Posts by denfab

The need for the Governments to collect more taxes combined with the reality of decentralization generates interest and concern in citizens regarding how it will affect their property tax. The purpose of this article is to provide the reader with a general orientation on the subject of property tax in Panama and how it affects their property. The first thing you should know is the status of your property with the tax administration, in our country, the Directorate General of Revenue (DGI). By processing a Tax Identification Number (NIT), you can have online access to the information of your property, such as the value of your property (taxable amount), value of exemptions, when these exemptions expire, account statements, etc. It is important to verify if the data that appears in the system of the DGI is...

Purchasing property in Panama is usually done in two different stages. Stage 1: The Promise of Sale and Purchase. This contract is performed preliminary to the sale and purchase contract. In this particular contract the seller agrees to sell to the buyer at an established price the property. It is common that the buyer consigns a down payment to the seller to ratify his commitment to the sale. If the buyer decides not to proceed with the acquisition of the property, he will usually lose the money that was given beforehand to guarantee the sale. On the other hand, the seller is bound to sell the property object of the contract Stage 2: The Final Contract. This contract is done in the form of a public deed and has to be registered at the Public Registry of Panama. Prices...

Probate is the legal process of settling the estate of a deceased person, specifically resolving all claims and distributing the decedent’s property. In some countries, after a person residing in that state has died without a valid will or trust, his or her property immediately becomes the property of the spouse, if any, without the need for probate. This is NOT the case for Panama. Under Panamanian law, probate has to be done in the form of a succession process. A succession process in Panama has to be filed in the Courts of Law. There are two types of Succession Processes in the Republic of Panama. A. Intestate Succession Process: This is process that has to be filed to a Panamanian Court of Law, without the existence of a Will. The heirs will be the persons designated by...

We hereby divulge to our clients the beginning of the “Property Tax Moratorium”. Law 66 of the 17th of October of 2017, has granted a period of moratorium until December 31 of 2017, to pay the outstanding balances of due property taxes. By taking advantage of this moratorium period, property owners will be able to pay the balance of their due property taxes without the penalties and interests accumulated on due unpaid back taxes. It is important to carry out these steps well in advance, as national and year-end holidays will be celebrated in the coming months, resulting in fewer working days for government institutions. This represents an excellent opportunity to update everything related to your property taxes, thus generating substantial savings. Write us at tax@denfablaw.com to find out the tax situation of your properties and take advantage of the tax benefits offered by the...

Panama like much of the rest world is facing an unprecedented crisis. Many business owners are forced to make difficult decisions and take necessary measures in order to protect the future well-being and operation of their companies. Considering the current situation, there are possible options that the law and current regulations offer regarding the work force. The alternatives that organizations have for their decision making are listed below: A. Ideally, if the worker can maintain their tasks and produce from home, it is suggested that they be offered the option of home office. This work setup must agreed upon and be signed by the parties. In many cases, this type of system will not work for certain employees, depending on the type of tasks performed. For the before mentioned employees there are other options. B. Send the employee on vacations, including...