Property tax seizure by the DGI in Panama: what to do and how to lift it
If the DGI, Panama's tax authority, seized your land, we review the collection file and explain your options. Then we handle the payment or payment plan, the lifting of the seizure and its recording at the Public Registry.
- Authority
- DGI collection judge (Juez Ejecutor) and Public Registry
- How it is filed
- In person once in enforced collection; earlier payment plans online or in person
- Typical timeframe
- Variable: depends on the debt, the route you choose and the Public Registry
Who it is for
- Owners with overdue property taxYou received a payment order or found a seizure recorded on your land.
- Reforestation groupsWith land in enforced collection while the exemption request is still pending.
- Buyers and sellersYou cannot register a transfer because the land is seized.
Problems we solve
- You were served a payment order and do not know what it means.
- The land shows a seizure and you cannot sell or transfer it.
- Your exemption is still pending and the DGI charges the full property tax.
- You paid the debt, but the seizure is still recorded at the Public Registry.
- You cannot pay the debt all at once.
- You live outside Panama and enforced collection is handled in person.
Key terms: cobro coactivo, secuestro and embargo
Cobro coactivo is enforced collection. The DGI runs it through its own collection judge, the Juez Ejecutor, once a tax debt is overdue.
A secuestro is a provisional attachment of assets. An embargo is the seizure of funds or property found in the debtor's name. In practice, both work like a tax lien on your land.
A finca is a parcel registered under its own number at the Registro Público (Public Registry). A paz y salvo is a certificate showing you owe nothing to the DGI.
How a Panama property tax seizure by the DGI happens
The debt starts in administrative collection. According to the DGI, it moves to enforced collection two months after that stage, with a debt certification.
A DGI Juez Ejecutor runs the process. According to the DGI, it is governed by articles 1247-A to 1247-K of the Fiscal Code, added by Law 33 of 2010. Where these are silent, the Judicial Code applies.
Since June 1, 2024, Panama's Tax Procedure Code (Law 76 of 2019) also applies. Our lawyers confirm which rules govern your file.
Enforced collection adds a 20% surcharge on the debt (article 1247-C of the Fiscal Code).
- Payment order (auto de mandamiento de pago): orders payment and is served in person.
- Attachment (secuestro): issued with the payment order, with notices to several institutions.
- Seizure (embargo): applied when the DGI finds funds or property in the debtor's name, such as land.
What a recorded seizure means for your land
According to the Public Registry's review manual, a recorded attachment or seizure takes the land out of commerce. While it stands, no sale or new lien is recorded.
If the debt is not resolved, the Juez Ejecutor can move to a public auction of the land under the Judicial Code.
A short window to respond: five business days
Only three defenses are allowed against the payment order: payment, statute of limitations or non-existence of the debt. They must be filed with evidence within five business days of notice (article 1247-E of the Fiscal Code).
The Tax Administrative Court decides them. They do not stop the process, but the auction waits until they are resolved (article 1247-F). That is why our legal team should review the file as soon as you are served.
How a DGI seizure is lifted
Before the auction, you can pay the debt or guarantee the full amount, and reach a payment plan with the DGI (article 1247-I of the Fiscal Code).
After full payment, the DGI issues the orders for the Public Registry and notifies its accounts department so the paz y salvo can be issued (article 1247-K). The Public Registry cancels the seizure with the resolution ordering its release.
With a payment plan, the release is not automatic. It depends on the plan and on the guarantees the Juez Ejecutor accepts. We confirm this when we review your file.
- Full payment, or a payment plan with its down payment and, if required, a guarantee.
- Request to the Juez Ejecutor to lift the seizure or attachment.
- Resolution from the Juez Ejecutor and order to the Public Registry.
- Recording of the release at the Public Registry.
- DGI property tax paz y salvo, with the debt paid in full, so you can sell or transfer the land.
Land with a pending exemption that receives a collection order
This is common for reforestation and farm land. The DGI says there is no specific time frame to decide property tax exemptions. Meanwhile, the tax keeps accruing and collection can move forward.
A pending request is not one of the defenses allowed in enforced collection (payment, statute of limitations or non-existence of the debt). So we work on both files at once:
- We check which periods the DGI is collecting and from when the exemption would apply.
- We follow up on the exemption at the office handling it.
- Our lawyers assess whether a defense applies within the five business days.
- If needed, we arrange a payment plan, which can prevent an auction while the exemption is decided.
Payment plan with the DGI
A payment plan can include property tax. It requires a down payment of 20% of the total debt, completed within five days. In enforced collection it is handled in person.
If you miss installments, the DGI can enforce the guarantee and the process continues to auction (article 1247-J of the Fiscal Code). See our page on the DGI payment plan.
- Debts up to B/.5,000.00 (balboas, at par with the US dollar): up to 36 months.
- From B/.5,000.01 to B/.10,000.00: up to 48 months.
- From B/.10,000.01: up to 60 months.
- Individuals with an RUC NT (mostly foreign nationals): 12 months.
- Paz y salvo: with full payment, collateral, 45% or more of the plan paid, or a bank letter of commitment. One issued under a plan is not valid to transfer, subdivide or sell the land.
Requirements
- Copy of the payment order or of the notice you received, and the finca number. Official source
- In-person plan, individual: ID card or passport, ability-to-pay form, signed request and a utility bill. Official source
- In-person plan, legal entity: legal representative's ID card or passport, notarized board minutes authorizing the plan and a utility bill. Official source
- Down payment of 20% of the total debt, within five days. Official source
- To lift the seizure: full payment of the debt, or a guarantee of the full amount or a payment plan. Official source
- To record the release: the resolution ordering it, filed at the Public Registry. Official source
Steps and timeframes
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We review your case
We handle itWe check the land's tax account, the collection file and what is recorded at the Public Registry.
As soon as possible: defenses must be filed within 5 business days
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We explain the options
We handle itPayment, payment plan or legal defense, with amounts and time frames.
-
You decide and sign
You handle itYou sign the power of attorney or request, and pay the debt or the down payment.
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We file with the Juez Ejecutor
We handle itWe file the payment, plan or brief, and request the lifting of the seizure.
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The Juez Ejecutor decides
The authority handles itThe judge issues the resolution lifting the measure and the order to the Public Registry.
Variable
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Recording of the release
We handle itWe file the order at the Public Registry and check that the land is free of the seizure.
Variable, depending on the Public Registry
Costs
| Item | Amount |
|---|---|
| Enforced collection surcharge Official source | 20% of the debt |
| Payment plan down payment Official source | 20% of the total debt |
| Public Registry recording fees Official source | According to current fees |
| Tramita Todo fee | We will quote you |
| Legal defense by our legal team | We will quote you |
The DGI sets the debt, surcharges and interest. We show you the breakdown before any payment.
What our service includes
- Review of the tax account, the file and the land's Public Registry entry.
- Explanation of the options with amounts and time frames.
- Handling of the payment or payment plan with the Juez Ejecutor.
- Request to lift the seizure and recording at the Public Registry.
- Follow-up on any pending exemption.
What it does not include
- Payment of the debt, surcharges or interest.
- Bank or insurance guarantees the DGI may require.
- Legal defense before the Tax Administrative Court, quoted separately.
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 is a DGI seizure on my land lifted?
By paying or guaranteeing the debt, or with a payment plan the Juez Ejecutor accepts. The judge then issues a resolution lifting the measure and sends an order to the Public Registry. The last step is recording the release. With a plan, the release depends on the guarantees.
I paid. Why is my land still seized?
Because the seizure is recorded at the Public Registry and does not disappear with payment alone. The Juez Ejecutor must lift it and send the order to the Public Registry. We check where your case stands and follow up until the release is recorded.
Can I sell land with a DGI tax lien?
Not while the seizure is recorded. According to the Public Registry's review manual, a seizure or attachment takes the land out of commerce and blocks registration of a sale. First the debt must be paid, the measure lifted and the property tax paz y salvo obtained.
How much must I pay for a payment plan?
The DGI asks for a down payment of 20% of the total debt, completed within five days. The rest is paid in installments: up to 36, 48 or 60 months depending on the amount. For individuals with an RUC NT, mostly foreign nationals, the term is 12 months. We help you calculate the payments.
My exemption is pending and I received a collection order. What now?
Do not ignore the notice. A pending request does not stop enforced collection by itself, and defenses must be filed within five business days. We review both files and explain whether a defense, a payment plan or both make sense.
Can this be solved if I live outside Panama?
Yes. Once you are served, enforced collection is handled in person, so someone must attend to it in Panama. With your power of attorney, we do it. We keep you updated in writing by WhatsApp or email.