Two taxes can apply when you sell a boat in Panama: 7% ITBMS on the sale, and income tax on any gain. Dealers and companies registered for ITBMS charge it; a private owner selling a used, duty-paid boat usually does not. Most used boats sell below cost, so there is often no gain. Confirm with the DGI or an accountant.
What can be taxed in a boat sale
The Dirección General de Ingresos (DGI) collects both taxes that matter here:
- ITBMS, the tax on transfers of movable goods and services under article 1057-V of the Código Fiscal. The general rate is 7%.
- Impuesto sobre la renta on a gain, if you sell the boat for more than it cost you.
Other closing costs are fees, not taxes: the AMP's transfer charges, Registro Público inscription and the notary. See closing a boat sale. Import duty belongs to a different moment, when a boat is brought into Panama; it comes up in a sale only if the boat was never imported. That case is in boat taxes in Panama.
This page explains the questions to ask. It is not tax advice, and the answer depends on who owns the boat and how it has been used.
ITBMS: who charges it on a boat sale
ITBMS is charged by its taxpayers (contribuyentes): businesses that sell goods or services and are registered for the tax. The DGI's FAQ says filing ITBMS becomes mandatory when annual income exceeds B/.36,000. Three common cases:
- A dealer or a company selling a boat. A business registered for ITBMS normally charges 7% on the sale price, whether the boat is stock or one of its own assets. Deloitte, writing in La Estrella in 2017, lists 7% ITBMS on the sale price of movable fixed assets.
- A private owner selling a personal boat. An individual who is not an ITBMS taxpayer does not normally charge it on a one-off sale of a used boat whose import duty and ITBMS were paid. That matches how private sales are usually done here, but we could not find a DGI ruling that says so for boats.
- A boat leaving Panama. The DGI's FAQ says goods exported from Panama are not subject to ITBMS. Whether a boat a buyer sails away counts as an export depends on the customs paperwork; see exporting a boat from Panama.
Write the answer into the contract: the price either includes ITBMS or is plus ITBMS. Leaving it silent is how disputes start.
Income tax on a gain: the basics
Panama taxes income from Panamanian sources, and a boat sold in Panama is a Panamanian-source transaction. The question is whether there is a gain at all.
- Most used boats sell below cost. Your cost basis is what you paid, plus import duty, ITBMS and major improvements you can document. Keep the invoices and import receipts; they are your evidence.
- Companies. A company that has depreciated the boat, such as a charter business, can show a gain even when the price is below the original cost, because the book value is lower. Deloitte (La Estrella, 2017) and a 2022 La Prensa column by tax consultant Osvaldo Lau both describe gains on movable fixed assets as taxed at a 10% rate. Deloitte also says the seller must file a capital-gains return even when no tax is due.
- Individuals. Whether an individual's gain on a personal boat is treated under the capital-gains rules or as ordinary income is a question for your accountant. We could not confirm it from a DGI page.
Rates and filing rules change. Treat these figures as a reason to call an accountant, not as your tax bill.
Selling the company instead of the boat
Many larger boats in Panama are owned through a sociedad anónima. Sometimes the parties sell the company's shares rather than the boat, so the registration does not change. That is a different tax event: the 2022 La Prensa column describes a 10% tax on the gain from share transfers under Ley 18 of 2006, with a 5% advance on the sale value. A share sale also passes every debt and obligation of the company to the buyer, so it needs a lawyer on both sides. See owning a boat through a corporation or foundation.
Who pays what at closing
| Item | Usually borne by | Check |
|---|---|---|
| ITBMS, if the seller is a taxpayer | Buyer, collected by the seller | Contract says price includes or excludes ITBMS |
| Tax on a gain | Seller | Accountant confirms cost basis and filing |
| AMP transfer and Registro Público fees | Negotiable | Confirm current fees with the AMP |
| Notary and lawyers | Negotiable; each side pays its own lawyer | Agree in writing |
| Import duty and ITBMS on a boat in transit | Negotiable | Customs broker's written quote |
If the boat was used commercially, its tax position is tied to the business's books; see bookkeeping for a boat business.
Your practical starting checklist
- Find out whether the selling owner is an ITBMS taxpayer.
- Gather the purchase invoice, import receipts and improvement invoices for your cost basis.
- Ask an accountant whether the sale produces a taxable gain and what must be filed.
- State in the contract whether the price includes ITBMS and who pays fees.
- For a company-owned boat, decide with lawyers whether to sell the boat or the shares.
- File and pay any tax on time, and keep the records.
Frequently asked questions
Do I charge ITBMS when I sell my used boat privately?
Usually not, if you are an individual who is not registered for ITBMS and the boat's import taxes were paid. Businesses registered for ITBMS normally charge 7%. Confirm with the DGI or an accountant.
Is there capital-gains tax on a boat sale in Panama?
Only if there is a gain, and most used boats sell below cost. Secondary sources describe a 10% rate on gains from movable fixed assets; an accountant should confirm how your sale is treated.
Does the buyer pay anything to the DGI?
In a normal private sale, no. If the seller charges ITBMS, the buyer pays it as part of the price and the seller remits it.
¿Se paga impuesto en la venta de una lancha usada en Panamá?
El ITBMS del 7% lo cobran los contribuyentes del impuesto, como concesionarios y empresas. Un particular que vende una lancha usada con impuestos de importación pagados normalmente no lo cobra. Si hay ganancia, puede haber impuesto sobre la renta; consulte con la DGI o un contador.
The next question to answer
The whole selling process. Read How to sell a boat in Panama.
Import duty, ITBMS and annual charges for owners. Read Boat taxes in Panama.
Notary, payment and AMP traspaso. Read Closing a boat sale in Panama.
Same topic in Florida: coming from the US? Compare Florida Boat Sales and Use Tax Scenarios.
Official resources
Use the relevant Panamanian authority for current requirements and fees. These resources are the next place to check; a practical recommendation is not an agency determination.
- DGI: ITBMS generalidades (7% rate) ↗
- DGI: ITBMS preguntas frecuentes (B/.36,000 filing threshold; exports) ↗
- La Estrella de Panamá: La venta de activos y su impacto fiscal en Panamá (Deloitte, Oct 2017) — secondary ↗
- La Prensa: Los tributos de la transferencia (Osvaldo Lau, Jan 2022) — secondary, opinion column ↗
- US Commercial Service: Panama customs regulations — secondary ↗