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Panama City

Panamá · Panama
Restricted
Last updated: 2026-06-23  ·  Last verified: 2026-06-23  ·  Region: International

At a Glance — Panama City Airbnb & STR Rules

RuleDetails
Regulatory StatusRestricted — rules apply
Permit / License RequiredYes — ATP license; only hotels/authorized operators for sub-45-day stays
Tax RateITBMS applies; hotel-style taxes for licensed operators
Minimum Stay45-day minimum unless ATP-licensed (origin of the 2012 rule)
PenaltiesFines $5,000–$50,000; possible closure orders
Primary Residence RequiredNo
Browse all 4 STR regulations in Panama →

Panama City Airbnb & Vacation Rental Regulation Overview

Panama City Short-Term Rental Regulations Overview

Short-term rentals in Panama City, Panamá are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes — ATP license; only hotels/authorized operators for sub-45-day stays.

Tax Requirements for Airbnb Hosts in Panama City

Short-term rental operators in Panama City should be aware of these tax obligations: ITBMS applies; hotel-style taxes for licensed operators. Yes — ATP registry, business registration, tax declaration.

Hosting Rules and Restrictions in Panama City

Key operational rules for vacation rental hosts in Panama City include: Primary residence requirement: No. Minimum stay: 45-day minimum unless ATP-licensed (origin of the 2012 rule).

Zoning and Location Requirements in Panama City

Zoning considerations for short-term rentals in Panama City: MIVIOT zoning certificate required; PH (horizontal property) regime limits unit STRs.

Penalties for Non-Compliance in Panama City

Hosts who fail to comply with Panama City's short-term rental regulations may face enforcement action. Fines $5,000–$50,000; possible closure orders.

Platform Obligations in Panama City

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Panama City: No formal regime; enforcement system overwhelmed.

Full Regulatory Details

Regulatory Status
Restricted
License / Registration
Yes — ATP license; only hotels/authorized operators for sub-45-day stays
Tax Registration
Yes — ATP registry, business registration, tax declaration
Primary Residence Rule
No
Tax Rate
ITBMS applies; hotel-style taxes for licensed operators
Zoning Restrictions
MIVIOT zoning certificate required; PH (horizontal property) regime limits unit STRs
Minimum Stay
45-day minimum unless ATP-licensed (origin of the 2012 rule)
Platform Obligations
No formal regime; enforcement system overwhelmed
Compliance Notes
Strictest market; Law 284/2022 PH regime distinguishes PH-owned rentals from private-unit listings; Casco Viejo tourism zone exempt
Effective Date
Law 80 (2012); Law 284 (2022, PH regime)
Key Notes
Casco Viejo special tourism zone is a notable exception where STRs are permitted
Penalties
Fines $5,000–$50,000; possible closure orders
Additional Context
~4,000+ Airbnbs operating in city; many in regulatory grey area
Sources
https://www.atp.gob.pa/registro-de-empresas-y-actividades-turisticas
Panama Sovereign Realty
Casco View Life
Prime Solutions
Newsroom Panama
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

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Frequently Asked Questions

Is Airbnb legal in Panama City?

Airbnb and short-term rentals are legal in Panama City but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. Strictest market; Law 284/2022 PH regime distinguishes PH-owned rentals from private-unit listings; Casco Viejo tourism zone exempt

Do you need a permit for Airbnb in Panama City?

Yes. Panama City requires the following for short-term rental operation: Yes — ATP license; only hotels/authorized operators for sub-45-day stays.

What taxes apply to short-term rentals in Panama City?

Short-term rental hosts in Panama City are subject to the following tax obligations: ITBMS applies; hotel-style taxes for licensed operators.

What are the penalties for illegal Airbnb hosting in Panama City?

Hosts who operate without proper permits in Panama City may face enforcement. Fines $5,000–$50,000; possible closure orders.

What are the key STR compliance requirements in Panama City?

Casco Viejo special tourism zone is a notable exception where STRs are permitted

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