About Ursula Kiener Expertise I can answer questions regarding Insurance, Real Estate, Mortgages, Investing, Relocation, Retirement, Types of Visas, Laws, Places to go to, Night Clubs, Restaurants, Hotels, and Tourism in general.
Experience My company has over 30 years of experience in the insurance industry. Founded in 1976, Forlacol is a family oriented company, with me (Ursula) as the third generation in the business. I obtained my insurance license in 2004 and I am qualified to sell personal, property and casualty, and guarantee bonds in the country of Panama.
I also have worked in Real Estate in Panama.
Most of my friends and clients are foreigners so I'm pretty used to being a tour guide.
Organizations International School of Panama Alumni Society (Vice President 2002-2005)
Florida State University Real Estate Society
Florida State University Insurance Society (Vice President 2005-2006)
Publications Panama Real Estate Magazine
Building the Best
The Pananole - FSU Panama’s Online Newspaper. (Founder and writer 2002 - 2004)
Education/Credentials I went to college at Florida State University with a scholarship. I graduated with a double major in Multinational Business and Human Resource Management. I took my Real Estate course in 2004 and my Insurance Course in 2003.
Awards and Honors Florida State University 2 2 Scholarship
Hispanic Honor Society
Past/Present Clients My clients are mostly foreigners. Countries of origin include: the US, Canada, Europe, and Central/South America.
I hope you don't mind and I will keep it brief if I can. In a nutshell, my question is does a property of $500,000 really attract almost $10,000 a year in property tax? This might sound like a ridiculous question to you and I must say that when I read about the scale rates as they apply, and worked it out for myself in an ad hoc manner - I was speechless. Here in Spain we own a 700,000 euro house which attracts annual property taxes of about 600 euros, which admittedly, is cheap compared with almost triple that in the UK. Even so...how do people in Panama manage paying that kind of tax and why, assuming I have not got my wires crossed, have we all been sold on the idea that Panama is a low taxation country? I understand that $500,000 is above the average cost of a house but we are not talking Millionaires Row here either!!!!
We were considering buying some land and building a modest house but as our investment would be the land and not the actual house we could be in for a huge tax bill just for the land.
Tax exoneration for the build does not even figure into my calculations owing to the capricious nature of the law makers - playing fast and loose with it. I am not expecting it to be applicable by the time we are ready to move to Panama.
For your information I have done the calcs and here it is...
Annual Tax on a $500,000 home
up to $30K...............................tax free
$31 - $50 K. ($20K) @ 1.75%.....$350.00
$51 - $75 K. ($25K) @ 1.95%.....$487.50
Over $75 K. ($425K) @ 2.1%.....$8925.00
Total........................................$9762.00
I find it hard to believe that all land owners are paying a yearly tax of this magnitude. What has been your experience of this? I would be very grateful for any news you may have concerning it.
Kind regards
Answer Hi Elizabeth.
Actually you do apply for the tax exemption now, which is an extension of the previous law, which might be extended again. The current one is Dec 2009 - so you have over a year to apply.
If you actually do have to pay taxes - get your property appraised. If you use this you fall into the lower tax bracket - it is simmilar but lower %. I am surprised the person who told you about the taxes did not know about this. Your realtor should know - to take the test they require for you to study this.
For further advice ask an accountant or your lawyer. There are always ways.
