Buying an apartment to list on Airbnb is one of the most common investment plans in Panama. It can pay off, but today it operates in a legal gray area that is about to change. Here is what you need to know before you sign.
The 45-day rule in Panama City
Under Law 80 of 2012, in the District of Panama a residential property cannot be rented for less than 45 days without a tourist lodging permit. The Panama Tourism Authority (ATP) has treated unpermitted rentals as clandestine lodging, with fines set by law between $5,000 and $50,000.
Even so, an estimated 12,000 to 13,000 Panamanian properties appear on platforms like Airbnb. Many people doing it does not make it legal: if you buy to rent by the night in the capital, that risk exists today.
Bills 301 and 713
Two initiatives are in the National Assembly. Bill 301, from deputy Neftalí Zamora, would regulate tourist rentals of properties for 1 to 90 days and give hosts legal certainty. It passed first debate in January 2026 and awaits second debate.
Bill 713, filed by the Executive with the ATP, would eliminate the 45-day rule and set a 15% ITBMS on short-term rentals, versus 10% for hotels. Airbnb has asked for a single 10% rate. As of late October 2026 this bill was awaiting first debate. Neither is law yet.
Which taxes apply today
Lodging services in Panama are subject to a 10% ITBMS. Rental income must also be reported for income tax with the DGI, like any other income.
If Bill 713 passes as written, the rate for lodging in homes would rise to 15%, and the ATP has stated that paying the tax does not legalize a prohibited activity. Run your numbers with the higher tax scenario.
Condominium (PH) rules
Even if national law allows it, your building's co-ownership rules can ban or limit nightly rentals. Law 284 of 2022 governs condominiums (propiedad horizontal) in Panama, and each building sets its own rules of use.
Before buying, request the current rules and ask the administration whether short stays exist in the building, whether any fee applies and whether the owners' board plans to change the rules. Many buyers discover the ban after signing.
What Airbnb earns in Panama
According to Airbtics data for November 2024 to October 2025, Panama City had about 2,568 active listings, an average nightly rate near $81, a median occupancy of 68% and average annual revenue of about $19,000 per listing. These are third-party estimates and every building is different.
From that revenue subtract the platform fee, cleaning, electricity, internet, HOA fees, furnishings and taxes. Always compare with a traditional 12-month lease or a mid-term rental of 45 days or more, which today is the option without the gray area in the capital.
Three steps before buying for Airbnb
How to reduce the risk of a short-term rental investment in Panama:
Read the rules
Confirm in writing that the building allows nightly rentals before paying any deposit.
Have a plan B
Also run the numbers for a traditional or 45-day-plus rental in case the rule does not change.
Track the law
Bills 301 and 713 may change the rules and the taxes. Check their progress before closing.
Frequently asked questions
Is Airbnb legal in Panama?
In the District of Panama, Law 80 of 2012 requires a minimum of 45 days to rent a residential property without a tourist permit. Bills to regulate short-term rentals are in the Assembly, but as of November 2026 none has been approved.
What tax does an Airbnb pay in Panama?
Today lodging is subject to a 10% ITBMS and the income is reported for income tax. Bill 713 proposes raising ITBMS to 15% for lodging in homes.
How much does an Airbnb earn in Panama City?
Airbtics data for 2024-2025 estimates average annual revenue of about $19,000 per listing, with a nightly rate near $81 and median occupancy of 68%, before expenses and taxes.
Based on Law 80 of 2012, press reports and Airbtics data as of November 2026; regulations may change. This guide is informational and is not legal or tax advice.