Property tax exemption for farm and reforestation land in Panama
We prepare and file your land's property tax exemption, for reforestation or farm use, with the DGI, Panama's tax authority. We tell you which certification your land needs and follow the file until the DGI decides.
- Authority
- DGI (tax authority), with certification from MIDA or MiAmbiente
- How it is filed
- Online (e-Tax 2.0) or at a DGI provincial office
- Typical timeframe
- Variable: the DGI sets no specific time frame
Who it is for
- Owners of farm landLand used for agricultural or livestock activity and certified by MIDA, the Ministry of Agricultural Development.
- Reforestation and forestry investment groupsCommercial forest plantation or natural forest, certified by MiAmbiente, the Ministry of Environment.
- Owners who live outside PanamaWe tell you which documents you need and keep you updated in writing by WhatsApp or email.
Problems we solve
- You received a property tax bill for productive land.
- Your farm exemption expired and you do not know how to extend it.
- You filed months ago and the DGI has not answered.
- You bought land to reforest and do not know what the first year requires.
Key terms before you start
A finca is a parcel of land registered under its own number in the Registro Público (Public Registry). The impuesto de inmueble is its annual property tax.
The DGI (Dirección General de Ingresos) is Panama's tax authority. It grants and revokes property tax exemptions. Filings are made in e-Tax 2.0, the DGI's online tax system.
ANATI is the National Land Administration Authority. The DGI asks owners to update the land's values and permits at ANATI before applying.
Farm or reforestation: two different routes
Of the DGI's special property tax exemptions, two are most used for land: farm and reforestation.
The farm exemption covers land used for agricultural or livestock activity, certified by MIDA, with a cadastral value below B/.500,000.00 (balboas, at par with the US dollar).
The reforestation exemption is governed by Law 69 of 2017. MiAmbiente certifies compliance and the DGI grants it.
Property tax exemption for farm land: duration and extension
According to the DGI exemption FAQ, the farm exemption lasts 5 years. When it ends, you can request a 5-year extension with the required documents.
Before you apply, the DGI asks you to update the land's values and permits at ANATI. If the data do not match, the request stalls.
Panama reforestation property tax exemption (Law 69 of 2017)
Article 9 of the law exempts certain forest land from property tax and from real estate transfer tax. The exemption starts on the purchase date.
Law 69 of 2017 does not replace Law 24 of November 23, 1992, which regulates reforestation. It amends it: its articles 26, 27 and 35 repeal articles 6 and 7 of Law 24. The rest of Law 24 remains in force and should be read together with Law 69.
Article 10 sets the five-year certification and the revocation, so prepare the file from the first year. Our article on Law 69 explains the law in more detail.
- Exclusive use for commercial forest plantation, or conservation or restoration of natural forest on more than 75% of the suitable area.
- A Forest Management Plan (Plan de Manejo Forestal) approved within the first year after purchase, with at least 20% progress.
- A MiAmbiente compliance certification every five years, backed by annual technical reports from your licensed forester (regente forestal) or a MIDA extension agent.
- If the plan is not met within two years of purchase, the exemption is revoked and the taxes are owed from the start.
Requirements
- Farm route: MIDA certification that the land is used for agricultural or livestock activity. Official source
- Farm route: cadastral value below B/.500,000.00. Official source
- Land values and permits updated at ANATI before applying. Official source
- The land's RUC and NIT (tax identifiers) to file in e-Tax 2.0, or delivery at the nearest DGI provincial office. Official source
- Reforestation route: MiAmbiente certification of compliance with the Forest Management Plan. Official source
- Reforestation route: Forest Management Plan approved within the first year after purchase, with at least 20% progress. Official source
- Reforestation route: paz y salvo (certificate of good standing) with MiAmbiente, DGI, the Social Security Fund (CSS), MIDA and the municipality. Official source
Steps and timeframes
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We review your land
We handle itWith the finca number we confirm the exemption type, cadastral value and missing documents.
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You give us access or a power of attorney
You handle itWe tell you whether access to the land's e-Tax 2.0 account is enough or a power of attorney is needed.
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We update data and certification
We handle itWe check the ANATI values and coordinate the MIDA or MiAmbiente certification.
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We file the request
We handle itWe file it in e-Tax 2.0, under Inmuebles, Solicitud de Exoneración, or at the DGI provincial office.
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The DGI decides
The authority handles itThe DGI reviews the file and issues its resolution. We report every step to you.
No specific time frame, according to the DGI
Costs
| Item | Amount |
|---|---|
| MIDA or MiAmbiente certification | According to each agency's current fees |
| Request in e-Tax 2.0 Official source | Filed online with the land's RUC and NIT |
| Tramita Todo fee | We will quote you |
Fees can change. We confirm them when we review your case.
What our service includes
- Review of the land and of the exemption that applies.
- Check of ANATI values and coordination of the certification.
- Filing of the request with the DGI.
- Follow-up until the resolution, and a reminder before the extension.
What it does not include
- Payment of overdue taxes or surcharges.
- Drafting the Forest Management Plan (your regente forestal does it).
- The regente forestal's annual technical reports.
Who handles your case
- Handling procedures before Panamanian authorities since 2008.
- Certified public accountants on our team.
- Our own office in Obarrio, Panama City.
- We also serve clients who live outside Panama.
Frequently asked questions
How long does the farm exemption last?
According to the DGI, the exemption for land used for agricultural or livestock activity lasts 5 years. It applies to land with a cadastral value below B/.500,000.00. Before applying, update the land's values and permits at ANATI. We remind you in advance so you can prepare the extension.
Can the exemption be renewed?
Yes. When the 5-year farm exemption ends, you can request a 5-year extension with the required documents. For reforestation land, MiAmbiente certifies compliance with the Forest Management Plan every five years. That certification relies on annual technical reports from your regente forestal.
Can a foreign owner apply, and can I do it from abroad?
The DGI pages on this exemption do not list nationality as a requirement. They ask for the activity certification and up-to-date land data. If you live outside Panama, we handle the filing for you. We tell you which documents you need and keep you updated in writing by WhatsApp or email.
What happens if I sell reforestation land?
Under Law 69 of 2017, if the land changes owner before the plan ends, the new owner must be registered. The plan commitments must also be renewed. The law also exempts qualifying forest land from the real estate transfer tax.
What if the DGI does not answer my request?
The DGI states there is no specific time frame for these requests, because several departments take part. We check the file, confirm no document is missing and follow up with the office that holds it. If collection moves forward meanwhile, we explain your options.
Do I lose the reforestation exemption if I miss the plan?
Yes. Article 10 of Law 69 of 2017 gives two years from purchase to meet the approved plan. If it is not met, the exemption is revoked. You must then pay the taxes owed from the start of the exemption, which can mean several years of tax at once.
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