{"id":3366,"date":"2026-09-11T08:00:00","date_gmt":"2026-09-11T13:00:00","guid":{"rendered":"https:\/\/www.edtij.com\/en\/?p=3366"},"modified":"2026-09-06T20:39:14","modified_gmt":"2026-09-07T01:39:14","slug":"law-546-itbi-exemption-first-home","status":"publish","type":"post","link":"https:\/\/www.edtij.com\/en\/law-546-itbi-exemption-first-home\/","title":{"rendered":"Law 546: 2% ITBI Exemption for First-Time New Home Purchases in Panama"},"content":{"rendered":"<style>\n.edtij-article,\n.edtij-article * {\n  box-sizing: border-box;\n}<\/p>\n<p>.edtij-article {\n  width: 100%;\n  max-width: 900px;\n  margin: 0 auto;\n  padding: 48px 24px 80px;\n  color: #1a1a1a;\n  font-family: Georgia, \"Times New Roman\", serif;\n  font-size: 18px;\n  overflow-wrap: break-word;\n}<\/p>\n<p>.edtij-article p,\n.edtij-article li,\n.edtij-article dd {\n  line-height: 1.75;\n  margin: 0 0 20px;\n}<\/p>\n<p>.edtij-article .edtij-article__lead {\n  font-size: 21px;\n  line-height: 1.6;\n  color: #2c2c2c;\n  padding-left: 22px;\n  border-left: 3px solid #1f3a5f;\n  margin-bottom: 36px;\n}<\/p>\n<p>.edtij-article h2 {\n  font-family: \"Helvetica Neue\", Helvetica, Arial, sans-serif;\n  font-weight: 600;\n  font-size: 28px;\n  line-height: 1.25;\n  color: #1f3a5f;\n  margin: 40px 0 16px;\n}<\/p>\n<p>.edtij-article h3 {\n  font-family: \"Helvetica Neue\", Helvetica, Arial, sans-serif;\n  font-weight: 600;\n  font-size: 20px;\n  line-height: 1.3;\n  color: #1a1a1a;\n  margin: 28px 0 10px;\n}<\/p>\n<p>.edtij-article .edtij-article__datos {\n  background: #f4f6f9;\n  border-top: 2px solid #1f3a5f;\n  padding: 24px 28px 8px;\n  margin: 36px 0;\n}<\/p>\n<p>.edtij-article .edtij-article__datos dl {\n  margin: 0;\n}<\/p>\n<p>.edtij-article .edtij-article__datos dt {\n  font-family: \"Helvetica Neue\", Helvetica, Arial, sans-serif;\n  font-size: 14px;\n  font-weight: 600;\n  color: #5b6470;\n  margin: 0 0 4px;\n}<\/p>\n<p>.edtij-article .edtij-article__datos dd {\n  margin: 0 0 18px;\n  line-height: 1.6;\n}<\/p>\n<p>.edtij-article .edtij-article__tabla {\n  width: 100%;\n  overflow-x: auto;\n  margin: 24px 0 28px;\n}<\/p>\n<p>.edtij-article table {\n  width: 100%;\n  border-collapse: collapse;\n  font-size: 17px;\n}<\/p>\n<p>.edtij-article th,\n.edtij-article td {\n  text-align: left;\n  vertical-align: top;\n  padding: 14px 16px;\n  border-bottom: 1px solid #d8dce2;\n  line-height: 1.5;\n}<\/p>\n<p>.edtij-article th {\n  font-family: \"Helvetica Neue\", Helvetica, Arial, sans-serif;\n  font-size: 14px;\n  font-weight: 600;\n  color: #5b6470;\n  border-bottom: 2px solid #1f3a5f;\n}<\/p>\n<p>.edtij-article .edtij-article__cierre {\n  margin-top: 48px;\n  padding: 28px;\n  border: 1px solid #1f3a5f;\n}<\/p>\n<p>.edtij-article .edtij-article__cierre h2 {\n  margin-top: 0;\n  font-size: 24px;\n}<\/p>\n<p>.edtij-article .edtij-article__cierre p:last-child {\n  margin-bottom: 0;\n}<\/p>\n<p>.edtij-article img {\n  display: block;\n  width: 100%;\n  max-width: 100%;\n  height: auto;\n}<\/p>\n<p>@media (max-width: 600px) {\n  .edtij-article {\n    padding: 30px 18px 60px;\n    font-size: 17px;\n  }<\/p>\n<p>  .edtij-article h2 {\n    font-size: 25px;\n  }<\/p>\n<p>  .edtij-article .edtij-article__lead {\n    font-size: 19px;\n    padding-left: 16px;\n  }<\/p>\n<p>  .edtij-article .edtij-article__datos {\n    padding: 20px 18px 4px;\n  }<\/p>\n<p>  .edtij-article table {\n    font-size: 16px;\n  }<\/p>\n<p>  .edtij-article th,\n  .edtij-article td {\n    padding: 12px 10px;\n  }<\/p>\n<p>  .edtij-article .edtij-article__cierre {\n    padding: 20px 18px;\n  }\n}\n<\/style>\n<article class=\"edtij-article\">\n<p class=\"edtij-article__lead\">\n    President Jos\u00e9 Ra\u00fal Mulino signed Law 546 of 2026, which exempts the payment of the 2% Real Estate Transfer Tax (ITBI) on the purchase of a first new home. The law amends Article 4 of Law 106 of 1974 and was approved by the National Assembly on August 26 with 53 votes in favor, after the Cabinet Council approved the bill on July 28.\n  <\/p>\n<aside class=\"edtij-article__datos\">\n<dl>\n<dt>Law<\/dt>\n<dd>Law 546 of 2026, amending Article 4 of Law 106 of 1974.<\/dd>\n<dt>Tax<\/dt>\n<dd>Real Estate Transfer Tax (ITBI), 2% rate.<\/dd>\n<dt>Beneficiaries<\/dt>\n<dd>Buyers of a first new home.<\/dd>\n<\/dl>\n<\/aside>\n<section>\n<h2>What the exemption covers<\/h2>\n<p>\n      The benefit applies to the purchase of a first new home valued up to $120,000, which is fully exempt from the 2% ITBI. For higher-value homes, the law provides staggered tax relief up to a cap of $200,000, above which ordinary tax treatment applies.\n    <\/p>\n<div class=\"edtij-article__tabla\">\n<table>\n<thead>\n<tr>\n<th>Home value<\/th>\n<th>ITBI treatment<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to $120,000<\/td>\n<td>Full exemption from the 2% rate<\/td>\n<\/tr>\n<tr>\n<td>Above $120,000 and up to $200,000<\/td>\n<td>Staggered tax relief<\/td>\n<\/tr>\n<tr>\n<td>Above $200,000<\/td>\n<td>Ordinary tax treatment<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/section>\n<section>\n<h2>Timing requirement<\/h2>\n<p>\n      To qualify, the purchase transaction must be formalized within two years of the date the occupancy permit for the home was issued by the competent authority. This requirement is meant to limit the benefit to genuinely new, recently built homes, preventing it from applying to used or long-standing inventory on the market.\n    <\/p>\n<\/section>\n<section>\n<h2>Purpose of the measure<\/h2>\n<p>\n      According to the Executive Branch, the law aims to facilitate homeownership access for young families, stimulate the construction sector, and contribute to job creation. The bill was originally driven by the Executive Branch and backed by the Ministry of Housing and Land Management throughout its legislative process.\n    <\/p>\n<\/section>\n<section class=\"edtij-article__cierre\">\n<h2>What buyers and developers should review<\/h2>\n<p>\n      Those evaluating the purchase of their first new home should verify that the property has a recent occupancy permit and that the transaction can be formalized within the two-year window required by law. For developers and construction companies, the measure may represent a relevant selling point to first-time buyers. At EDTIJ we can advise both buyers and developers on the practical application of this exemption to specific transactions.\n    <\/p>\n<\/section>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Law 546 exempts the 2% Real Estate Transfer Tax on first new homes valued up to $120,000, with staggered relief up to $200,000. We explain what the benefit covers, the two-year window from the occupancy permit, and what buyers and developers should review.<\/p>\n","protected":false},"author":2,"featured_media":3371,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,7,1],"tags":[],"class_list":["post-3366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-laws","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Law 546: ITBI Exemption for First New Homes | EDTIJ<\/title>\n<meta name=\"description\" content=\"Law 546 exempts the 2% ITBI on new homes up to $120,000, with staggered relief to $200,000. 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