Real Estate Investment in Panama: Opportunities and Regulations for Airbnb Rentals

Panama has become a popular destination for real estate investors, attracted by its economic stability and tax benefits. However, before diving into rental property investments, especially short-term rentals through platforms like Airbnb, it’s essential to understand the legal framework in place.

Regulations on Short-Term Rentals in Panama

In cities like Panama City, legislation imposes restrictions on short-term rentals. According to current law, the minimum rental period in these areas must be 45 days. This means that, except in special cases, it's not possible to rent out an apartment for short stays to tourists or business travelers via platforms like Airbnb without adhering to this rule.

Additionally, some condominium bylaws explicitly prohibit short-term rentals within their residential complexes. This can make it challenging for investors who want to quickly generate income through weekly or monthly stays.

Opportunities in New Real Estate Projects for Airbnb Rentals

Despite these restrictions, new opportunities are emerging. Several buildings under construction in Panama City and other regions are designed to meet the needs of investors interested in short-term rentals. These projects come with the proper licenses to operate through platforms like Airbnb, while still complying with the local laws.

These new constructions, often located in tourist-friendly or strategic areas, offer attractive rental yields. Investors can expect annual returns ranging from 6% to 10%, depending on the location and type of property.

Why Choose Hipotekya for Your Airbnb Rental Investment in Panama?

At Hipotekya, we understand that real estate investment, especially in a foreign country, can seem complex. That’s why our team of experts is here to guide you every step of the way. Whether you’re looking for the ideal property for a rental investment or need to secure a mortgage to finance your purchase, we can help you find the best solution tailored to your needs.

Our deep knowledge of Panama’s real estate market and the legal specifics surrounding short-term Airbnb rentals allows us to direct you to the most profitable and law-compliant projects. We work closely with trusted developers to offer you the best investment opportunities.

Conclusion

Rental property investment in Panama offers exciting prospects, particularly with the rise of new real estate projects designed for Airbnb-style short-term rentals. However, it's crucial to understand local regulations and choose projects aligned with your goals. Hipotekya is here to support you in this journey, helping you maximize your return on investment while making the mortgage process smoother.

Don’t let investment opportunities in Panama pass you by—contact us today to discuss your real estate investment plans.

Last update: 02/10/2024