Alejandro Ferrer Solís, former president of the construction union, indicated that the effect may be minor and that developers are providing alternatives, as are banks to facilitate access to homes.
The application of 2% of the Real Estate Transfer Tax (ITBI) that developers or promoters will have to pay for new homes is beginning to generate tensions in the Panamanian real estate market, with different—and even opposing—readings among the main unions in the sector about its real impact on prices and activity.
While the Panamanian Chamber of Construction (Capac) maintains that the measure can be handled without significantly affecting the buyer, the National Housing Council (Convivienda) warns that the tax will end up making housing more expensive and slowing down investment.
From Capac they specify that developers are looking for alternatives and different solutions to offer facilities to buyers, without affecting their purchasing power or the possibility of purchasing a home.
Promptly, Alejandro Ferrer Solisformer president of Capac, said in an interview with The Press that, if this tax is transferred, the amount would be low and could be absorbed both in the initial tax and in the financing provided by the banks.
He explained that the sale price of a home responds to the sum of several components: the construction cost, materials, labor, land, plans, infrastructure, inspection, in addition to the developer’s profit margin and the company’s operating expenses. In this scheme, the ITBI would enter as an additional cost linked to the moment of transfer of the property.
However, he clarified that this does not mean that the buyer will immediately be charged a separate invoice equivalent to 2% of the ITBI at the time of separating the house.
Ferrer explained that, if a home of $70,000 went up to $71,400 Due to the effect of the tax, the initial payment of 2% would go from $1,400 to $1,428. That is, the real increase in the initial amount would be barely $28 for the client.
He added that, if this adjustment is made to the mortgage, the impact on the monthly payment could be between $10 and $15depending on the conditions of the loan.
“We cannot say that it is impossible to buy a house“said Ferrer, pointing out that this is a situation that can be negotiated and managed within a real estate operation, especially in an open market like the Panamanian, where each developer can decide whether or not to transfer that cost to the end user.
Added to this, he added, are the promotions that developers and banks usually offer at sector fairs, where discounts, support with legal expenses or other commercial facilities are commonly provided that can offset any increase derived from the new tax.
“The developer has to sell his house“, he remarked, insisting that there will be incentives to keep transactions active for the fair. Capac Housing Expo 2026 that will open on Thursday, April 16 to 19 at the Panama Convention Center.
These are the subsidized interest rates for home purchases:
In parallel, Ferrer recognized that the construction sector is not going through its best moment.
He indicated that, when comparing December 2025 with December 2024, the total value of construction permits – which includes residential, non-residential, public and private works – registered a 39% reduction. He also admitted that jobs have been lost and that activity growth has been slow and very moderate.
MEF willing to review the impact of the tax that affects new homes
In his opinion, the debate should focus on which scenario allows the State to collect more: whether by taxing the first sale of new homes more or maintaining incentives that promote a more active industry, capable of generating other taxes and employment.
What Convivienda says
Capac’s explanation contrasts with that of National Housing Council (Convivienda)which has warned about an increase in the cost of real estate units and has expressed the negative effect of the ITBI tax.
Convivienda maintains that these types of measures can lead to a drop in investment and affect the purchasing power of those looking to buy a home.
Elisa Suarezdirector of the union body, indicated that the additional costs end up being transferred to the final price of the homes, which not only affects the buyer, but also reduces the rotation of projects and discourages new developments at a time when the supply is already decreasing.
“We have a huge impact on the construction sector. This tax will generate less construction and if we invest less we will have fewer jobs and less economic development“Suárez warned, referring to the impact that the application of the 2% ITBI on new homes would have on the country’s economic activity.
During a discussion in which representatives of Convivienda participated, together with the economist Eric Molino Ferrer and the labor expert René Quevedo, it was indicated that, although the tax is paid by the promoter to the General Directorate of Revenue, in practice this cost is passed on to the consumer.
As it is a highly price-sensitive market, the union foresees an impact on demand, with lower purchasing capacity of households, delays in acquisition decisions and a possible drop in home sales.
