Is Airbnb still worth it in Panama?

Why is Airbnb in Panama harder to judge now?

Airbnb in Panama can still be a good investment, but the easy version of the strategy is gone.

Panama is getting more visitors, and some vacation-rental markets earn decent money. At the same time, the District of Panama bans short stays without a permit, Boquete has its own 45-day rule, the platform and the tax take a big slice, and several famous beach towns are booked for barely one night in three.

That's why two investors can buy in Panama and end up with completely different results. A licensed unit in Panama City, a surf villa in Playa Venao and a generic beach condo in Coronado may all sit on Airbnb, but their economics have very little in common.

The demand numbers are good. Panama passed 3 million international visitors in 2025, up 8.2%, according to the Panama Tourism Authority (ATP), and visitor growth sped up to 17.4% in the first half of 2026. The money each listing keeps is the weak part: AirROI's average Panama City listing grossed $13,845 in the 12 months to September 2026.

So there are plenty of travelers. The real question is whether a given property can capture enough of them, legally, and still beat a plain long lease.

Current Panama signal	Recent figure	Change	What we learn
International visitors in 2025	3.00 million	+8.2%	Tourism demand is healthy
International visitors, first half of 2026	1.75 million	+17.4%	Visitor growth sped up
Tourism receipts, first half of 2026	$3.79 billion	+14.7%	Visitors are also spending more
Panama City active Airbnb listings (AirROI, Oct. 2025–Sept. 2026)	978	n/a	Other trackers count up to 4,178
Panama City gross revenue per listing (AirROI)	$13,845/year	n/a	About half is left after fees, tax, cleaning and a manager

Is Panama getting enough tourists to support more Airbnbs?

Yes. Panama has enough tourism growth to support more Airbnbs, although that demand is very uneven once you leave Panama City.

The ATP recorded 3,004,266 international visitors in 2025, an 8.2% increase on the year before. Tourism brought in about $6.58 billion, excluding international transport, up 9.7%.

The 2026 figures are stronger. Panama received about 1.75 million international visitors in the first six months of 2026, according to preliminary ATP and INEC data, 17.4% more than a year earlier. Tourism receipts rose 14.7% to about $3.79 billion.

Hotels give another check. ATP monitoring put hotel occupancy at about 59.3% in June 2026, so the country isn't struggling to fill rooms.

Tocumen Airport received more than 2.24 million international visitors in 2025, 10% more than a year earlier. Panama City catches a big share of travelers before they spread out across the country.

So demand is fine. What varies a lot is how much of it reaches Bocas del Toro, Playa Venao, Coronado, Boquete or one particular apartment tower in Panama City.

Can you legally run an Airbnb in Panama City today?

Not the usual way. For an ordinary residential apartment in the District of Panama, the classic three-night or one-week Airbnb is banned unless the property holds a tourist-accommodation permit from the ATP.

The rule is Article 21 of Law 80 of November 8, 2012 (Official Gazette 27,159-A). It bans rentals shorter than 45 days without that permit, covers advertising "by any means, including electronic", and sets fines of $5,000 to $50,000. It was still in force on October 28, 2026.

That 45-day line changes how you should value a Panama City condo. You can still list it, but the legal guest is someone staying six weeks or more: an executive on assignment, a family relocating, a remote worker between homes.

Some buildings were designed or licensed for tourist accommodation. Those are the units sold as "Airbnb-friendly". Check the permit and the building's rules yourself before making an offer: a broker saying "Airbnb is allowed" is worth almost nothing next to the ATP registration and the PH regulations.

The ATP does enforce. Yacht Club apartments on Avenida Balboa drew $5,000 fines in 2026, published in the Official Gazette in July. That minimum fine is about 36% of a year of gross revenue for an average Panama City listing.

Buying an ordinary condo and hoping the authorities look away is a regulatory bet, not a property investment.

Are "Airbnb-friendly" towers in Panama City worth paying extra for?

Only if you see the papers. With unsold new homes piling up, "Airbnb-friendly" has become a sales line, and the label alone proves nothing.

Developers had about 15,499 new homes for sale in Panama City in May 2026 (Panama Equity), and new-home sales fell from 4,737 in 2024 to 2,866 in 2025, down 39.5% (4S Real Estate). Some towers are cutting prices, and promising rental income is an easy way to move units.

Two things decide whether short stays are legal in a given tower. The first is an ATP tourist-accommodation permit for the building or the operator. The second is the PH regulations (reglamento de copropiedad) registered at the Registro Público: they can ban or restrict tourist stays, and neither Bill 301 nor Bill 713 would override a building's own ban.

Before you pay a premium, ask for: the ATP registration number and who holds it; the registered PH regulations and the minutes of the last two owners' assemblies; the PH fee per m² (standard buildings charge about $1.50–$2.50 a month, premium towers $2.50–$4.50, PanamaProp, April 2026); and 12 months of real booking statements from an existing unit, not a developer's projection.

If the seller can't show those, value the unit as a long-term rental and negotiate from there. MLS apartments sold 6% below their last asking price after 224 days on the market in 2026 (ACOBIR), so there's room to push.

How much do Panama City Airbnbs actually make now?

An average Panama City Airbnb grossed $13,845 in the 12 months to September 2026, according to AirROI, with a $113 average nightly rate and 50.2% occupancy.

Size matters less than you'd think. One-bedrooms averaged $13,300 a year ($99 a night, 54% occupancy, 398 listings), and two-bedrooms $15,300 ($126 a night, 52%, 217 listings).

That's gross: the money guests pay before Airbnb's cut, ITBMS, cleaning and management. On our assumptions, about 68% of it survives those costs if you run the place yourself, and about 49% with a manager.

The figures also include listings that may be operating without a permit. A licensed unit in a tourist building can do better; an ordinary condo limited to 45-day stays will earn a different kind of income altogether.

The question is how that compares with what a normal tenant already pays in Panama City.

Is Panama City getting too crowded with Airbnbs?

There's plenty of competition, but nobody agrees on how much, and the counts don't show a clear boom.

AirROI counts 978 active listings in Panama City (October 2025 to September 2026). PriceLabs counts 4,178 short-stay listings in October 2026, because it uses a wider area and a looser definition. Nationally, AirROI tracks 7,490 listings, and the ATP puts Panamanian homes on Airbnb at 12,000 to 13,000.

In San Francisco, one of the busiest neighborhoods, AirROI's listing count fell 16.1% in the 12 months to July 2026. With the ATP fining unlicensed units, some owners have moved to longer stays or pulled out.

Occupancy is about 50%, so guests are there. What's gone is the idea that putting one more furnished apartment online gives you something scarce. An average unit competes with hundreds of similar ones, and only the better-run or better-placed ones beat the average.

Can Airbnb beat a normal long-term rental in Panama City?

For an average apartment, no. Airbnb brings in about the same gross as a long lease, and then costs far more to run.

We used one source for the price and the long-term rent: ACOBIR's first-half 2026 MLS data, $1,726 per m² for closed sales and $12.57 per m² a month for signed leases. A 100 m² apartment costs $172,600 and rents for $1,257 a month, or $15,084 a year: 8.74% gross. Global Property Guide's asking-price data give 7.57% for the city.

An average two-bedroom Airbnb grosses $15,300 a year on AirROI, or 8.86% on the same price. That's only $216 a year more than the tenant, before you pay for Airbnb's fee, ITBMS, cleaning, utilities, furniture wear and management.

After costs, the long lease wins clearly. We get 5.62% net before income tax self-managed and 4.46% with a manager for the long lease (see our rental-yield calculation), against about 2.1% and 0.5% for the Airbnb.

A Panama City Airbnb can beat the average, of course. But it would need about $28,800 a year in bookings with a manager, or $24,100 if you run it yourself, just to match the long lease. If a seller's projection is below that, take the tenant.

100 m² Panama City apartment, $172,600	Annual gross income	Gross yield	Net before income tax (self / manager)
Long-term lease (ACOBIR signed rent)	$15,084	8.74%	5.62% / 4.46%
Average 2-bedroom Airbnb (AirROI)	$15,300	8.86%	2.1% / 0.5%
Airbnb needed to match the long lease	$24,100 / $28,800	14.0% / 16.7%	5.62% / 4.46%

Where in Panama are Airbnbs making the most money?

Playa Venao stands out for revenue per listing. Bocas del Toro and Panama City come next at about $13,800 a year, and Boquete is at the bottom.

AirROI puts Playa Venao at about $23,930 a year in the 12 months to July 2026, from an unusually high $264 nightly rate and 33.2% occupancy. That's 1.7 times an average Panama City listing.

Bocas del Toro grossed $13,745 a year on a $160 rate and 31.7% occupancy over the same period, across 461 listings. Coronado made $11,656 ($177 a night, 28.4%) and nearby Nueva Gorgona $11,741 ($148, 34.4%) in the 12 months to September 2026. Boquete is lowest at $9,700 ($124, 37.6%), and Pedasí town makes $10,320 ($152, 29%).

The gap comes from price more than occupancy. Beach markets charge a lot per night but fill fewer than four nights in ten. Panama City charges less but fills about half its nights.

After Airbnb's fee, ITBMS, cleaning and a 20% manager, every market keeps roughly half of its gross. That leaves about $5,000 to $7,300 a year for an average listing outside Playa Venao, before PH fees, utilities, repairs and income tax.

Panama Airbnb market (AirROI)	Annual gross revenue	Average nightly rate	Occupancy	Left after fee, ITBMS, cleaning and manager
Playa Venao	$23,930	$264	33.2%	$12,788 (53%)
Panama City	$13,845	$113	50.2%	$6,851 (49%), under 45 days needs a permit
Bocas del Toro	$13,745	$160	31.7%	$7,329 (53%)
Nueva Gorgona	$11,741	$148	34.4%	$5,926 (50%)
Coronado	$11,656	$177	28.4%	$5,913 (51%)
Pedasí	$10,320	$152	29.0%	$5,227 (51%)
Boquete	$9,700	$124	37.6%	$4,964 (51%), own 45-day rule

Bocas del Toro or Playa Venao: where would we rather buy an Airbnb?

For a pure vacation rental, we would favor a great Bocas del Toro property over an average Playa Venao one, but an exceptional Playa Venao villa can make more money.

Playa Venao's draw is the rate. AirROI estimates $264 a night and about $23,930 a year. Few Panamanian markets charge that much.

The catch is 33.2% occupancy. A Playa Venao property is booked about one night in three, so the year depends on peak weeks and premium pricing. It's also on the Azuero peninsula, where the magnitude 7.5-7.7 earthquake near Tonosí on October 9, 2026 (agencies differed) damaged buildings and roads. Check the structure, the insurance and road access before you count on bookings.

Bocas has a deeper tourism base. People go there to stay several nights, hop between islands, dive, surf and go out in Bocas Town, and it attracts both backpackers and high-end travelers. AirROI's 461 listings make it a real market, at $13,745 a year on average.

That doesn't make every Bocas property good. Boat access, salt corrosion, electricity, maintenance and management get expensive quickly. And many island properties are held as possession rights (ROP) rather than titled property, which is a weak base for a tourism business.

Playa Venao is small: about 72 active listings in AirROI's data, with supply up just 7.5% in a year. It's not a sea of identical apartments.

We would pick Bocas when the property has easy access, a title and a reliable manager. We would pick Playa Venao when the property is different enough to defend $200-plus nightly rates.

Is Coronado still worth buying for Airbnb?

Not the average Coronado property, if Airbnb income is the main reason to buy.

AirROI puts Coronado at about $11,656 a year, despite a fairly high $177 nightly rate.

Occupancy is the problem: 28.4% across the year.

That's about 104 booked nights a year. The rest of the time you still pay condo fees, maintenance, utilities and insurance, with your money tied up in the property. After Airbnb's fee, ITBMS, cleaning and a manager, about $5,900 is left to cover all of that.

Coronado makes sense for someone who wants a beach home anyway and treats Airbnb as a way to cover part of the costs. That's a reasonable plan.

As a pure investment, it's hard to defend unless the price is unusually low or the property has something the average listing lacks: direct beachfront, a big terrace, room for families, good resort facilities or a proven booking history. Check the gated community's rental rules too: many beach towers limit short stays.

Is Boquete really strong enough for an Airbnb investment?

No, not on average. Boquete has real visitors, but the typical Airbnb earns too little, and the town has its own municipal 45-day restriction on unlicensed tourist stays.

AirROI puts Boquete at about $9,700 a year per listing, with a $124 nightly rate and 37.6% occupancy.

That's about $808 a month in gross bookings across the year, and roughly $414 after Airbnb's fee, ITBMS, cleaning and a manager. Ownership costs can eat that fast.

The legal point matters more than the numbers. Boquete's 45-day rule is municipal, not part of Law 80, so even a national reform that repeals Law 80 would not free a Boquete house for weekend guests on its own. Ask the municipality for the text before you buy.

Some properties can still do well. Boquete attracts retirees, hikers, coffee tourists and long-stay visitors escaping the heat, and a nice mountain home with views and room for a family plays in a different league from a small generic apartment. Two-bedrooms averaged $11,100 a year, against $5,820 for one-bedrooms.

Price decides. A $100,000 property grossing $10,000 a year starts a conversation. A $250,000 property grossing the same doesn't. On average, Boquete looks like a lifestyle purchase that pays part of its costs, not a high-return Airbnb.

How much does seasonality hurt Airbnb returns in Panama?

A lot outside the capital. Beach and mountain markets fill only 28% to 38% of their nights across the year, and the good months are very uneven.

This is where nightly-rate screenshots mislead. A property listed at $200 a night looks like $73,000 a year if you multiply by 365. At 30% occupancy, it's closer to $21,900 gross.

AirROI's monthly data show the swings. Coronado's occupancy went from 49.9% in February 2026 to 22.6% in June, so about 14 booked nights in its best month and 7 in its worst. Boquete ran from 52.9% in January to 25.8% in October 2025. Panama City is steadier, between 46.9% (May 2026) and 59.0% (December 2025).

Fixed costs don't take the low season off. Earning $24,000 a year doesn't mean $2,000 every month: a beach property can make several thousand dollars in February and very little in June.

That makes debt riskier. A foreigner's mortgage costs about 9% a year (Banco General's 8% plus the 1% FECI), and the payment is the same every month. Stress-test a vacation rental with the weak months, not the annual average.

Average nightly rate	Occupancy	Approx. nights booked/year	Gross annual revenue
$100	30%	110	$10,950
$150	30%	110	$16,425
$200	30%	110	$21,900
$150	50%	183	$27,375
$200	50%	183	$36,500

How much of Panama Airbnb revenue does an owner actually keep?

Much less than most projections say. On an average two-bedroom in Panama City, costs take about 76% of gross revenue if you manage it yourself and 94% with a manager, before income tax.

Here is the stack on $15,300 of bookings (AirROI's average two-bedroom), for a 100 m² apartment worth $172,600.

First, the money that comes off every booking. ITBMS at 10%, assuming it sits inside the guest price: $1,391. Airbnb's host-only service fee of 15.5%: $2,372. Cleaning: about 30 stays a year at AirROI's median $35 cleaning fee, so $1,062 (we assume an average stay of 4 nights; if guests pay the fee on top, this line shrinks). A manager at 20% of revenue after ITBMS, the middle of Vaca Group's 15%–25% range: $2,782.

Then the fixed costs. PH fee at $2 per m² a month: $2,400. Property tax on the investment schedule: $856. Utilities and internet, which a long-term tenant would pay: $1,800, our assumption of $150 a month. Repairs, insurance and furniture wear: $1,726, our allowance of 1% of the price, double what we use for a long lease.

That leaves about $3,693 self-managed (2.14% of the price) and $912 with a manager (0.53%). Panama taxes rental income locally even if you live abroad: with a 15% tax, that's 1.82% and 0.45%. One apartment with no other Panama income can fall under the $11,000 zero band, but the yields are already low.

Foreign owners nearly always need a manager. Someone has to handle guests, cleaners, check-ins, pricing and repairs, and that one line is often what separates a thin profit from nothing.

Average 2-bedroom, Panama City, $172,600	Self-managed	With a manager
Gross bookings (AirROI)	$15,300	$15,300
ITBMS 10% (inside the price)	−$1,391	−$1,391
Airbnb host fee 15.5%	−$2,372	−$2,372
Cleaning (30 stays × $35)	−$1,062	−$1,062
Manager 20%	$0	−$2,782
PH fee, property tax, utilities, repairs and wear	−$6,782	−$6,782
Net before income tax	$3,693 (2.14%)	$912 (0.53%)
Net after 15% income tax	1.82%	0.45%
Same apartment on a long lease, after 15% tax	4.78%	3.79%

Would Bills 301 or 713 change the numbers for an Airbnb owner?

A little, and not yet. On October 28, 2026, neither bill was law, and the 45-day rule still applied in the District of Panama.

Bill 301 would create a legal category for stays of 1 to 90 days, with registration and 10% ITBMS. It passed first debate on January 6, 2026 and was still waiting for second debate in late October.

The government's Bill 713 would repeal Law 80 and charge 15% ITBMS on tourist rentals. It had not had its first debate. On October 22, the hotel association APATEL asked for an annual permit and the 15% rate to be written into Bill 301; on October 26, Airbnb again asked for the 15% to be dropped from Bill 713.

The tax difference is easy to price. On $15,300 of bookings with tax inside the price, 10% ITBMS takes $1,391 and 15% would take $1,996, so about $605 more a year. That's enough to wipe out what's left on a managed average unit.

Legalization would also bring more competition. If thousands of ordinary condos could register, the units that are legal today would lose part of their edge.

What to do now: don't pay a premium today for a law that might pass, and don't buy a condo whose PH rules ban tourist stays, because neither bill would override them.

At what price does a Panama Airbnb actually make sense?

When the price is low enough that a cautious net income still beats a long lease, which on our numbers means well below what most sellers ask.

Say a property can realistically bring in $24,000 a year in bookings at $150 a night: about 160 nights and 40 stays.

After ITBMS, Airbnb's fee and cleaning ($40 a stay), about $16,500 is left self-managed, or $12,135 with a 20% manager. Then come $4,200 a year of PH fees and utilities, 1% of the price for repairs and wear, and property tax.

With a manager, that's about 1.1% net before income tax at a $300,000 price, 2.5% at $200,000 and 3.8% at $150,000. Self-managed, it's 2.5%, 4.6% and 6.7%. A long lease on a Panama City apartment nets about 4.5% to 5.6% before tax with much less work.

So work backward: realistic booked nights and rates, minus every cost, compared with a tenant, then the most you'd pay. If the seller wants $300,000 and the deal only works at $175,000, raising the occupancy guess in a spreadsheet doesn't fix it.

Purchase price ($24,000 of bookings)	Fixed costs a year	Net before tax, with manager	Net before tax, self-managed
$300,000	$8,920	$3,215 (1.1%)	$7,578 (2.5%)
$250,000	$8,020	$4,115 (1.6%)	$8,478 (3.4%)
$200,000	$7,220	$4,915 (2.5%)	$9,278 (4.6%)
$175,000	$6,820	$5,315 (3.0%)	$9,678 (5.5%)
$150,000	$6,420	$5,715 (3.8%)	$10,078 (6.7%)

Which Panama Airbnb deals would we still buy?

Very few, and never an ordinary Panama City condo that depends on short stays without a permit.

Tourism is strong: 17.4% more visitors in the first half of 2026, and Panama City listings still fill about half their nights. The weak part is what the owner keeps after a 15.5% host fee, 10% ITBMS, cleaning and management.

In Panama City, we would want either an ATP permit with PH rules that allow tourist stays, or a property that already works as a 45-day-plus furnished rental. The fallback is good: a long lease grosses about 8.7% on ACOBIR's data and nets 4.46% to 5.62% before tax.

For a pure vacation rental, we prefer a titled Bocas del Toro property with easy access and a reliable manager, or a standout Playa Venao villa that can defend its $264 average nightly rate.

We would be much more careful in Coronado, where occupancy is about 28%, and in Boquete, where an average listing grosses about $9,700 and the municipality has its own 45-day rule.

The common mistake is buying first and asking later how much Airbnb can make. Do it the other way round: what guests really pay, how many nights they book, what it costs to run, what a tenant would pay instead. Then work out the price.

When those numbers still work, Airbnb in Panama can be worth it. When the deal needs optimistic occupancy, a law that hasn't passed or a building that turns a blind eye, we would walk away.