Panama bill would tax Airbnb-style stays at 15% ITBMS — higher than hotels

If you list a condo, casa, or guest suite for tourist short stays in Panama, a new tourism bill in the National Assembly would rewrite your margin math.

Proyecto de Ley 31-26 — Cabinet-cleared on 26 August 2026 per ATP, and filed with the Assembly around 14 September — would apply 15% ITBMS to temporary and vacation-style lodging offered in residential property. That is five points above the 10% rate that registered hotels already pay. The same package also rebuilds multi-year tax holidays for qualifying tourism investments, with the richest terms aimed at the Caribbean.

This is not law yet. It still needs three debates, presidential sanction, promulgation, and detailed regulations.

What the 15% would hit

According to bill summaries reported by Destino Panamá and Infobae, the 15% would cover short-duration tourist or vacation lodging in houses, apartments, rooms, or other partly residential property — whether you book guests yourself or through a digital platform.

When a platform only intermediates, the proposal would tax the lodging price at 15%, while the platform’s own commission keeps its separate ITBMS treatment. Permanent residential rentals are framed as outside that short-stay rule.

ATP administrator Gloria De León has said the higher rate came after talks with hoteliers. APATEL president Víctor Concepción publicly backed a 15% floor for vacation rentals, arguing hotels already carry permits, payroll, and municipal obligations that many informal short stays do not.

ATP estimates roughly 13,000 Airbnb-listed units versus about 25,000 hotel rooms; secondary coverage (Nexo citing La Prensa) sometimes cites ~12,500 — treat both as estimates, not a census.

Paying the tax would not “make it legal”

De León has been explicit: paying 15% would not authorize activity that local rules still forbid. In Panama District, stays under 45 days without a tourism lodging permit remain restricted. Condo bylaws that ban short stays still apply. ATP’s parallel tourism-registry work is not automatic clearance for every listing.

Platforms as collectors — someday

The model ATP prefers is for platforms to collect the 15% at checkout and remit it to the state. De León stresses that registration, collection, and enforcement details wait for reglamento after any law passes. Hosts should not assume today’s booking apps already know how (or when) to withhold.

An earlier MEF draft that would have taxed digital services at 7% and short stays at 10% was paused in August. The short-stay rate has reappeared inside this tourism-incentives bill — at the higher 15%.

The other half of the bill: incentives to 2036

The same project would replace the old Ley 80 of 2012 incentive cluster with a regime meant to run through December 2036, with stronger benefits where tourism infrastructure lags — especially the Caribbean.

Destino Panamá’s reading of the proposal text — not an ATP-confirmed figure — says new Caribbean lodging from about US$500,000 could seek up to 15 years of ISR and property-tax exoneration. Outside Panama District, typical lodging projects are described with about 10 years. Existing hotels could seek modernization incentives from US$1 million, usable up to twice in five years. ATP says the goal is real tourism products, with bonds and joint ATP–MEF oversight floated as controls.

What expats should do now

Model cashflow with a 15% ITBMS line on short-stay revenue — then wait for the final text.
Check PH reglamento, municipal rules, and tourism-permit needs before assuming the bill “fixes” legality.
Treat Caribbean multi-year holidays as proposal terms, and watch Assembly debate calendars.

This article is news reporting, not tax, legal, or investment advice. Confirm any decision with a Panama attorney or tax advisor.

Sources

ATP — Executive approves tourism incentives bill (26 Aug 2026)
Destino Panamá — 15% proposal details (17 Sep 2026)
Infobae — ATP / APATEL coverage (17 Sep 2026)
La Prensa — paused digital ITBMS draft (24 Aug 2026)
Nexo — APATEL / Assembly status (17 Sep 2026)