Panama Landlord-Tenant Laws: Complete Guide for Property Owners
Comprehensive guide to Panama''s rental property laws, including security deposits at MIVIOT, eviction procedures, rent control, and maintenance rules.
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.
The rental market in Panama is primarily regulated by Law 93 of October 4, 1973, which entered into force upon its publication on October 22, 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.
Key Panama Rental Laws at a Glance
Security Deposits (Depósito de Garantía)
A security deposit equal to one month's rent is mandatory under Article 21 of Law 93. Crucially, the landlord must deposit these funds with MIVIOT (Ministry of Housing) and provide the receipt to the tenant. The government holds these funds until the end of the tenancy.
Rent Increases
Panama allows free negotiation for the initial term. Increases during the tenancy depend on contract terms. However, for housing with rent $150 USD or less, any increase requires express MIVIOT authorization based on property improvements, as per Law 93.
Eviction Procedures (Lanzamiento)
Evictions are managed by the Dirección General de Arrendamientos (General Directorate of Leases) under MIVIOT. Grounds include non-payment of two or more months' rent. The process can take several months, and Article 41 allows for suspensions if the tenant proves severe illness or total lack of resources.
Short-Term Rental Restrictions The Panama Tourism Authority
The Panama Tourism Authority (ATP) strictly enforces a 45-day minimum stay for residential properties in the District of Panama, as established in Article 21 of Law 80 of 2012. Rentals for shorter periods (Airbnbs) are prohibited in residential zones and can result in significant fines for the property owner.
Maintenance and Habitability
Landlords are obligated to maintain major systems (plumbing, structural, electrical). MIVIOT oversees habitability standards and can intervene if the unit becomes unsafe.
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.
▶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.
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▶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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