Buying to rent out in Panama works when the numbers add up after every cost. Before you buy, look at five things: the neighborhood, the maintenance fee, the building rules on short-term rentals, the taxes on rental income and the real return.

By Kabasso Pieck Real Estate Group · Legal sources checked on November 4, 2026 · Numbers from our catalog, updated automatically (2026-11-04)

1. The neighborhood decides who rents from you

Each area attracts a different tenant. Areas near offices and services, like Obarrio, Marbella or San Francisco, tend to suit executives and couples. Bay-front neighborhoods like Punta Pacífica and Paitilla attract people who want views and amenities. Costa del Este and Santa María suit families who want international schools and green space.

These are the city neighborhoods where we work, with what is in our catalog today:

  • Punta Pacífica: 2 homes for rent from US$5,500 a month · 30 for sale from US$425,000
  • Punta Paitilla: 6 homes for rent from US$1,200 a month · 37 for sale from US$165,000
  • Costa del Este: 1 home for rent from US$3,500 a month · 14 for sale from US$291,400
  • Santa María: 11 for sale from US$560,000
  • La Cresta: 1 home for rent from US$5,500 a month · 3 for sale from US$875,000
  • San Francisco: 4 for sale from US$195,000

Compare them in the neighborhood guide and in Punta Pacífica vs. Paitilla vs. Costa del Este.

2. The maintenance fee eats into the rent

In Panama the owner pays the building’s monthly maintenance fee, and it is usually not passed on to the tenant unless the lease says so. A tower full of amenities has a higher fee. Ask for the fee, what it includes, whether there are pending special assessments and whether the building is up to date on its finances.

3. Building rules: can you rent short term?

Most apartments in Panama are under the condominium regime (Propiedad Horizontal), governed by Law 284 of February 14, 2022. Each building has its own bylaws (reglamento de copropiedad), and they can limit uses, rentals and the use of common areas.

Before you buy to rent by the night or the week (Airbnb style), ask the building management for the current bylaws and the latest assembly minutes and have your lawyer read them. Short-term rental rules in Panama are under discussion and may change: do not count on that income until it is confirmed in writing.

4. Taxes on rental income

  • Income tax: rent from a property in Panama is declared in Panama. For individuals, the DGI rates on net taxable income are 0% up to US$11,000 a year, 15% on the portion from US$11,000 to US$50,000, and US$5,850 plus 25% on the portion above US$50,000. If you buy through a company, the rules are different: ask your accountant.
  • Property tax: it is paid every year under Law 66 of 2017. The reduced primary residence regime is for the home where the owner lives, so a rental property generally does not qualify (DGI definitions).

5. Do the math on the real return

Gross return = annual rent ÷ purchase price.
Net return = (annual rent − maintenance fees − property tax − management − empty months − repairs − taxes) ÷ (price + purchase costs).

Plan for at least one empty month a year and for furniture if you rent furnished. If you use a mortgage, compare the payment with the net rent, not the gross. Our mortgage calculator helps with that.

We can rent it out for you

Kabasso Pieck Real Estate Group sells and rents residential and commercial property. If you buy with us to rent out, we can also find you a tenant. Browse properties for sale, the current rentals to see real asking rents, or beach properties if you are thinking of vacation rentals.

General information, checked on November 4, 2026. These are estimates, not legal or tax advice: rules change and every case is different, so confirm yours with your lawyer or accountant. Rents and prices are those listed in our catalog today, not a guarantee of income.

Sources

Checked on November 4, 2026:

Frequently asked questions

Is it a good idea to buy an apartment in Panama to rent it out?

It depends on the numbers for each unit: rent, maintenance fee, property tax, empty months and taxes. Calculate the net return and check the building rules before you buy.

Can I rent my apartment on Airbnb in Panama?

It depends on your building’s bylaws (reglamento de copropiedad) under Law 284 of 2022 on condominium ownership, and the rules may change. Ask the building management for the bylaws and have your lawyer review them.

How is rental income taxed in Panama?

For individuals, rental income is added to taxable income and taxed at the DGI rates: 0% up to US$11,000 a year, 15% up to US$50,000 and 25% above. You also pay annual property tax. Confirm your case with an accountant.

Shall we talk about your next property?

Joseph Pieck and David Kabasso work with you in person: +507 6916-2104 · [email protected]

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