Panama Landlord-Tenant Laws: Complete Guide for Property Owners

The rental market in Panama is primarily regulated by Law 93 of October 4, 1973. This law applies to most residential lease agreements and establishes detailed rights and obligations for both landlords and tenants.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Landlord-tenant laws change frequently. Always consult a licensed attorney in Panama for advice specific to your situation. Information last verified: March 2026.

Key Panama Rental Laws at a Glance

The most distinctive feature of the Panamanian system is the active role of the Ministry of Housing and Territorial Planning (MIVIOT) and its General Directorate of Leases, where landlords are legally required to register residential lease agreements. Summer vacation rentals and accommodations shorter than 6 months are generally exempt from this specific law.

Security Deposits

It is standard practice to request a security deposit equal to one month's rent. Crucially, the landlord must deposit these funds with MIVIOT and provide an official copy of the receipt to the tenant. The government holds this deposit as a guarantee against potential property damage or unpaid rent/utilities at the end of the tenancy.

Learn more in our Security Deposits guide.

Rent Increases

Panamanian law allows the parties to freely negotiate the initial term and cost of the lease. Rent increases during the tenancy are governed by what was originally agreed upon in the contract.

However, a strict restriction applies to lower-income housing: if the rent is 150 Balboas/USD or less per month, any rent increase requires express authorization from the Ministry of Housing based on proven property improvements.

For more details, read our guide on Rent Increases.

Eviction Procedures

Evictions (known as "lanzamiento") in Panama provide certain protections to tenants, preventing immediate expulsions in many scenarios. Valid grounds include non-payment of two or more months' rent or using the property for illegal purposes.

The process can be lengthy, taking several months on average. Article 41 of Law 93 even allows a tenant to request a suspension of the eviction if they can prove their inability to pay is due to a severe illness, verified unemployment, or a total lack of resources.

Read the complete guide on the Eviction Process.

Lease Requirements and Formalities

In Panama, all lease agreements must be in writing. Once signed, the landlord has a legal obligation to submit a copy to MIVIOT's General Directorate of Leases to formalize the relationship. Furthermore, discrimination based on gender, race, marital status, or the presence of children is strictly prohibited when offering a lease.

Check our guide on Lease Requirements.

Maintenance and Habitability

The landlord is obligated to maintain the property in a suitable condition for the purpose for which it was rented. This entails making all major and necessary repairs (plumbing, structural, electrical) that are not the result of the tenant's negligence.

To learn more, review our Maintenance Obligations.

Simplify Compliance in Panama

Navigating MIVIOT procedures, registering contracts, and ensuring the proper handling of state-held deposits can be challenging. Landager digitizes tenant information and allows property managers in Panama to centralize their government registration documents and proactively manage collections to avoid conflicts and litigation.

Explore our specific compliance guides for Panama:

• Security Deposits
• Eviction Process
• Required Disclosures
• Rent Increases
• Lease Requirements
• Maintenance Obligations
• Late Fees