Short-Term Rental Investing in Panama: Why Santa Ana Is Capturing International Investor Attention

Let's be real: everyone talks about Panama City's real estate potential, but most conversations still revolve around the same two or three neighborhoods. Meanwhile, a quieter story has been building just west of Casco Viejo in a district called Santa Ana and the investors paying attention right now are the ones who are going to look very smart in five years.

Here's what's happening, why it matters, and why Casco View Life sits at the center of it.

Panama's Tourism Machine Is Running at Full Speed

Before we zoom in on Santa Ana, let's zoom out. Panama closed 2025 with 3,004,266 international visitors an 8.2% increase over 2024 making it the highest visitor count since the pandemic. Tourism foreign exchange earnings reached $6.583 billion, representing 7.3% of national GDP, the highest figure the sector has ever recorded. In the first quarter of 2026 alone, arrivals grew another 17.3% compared to the same period in 2025.

That's not a spike. That's a trend.

More visitors means more demand for places to stay. Panama City's hotel occupancy has averaged around 56%, but the real opportunity is showing up in short-term rentals specifically in neighborhoods where travelers want to be, not just where they end up by default.

The STR Market in Panama City: What the Data Actually Says

Short-term rentals in Panama operate in a relatively low-regulation environment one of the few in Latin America where operators can list on Airbnb, VRBO, and Booking.com without the dense bureaucratic overhead found elsewhere in the region.

In Panama City, well-managed short-term rental listings can reach 50% to 60% occupancy, with average daily rates in the Casco Viejo corridor ranging between $100and $180 per night — the highest ADR in the country. Well-managed properties in the corridor average 50–60% occupancy; top-performing listings reach above 80%, though that reflects the upper tier of the market.. Supply grew 58% over the past year, yet nightly rates continued trending upward a clear signal that traveler demand is outpacing inventory growth, not being diluted by it.

For investors, that's precisely the combination you want to see: rising demand, constrained supply, and pricing power still intact.

Santa Ana: The District That Changes Everything

Santa Ana is directly adjacent to Casco Viejo — the historic district most people associate with Panama City's cultural and culinary scene. The difference? Casco Viejo is essentially at capacity. You cannot build new towers in a UNESCO Heritage Site. Supply is permanently capped. Prices for restored units in Casco Viejo sit at $2,500–$4,000 per square meter.

Santa Ana is the adjacent chapter of that same story and it's still being written.

Property prices in Santa Ana currently run approximately 15-30%  below Casco Viejo. The walkability, the cultural energy, and the proximity are essentially identical. But the price of entry is significantly lower, which means stronger yield potential for investors who get in now.

What's Driving the Transformation?

1. Government and IDB-Backed Urban Renewal

The Municipality of Panama, in partnership with the Inter-American Development Bank (IDB) and the Ministry of Culture (MiCultura), has officially designated Santa Ana as Panama's first Distrito Creativo a Creative District. A $38.8 million urban renewal initiative is actively reshaping the district, with infrastructure, cultural programming, and restoration projects already underway. This is public and private capital moving in the same direction at the same time a rare alignment.

2. Ley 519 de 2026: The Law That Rewrote the Rules

In April 2026, Panama's National Assembly passed Ley 519 (Gaceta Oficial N.° 30513, effective April 29, 2026), formally incorporating the entire corregimiento of Santa Ana into the protected buffer zone of the Historic Monument Ensemble of Casco Antiguo. In plain terms: every fiscal incentive previously reserved exclusively for Casco Antiguo now applies, completely, to Santa Ana. This is a 30-year framework.

3. Panama's STR Regulation Is Investor-Friendly

Unlike many Latin American markets that have moved aggressively to restrict short-term rentals, Panama maintains a low-regulation environment for STR operators. For investors evaluating risk, that regulatory clarity matters — and the Santa Ana / Casco Viejo corridor is among the most legally clear and supply-constrained STR areas in the country.

5 Investor Benefits Under Ley 519 de 2026

The passage of Ley 519 didn't just create buzz — it created a concrete package of fiscal incentives for investors buying in Santa Ana. Here are the five key benefits:

1. Preferential Mortgage Financing: Banks can now offer mortgage rates up to 3 percentage points below the standard market reference rate for purchases, construction, or restoration in Santa Ana. That's a meaningful reduction in financing costs — directly improving cash-on-cash returns for leveraged buyers.

2. 10-Year Income Tax Exemption on Rental Income: Rental income generated from properties in Santa Ana is exempt from income tax for 10 years. For short-term rental investors, this directly increases net yield.

3. 30-Year Property Tax Exemption: Restored or newly improved properties benefit from a 30-year exemption on annual property taxes — a long-horizon advantage that improves total return on investment over time.

4. Transfer Tax Exemption: For non-intervened properties, there is a 2-year window (through April 29, 2028) to benefit from the transfer tax exemption at the moment of sale. Investors who act within this window capture an immediate fiscal advantage at purchase.

5. Import Duty Exemption on Construction Materials: Materials used for construction, renovation, and restoration qualify for import duty exemptions — reducing the cost of bringing a property to market or improving an existing unit.

Together, this package reduces the cost of buying, the cost of owning, and the tax burden on income — a trifecta that improves ROI across all three phases of investment.

Short-Term Rentals as an Investment Strategy: Why the Model Works Here

For investors evaluating short-term rental income as a strategy, the Santa Ana / Casco Viejo corridor offers something that's increasingly rare in emerging markets: a combination of high ADR, constrained supply, and a credible demand story backed by real visitor data.

At Casco View Life, we've structured an investment model designed to remove the operational friction that stops most people from investing in STRs abroad. Our rental pool distributes revenue across a diversified channel mix Airbnb, VRBO, Booking.com, Expedia, Marriott Homes & Villas, and direct bookings through cascoviewlife.com, which contribute 35–40% of total bookings. Investors own the unit. We manage everything else: listing optimization, guest management, pricing strategy, maintenance, and monthly financial reporting.

For buyers interested in a residency pathway, units from $300,000 qualify for Panama's Qualified Investor Visa one of the most straightforward permanent residency programs in the Western Hemisphere.

Net yields for well-managed Santa Ana STR properties currently sit at approximately 6.0%, with gross yields around 7.4% figures based on 55% average annual occupancy, an ADR of $140/night, a 20% management fee, and estimated operating costs. The net yield figure reflects the 10-year income tax exemption under Ley 519; without this exemption, net yield is approximately 4.8–5.2%. Actual returns will vary, figures that compare favorably against comparable markets in Latin America and the Caribbean, especially given Panama's dollarized economy, territorial tax system, and investor-friendly legal framework.

The Early-Mover Moment Is Now

Every mature market was once an emerging one. Casco Viejo's transformation happened over two decades, and the investors who entered in the early years when it felt uncertain are the ones who saw the most appreciation.

Santa Ana is now at that inflection point, with one critical difference: there's no uncertainty about the legal framework anymore. Ley 519 has landed. The IDB investment is committed. The Creative District designation is official. The fiscal incentives are in writing.

The question isn't whether Santa Ana will transform. It already is. The question is whether you want to be part of that first chapter.

Ready to Explore What's Available?

Casco View Life is located in Santa Ana, directly next to Casco Viejo the only EDGE-certified building in the area, with a saltwater pool, concierge services, coworking space, and a fully managed rental program. EDGE certification reduces energy and water consumption which translates directly into lower operating costs and stronger net yields for investors.

We have 1-bedroom apartments from approximately $195,000, and penthouses from $470,000. Every unit is fully furnished, professionally managed, and available for short-, mid-, and long-term stays and every unit is eligible for the full Ley 519 fiscal incentive package.

Thinking about investing in Panama? Let's talk. Visit our Invest page or send us a message to schedule a private tour.

Disclaimer: Financial projections are illustrative estimates based on current market data and are not guarantees of performance. The tax exemptions described under Ley 519 de 2026 are subject to applicable legal requirements. The transfer tax exemption is valid for purchases completed before April 29, 2028. Prospective investors should conduct independent due diligence and consult qualified advisors before making any investment decision. Content last reviewed July 2026.