We’ve written a lot about buying and remodeling a home in Panama. What we haven’t covered yet is the step almost everyone should take first: renting. A neighborhood that feels perfect on a two-week visit can feel completely different after six months of traffic noise, an elevator that’s down half the time, or a pool that’s “temporarily closed” for the third time this year. Renting buys you the time to learn Panama before you make a six-figure decision.

It also comes with its own learning curve. Panama’s condo buildings operate under a legal system most Americans and Canadians have never heard of, and the informality of the local rental market — leases handled over WhatsApp, deposits paid directly to a stranger’s bank account — creates real openings for things to go wrong. Almost none of it is complicated once you know what to check. This is everything we’d want a friend to know before they sign anything.

First, What Does “PH” Mean?

Scroll through Panama City apartment listings and you’ll see “PH” everywhere — PH Ocean View, PH Grand Tower, PH almost anything. PH stands for Propiedad Horizontal, and despite the literal translation (“horizontal property”), it’s Panama’s version of a condominium or strata system. A PH building contains individually owned private units plus shared common property: lobbies, elevators, pools, gyms, parking areas, security systems and gardens.

That distinction matters because when you rent a unit inside a PH, you’re not just agreeing to your landlord’s lease. You’re stepping into three overlapping rule sets at once: Panama’s national rental law, your individual lease with the owner, and the building’s own Reglamento de Copropiedad and Reglamento de Uso — its governing and use rules. Ignore the third one and you can end up perfectly legal under your lease and still in violation of building rules you never read.

Investigate the Building, Not Just the Apartment

Expats naturally focus on the unit — the view, the bedroom count, the finishes. In a PH, your day-to-day quality of life often depends just as much on the building. Ask to see it at different times: a quiet tower at 11 a.m. on a Tuesday can be a different place at 10:30 p.m. on a Friday.

A few specific things worth checking before you fall for the apartment:

• Elevators. How many, and how many are actually working? That matters much more on the 22nd floor.
• The generator. “The building has a generator” and “the generator powers the elevators, water pumps, common areas and my apartment” are two different sentences. Ask which one is true.
• Water pressure and reserve tanks. Turn on multiple faucets while you’re touring. Ask about recurring pressure problems on upper floors.
• Air-conditioning age and type. Split-unit or central? Who pays for repairs versus routine cleaning? Any visible mold around vents?
• Nearby construction. That skyline view may come with a vacant lot slated for 40 floors of concrete. Ask about approved developments nearby and planned renovations inside the building itself.

Get the PH Rules Before You Sign Anything

This is one of the most overlooked steps in renting a Panama condo. Under Law 284, owners are responsible for ensuring that tenants and other occupants they permit to use their unit comply with the PH’s governing rules — which means those rules apply to you the moment you move in, whether or not anyone hands you a copy.

Those rules can shape daily life more than the lease itself: pets, visitors, overnight guests, parking, moving hours, elevator reservations, noise, balcony furniture, smoking, pool hours, contractors, deliveries, even short-term subletting. Ask for the Reglamento de Copropiedad and Reglamento de Uso before you sign, and have the relevant sections translated if your Spanish isn’t fluent enough to read a legal document comfortably.

Make Sure You’re Actually Renting From the Owner

This sounds obvious. It isn’t always followed. One of the most common rental scams anywhere in the world — Panama included — starts with a real apartment, real (or stolen) photographs, and a “landlord” who doesn’t own the unit and disappears once the deposit clears.

Panama’s Registro Público maintains property records, including for PH units, and allows searches tied to a property’s registration. Before sending meaningful money, ask for the property’s finca or folio real number, the owner’s full legal name and ID, and a current Registro Público record identifying the owner. This is also consistent with the documentation MIVIOT’s rental-registration process asks for — proof such as an updated deed or Public Registry certification naming the owner.

Corporate Owners and Powers of Attorney

Plenty of Panama real estate is legitimately held by a corporation, and plenty of owners live abroad and rent through an attorney, relative or property manager. Neither situation is automatically a red flag. But each one adds a second question you need answered before the first:

• If a company owns the unit — does the company actually own it, and does the person signing have documented authority to act for it?
• If someone other than the owner is signing — what document (a notarized power of attorney, typically) actually gives them authority to lease the property and collect money on the owner’s behalf?

“It’s my company” or “I handle this for the owner” is a starting point for a question, not an answer to it. For a higher-value or longer lease, a Panamanian attorney confirming ownership and signing authority is inexpensive insurance against a very expensive problem.

Use — and Verify — a Licensed Broker

Panama regulates real estate brokerage. ACOBIR, the Panamanian Association of Real Estate Brokers and Developers, points consumers toward verifying a broker’s license and qualifications through Panama’s Junta Técnica de Bienes Raíces. A license doesn’t guarantee a smooth transaction, but it adds a layer of accountability that an unlicensed “agent” simply doesn’t carry. If someone presents themselves as a professional broker, ask for their license information — a legitimate one won’t be offended.

Panama’s Rental Law — and the B/.150 Quirk That Confuses Everyone

Panama’s core rental statute is Law 93 of October 4, 1973, as amended over the decades and administered through MIVIOT, the Ministry of Housing. Read in isolation, the original law looks surprisingly tenant-protective — including a three-year minimum lease term. That’s where most online explainers get confusing, because one-year leases are the norm in Panama City.

The resolution is Executive Decree 294 of December 7, 1994, which places residential leases renting for above B/.150 (about $150) per month under libre contratación — free contracting — while certain protective articles of Law 93 remain in force regardless of rent level. Since virtually any apartment a foreign retiree is likely to rent today costs well above $150 a month, this is the category almost every expat lease falls into: rent, term length and renewal are freely negotiated between landlord and tenant, while a handful of tenant protections (including the two below) still apply.

The 30-Day Rule: One Protection That Survives the Fine Print

Article 10 of Law 93, as amended, is one of the provisions that stays in force even for above-threshold leases: the term of a residential lease binds the landlord, but the tenant may end it at any time by giving at least 30 calendar days’ written notice before vacating — regardless of what term is written into the contract.

That’s a meaningful protection, but it doesn’t automatically erase contract language imposing financial penalties for early exit — forfeited deposits, or a set number of months’ rent as a penalty clause. Those provisions show up in Panama leases regularly. Before you sign one, it’s worth having a Panamanian attorney confirm which parts of a penalty clause are actually enforceable and which parts simply sound intimidating.

The Security Deposit: Law vs. What Actually Happens

Standard practice is one month’s rent as a security deposit, on top of the first month’s rent. What surprises a lot of newcomers is how that deposit is supposed to be handled. Under Law 259 of December 2, 2021 (amending Article 13 of Law 93), and MIVIOT’s own rental-registration guidance, the tenant’s deposit is meant to be lodged through the Ministry of Housing via the landlord — not simply handed over and held privately — and returned at the end of the tenancy unless the owner has a legitimate claim for unpaid rent or damage.

In the informal market, you’ll sometimes hear “just wire the deposit straight to me, that’s how everyone does it.” That may describe common practice. It doesn’t describe the formal legal process. It’s worth asking directly: will this lease be registered with MIVIOT, and how will the deposit be handled?

Get Proof the Lease Was Registered

MIVIOT’s Dirección General de Arrendamientos handles rental-contract registration, extensions, certification and deposit administration. Historically, the obligation to file the lease has sat with the landlord, shortly after signing. Don’t assume it happened — ask for proof. If a landlord is reluctant to register the lease or explain why, that reluctance is itself useful information.

Rental Scams to Watch For in Panama

Most landlords and brokers in Panama are exactly what they appear to be. But newcomers who don’t yet know the system are attractive targets, and the same handful of scam patterns show up repeatedly in relocation forums and expat community reports. We haven’t personally been targeted by these — we’re sharing them because they’re widely reported patterns worth recognizing, not things we’re claiming happened to us.

The apartment that doesn’t exist

Real or stolen photographs, an attractive price, a great location — and an “owner” who’s conveniently overseas and can’t arrange a showing. You’re told the current tenant is sick, the agent is traveling, or the front desk “doesn’t allow showings.” But send the deposit today and they’ll hold it for you. Don’t. If you can’t verify the apartment, the owner and the person collecting the money, don’t send anything.

The real apartment, fake agent

A more convincing variant: the apartment is genuine, but the listing photos and details were copied from a legitimate ad by someone with no connection to the property. The defense is the same independent verification covered above — ownership, broker license, and payment instructions confirmed directly with the actual owner.

The price that’s too good

If comparable units are running $1,800–$2,200 and one shows up at $1,050, it might be a great find — or it might be bait. Scammers count on people abandoning their normal skepticism the moment they think they’ve found an extraordinary deal.

“Send it to my friend’s account”

Be cautious when the lease names one person as landlord but you’re asked to wire the deposit to someone else — a “friend,” a consulting company, a relative’s account. There can be a legitimate explanation. Make them document it before you pay.

The last-minute bank change

This one isn’t unique to Panama, but it’s common everywhere international wires are involved. You’ve verified everything, and then a message arrives: “We switched banks, please send to this new account instead.” Stop, and confirm the change through a separate communication channel — not by replying to the same message.

Invented move-out damage

At move-out, the landlord suddenly discovers scratches, stains or “missing” items — some of which may have existed before you ever moved in. The defense is simple and takes about 30 minutes: a detailed photo and video walkthrough on move-in day, dated and sent to the landlord or agent electronically, repeated again on move-out.

Furnished Apartments: Build a Real Inventory

Many expat-facing rentals in Panama come furnished, and “furnished” can mean anything from thoughtfully equipped to a bed, three forks and a blender from the last decade. Write an actual inventory — living room, kitchen, bathrooms, appliances by name — and note condition, not just presence. “Television” isn’t specific enough if there’s ever a dispute about which television was originally there.

Repairs, AC and Maintenance: Get Specific in Writing

“Tenant responsible for minor repairs” is a sentence that guarantees a future disagreement, because nobody has agreed on what “minor” means. A dollar threshold is far less ambiguous — for example, tenant responsibility for repairs up to a set amount arising from normal use, with structural systems, plumbing, electrical and major appliances remaining the owner’s responsibility unless damage results from tenant misuse.

Air-conditioning deserves its own paragraph in the lease, not a mention buried in “repairs.” Specify who handles filter cleaning, coil cleaning, drain-line service, refrigerant, and — the expensive one — compressor and full-unit replacement. And test the AC running, not just powering on, before you sign.

Who Pays the PH Fee — and What About Special Assessments?

In most condo rentals, the owner pays the regular PH maintenance fee and the tenant covers electricity, internet and streaming — but never assume; put it in writing. Pay particular attention to special assessments. If the PH levies a large one-time charge on owners (an elevator replacement, for instance), you don’t want to find out your landlord’s interpretation of “PH fees are the tenant’s responsibility” includes that. State plainly that extraordinary assessments and capital improvements are the owner’s responsibility unless you’ve specifically negotiated otherwise.

It’s also worth asking the owner to confirm — or asking building administration directly — that the unit is current on its own PH fees before you sign. An owner in a dispute with the PH can create headaches for whoever is living in the unit.

Talk to the PH Administration Directly

This step gets skipped constantly and shouldn’t. Introduce yourself to the building’s front desk or administration before you sign. Ask whether the owner is permitted to rent the unit, whether tenants need to register, what move-in fees or elevator deposits apply, and about pet rules, guest rules, upcoming construction, and any pending special assessments. Building staff often know more about what living there is actually like than any listing ever will.

Short-Term Rentals: The 45-Day Rule

If you’re renting for months or a year, this section won’t apply to you directly — but it’s worth understanding, especially if you’re weighing a short stay before committing, or considering a unit as a future income property. Article 21 of Law 80 of November 8, 2012 restricts rentals of fewer than 45 consecutive days within the District of Panama unless the operator holds a “permiso de alojamiento público turístico” — a tourist lodging permit — from the Panama Tourism Authority (ATP). Reported penalties for operating without one range roughly from $5,000 to $50,000 depending on severity and repetition, and advertising an unlicensed short stay can itself be penalized. Casco Viejo and parts of Santa Ana are a government-designated tourism zone and are exempted from the 45-day restriction. There has also been legislative discussion of revising the short-term rental framework, so treat this as an area worth re-verifying if it’s relevant to your plans rather than assuming it’s frozen in place.

And remember the second layer that applies everywhere else in this guide too: even where the law permits something, a building’s own PH rules may prohibit it entirely.

Protecting Yourselves as a Gay Couple on the Lease

If you’re moving with a partner, put both of your names on the lease as tenants, or at minimum have both of you named as authorized occupants. Don’t casually leave one partner off the paperwork and assume equivalent standing follows automatically — it doesn’t. This matters for every couple, but it’s especially sensible for gay couples, since there’s no reason to make your housing rights depend on someone else’s later assumptions about your relationship or marital status. Panama’s rental statute expressly prohibits discrimination on several listed grounds, including sex and marital status. The simplest protection is still the most direct one: both names, on the contract, from day one.

Spanish or Bilingual Lease?

Many Panama leases are written in Spanish only; some come as bilingual Spanish-English documents. Bilingual is convenient, but don’t assume both versions say precisely the same thing — “basically the same” and “legally identical” aren’t synonyms. If you’re signing a bilingual lease, the contract should specify which language version controls in case of a conflict, and a Panamanian attorney should review it before you sign — particularly if you don’t read Spanish comfortably. “It’s just the standard lease” is not a translation.

The Final Walkthrough

Before handing over the deposit, test everything — don’t just glance at it:

• Every AC unit, running, not just powered on
• Refrigerator, freezer, oven, cooktop, microwave, dishwasher, washer, dryer
• Hot water, every toilet, every shower and drain
• Electrical outlets, lights, ceiling fans
• Windows, locks, balcony doors, intercom
• Internet connection, if it’s supposed to be included

Panama’s climate is hard on buildings and equipment. Check behind curtains, around windows and AC vents, under sinks and inside closets for mold or moisture — a freshly painted wall deserves an extra-close look, since fresh paint can mean genuine upkeep or a cover-up. Ask to see recent electricity bills if you can; “electricity isn’t expensive” means wildly different things to different people. And if you’ll have a car, physically look at the parking space — narrow, tandem, or three levels from the elevator are all things a listing will never mention.

Red Flags That Should Make You Walk Away

Individually, none of these prove fraud. Several of them together are a strong signal to slow down or leave:

• Pressure to send money the same day, before you’ve verified anything
• Reluctance to register the lease or explain why
• Refusal to share the PH’s governing rules before signing
• Instructions to pay a third party unrelated to the named landlord
• Inability or unwillingness to provide a broker license or the property’s finca number
• Being told you can’t speak with building administration until after you’ve signed

Our Panama Rental Due-Diligence Checklist

• Personally inspect the apartment, or have someone you trust do it
• Verify the owner’s identity and ownership through the Registro Público
• If a company owns the unit, verify who can legally sign for it
• If a representative is signing, verify their power of attorney
• Verify your broker’s license through ACOBIR / Junta Técnica de Bienes Raíces
• Get the PH’s Reglamento de Copropiedad and Reglamento de Uso
• Talk to PH administration directly about rules, fees and pending assessments
• Confirm the owner is current on their own PH charges
• Test water pressure, every AC unit, and check for mold
• Photograph and video the unit in detail before moving anything in
• Get a written furniture and appliance inventory for furnished units
• Put repair, AC and PH-fee responsibilities in writing, with specifics
• Confirm how the deposit will be handled and whether the lease will be registered with MIVIOT
• Put both partners’ names on the lease
• Have a Panamanian attorney review anything unusual, high-value, or Spanish-only
• Never send money to an unexplained third-party account, or to a “new” account announced mid-transaction without independent confirmation