Is rental property worth buying in Panama City?

What does a Panama City rental actually yield in 2026?

About 8.7% gross on real deals, and about 7.6% on asking prices. That's high for a capital city, which is why Panama City rentals deserve a serious look.

The cleanest number comes from ACOBIR, the brokers' association. Its MLS recorded closed apartment sales at $1,726 per m² and signed leases at $12.57 per m² a month in the first half of 2026. On a 100 m² apartment, that's a $172,600 price and $1,257 rent, so 8.74% gross. Nexo ran the same data and got the same number.

Global Property Guide's asking data put Panama City at 7.57%, with one-bedrooms at 8.43% and two-bedrooms at 8.08%. Those use median asking prices and asking rents, so read them as benchmarks, not promises.

The setup is good for a landlord: rents are rising while closed prices slipped 1.7% in a year. Yields look high because rents climbed, not because values collapsed.

The catch comes after expenses. On the same ACOBIR example, PH fees, vacancy, property tax and repairs take 8.74% down to 5.62% self-managed or 4.46% with a manager, before income tax. After a 15% tax, it's 4.78% or 3.79%. That gap is where most bad Panama City deals show up.

Panama City indicator	Latest reading	What we take from it	Main caveat
Gross yield on closed deals (ACOBIR, H1 2026)	8.74%	Best evidence: real sales and signed leases	Sales and leases aren't the same units
Average gross yield (Global Property Guide)	7.57%	Good starting yield	Based on asking data
1-bedroom gross yield	8.43%	Small units look especially efficient	Building quality varies
2-bedroom gross yield	8.08%	Strong income profile	Purchase price still decides
Signed-rent growth (ACOBIR)	+8.9% YoY	Rents have strengthened	Asking rents run higher
Net yield on our 100 m² example	5.62% / 4.46%	Self-managed / with a manager	Before income tax
After 15% income tax	4.78% / 3.79%	What you actually keep	A single unit may pay 0%

Sources for this table: ACOBIR Xposure MLS (H1 2026), Global Property Guide; net yields are our calculation.

Do smaller apartments make more money in Panama City?

Yes. One- and two-bedroom apartments give Panama City landlords more rent for each dollar invested than large apartments.

The size effect is clear in Global Property Guide's data. A studio or one-bedroom averages an 8.43% gross yield. Two-bedrooms are at 8.08%, three-bedrooms at 7.50%, and apartments with four or more bedrooms fall to 6.29%.

The reason is simple. Prices rise faster than rents as apartments get bigger. In the same dataset, a typical one-bedroom costs around $235,000 and rents for $1,650 a month. A four-bedroom-plus unit costs about $1.05 million and brings in around $5,500. It costs about 4.5 times as much but earns only about 3.3 times the rent.

On real money, that's a big gap. At 8.43%, $500,000 spread across small units brings in about $42,150 of gross rent a year. At 6.29%, the same amount brings in about $31,450. That's more than $10,000 apart before a single expense, and PH fees, charged per m², widen it further.

Large family apartments can still work, especially in places such as Costa del Este where tenants may stay longer. For pure rental income, the numbers favor compact units.

Apartment size	Typical purchase price	Typical monthly rent	Gross yield	Gross rent per $500k invested
Studio / 1-bedroom	$235,000	$1,650	8.43%	$42,150
2-bedroom	$245,000	$1,650	8.08%	$40,400
3-bedroom	$400,000	$2,500	7.50%	$37,500
4+ bedrooms	$1.05M	$5,500	6.29%	$31,450

Source for this table: Global Property Guide, Panama City median asking prices and rents.

How much rental yield do Panama City landlords actually keep?

Roughly half to two-thirds of the gross yield. An apartment advertised at 7.8% gross often leaves about 4%–5% before income tax, and less after it.

That's lower than the usual rule of thumb. Several sites say expenses remove 1.5 to 2.5 points from gross yield. When we add up vacancy, PH fees, property tax and repairs on real Panama City numbers, costs take about 36% of gross rent if you manage the place yourself and 49% with a manager. That's a gap of about 3 points self-managed and about 4 points with a manager. Nexo's own model on ACOBIR data lands in the same place: 4.1% with a manager, 5.2%–6.1% self-managed, before income tax.

PH fees are the biggest variable. PanamaProp's April 2026 guide puts them at $1.50–$2.50 per m² a month in standard buildings and $2.50–$4.50 in premium towers. Pools, gyms, security and generators help rent the unit, but tenants rarely pay enough extra to cover the bill.

Vacancy adds another cut. ACOBIR brokers took an average of 81 days to place a long-term tenant in the first half of 2026, so budget about one month without rent a year. Owners living abroad then pay 8%–12% of collected rent to a manager (Vaca Group, September 2026), plus about one month's rent to find each new tenant.

Take a $200,000 apartment renting for $1,300 a month, or 7.8% gross. With one month of vacancy, a $200 monthly PH fee, property tax, repairs, 10% management and tenant placement, it falls to 3.90% before income tax and 3.31% after 15% tax. Manage it yourself and you get 4.94% before tax. With a $350 PH fee instead, the managed figure drops to 3.00%.

So the building can matter almost as much as the neighborhood.

$200k apartment renting for $1,300/month	Annual owner income	Yield on purchase price
Gross rent, 12 months	$15,600	7.80%
After one month of vacancy	$14,300	7.15%
After $200/month PH	$11,900	5.95%
After property tax ($1,020) and repairs/insurance ($1,000)	$9,880	4.94%
After 10% management and tenant placement	$7,800	3.90%
After 15% income tax	$6,630	3.31%
With $350/month PH instead (managed, before tax)	$6,000	3.00%

Our calculation. Property tax uses the DGI investment bands on the full price; repairs and insurance are our own 0.5% allowance; tenant placement is one month of rent every two years.

Which Panama City neighborhoods are best for rental property?

For rental income, we'd start with San Francisco, Obarrio, El Cangrejo and Punta Paitilla, plus selected units in Bella Vista and Coco del Mar, before paying a big premium for a famous address.

There's no clean ranking, because each dataset uses different buildings and listings. That's useful in itself: it tells you the exact apartment matters more than any neighborhood average.

PanamaProp's map of active listings on October 18, 2026 puts Punta Paitilla at 9.1% gross, Coco del Mar at 9.0%, San Francisco at 8.3%, Obarrio at 8.1% and El Cangrejo at 7.7%. Costa del Este sits at 7.1%, Punta Pacífica at 7.0% and Marbella at just 4.8%.

Vaca Group's July 2026 study of asking listings comes out lower across the board but in a similar order: Obarrio 7.35%, Bella Vista 7.08%, El Cangrejo 6.91%, San Francisco 6.84%, Punta Pacífica 5.98% and Costa del Este 5.84%. Global Property Guide's one-bedroom data go higher still in some areas, with 9.53% in Bella Vista, 8.57% in Coco del Mar, 8.47% in El Cangrejo and 7.61% in San Francisco.

Paitilla shows why the series can't be mixed. PanamaProp's separate October 4 medians for 1-bedrooms ($266,475 asked, $1,400 a month) give only about 6.3% gross there, against 9.1% on its October 18 map, which mixes all sizes. So use neighborhood data to build a shortlist, then do the math building by building.

San Francisco has lots of stock and a steady base of professional renters. Obarrio is central at moderate prices. El Cangrejo and Bella Vista are cheaper ways in than the newer luxury districts. Coco del Mar can show high rent per m² when the price is right.

Costa del Este and Punta Pacífica can work, especially for corporate or wealthy family tenants. The harder part is the price: paying a big premium for a newer tower squeezes the yield before you even reach the PH bill.

Panama City area	Gross yield, PanamaProp (Oct 18, 2026)	Gross yield, Vaca Group (July 2026)
Punta Paitilla	9.1%	not published
Coco del Mar	9.0%	not published
San Francisco	8.3%	6.84%
Obarrio	8.1%	7.35%
El Cangrejo	7.7%	6.91%
Costa del Este	7.1%	5.84%
Punta Pacífica	7.0%	5.98%
Marbella	4.8%	not published

Both sources use asking prices and asking rents, on different listing samples. We show them side by side and never average them.

Are Panama City rents still rising enough to help landlords?

Yes. Rents rose clearly over the past year, but another double-digit year would be a bad assumption to build a purchase on.

Encuentra24 listings put Panama City apartment asking rents at $14.70 per m² a month in June 2026, up 13.5% in a year (via Global Property Guide). Houses rose almost as much, 13.2%. Signed leases in ACOBIR's MLS rose less but still a lot: 8.9%, from $11.54 per m² in the first half of 2025 to $12.57 in the first half of 2026.

Asking rents run above signed ones. On a 100 m² unit, that's roughly $1,470 asked against $1,257 agreed (two different datasets, so treat it as a guide). For a citywide feel, PanamaKey's October 2026 median ask is about $1,500 for a one-bedroom and $1,550 for a two-bedroom.

For a buyer, the useful part is the starting rent. A property bought today can be tested against today's stronger rents instead of needing future rises to work.

We'd still underwrite flat or modest growth. Price your yield on signed leases, not ads. If the deal only works because rent jumps 10% next year, the price is already too high.

Is there enough tenant demand for all these Panama City apartments?

Yes, the demand is real, but there's enough competing stock that an average apartment can't charge whatever it wants.

Several groups of tenants overlap. Panama is a banking and regional-services hub, the Canal and logistics bring international business, multinationals employ local and foreign professionals, and newcomers usually rent before they buy.

The economy is growing. GDP rose 4.4% in 2025 and 5.5% in the first half of 2026 (INEC). The Panama Tourism Authority reported 1.75 million international visitors in the first half of 2026, up 17.4%. Tourism doesn't turn a residential condo into a legal tourist rental, but it supports jobs, corporate stays and demand for furnished medium-term housing.

Supply keeps landlords honest. PanamaProp's 2026 rental guide tracked more than 12,000 active apartment ads in 32 areas, with about 1,500 in San Francisco and 1,600 in Costa del Este. A September 2026 Brax/Nexo Living snapshot found 9,953 rental ads.

So both things are true: demand is healthy, and tenants have plenty of choice. The median rental ad had been online 41 days in October 2026 (PanamaKey).

A generic furnished two-bedroom in a tower full of similar units has little pricing power. A renovated smaller apartment with sensible PH fees, good light, parking and a central location is in a much better spot.

Demand or supply factor	Latest evidence	Effect on a landlord
International visitors	1.75M, +17.4% YoY (H1 2026)	Supports the city economy
GDP growth	+5.5% (H1 2026)	Supports professional tenant demand
Active rental ads (PanamaProp 2026 guide)	12,000+ in 32 areas	Tenants have lots of alternatives
Median age of a rental ad (PanamaKey)	41 days (Oct 2026)	Units don't rent overnight
Signed-rent growth (ACOBIR)	+8.9% YoY (H1 2026)	Demand has absorbed higher rents

Sources for this table: Panama Tourism Authority, INEC, PanamaProp, PanamaKey, ACOBIR MLS.

Can you make good money with Airbnb in Panama City?

Only in a property that's allowed to do it, and even then the margin is thinner than the nightly rate suggests.

The rule is concrete. Article 21 of Law 80 of November 8, 2012 bans rentals shorter than 45 days in the District of Panama by anyone without authorization to offer public tourist accommodation from the ATP. Fines run from $5,000 to $50,000, and advertising online counts. The ATP is still applying it: a Yacht Club apartment case on Avenida Balboa was published in the Official Gazette in July 2026. On top of that, your building's PH rules can ban short stays.

That kills an easy sales pitch: buy a normal condo, lease it long-term when convenient, then switch to nightly Airbnb when tourism is strong.

The numbers aren't as exciting as they look. On AirROI, Panama City's 978 active listings grossed an average $13,845 between October 2025 and September 2026, at $113 a night and 50.2% occupancy. A one-bedroom grossed $13,300 ($99 a night, 54% occupancy) and a two-bedroom $15,300 ($126, 52%). Then come 15%–25% management (Vaca Group), cleaning, utilities, furniture and 10% ITBMS on lodging.

For comparison, PanamaKey's median one-bedroom ad on a normal lease asks about $1,500 a month. It's not the same set of apartments, but it shows Airbnb doesn't win by default, and a lease over six months is exempt from ITBMS.

So judge the apartment on a legal long lease first. If it's properly authorized for short stays, that's a bonus, not the thing that makes the deal work.

Will Bills 301 and 713 make Airbnb legal in Panama City soon?

Not yet. On October 28, 2026, neither bill is law, and the 45-day rule still applies in the District of Panama.

Bill 301 would create a regime for stays of 1 to 90 days, with registration in the ATP's National Tourism Registry and 10% ITBMS. It passed its first debate on January 6, 2026 and is still waiting for its second. The government's Bill 713 would repeal Law 80 and charge 15% ITBMS, but it hadn't reached its first debate by late October. The government proposed the 15% rate in September 2026.

The fight in October was about tax and permits. On October 22, APATEL, the hotel association, asked for an annual permit instead of a simple registration, platforms checking registrations, and 15% instead of 10%. On October 26, Airbnb asked lawmakers again to drop the 15% rate in Bill 713.

What it means for a buyer: a legal route for short stays is getting closer, but it will likely come with a permit, a 10% or 15% tax and platform checks. If the guest price stays the same, 10% takes about $1,209 of a one-bedroom's $13,300 a year, and 15% about $1,735. Building rules would still decide.

What to do now: ask for the PH rules and the last two owners' meeting minutes in writing, and run the deal at stays of 45 days or more. If it only works at three-night stays, you're paying for a permit you don't have.

Does a mortgage make Panama City rental property more profitable?

Usually not. At the rates foreigners pay, the loan eats most of the cash an average rental produces.

The Superintendency of Banks set its reference rate at 6.50% for the second quarter of 2026, but that's a regulatory benchmark, not an offer to a foreign investor. Banco General's 2026 grid for a second home is 8% plus the 1% FECI surcharge, so about 9%, with at most 70% of the price over 20 years. For non-residents, banks decide case by case.

Take a $235,000 one-bedroom with a 70% loan. Borrowing $164,500 over 20 years at 9% costs about $1,480 a month. Global Property Guide's citywide one-bedroom rent is $1,650, so about $170 is left before PH fees, vacancy, management, property tax, insurance and repairs. In practice, you're paying in every month.

Banks are cautious too: new home loans totaled about $981 million from January to August 2026, 13% less than a year earlier. The cheaper preferential loans are for new homes up to $120,000 bought as a main residence, not for investment units.

If you move to Panama and make the unit your registered main home, ask about a lower rate, since FECI normally doesn't apply to a primary-home loan. But then it isn't a rental.

Cash buyers have the cleaner deal. A borrower can still make money through loan repayment and price growth, but if monthly cash flow is the goal, borrowing at 9% to buy a 4%–5% net yield doesn't work.

Example financed apartment	Amount
Purchase price	$235,000
70% loan	$164,500
Interest rate (Banco General 8% + 1% FECI)	9%
20-year monthly payment	~$1,480
Citywide 1-bedroom rent benchmark	$1,650
Rent left before all property expenses	~$170/month

Our calculation; price and rent from Global Property Guide, loan terms from Banco General's 2026 grid.

Do Panama property taxes wipe out the rental return?

No. Property tax is small on most rental apartments. Income tax on the rent is the bigger bill, and most yield claims skip it.

A rented unit doesn't get the primary-home schedule, so the DGI's investment bands apply: 0% on the first $30,000 of taxable value, 0.6% from $30,000 to $250,000, 0.8% from $250,000 to $500,000 and 1% above. On a $172,600 apartment taxed on its full price, that's about $856 a year.

The primary-home regime is gentler (0% up to $120,000, then 0.5% and 0.7%), but don't model a rental as if it applies. The tax is also based on the registered cadastral value, which is often below the sale price. Some older buildings still have an exemption on improvements until it expires, while a 2026 new home doesn't get a fresh 20-year one. Check the property's record before you buy.

Income tax is where the return really shrinks. Panama taxes rent from a Panama property even if you live abroad. For individuals, the 2026 scale is 0% up to $11,000 of net taxable income, 15% up to $50,000 and 25% above (PwC, August 2026). A single apartment with no other Panama income can fall in the 0% band; we use 15% as the base case. There's no confirmed flat withholding rate for non-residents, so have a local accountant handle the filing.

Owning through a Panamanian S.A. costs more: $300 a year of tasa única, about $300 for a resident agent, and 25% corporate tax. That takes our 100 m² example down to 3.96% self-managed and 3.08% with a manager.

When you sell, the tax is 10% of the gain, with a compulsory 3% advance on the sale price that you can keep as the final tax.

Can foreigners buy and rent out property in Panama City easily?

Yes. Foreigners can buy and rent out a titled Panama City apartment, and ownership is rarely the hard part.

A non-resident can hold title in their own name, registered at the Registro Público, without a residence permit. The limits are near the borders (10 km) and on some islands, and possession rights (derechos posesorios) are not title. That matters at the beach, not for a city condo.

Buying costs the buyer about 1.5%–3% of the price in cash: a lawyer at 1%–1.5%, a notary at $300–$800 and the Registro Público at $200–$500. The 2% transfer tax, the 3% capital-gains advance and the 3%–5% agent commission are normally the seller's.

Long leases have rules. Leases must be registered with MIVIOT, and the standard deposit is one month of rent, lodged through MIVIOT's process. If you live abroad, a manager will take 8%–12% of the rent, so count it before buying.

We'd use an independent Panamanian lawyer to check the title, registered debts, property-tax status and condo documents. Also ask for the last 12 months of PH statements, any planned special assessment and several real rental comparables from the same building.

The backdrop improved in October: on October 9, 2026, the EU took Panama off its list of non-cooperative tax jurisdictions (it stays on the watch list, Annex II). Panama hasn't been on the FATF grey list since October 2023. Buying without a local partner is fine; doing it casually from abroad is where problems start.

Does buying a rental apartment get you Panama residency in 2026?

It can, but the thresholds changed in September 2026, and a purchase sized for the visa can be a weaker rental.

Since September 16, 2026, Executive Decree 17 sets the Qualified Investor property route at $300,000 for a first sale of a new home and $500,000 for a resale. It gives permanent residency, but you have to keep the investment for 5 years. Any mortgage is deducted from the value that counts, and the lower of the price paid and market value is used, so you can't finance the threshold. Fees are $5,000 plus a $5,000 repatriation deposit, and contracts signed before September 16, 2026 have until March 16, 2027 under the transition.

Friendly Nations is cheaper for eligible nationalities: a property of at least $200,000, which can be financed, gives 2 years of provisional residency and then permanent. The Pensionado visa drops its pension requirement from $1,000 to $750 a month if you own a Panama property worth more than $100,000 in your name.

Now the rental math. A $300,000 apartment needs $2,000 a month in rent to reach 8% gross. A unit priced at exactly the visa threshold is priced for the visa buyer, not the tenant, so check that real leases in the building support that rent.

Our advice: if you want residency, decide which route you need first, then buy the apartment that rents best within it. Don't let the visa threshold set the price. The MICI issued 268 Qualified Investor certificates worth $113.6 million between July 2025 and June 2026, so this is a niche, not most of the market.

Are Panama City property prices rising right now?

Asking prices are rising in some areas, but closed prices are flat. Don't count on strong appreciation to rescue a weak yield.

The best measure of real prices is ACOBIR's MLS: closed apartment sales averaged $1,726 per m² in the first half of 2026, 1.7% below the $1,756 of a year earlier, and only 6.2% above 2021. Asking prices are higher: TuLugar lists the District of Panamá at $2,244 per m² in October 2026.

Asking data tell a more upbeat story. Global Property Guide's review of Encuentra24 listings found apartment asking prices up 18.52% in Ancón, 11.95% in Bella Vista, 9.13% in San Francisco and 9.08% in Juan Díaz, while Casco Viejo fell 5.12%.

The two don't always agree. In Bella Vista, asking prices rose 11.95% while ACOBIR's closed prices fell 16.7%. In Juan Díaz, closed prices rose 22.6%. ACOBIR's area samples are small, so read them as direction, not precise numbers.

For a rental investor, flat prices are fine. They're the reason yields went up: on ACOBIR's numbers, gross yield rose from 7.89% to 8.74% in a year because rents climbed while prices didn't.

Selected area	Asking-price change (Encuentra24 via Global Property Guide)	Closed-price change (ACOBIR MLS, H1 2026 vs H1 2025)
Ancón	+18.52%	not published
Bella Vista	+11.95%	−16.7%
San Francisco	+9.13%	+4.3%
Juan Díaz	+9.08%	+22.6%
Casco Viejo / San Felipe	−5.12%	not published
Panama City (all apartments)	—	−1.7%

Two different sources, shown side by side and never combined. ACOBIR area figures come from small samples.

Is buying a new Panama City condo better than buying resale?

For rental income, resale usually wins, because many new developments carry premiums that tenants won't cover.

Panama Equity's first-quarter 2026 report puts San Francisco resale around $1,900 per m² against about $3,500 for preconstruction, 84% more. In Punta Pacífica it's about $2,200 against $4,300, 95% more. El Cangrejo is about $1,770 against $2,800 (58%), and Costa del Este $2,500 against $3,800 (52%). These are asking prices on different buildings, so the gap isn't all about age, but it's large.

A new apartment can deserve a premium: fewer repairs, better amenities, better layouts, more tenant appeal. An 84% or 95% premium is very hard to earn back from rent.

Say a resale apartment costs $300,000 and rents for $1,800, a 7.2% gross yield. A comparable new unit rents for $2,100, about 17% more. If it costs 80% more, $540,000, its yield is 4.67%.

New homes did get a tax break. Since September 1, 2026, Law 546 exempts the first $120,000 of a first sale of a new home from the 2% transfer tax, whatever the price. Above $200,000, that's a fixed $2,400. The seller normally pays that tax, so it's a reason to ask for a lower price, not a saving that reaches you on its own. The law doesn't require you to live in the unit.

So for an income buyer, developer pricing deserves skepticism. A well-kept resale apartment gets you the same neighborhood and tenants for much less money.

Are unsold Panama City towers cutting prices enough to buy now?

In many towers, yes. There's a glut of new condos, and that gives buyers real room to negotiate, which pushes the yield up.

New-home sales fell 39.5% in 2025, from 4,737 to 2,866 units, according to 4S Real Estate (via La Prensa), with 1,292 sold in the first quarter of 2026. Developers still had 15,499 new units for sale in Panama City in May 2026, 11% fewer than a year earlier (Panama Equity). ACOBIR and INDESA put the value of sales in the first half of 2026 at $695 million, down 13%.

Resale sellers are giving ground too. Apartments sold through ACOBIR's MLS closed 6% below their last asking price on average, after 224 days on the market.

The math is simple. On our $172,600 example renting for $1,257, 5% off the price lifts gross from 8.74% to 9.20%, and 10% off lifts it to 9.71%.

What to ask for: a price cut first, then paid furniture, a PH fee holiday or the seller's Law 546 saving passed on to you, all in the contract. On a unit still under construction, pay against construction stages, not up front: Acodeco logged 280 property complaints worth $13.2 million from January to August 2026.

What to check: an empty tower means many competing rentals in the same building. Count how many units are listed for rent there before you buy.

What can turn a good-looking Panama City rental into a bad investment?

Overpaying, high PH fees, too much debt and buying an apartment with dozens of near-identical rivals are the four fastest ways to ruin the return.

The math is unforgiving. A $300,000 apartment renting for $1,500 a month starts at only 6% gross. With normal costs, that's about 3.9% self-managed or 3.1% with a manager, before income tax.

A tower also carries risks a listing doesn't show. Elevators, façades, generators, pools and water systems eventually need expensive work, and a special assessment can eat months of rent. The magnitude 7.5–7.7 earthquake near Tonosí on October 9, 2026 (agencies differed) was a reminder to check the building's insurance and the reserve fund too.

Competition is the other problem. When several owners in the same tower advertise the same two-bedroom, tenants negotiate hard. One owner cutting the rent by $150 resets the comparable for everyone.

Heavy borrowing makes all of it worse, because the loan payment keeps coming during vacancies and repairs.

The protection comes before you buy: a high enough yield today, a healthy PH, real signed-rent comparables and a unit with a reason to be chosen over the others.

What kind of Panama City rental property would we buy today?

A fairly priced one- or compact two-bedroom resale apartment in an established central area, with a PH fee under about $2.50 per m² and at least 8% gross on signed rents.

San Francisco, Obarrio, El Cangrejo and Punta Paitilla would top our list, with selected buildings in Bella Vista and Coco del Mar. The neighborhood name never closes the deal; the building's numbers do.

We'd aim for roughly 60 to 110 m². The yield data favor smaller units, and that size still suits professionals, couples and small households.

We'd also avoid paying for amenities that do little for rent. Reliable elevators, security, parking, a decent gym and a usable pool help. Huge social areas and hotel-style staff look much less appealing once you see the PH bill.

The easiest way to set your maximum price is to work back from rent. If real leases suggest $1,300 a month, paying $260,000 gives only 6% gross. At 7%, the price falls to about $222,900. At 8%, it's $195,000.

At 8% gross in a normal building, you keep about 5.1% before income tax if you manage it yourself and about 4.3% after a 15% tax. That table tells you how much to negotiate.

Realistic monthly rent	Price at 6% gross	Price at 7% gross	Price at 8% gross	Price at 9% gross
$1,000	$200,000	$171,400	$150,000	$133,300
$1,300	$260,000	$222,900	$195,000	$173,300
$1,500	$300,000	$257,100	$225,000	$200,000
$2,000	$400,000	$342,900	$300,000	$266,700

Our calculation: annual rent divided by the target gross yield, rounded to the nearest $100.

What's the bottom line for a rental buyer in Panama City?

Buy if you pay cash, buy small and buy resale at a price that gives 8% gross on today's signed rents.

The case is better than "Panama is cheap." Closed-deal data give 8.74% gross, smaller units beat 8%, signed rents rose 8.9% in a year and closed prices are flat, so yields have gone up. A glut of unsold new condos gives you room to push the price down.

The return falls apart with the wrong product. After costs and a 15% tax, our 100 m² example keeps 4.78% self-managed and 3.79% with a manager. Heavy PH fees, a 9% mortgage or an 84%–95% new-build premium can push that close to zero, and the 45-day rule means unauthorized Airbnb income can't rescue a weak deal.

At 8% credible gross, normal expenses still leave a decent return. Around 7%, you depend on low PH fees and steady tenants. Below that, we'd usually walk away.

So it's a fairly strong yes, with one condition: the apartment has to make money at today's long-term rent and today's price. Panama City has enough demand and yield for good rentals, and more than enough overpriced condos for bad ones.