Airbnb in Panama – Opportunities and Rules

If you are an investor looking for a plan B for your own family in Panama, Airbnb properties offer an attractive opportunity to combine returns & flexibility. Since 2018, we have been offering in-house, professional property management in Panama – including a comprehensive Airbnb service. Below we present a selection of real estate projects in what we consider to be the best Airbnb locations.

General conditions: Airbnb in Panama

The rental law stipulates a minimum rental period of 45 days in Panama City, which means that short-term rentals are officially prohibited. However, there are exceptions, e.g. in tourist areas such as the historic old town of Casco Viejo and the area around the Panama Canal, where Airbnbs can be operated legally. Provided you have an official Airbnb license. In the beach and mountain regions of Panama, Airbnb is generally permitted as long as there are no individual building regulations against it.

Airbnb license: a must for legal rentals

A key success factor is the official Airbnb license, which is issued by the Panamanian Tourism Authority (ATP). Only with this license can you legally receive Airbnb guests. Without a license, there is a risk of severe fines of around USD 5,000. Although many offers in Panama City can be found on platforms such as Airbnb, they are often not legal. We have the Airbnb license.

Profitability and flexibility of Airbnb investments

Professionally managed Airbnb properties often generate higher net income than traditional long-term rentals. Flexibility is also crucial for many Plan B customers: they can use the property temporarily themselves and benefit from the rental income at the same time. This combination of yield and owner-occupancy makes Airbnb particularly attractive.

Advantages and disadvantages

Advantages:

• Potentially higher returns than with long-term rentals
• Flexible own use of the property possible
• Strong demand in tourist hotspots such as Casco Viejo and Panama Canal
• Professional management by experienced providers such as Homega Property Solutions

Disadvantages:

• Legal restrictions in Panama City (minimum rental period, license requirement)
• Higher administrative costs (cleaning, guest care)
• Risk of regulatory changes and official controls
• Seasonal fluctuations in occupancy 

Locations for Airbnb investments

Casco Viejo / UNESCO World Heritage Site:

The historic old town is very popular with tourists, as almost every tourist arriving in Panama City wants to see and experience the old town. There are also attractive tax breaks for investors here, although these are offset by higher real estate prices than in the modern city. 

Panama Canal / Panama City:

The most successful real estate project from 2024 is located directly on the Panama Canal in a quiet location, just a few minutes from the old town and urban metropolis. The trade fair center and cruise terminal are close by, so there is demand for AirBnBs all year round.

Beach regions:

There are beautiful tropical beaches all over Panama, which also makes choosing the right project more difficult. Seasonal fluctuations in occupancy can be problematic or can be used as an opportunity to partially occupy the property yourself. Owner-occupation makes sense and enriches your own life.

Boquete mountain region:

The pleasant climate and natural landscape attract those seeking peace and quiet to the mountains of Boquete. As one of the top tourist destinations in Panama, you have to be prepared for seasonal fluctuations in the number of bookings and a generally lower population density than in the city.

Modern City: 

Here, too, there are now a few legal Airbnb rental offers. However, as real estate agents and property managers, we focus on the aforementioned touristy and unique locations that have something special to offer.

Conclusion: Airbnb as a strategic investment

Airbnb investments in Panama offer an attractive combination of returns, flexibility and quality of life – ideal for investors looking for a plan B. It is important to know the legal framework in detail and to focus on properties with a valid Airbnb license. Professional real estate management, such as our own management company, reduces risks and increases the chances of sustainable success.

In addition to Airbnb investments, apartments that can be rented out long-term in Panama City are also very attractive – especially due to the demand from large multinational corporations and companies that offer stable rental income and long-term planning security. Ultimately, it depends on what goals and priorities you are pursuing as an investor.

Attractive Airbnb investments

Sowohl in den genannten Stadtteilen von Panama City, als auch in den Strand- und Bergregionen bieten wir attraktive Airbnb-Investments an. Kontaktieren Sie uns sehr gerne, wenn Sie Interesse an einem Immobilieninvestment in Panama haben.

We offer attractive Airbnb investments in the aforementioned districts of Panama City as well as in the beach and mountain regions. Feel free to contact us if you are interested in a real estate investment in Panama.

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FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

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Investments in Panama