Renting in Panama as an Expat: Leases, Deposits and Your Rights as a Tenant

Not legal advice. This guide is general orientation for foreigners renting a home in Panama, based on public sources checked on 12 October 2026. Panama's rental law is old, partly amended and applied through MIVIOT practice that can change. Before you sign, pay a deposit or answer an eviction notice, check the details with the Dirección General de Arrendamientos at MIVIOT and, for anything that matters to you, with a Panamanian lawyer.

Who this guide is for

This guide is for expats who are moving to Panama, or already live here, and plan to rent a home. It covers which rules apply to your lease, how the deposit works, how you give notice, what the law generally says about repairs and rent increases, and what eviction looks like. It does not cover buying property. For the rent-or-buy decision, start with our overview, Finding a Home in Panama: Rent or Buy?.

It is also not about hotels, guesthouses or short holiday stays. Article 3 of Ley 93 excludes property rented at a daily rate, and seasonal homes in summer resorts rented for six months or less, including extensions.

The law in one paragraph

Residential leases in Panama are governed by Ley 93 of 4 October 1973, as amended by Ley 28 of 1974, Ley 55 of 1976 and Ley 259 of 2021. The law is run by the Dirección General de Arrendamientos inside the Ministerio de Vivienda y Ordenamiento Territorial (MIVIOT). MIVIOT said in January 2025 that it wants to modernize Ley 93 together with the construction and real estate associations, and that any new text would still have to pass the National Assembly. As of 12 October 2026 we found no replacement law in force, so Ley 93 and its amendments remain the framework.

The B/.150 line that decides which rights you have

Most expat rentals fall into what MIVIOT calls a Tipo B lease, and that matters more than any other detail in this guide.

Article 1 of Ley 93, as amended in 1974, lets the government take leases out of most of the law by decree, by rent band or other features, so that they are governed by free contract (libre contratación). It cannot switch off a short list of articles: 4, 5, 6, 7, 8, 10, 13, 16, 19, 20, 65, 66 and 68.

According to the Procuraduría de la Administración's legal database, Decreto Ejecutivo 294 of 1994, in force since 30 March 1995, excludes housing leases with rent above B/.150 a month from Ley 93, except for those protected articles. During the COVID emergency, Decreto Ejecutivo 145 of 2020 suspended that exclusion, but it was repealed by Decreto Ejecutivo 30 of 27 September 2022. So, generally, the B/.150 line applies again today.

MIVIOT's registration pages on Panamá Digital reflect the same split:

• Tipo A: housing with rent up to B/.150 a month. The page states a minimum term of three years, which matches article 9 of Ley 93.
• Tipo B: housing with rent above B/.150 a month. The page states a minimum term of six months, not three years.

What this means in practice: if your rent is above B/.150, you should generally not assume you have the full protections of the 1973 law, such as the three-year term, the cap on rent increases or the narrow eviction grounds. You do keep the protected articles, which cover non-discrimination, the written MIVIOT form and its registration, working from home, basic habitability, the 30-day notice rule, the deposit, the purchase preference if the building converts to horizontal property, subletting consent, and penalties. For everything else, your contract matters a great deal, so read it closely and get advice if a clause worries you.

One small inconsistency: the Tipo B page on Panamá Digital still tells applicants to buy the "tipo A" forms. Ask at the counter which form they accept.

What every residential lease must include

These rules sit on the protected list, so they generally apply whatever your rent.

A written contract on the MIVIOT form

Article 5 says every lease must be in writing on forms supplied by the Dirección General de Arrendamientos. It must state the date, the parties' names, ID numbers and addresses, the property with street and corregimiento, the cadastral number and registry details, the rent in money, the term and the use. Foreigners can sign with a valid passport instead of a cédula, according to MIVIOT's registration pages.

Registration within five business days

Article 6 requires the landlord to file a copy of the lease with the Dirección within five business days of signing. Failing to file is a ground for sanctions. Article 65 sets fines of B/.10 to B/.1,000, or arrest, for breaches of the law. A 2004 court ruling quoted in a consolidated edition of the law found that an unregistered lease is still valid, because registration is not a formal requirement for validity. Even so, registration is what links your deposit and your lease to MIVIOT, so ask for proof that it was done.

MIVIOT's pages list an online option alongside counter filing, and in September 2026 MIVIOT told real estate brokers it was pushing online registration and a single contract format. A broker who files a lease must show a broker license.

No refusal for nationality

Article 4 says a landlord cannot refuse a lease because of race, marital status, sex, nationality, age, color, political or religious belief, or because the tenant has children. This does not force a landlord to choose you over another applicant, but "we don't rent to foreigners" is not a lawful reason.

Working from home and habitability

Article 7 says working at home in the trade or profession you live from is not a breach of the lease, as long as it is lawful, adds no cost for the landlord and does not disturb the neighbors. Article 8 says every dwelling must meet the hygiene, health and safety conditions required by law.

Subletting needs consent

Articles 19 and 20 require the landlord's prior, express consent to sublet all or part of a home. Do not list a spare room on a short-stay platform without it.

The deposit: one month, held by MIVIOT

What the law says

Article 13 of Ley 93, as rewritten by Ley 259 of 2 December 2021, says every tenant, except in cases MIVIOT exempts, must deposit a sum equal to one month's rent. The law says the money belongs to private parties and must be kept apart from MIVIOT's operating accounts through Banco Nacional de Panamá and Caja de Ahorros, under rules the executive is supposed to issue. A landlord who claims unpaid rent or damage must prove it at the Dirección. Otherwise, the deposit and its interest are returned to the tenant when the lease ends, on the Dirección's authorization.

How it works in practice today

According to MIVIOT's registration pages, checked on 12 October 2026, the deposit is one month's rent on both Tipo A and Tipo B leases. It can be paid in cash only up to B/.100. Above that, the page asks for a certified or manager's check made out to the Ministerio de Vivienda. If the rent changes from year to year, the deposit is based on the last year. Diplomats can be exempt with a certificate from the Ministerio de Relaciones Exteriores.

The separate bank-held arrangement described in Ley 259 does not appear to be in place yet. At a workshop for brokers reported by RPC Radio on 29 September 2026, MIVIOT's director of leases said the deposits currently sit in the Treasury's single account (Cuenta Única del Tesoro), and that MIVIOT is drafting the Ley 259 regulations and plans to propose a trust to speed up refunds. The same report says MIVIOT's portal now accepts deposit payments through Banco Nacional de Panamá online banking and electronic payment gateways. Until the new rules are issued, follow the payment instructions MIVIOT gives you when you register.

Practical points:

• Pay the statutory deposit through the MIVIOT registration process, not into the landlord's personal account.
• Get a receipt in your name and keep the original. The refund process asks for it.
• The law mentions interest, but given where the money is held today, do not count on receiving any.

Getting the deposit back

MIVIOT's refund page on Panamá Digital says the deposit is returned to the tenant when the lease has ended, or when you have given it up and are up to date with payments, and the home has been vacated. It lists the original receipt or a certified copy, both parties' ID, a copy of the contract, a refund form signed by landlord and tenant, and tax stamps of 0.001 times the rent times the number of months since the lease ended. The office it names is on the fourth floor of Edificio Plaza Edison, Vía Ricardo J. Alfaro (Tumba Muerto), in Bethania. Check the page again before you go, since requirements change.

A dated set of photos of the home at move-in and move-out, ideally with the landlord or building manager present, generally makes any later dispute about damage easier to settle. Ley 93 does not require an inventory, but the burden is on the landlord to prove a damage claim.

If you are asked for more than one month

Articles 12 and 14 of Ley 93 prohibit charging anything beyond the rent and forbid clauses that require rent in advance, an extra sum, or a waiver of rights under the law. Article 15 makes any clause that reduces a tenant's rights void. Those articles are not on the protected list, so for a Tipo A lease they generally still apply, while for a Tipo B lease the position is less clear.

We could not find a reliable, dated source for a "typical" extra deposit in Panama, so we do not give one. If a landlord asks for more than one month, ask three questions. Is this the statutory deposit, and where will it be lodged? Is the rest a private guarantee, and does the contract say when it comes back? Is part of it really the first month's rent? Get the answers in writing.

Deposit or "fianza"?

The word in the law is depósito. People often say fianza for the same money, but in other laws a fianza is a surety bond. A fiador is a person who guarantees your lease. MIVIOT's forms ask for a fiador's ID only if there is one, so you do not need a guarantor to meet the deposit rule.

How long you are bound, and giving notice

Leaving early with 30 days' notice

Article 10, as amended in 1976, says the term of a residential lease and any extension bind the landlord, but the tenant can give them up at any time with written notice of at least 30 calendar days before moving out. If you skip the notice in whole or part, the Dirección can, after a hearing, give the landlord the part of the deposit matching the days you did not cover, or the whole deposit if you gave no notice. Article 10 is on the protected list, so it generally applies to Tipo A and Tipo B leases alike.

Put the notice in writing, date it, deliver it in a way you can prove, and keep a copy.

The Tipo B page states a six-month minimum term, while article 10 lets a tenant leave with 30 days' notice. How those fit together if you want to leave in month two is not spelled out in the sources we checked. Before you move out early, ask the Dirección or a lawyer how they apply to your contract.

Paying rent

For leases fully under Ley 93 (generally Tipo A), article 11 says rent is paid for the month already elapsed. You can choose to pay ahead only if you get a discount of at least 10 percent, and doing so does not oblige you to keep paying ahead. That article is not on the protected list, so on a Tipo B lease the payment clause in your contract generally governs.

If a landlord refuses to accept rent on a lease under article 9, you can deposit the rent at the Dirección, and the receipt counts as payment. This is separate from the security deposit, so keep the two receipts apart.

Rent increases

For leases still fully under the law, article 38 lets MIVIOT authorize increases. It treats a fair return as up to 15 percent net a year on the total cost of the property, and if an authorized increase is above 10 percent of the current rent, it is spread out year by year. Article 37 says an increase that breaks the law does not bind the tenant. This is a cap on what the ministry may approve, not an automatic yearly 10 percent.

Those articles are not on the protected list. For a Tipo B lease, generally assume that any increase is what your contract and its extension say. MIVIOT's pages note that if the rent changes over the years, the deposit is based on the last year, so a higher rent can mean a higher deposit at renewal. We found no reliable, dated figure for typical annual increases in 2025 or 2026.

Repairs, visits and bills

Repairs and inspections

For leases fully under Ley 93, article 28 requires the landlord to keep the home hygienic and safe, make necessary repairs, guarantee peaceful use, make sure drinking water is supplied, light and clean shared areas, and file the lease with MIVIOT. Article 29 puts those costs on the owner. Under article 32, the tenant pays the rent on time, uses the home for the agreed purpose, pays for damage caused by their own fault, reports problems quickly, allows urgent repairs, allows periodic inspections with prior notice, and returns the home in the same condition apart from normal wear. Article 33 bans structural changes without the landlord's prior, express consent.

The law says inspections need "previa notificación" (prior notice) but sets no number of hours. Articles 28, 29, 32 and 33 are not on the protected list, while article 8, the general habitability rule, is. On a Tipo B lease, write repairs, notice for visits and emergency access into the contract.

Who pays the bills

Ley 93 does not split electricity, water bills, gas, internet or building maintenance fees (cuota de mantenimiento) between landlord and tenant. "Procurar el suministro de agua potable" means the landlord must make sure water can be supplied, not necessarily pay the monthly bill. At the September 2026 broker workshop, MIVIOT staff said items such as maintenance, gardening and upkeep should be built into the rent to be taken into account in a dispute, and that extra agreements can be added as annexes to the MIVIOT form. Name each cost in the contract or an annex.

After the October 2026 earthquake

The Cabinet declared a national state of emergency on 10 October 2026 after the earthquake of 9 October, through Resolución de Gabinete 108, published in Gaceta Oficial 30631. At the government's announcement, the housing minister said MIVIOT is surveying damaged homes and will certify, together with Sinaproc, which homes are safe to live in again. Neither the announcement nor the emergency resolution, as summarized by the Pan American Health Organization, mentions any change to lease rules, and as of 12 October 2026 we found no MIVIOT decree on leases or evictions.

If your rented home was damaged:

• Report the damage to your landlord in writing straight away, with dated photos. For leases fully under the law, article 32 makes prompt reporting a tenant duty, and it is sensible on any lease.
• Article 8, which survives for all leases, requires homes to meet legal safety conditions. For leases fully under the law, article 32 says that if the Dirección approves a move-out for repairs, the contract and the rent are suspended while the work lasts, and the tenant can return afterwards without a rent increase.
• Ley 93 also sets up a Fondo de Asistencia Habitacional that MIVIOT can use for temporary housing of people affected by disasters such as earthquakes, and for repairing damaged homes (articles 52 and 54). Whether and how it is used after this earthquake is up to MIVIOT, so ask its regional office.
• During the COVID emergency, MIVIOT issued a special decree on leases and evictions (Decreto Ejecutivo 145 of 2020). That decree was repealed in 2022, so it does not apply now. Check MIVIOT's official channels for any new measure before you assume the normal rules have changed or stayed the same.

Ending the tenancy and eviction, in outline

This section describes the process in the law so that you can recognize a real one. It is not a guide to removing anyone, and if you receive an eviction paper, speak to a lawyer quickly.

Leases fully under Ley 93 (generally Tipo A)

• Owner needs the home (desahucio). Under article 46, allowed only if the owner needs it for personal use or for a relative up to the third degree, if the building is converted to horizontal property, or for demolition and rebuilding, proven by sworn statement or permit. If they do not move in within three months, the law sets a fine of up to B/.1,500.
• Time to leave. Article 47 gives one month for each 12 months of rent paid, at least one and at most six months, from written notice. Under article 48 you can stay that time rent-free or leave and receive the same amount, which the landlord lodges at the Dirección. The owner cannot rent the home to someone else for two years.
• Non-payment (lanzamiento). Article 49 allows it only after two or more months of unpaid rent, and article 41 bars it where the tenant cannot pay because of illness, lack of work or no other income, as proven to the housing commission.
• Who decides. Under articles 43 and 45, housing evictions go to MIVIOT's Comisiones de Vivienda: hearing, decision within 15 business days, appeal to the Dirección General, whose decision is final. Decreto Ejecutivo 87 of 1993 regulates the procedure, according to MIVIOT in January 2025. Article 51 bars seizing the tenant's belongings.

Tipo B leases

Because the eviction articles are not on the protected list, which body and which grounds apply to a Tipo B lease is not clear from the sources we checked. Do not ignore any document that mentions desahucio or lanzamiento. Ask MIVIOT and a lawyer, in writing, straight away.

Sale, conversion and death of the tenant

• Article 17 says a buyer must respect existing leases that comply with the law. It is not on the protected list, so on a Tipo B lease a clause covering sale is wise.
• Article 16, which is protected, gives tenants a purchase preference of up to 90 days if a rental building is converted to horizontal property, and the leaving periods in articles 47 and 48 if they do not buy. Ask the Dirección how to exercise it.
• Article 18 lets a spouse, children or relatives up to the fourth degree who lived with the tenant take over the lease if the tenant dies. It is not protected, so on a Tipo B lease it is safer to name household members in the contract.

Short-term rentals and Airbnb

Ley 93 does not cover daily-rate rentals. A separate bill, Proyecto de Ley 301, would regulate tourist rentals of 1 to 90 days under the Autoridad de Turismo de Panamá (ATP), with a digital registry and 10 percent tax, and would exempt them from MIVIOT lease registration. It passed first debate on 6 January 2026 and, according to Nexo, was still waiting for second debate at the end of September 2026. In September 2026 the government also sent the Assembly a separate tourism bill that would tax short-term rentals at 15 percent. As of 12 October 2026 we found no sign that either bill has become law.

In the meantime, the bill's own explanatory statement, as reported by Nexo Capital, says article 21 of Ley 80 of 2012 bans rentals of under 45 days in the District of Panama without a tourist lodging permit, with fines of B/.5,000 to B/.50,000. PL 301 would repeal that ban, but until a new law is in force, assume it still applies. If you rent a home and want to host short stays, you would still need your landlord's consent to sublet under article 19, and your building's horizontal property rules may restrict it.

What rents look like: cited figures only

We do not give a rent budget, but two dated reports from the same source give a sense of the range.

• First half of 2026. ACOBIR's MLS committee report (presented 14 July 2026, using the Xposure MLS) counts 102 apartment rentals closed from January to June 2026 at an average of US$1,639 a month (lowest US$389, highest US$6,800), and 19 houses at an average of US$1,950 (US$370 to US$5,800). Average apartment rent per square meter per month was US$12.57 in Panama City, US$12.73 in San Francisco, US$12.18 in Bella Vista and US$14.17 in Juan Díaz.
• Second half of 2025. A summary of the same committee's report, published by Servmor Realty, counts 125 rentals closed at an average of US$1,462 a month, ranging from US$200 to US$4,700, and calls US$1,500 to US$2,500 a month the market's sweet spot.

These are a small number of closed deals in one broker database, not asking prices and not an official index. Use them to see the spread, not to price a specific apartment.

Spanish words on your lease

• Arrendador: landlord. Arrendatario or inquilino: tenant.
• Canon: the monthly rent.
• Depósito: the one-month deposit lodged with MIVIOT. Fianza: often used for the same money; in other laws it means a surety bond. Fiador: a personal guarantor.
• Prórroga: extension or renewal.
• Desahucio: the owner's action to recover the home on limited grounds. Lanzamiento: removal, for example for unpaid rent.
• Libre contratación: free contract, the regime for leases excluded by decree.
• Gastos comunes / cuota de mantenimiento: building maintenance fees.
• Subarrendamiento: subletting.

Checklist before you sign

• Ask whether the lease is Tipo A or Tipo B and ask to see the MIVIOT form, not only a private contract.
• Ask who will register the lease, and when you will get proof.
• Pay the one-month deposit through MIVIOT, get a receipt in your name and keep the original.
• If asked for more than one month, get the purpose and refund terms of the extra in writing.
• Agree in writing who pays electricity, water, gas, internet and the maintenance fee.
• Agree notice for visits, repair duties and emergency access.
• Check ownership: the escritura or a current Registro Público certificate, and a notarized power if someone else signs for the owner. If the property is mortgaged, MIVIOT's pages ask for the bank's authorization letter.
• Walk through the home and take dated photos before you move in.
• Ask whether the building is planned for conversion to horizontal property.
• If anything in the contract seems to take away your rights, ask a Panamanian lawyer before signing.

Sources

• Procuraduría de la Administración (Infojurídica) - Ley 93 de 1973 record, Gaceta Oficial 17456, and its later amendments including Ley 259 de 2021 - accessed 12 Oct 2026
• SIJUSA - consolidated text of Ley 93 de 1973 with the Ley 28 de 1974, Ley 55 de 1976 and Ley 259 de 2021 changes, articles cited throughout - consolidation of Dec 2021, accessed 12 Oct 2026
• Procuraduría de la Administración (Infojurídica) - Decreto Ejecutivo 294 de 1994, housing leases above B/.150 a month excluded from most of Ley 93 - accessed 12 Oct 2026
• Procuraduría de la Administración (Infojurídica) - Decreto Ejecutivo 7 de 1995, a second exclusion decree - accessed 12 Oct 2026
• Procuraduría de la Administración (Infojurídica) - Decreto Ejecutivo 145 de 2020, COVID suspension of the exclusion decrees, repealed by Decreto Ejecutivo 30 de 2022 - accessed 12 Oct 2026
• Panamá Digital (MIVIOT) - Tipo A lease registration, rent up to B/.150, three-year minimum, one-month deposit - accessed 12 Oct 2026
• Panamá Digital (MIVIOT) - Tipo B lease registration, rent above B/.150, six-month minimum, deposit payment rules, online filing, bank letter for mortgaged properties - accessed 12 Oct 2026
• Panamá Digital (MIVIOT) - deposit refund to the tenant, requirements, stamps and office address - accessed 12 Oct 2026
• Mi Diario - Ley 259 makes the one-month deposit mandatory and routes it through Banco Nacional and Caja de Ahorros - 2 Dec 2021
• RPC Radio - MIVIOT on online registration, deposits held in the Treasury single account and a planned trust - 29 Sep 2026
• Eco TV - MIVIOT begins consultations to modernize Ley 93 and names Decreto Ejecutivo 87 de 1993 on eviction procedure - 21 Jan 2025
• La Estrella de Panamá - Bill 301 on tourist rentals passes first debate - 6 Jan 2026
• Nexo Capital - Bill 301 history, pending second debate, and the Ley 80 ban on stays under 45 days in the District of Panama - 7 Jan 2026
• Nexo - Bill 301 still awaiting second debate; government bill with a 15% tax on short-term rentals - 30 Sep 2026
• Revista LEA - Bill 301 in second debate and its gaps for horizontal property buildings - 21 Jan 2026
• ACOBIR - MLS statistical report for the first half of 2026, closed rentals and rent per square meter - 14 Jul 2026
• Servmor Realty - summary of the ACOBIR MLS report for the second half of 2025, closed rentals - 12 Mar 2026
• Ministerio de Relaciones Exteriores - Government declares a state of emergency after the earthquake, MIVIOT housing survey - 10 Oct 2026
• Pan American Health Organization - Panama earthquake situation report 1, citing Resolución de Gabinete 108 and Gaceta Oficial 30631 - 10 Oct 2026

This guide is general information, not legal advice. Laws, decrees and MIVIOT procedures change. Confirm anything that affects your lease with the Dirección General de Arrendamientos and a Panamanian lawyer.