Article written: October 1, 2026
Article 30 of Bill 713 would charge 15% ITBMS on short-term rentals of homes and apartments booked through digital platforms, while registered tourist lodging such as hotels would stay at 10%.
On September 30, 2026, Airbnb publicly rejected that provision. The company says it supports taxing short-term rentals but objects to a rate that is higher than the one hotels pay.
The bill is still before the National Assembly. No new rate is in effect.
What Is Bill 713?
Bill 713, titled “Que establece incentivos para el desarrollo turístico,” is the government’s proposed replacement for Law 80 of 2012, Panama’s main tourism incentives law. Law 80’s benefits expired on December 31, 2025.
The Cabinet Council approved the proposal on August 25, 2026, and sent it to the National Assembly. The Tourism Authority of Panama (ATP) presented it as Cabinet bill 31-26.
Most of the bill deals with investment incentives:
- Tax exemptions of up to 15 years for new tourism projects on the Caribbean coast
- Exemptions of up to 10 years for projects outside the Panama City district, with a minimum investment of $500,000 in the interior, according to La Prensa
- Support for nautical tourism, conventions and events, ecotourism and cultural attractions
- A single government window, run by the ATP, for incentive applications
- A performance bond of 2%, capped at $2 million, for new projects, plus joint ATP and Ministry of Economy and Finance (MEF) oversight
ATP Administrator Gloria De León said the government wants to promote tourism, not subsidize real estate projects that have little to do with tourism.
What Does Article 30 Change for Short-Term Rentals?
Article 30 creates a separate ITBMS rate for short-stay rentals of residential property, such as houses and apartments, booked through digital platforms. La Prensa and Forbes Centroamérica both reported the rate.
| Type of lodging | Current ITBMS | Proposed under Bill 713 |
|---|---|---|
| Hotels and registered tourist lodging | 10% | 10% |
| Short-term rentals of homes and apartments via digital platforms | 10% (lodging rate) | 15% |
| Most other taxable goods and services | 7% | 7% |
As reported by La Prensa, the bill also states that paying the tax does not give a property permission to operate as a rental. Owners would still need the required permits and registration with the National Tourism Registry.
How Much Would a 15% Rate Cost a Rental Owner?
The extra 5 points add up quickly at normal occupancy. The examples below assume the tax is charged on the full nightly rate.
| Monthly booking revenue | Tax at 10% | Tax at 15% | Difference per month | Difference per year |
|---|---|---|---|---|
| $2,000 | $200 | $300 | $100 | $1,200 |
| $3,000 | $300 | $450 | $150 | $1,800 |
| $5,000 | $500 | $750 | $250 | $3,000 |
Whether owners pass that cost on to guests or absorb it, a higher rate means either higher prices or lower net income.
What Is Airbnb Asking For?
On September 30, Carlos Muñoz, Airbnb’s Director of Public Policy and Communications for Central America, published an open letter in La Estrella de Panamá. He argued that the 15% rate would make hosts pay 50% more tax than hotels for the same nightly service. He also said the rate structure originally came from the hotel industry.
Airbnb made four proposals:
- Approve Bill 301, a separate bill that would set up a regulatory framework for short-term rentals
- Remove Article 30 from Bill 713 and apply a single 10% ITBMS rate to all lodging
- Use OECD standards to enforce tax compliance by platforms and hosts
- Set up a technical committee that includes hosts and the rest of the tourism sector
Where Did the 15% Figure Come From?
The Panamanian Hotel Association (Apatel) first proposed a 15% rate for short-term rentals in July 2025, during debate on rental regulation. Under that proposal, 5 points would have gone to a tourism promotion fund.
Deputy Neftalí Zamora opposed Apatel’s 15% proposal at the time and argued for equal treatment of all lodging. According to La Estrella, Zamora has estimated that more than 13,000 short-term rental operations work in Panama without a clear legal framework.
The ATP and Panama’s consumer protection agency, Acodeco, have said they are following the bills under discussion.
What Should Property Owners Do Now?
Nothing changes until the National Assembly passes the bill and it is published in the Gaceta Oficial. The final rate could stay at 15%, drop to a single 10% rate, or change again during debate.
Owners and buyers looking at rental properties in markets such as Panama City, Coronado, Bocas del Toro or Playa Venao should use cautious projections. Those projections should account for possible tax increases, platform fees, property management, condo association rules and the registration requirements that both bills would create.
Casa Solution Can Help
If you own a rental property in Panama or are thinking about buying one, Casa Solution can help you review rental demand, comparable properties and the costs that affect your net return. Contact our team to talk through your options.
Tax regulations and individual circumstances can vary. This article is intended as general information and should not replace advice from a qualified Panamanian attorney or tax professional. Bill 713 is a proposal under legislative debate, and its provisions may change before approval.
