Required Commercial Disclosures for Offices & Retail (Panama)

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.

1. 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).

2. 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.

3. 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 OverviewPreview unavailable.

4. 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.