Required Commercial Disclosures for Offices & Retail (Panama)
Statutory and contractual disclosure obligations for commercial landlords in Panama, focusing on suitability of use, hidden defects, and operational permits.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Operating in leased properties in Panama for commercial activity is governed primarily by the principle of contractual freedom under the Civil Code (Articles 1294–1345) and specific administrative requirements in Law 93 of 1973 (as amended by Law 259 of 2021). For most commercial properties, Law 93's application is limited to administrative registration and security deposits. Landlords bear a fundamental duty to disclose any material facts that would prevent the tenant from utilizing the property for its intended mercantile purpose.
Legally Permitted Disclosures
Under Panama's civil and commercial framework, the transparency requirements focus on the legal and physical state of the premises to ensure the "Operation Notice" (Aviso de Operación) can be successfully obtained by the lessee.
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Lessor's Obligations and Suitability: Under Art. 1307 of the Civil Code, the landlord is legally required to deliver the property, perform all necessary repairs to maintain it in a state suitable for its intended commercial use, and guarantee the tenant's peaceful enjoyment of the premises. Per Law 5 of 2007, tenants must obtain an Aviso de Operación via the Panama Emprende platform. Landlords must disclose zoning designations (managed by MIVIOT) to ensure the premises are legally permitted for the specific commercial activity (Retail, Industrial, Office).
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Hidden Defects and Rescission: Under Art. 1310 and 1484, the landlord is liable for hidden defects that render the property unfit for its intended use or diminish its utility to the extent that the tenant would not have entered the contract or would have paid a lower rent had they been known. This liability exists even if the landlord was unaware of the defects. If the landlord fails to fulfill maintenance or suitability obligations, the tenant may request the rescission of the contract and compensation for damages under Art. 1314.
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Horizontal Property (P.H.) Regulations: If the premises are located in a corporate plaza or mall, the landlord is legally required under Law 284 of 2022 to provide the tenant with the Reglamento de Copropiedad (Co-ownership Regulations). Tenants are bound by these internal bylaws, and landlords must disclose all common expense fees (cuotas de mantenimiento) and restrictions on provider access. Digital integration within the Landager module allows landlords to organize these Required Corporate Annexes and ensure the tenant receives all internal bylaws and contingency plans with automated tracking for compliance purposes. Back to Panama Commercial Leases Overview.
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Mandatory Registration: Per Law 93 of 1973 (Art. 5), all lease contracts must be in writing and registered with the Ministry of Housing and Territorial Planning (MIVIOT). A security deposit equal to one month's rent must be deposited with MIVIOT.
Frequently Asked Questions
▶What are the key landlord-tenant laws in Panama?
The rental market in Panama is primarily regulated by Law 93 of October 4, 1973. This foundational law is currently undergoing a modernization process by the Ministry of Housing and Territorial Planning (MIVIOT) to adapt to the 2026 real estate market. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Panama?
The eviction process in Panama requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Panama?
Panama has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the security deposit rules and return deadlines in Panama?
Panama has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in Panama?
Lease agreements in Panama must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Panama?
Landlords in Panama are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Panama?
Panama has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Panama?
Landlords in Panama must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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