Tenancy Legislation

Another good reason for buy to let in Panama is that the tenancy legislation is generally pro-landlord, with little interference from the state, unless the rent is less than $150 per month.

Rent agreements

Rents in excess of $150 per month are not overly regulated, lease agreements can be freely negotiated between the parties, including rent increases each year. Rents less than $150 per month cannot be increased without the prior written consent of the ministry of housing.

Invest Panama Inc only deal with properties for which the rent will be in excess of $150 pcm.

Security deposits

Security deposits of 1 months rent are held by the Ministry of housing - this is returned to the tenant once the lease agreement is terminated - unless there is a claim by the landlord for monies owed or damage caused by the tenant.

Duration of contract

There are no restrictions on the duration of the lease, however the tenant is not bound by the duration, they are able to terminate at any time with 1 months notice.