What Panama’s Ley 519 of 2026 Means for Investors in Santa Ana

Santa Ana just got a legal upgrade — and most investors don’t know it yet.

On April 21, 2026, Panama passed Ley 519, formally incorporating the entire corregimiento of Santa Ana into the buffer zone of the Casco Antiguo historic district. Published in Gaceta Oficial N.° 30513 on April 28, 2026, this law extends every fiscal incentive previously exclusive to Casco Antiguo — under Ley 136 of December 31, 2013 — directly to Santa Ana.

For buyers at PH Casco View, located on Calle 16 Oeste in Santa Ana, this means six concrete financial benefits available from the moment of purchase.

The 6 Fiscal Benefits for Buyers

BENEFIT 1 — 30-Year Property Tax Exemption on Land and Improvements

Buildings that are constructed, reconstructed, or restored and obtain their occupancy permit are fully exempt from Panama's property tax (impuesto de inmuebles) — on both the land and the declared improvements — for 30 years from the occupancy permit date.

In practice: on a unit with a declared value of B/.300,000, the annual property tax exposure is eliminated for three decades. This is the longest-running and structurally most valuable benefit of the Casco Antiguo / Santa Ana regime, and it stacks on top of the five benefits below.

Applies to: all property owners in the zone. Legal basis: Art. 19 of Ley 136 of 2013, whose geographic scope is extended to the entire corregimiento of Santa Ana under Art. 1 of Ley 519 of 2026.

BENEFIT 2 — No Transfer Tax on Your Purchase

A. The Ley 519 framework contains two separate exemptions from Panama’s real estate transfer tax (impuesto de transferencia de bienes inmuebles — ITBI), each with its own conditions: A. First transfer of a constructed, reconstructed, or restored building The first transfer, from the law’s entry into force, of any building (or land) that has been the object of construction, reconstruction, or restoration is fully exempt from ITBI. 

In practice: on a unit purchased at B/.300,000, you pay zero transfer tax at closing — an immediate out-of-pocket saving.

B. Transfer of non-intervened buildings or vacant lots — 2-year window A separate provision exempts the ITBI on transfers of non-intervened buildings or vacant lots in the zone, but only for transfers executed within 2 years of the law’s entry into force — until April 29, 2028

Applies to: buyers of unrenovated properties or vacant land in the zone. This scenario does not affect PH Casco View buyers — it is mentioned for completeness for investors evaluating raw stock. Legal basis: Art. 13 of Ley 519, modifying Art. 16 of Ley 136 of 2013.

BENEFIT 3 — Zero Income Tax on Gains for 10 Years

Owners are exempt from Panama’s ISR on: commercial profits generated within the unit, capital gains from a future sale, and gains from any partial transfer of the property. The exemption runs 10 years from the date of the occupancy permit.

In practice: A unit generating B/.30,000 annually in commercial profits pays zero ISR for a decade. For investors in the Casco View Life rental pool — distributing bookings across Airbnb, Booking.com, Marriott Homes & Villas, and direct bookings — tax-free rental income for 10 years materially changes the net return calculation.

Applies to: All property owners. Starts from the occupancy permit date.

BENEFIT 4 — Preferential Mortgage Rate Up to 3 Points Below Market

Buyers financing through a participating bank registered with the MEF (Ministerio de Economía y Finanzas) can access mortgage rates up to 3 percentage points below the prevailing market rate, for the full life of the loan.

In practice: If the market rate is 7% annually, you could obtain your mortgage at 4%. On a B/.200,000 loan over 20 years, that difference represents tens of thousands of balboas saved in interest — not a temporary rate, but for the entire term.

Applies to: Buyers financing through MEF-registered program banks. Confirm bank participation before closing.

BENEFIT 5 — Import Tax Exemption on Equipment and Materials

Owners importing equipment to outfit, renovate, or upgrade their unit — appliances, climate systems, finishing materials, professional kitchen equipment, or similar goods not produced domestically — are exempt from Panama’s import tax.

In practice: If you import B/.40,000 of kitchen equipment at a 10% import rate, you save B/.4,000 directly. For comprehensive fit-outs the savings scale accordingly.

Applies to: Property owners importing for exclusive use in their unit. Requires certification from the Dirección Nacional de Patrimonio Cultural.

BENEFIT 6 — Your Tenants Can Deduct Rent from Their Income Tax

Tenants leasing a residential unit can deduct rent payments from their gross taxable income during the first 5 years from the occupancy permit.

In practice: A tenant paying B/.1,200/month can deduct B/.14,400 annually from their tax return. This makes leasing at PH Casco View structurally more attractive than leasing outside the heritage zone — supporting occupancy and competitive rental pricing for the investor.

Applies to: Investors who lease residential units. Valid for 5 years from the occupancy permit.

The 20-Year Window — and Why Acting Early Matters

All Ley 519 benefits must be exercised within 20 years of the law’s entry into force — before April 29, 2046. The exception:Benefit 2 (transfer tax exemption on non-intervened buildings) runs only 2 years until April 29, 2028.

Property prices in Santa Ana have not yet fully repriced to reflect this fiscal framework. That gap is temporary. Investors who move before the market catches up access the same fundamentals at pre-awareness pricing.

What This Means for PH Casco View Specifically

PH Casco View sits inside the formally extended buffer zone. The six benefits above are available to buyers from the date of purchase — current law under G.O. N.° 30513, not future projections.

The property is already operational: fully furnished serviced apartments, EDGE-certified (30% energy savings, 27% water savings, 42% reduced carbon footprint), with a saltwater pool, coworking spaces, concierge services, and a managed rental pool. Walkable to Casco Viejo’s restaurants, museums, cafés, and cultural life.

⚠️  Disclaimer: This article reflects our understanding of Ley 519 of April 21, 2026 (Gaceta Oficial Digital N.° 30513, April 28, 2026), which modifies, replaces, and adds 31 articles to Ley 136 of December 31, 2013 (Art. 35 of Ley 519). Application of these benefits is subject to legal requirements in effect and verification by competent authorities. This is informational content only. We strongly recommend consulting a qualified Panamanian attorney and/or financial advisor before making any investment decision.

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