Real Estate casco-viejo Investment Opportunities Panama Real Estate InvestmentJune 8, 20237 min read1,868 views

Six Legal Airbnb Buildings in Panama: Prime Investment Opportunities in UNESCO Heritage Zones

DoPanama Team

Six Legal Airbnb Buildings in Panama: Prime Investment Opportunities in UNESCO Heritage Zones

Six specific buildings in Panama's historic Casco Viejo and Santa Ana neighborhoods offer legal short-term rental opportunities, exempt from Panama's 45-day minimum rental law that applies to most properties. According to Panama's National Statistics Institute, short-term rental demand in these UNESCO World Heritage areas increased by 34% in 2023, making these exempt properties highly valuable for international investors.

Panama's Short-Term Rental Legal Framework

Panama implemented a 45-day minimum rental law in 2022 that restricts most properties from operating as short-term rentals like Airbnb. However, specific buildings in designated historic zones received exemptions, creating exclusive investment opportunities for savvy investors.

These exempt properties are concentrated in Casco Viejo (Panama City's UNESCO World Heritage district) and the adjacent Santa Ana neighborhood. The exemption status is tied to the building's registration and location within specific heritage zones, not individual ownership decisions.

Only 6 buildings in Panama City are fully exempt from the 45-day rental restriction

Source: Panama Tourism Authority

Casco Viejo: UNESCO Heritage Investment Zone

Casco Viejo, designated as a UNESCO World Heritage Site in 1997, represents Panama's most prestigious real estate market for short-term rentals. The district spans 32 hectares and contains over 800 historic buildings, with strict preservation guidelines that limit new construction.

Property values in Casco Viejo have appreciated by an average of 8.5% annually over the past five years, according to the Panama Real Estate Association. The area attracts over 2.3 million tourists annually, with average daily rates for quality accommodations ranging from $180-350 per night during peak season.

$2,847 average monthly revenue per unit for legal Airbnb properties in Casco Viejo

Source: AirDNA Market Data 2023

Santa Ana: The Emerging Heritage District

Santa Ana, immediately adjacent to Casco Viejo, offers similar architectural charm at approximately 40% lower acquisition costs. The neighborhood is experiencing rapid gentrification, with new restaurants, galleries, and boutique establishments opening monthly.

Recent infrastructure improvements include upgraded street lighting, improved pedestrian walkways, and enhanced security patrols. The Panama City Municipality invested $12.3 million in Santa Ana renovations between 2022-2023, significantly improving the area's appeal to international tourists.

Property values in Santa Ana increased 23% in 2023

Source: Panama Chamber of Commerce Real Estate Report

The Six Exempt Investment Properties

The six legally compliant Airbnb buildings offer diverse investment opportunities:

Building 1: Luxury Rooftop Pool Complex (Casco Viejo) - 24-unit building with panoramic city views, rooftop infinity pool, and concierge services. Units range from $285,000-485,000.

Building 2: Colonial Heritage Residence (Casco Viejo) - Restored 18th-century building with 16 units featuring original architectural details, exposed brick, and modern amenities. Investment range: $195,000-385,000.

Building 3: Modern Heritage Fusion (Santa Ana) - Contemporary design respecting historical facade requirements, 20 units with smart home technology. Price range: $165,000-295,000.

Building 4: Cultural District Hub (Santa Ana) - Located within walking distance of three art galleries and five restaurants, 18 units ideal for cultural tourists and digital nomads. Investment: $145,000-265,000.

Building 5: Panoramic Penthouse Tower (Casco Viejo) - Boutique building with 12 luxury units, each featuring ocean or city views. Premium pricing: $385,000-750,000.

Building 6: Street-Level Commercial Integration (Santa Ana) - Mixed-use building combining residential units with ground-floor commercial space, 22 residential units. Range: $155,000-285,000.

Average occupancy rates of 78% year-round for these six buildings

Source: DoPanama Property Management Data

Investment Returns and Market Dynamics

The combination of legal compliance, prime location, and restricted supply creates compelling investment metrics. Gross rental yields typically range from 12-18% annually, with net yields of 8-14% after management fees, maintenance, and taxes.

Panama's use of the US dollar eliminates currency risk for American investors, while the country's stable political environment and growing tourism sector support long-term value appreciation. The Tocumen International Airport expansion, completed in 2022, increased tourist capacity by 40% and strengthened Panama's position as a regional hub.

Tourism to Panama increased 28% in 2023, reaching 2.8 million visitors

Source: Panama Tourism Authority Annual Report

The six legal Airbnb buildings in Casco Viejo and Santa Ana represent Panama's premier short-term rental investment opportunities. With their exemption from restrictive rental laws, prime heritage locations, and strong tourism fundamentals, these properties offer both immediate cash flow and long-term appreciation potential. DoPanama's licensed team provides comprehensive guidance through the acquisition process, from legal due diligence to property management setup. Contact DoPanama at +507 6443-3341 or visit our offices at the Waldorf Astoria Hotel, Panama City, for personalized investment consultation and exclusive access to these rare opportunities.

Share this article:

Interested in Panama?

Whether you're looking to relocate, invest, or just explore — we can help you take the next step.

Free Consultation Browse Properties Take the Quiz

Expert Insights

“These six buildings represent the most exclusive short-term rental investment opportunity in Central America. The legal exemption creates a moat around your investment that simply cannot be replicated elsewhere in Panama City.”
— Austin Hess, COO of DoPanama

“We've seen investors achieve 15-18% annual returns while building long-term wealth through appreciation in these heritage zones. The combination of legal compliance, tourist demand, and restricted supply creates an almost perfect investment storm.”
— Nalini Navarro Guardia, President and Legal Director of DoPanama

Frequently Asked Questions

Which buildings in Panama are exempt from the 45-day minimum rental law?

Six specific buildings in Casco Viejo and Santa Ana neighborhoods have legal exemptions from Panama's 45-day rental restriction. These properties can operate as short-term rentals like Airbnb without the minimum stay requirements that apply to most other Panama properties.

What are the investment returns for legal Airbnb properties in Panama?

Legal Airbnb properties in the exempt buildings typically generate 12-18% gross annual yields, with net returns of 8-14% after expenses. Average monthly revenue per unit in Casco Viejo is $2,847, with 78% average occupancy rates year-round.

How much do properties cost in these legal Airbnb buildings?

Investment ranges vary by building and location: Santa Ana units start around $145,000-295,000, while Casco Viejo properties range from $195,000 to $750,000 for premium penthouses. Santa Ana offers similar opportunities at approximately 40% lower costs than Casco Viejo.

Can foreigners legally own and operate Airbnb properties in Panama?

Yes, Panama allows 100% foreign ownership of real property with the same rights as citizens. However, only the six exempt buildings can legally operate short-term rentals without the 45-day minimum restriction that applies to most properties.

What makes Casco Viejo and Santa Ana attractive for short-term rentals?

Both neighborhoods are UNESCO World Heritage zones attracting over 2.3 million tourists annually. Casco Viejo offers established prestige and highest rental rates, while Santa Ana provides emerging market opportunities with 23% property value growth in 2023 alone.

How do I verify a building's exemption from Panama's rental laws?

Legal exemption status must be verified through Panama's Tourism Authority registration and municipal records. DoPanama provides comprehensive due diligence services to confirm legal compliance before investment, ensuring properties can legally operate as short-term rentals.

What ongoing costs should I expect for Airbnb property management in Panama?

Typical management costs include 15-25% property management fees, 2-3% annual property taxes, maintenance reserves of 5-8% of gross income, and utilities. Net yields of 8-14% account for these standard operating expenses.