 balboas from the Real Estate Transfer Tax (ITBI) to facilitate homeownership for lower-income families and support the construction industry.

Additionally, the Cabinet approved Bill 31-26 to unify fiscal incentives for the tourism sector. This law aims to consolidate existing regulations into a single framework, focusing on high-value segments like nautical and ecotourism while preventing incentives from being used solely for purely commercial or real estate developments.