The area of parameterized approximation seeks to combine approximation and parameterized algorithms to obtain, e.g., (1+eps)-approximations in f(k,eps)n^{O(1)} time where k is some parameter of the input. We obtain the following results on parameterized approximability: 1) In the maximum independent set of rectangles problem (MISR) we are given a collection of n axis parallel rectangles in the plane. Our goal is to select a maximum-cardinality subset of pairwise non-overlapping rectangles. This problem is NP-hard and also W[1]-hard [Marx, ESA'05]. The best-known polynomial-time approximation factor is O(loglog n) [Chalermsook and Chuzhoy, SODA'09] and it admits a QPTAS [Adamaszek and Wiese, FOCS'13; Chuzhoy and Ene, FOCS'16]. Here we present a parameterized approximation scheme (PAS) for MISR, i.e. an algorithm that, for any given constant eps>0 and integer k>0, in time f(k,eps)n^{g(eps)}, either outputs a solution of size at least k/(1+eps), or declares that the optimum solution has size less than k. 2) In the (2-dimensional) geometric knapsack problem (TDK) we are given an axis-aligned square knapsack and a collection of axis-aligned rectangles in the plane (items). Our goal is to translate a maximum cardinality subset of items into the knapsack so that the selected items do not overlap. In the version of TDK with rotations (TDKR), we are allowed to rotate items by 90 degrees. Both variants are NP-hard, and the best-known polynomial-time approximation factors are 558/325+eps and 4/3+eps, resp. [Galvez et al., FOCS'17]. These problems admit a QPTAS for polynomially bounded item sizes [Adamaszek and Wiese, SODA'15]. We show that both variants are W[1]-hard. Furthermore, we present a PAS for TDKR. For all considered problems, getting time f(k,eps)n^{O(1)}, rather than f(k,eps)n^{g(eps)}, would give FPT time f'(k)n^{O(1)} exact algorithms using eps=1/(k+1), contradicting W[1]-hardness.