Airbnb Is About to Get a Legal Glow-Up in Panama (Here’s What That Means for You)
- Lauren Mitchell
- Aug 16
- 3 min read
Big changes are coming to Panama’s short-term rental laws—and Casco Viejo is already ahead of the game.
Let’s Catch You Up: Why Everyone’s Talking About Airbnb in Panama
Short-term rentals in Panama have always lived in a bit of a legal grey zone—especially in Panama City, where a 45-day minimum stay rule has made traditional Airbnb hosting technically illegal… unless you’re in a special tourism zone like Casco Viejo.
Spoiler: That might all change in 2025.
A proposed law could flip the switch, giving short-term rentals a real legal framework, taxes and all. If you're a property investor or someone thinking about hosting in Panama, here’s everything you need to know—minus the legal jargon.
Quick Menu (Because You're Busy)
What the Law Says Right Now
Here’s the deal: Panama City’s current law (yep, still in place) says you can’t rent out your property for less than 45 days, unless you’ve got a tourism license—which is hard to get and usually reserved for hotels.
What happens if you do it anyway? Fines between $5,000 and $50,000. Yikes.
That said, over 13,000 Airbnbs are still operating across the country, with 4,000+ in Panama City. So clearly, there’s demand—and a very overwhelmed enforcement system.
What the New Law Wants to Change
Cue: The Neftaly Zamora Bill—a proposal to make short-term rentals officially legal (finally). It’s working its way through Panama’s legislative process and, if passed, would do the following:
✅ Legalize short-term rentals across Panama
✅ Let condo buildings decide if they allow Airbnb
✅ Require registration with Panama’s Tourism Authority (ATP)
✅ Apply a 10% sales tax (ITBMS) on short stays
✅ Share host data with the Panama tax authority (DGI)
Translation? If you’ve got your paperwork in order, you’ll finally be able to host or invest legally, and with confidence.
Why Casco Viejo Has a Head Start
Here’s the good news: Casco Viejo (and parts of Santa Ana) are already legally exempt from the 45-day rule.
Yep—this historic UNESCO district is a government-designated tourism zone, meaning Airbnb rentals here are already allowed (as long as you follow the rules).
Casco View Life sits right in the sweet spot—making it one of the few turnkey, fully legal options in Panama City for short-term rentals right now.
So while the rest of the city waits for the new law to pass, Casco’s already ahead.
How to Operate Legally (Now and Later)
Whether you’re buying to host or investing for rental income, here’s what you’ll need to stay compliant:
1. Register with the Tourism Authority (ATP) You’ll need to join Panama’s National Tourism Registry (RNT). This includes submitting:
Architectural plans
Proof of ownership
Safety and zoning compliance
Business plan and service descriptions
2. Verify Urban Zoning Get a zoning certificate from MIVIOT that confirms your property is in an Airbnb-legal area.
3. Meet Fire & Safety Codes Think: NFPA 70 electrical standards, fire extinguishers, and accessible rooms (if your building has 16+ units).
4. Pay Your Taxes
10% ITBMS (sales tax)
Income tax on rental earnings
Property tax—unless your building is exempt through tourism investment programs
👉 Tip: Some projects, like Casco View Life, handle this for you via a managed rental pool (hello, passive income).
What Smart Investors Are Doing Right Now
With legislation in motion and tourism on the rise, Panama’s short-term rental market is on the edge of going fully legit.
If you want to:
Buy a property you can legally rent short-term
Lock in a unit in a tourism zone (hello, Casco Viejo)
Join a rental program that handles marketing, bookings, and compliance
Get ahead of new tax rules before they’re mandatory…
Now is the time to act.
The Bottom Line
Short-term rentals in Panama are going from "technically tricky" to officially supported. That’s great news for investors—but only if you plan smart, stay legal, and invest in the right zone.
📍Casco Viejo remains one of the only neighborhoods in Panama City where short-term rentals are already permitted—and where the legal groundwork is already in place.
Thinking of investing? Let’s chat.
📩 Click here to explore Airbnb-ready units at Casco View Life or request a private tour.
