What a Valid Lease Agreement Must Include in Panama: Complete 2026 Guide

In Panama, leasing a property isn't as simple as agreeing on a price and signing a piece of paper. There's a specific law—Law 93 of 1973—that regulates real estate lease agreements, sets out the elements they must contain, defines the types of contract based on use and rent amount, and requires both parties to complete a registration process with the Ministry of Housing and Land Management (MIVIOT).

What many landlords and tenants don't know is that a lease agreement that fails to meet these requirements can be declared invalid, and that certain clauses the parties agree to in good faith can be voided if they contradict what the law establishes. Knowing the legal framework before signing protects both the landlord and the tenant.

This guide explains exactly what a lease agreement in Panama must include, what the contract types are, how it gets registered, and what additional clauses are worth including to protect both parties.

The legal framework: Law 93 of 1973 and MIVIOT

Law 93 of October 4, 1973, amended by Law 28 of 1974 and Executive Decree 7 of 1995, is the rule that governs real estate leases in Panama. It's considered a matter of public policy, which means its provisions override whatever the parties might freely agree to in the contract. A clause that violates Law 93 can be voided even if both parties signed it in agreement.

The agency responsible for enforcing this law is MIVIOT's General Directorate of Leases. Contracts must be registered with this office, security deposits must be filed there, and any complaint or claim related to the lease must be submitted there.

An important detail many people don't know: Law 93 in its full scope applies mainly to contracts with rent of up to $150 a month. For contracts with higher rent—which covers the vast majority of leases in Panama City in 2026—Executive Decree 7 of 1995 applies, establishing a freely-negotiated regime with fewer restrictions, but which still keeps certain articles of Law 93 mandatory for all contracts without exception.

Types of lease agreements in Panama

MIVIOT classifies lease agreements into three types based on the property's use and the rent amount. This classification determines which form you need to use and which legal regime applies:

Type A — Residential with rent up to $150 a month. Law 93 applies in full, with all its tenant protections. In practice, this type of contract is the least common in Panama City given current rent levels.

Type B — Residential with rent over $150 a month. This is the most common type in Panama City for residential leases. Executive Decree 7 of 1995 applies under a freely-negotiated regime, although several articles of Law 93 remain mandatory.

Type C — Commercial, industrial, professional, or educational. For commercial spaces, offices, warehouses, and any non-residential use. This is also governed under a freely-negotiated regime with the mandatory exceptions from Law 93.

The forms for each type are purchased at MIVIOT's General Directorate of Leases. The contract must be filled out by typewriter or in clear, legible handwriting, with no cross-outs, erasures, or correction fluid. A form with corrections can be rejected at registration.

The mandatory elements under Law 93

Every lease agreement in Panama must be formalized in writing on MIVIOT's forms and must include the following elements under Law 93:

1. Date the contract is signed. The day, month, and year the agreement is executed.

2. Full details of the parties. Full names, personal ID card numbers (or passport for foreigners), and addresses of the landlord and the tenant. If either party is a legal entity (a corporation, a private interest foundation), the RUC with its check digit and the legal representative's information must be included.

3. Complete identification of the property. Unit number, street or avenue, plaza, and township (corregimiento) where the property is located. The property's cadastral number, volume, and page of its registration with the Public Registry must also be included. This information comes from the property's title deed or a Public Registry certification.

4. The rent amount. The amount of money the tenant will pay monthly. The law requires this to be expressed as a monetary value even if payment is agreed in services or in kind. In contracts denominated in dollars—which is the case for nearly all leases in Panama City—it must clearly state that the rent is in U.S. dollars.

5. The lease term. The period for which the contract is executed: one year, two years, month to month, etc. The law establishes that the term is binding on the landlord but waivable by the tenant, who can terminate the contract with a minimum 30 calendar days' notice.

6. The property's intended use. What the property will be used for: housing, office, commercial space, etc. The use must match the contract type (residential or commercial) and the permitted use of the property under the building's bylaws.

The security deposit: how it works in Panama

The security deposit is the element of the lease agreement that causes the most confusion. In Panama, the system works differently than in many other countries.

Under Law 93, the security deposit must be filed with MIVIOT's General Directorate of Leases, not handed directly to the landlord. The landlord is required to deposit that money with MIVIOT when registering the contract. The deposit can be made in cash, certified check, or cashier's check payable to the Ministry of Housing.

The deposit amount is equivalent to one month's rent for one-year contracts. If the contract has rent changes over the years, the deposit is calculated based on the amount for the contract's final year.

When the contract ends, the deposit is refunded to the tenant, unless the landlord validly claims unpaid amounts or damage caused by the tenant to the property beyond normal wear and tear. That claim must be made formally before MIVIOT.

The most common trap: many landlords collect the deposit directly from the tenant without filing it with MIVIOT. That practice violates Law 93, can lead to penalties for the landlord, and leaves the tenant without the legal protection the deposit system is designed to provide.

The MIVIOT registration process

The landlord is required to deliver a copy of the lease agreement to MIVIOT's General Directorate of Leases within five business days of signing it. Failure to meet this obligation can result in penalties for the landlord.

The MIVIOT registration process requires the following documents:

The lease agreement form for the corresponding type (A, B, or C), filled out by typewriter or in clear handwriting with no corrections, signed by the landlord and tenant in the original and on all copies. For nationals, photocopies of the ID cards of the landlord, tenant, and guarantor if there is one. For foreigners, a photocopy of a valid passport with the relevant information visible. Additionally, a copy of the property's updated title deed or a Public Registry certification proving who owns the property.

If the landlord isn't the owner but rather a manager or attorney-in-fact, they must present a notarized power of attorney granted by the owner. If the landlord or tenant is a company, a copy of the updated articles of incorporation or a Public Registry certification must be submitted.

Registration produces a stamped copy of the contract, which is the document with legal validity for both parties. Without that MIVIOT stamp, the contract can be challenged in the event of a dispute.

Mandatory clauses that should never be left out

Beyond the minimum elements required by Law 93, there are additional clauses worth including in every lease agreement in Panama to protect both parties against situations the law doesn't regulate in detail:

Condition of the property at handover. A description of the condition the property is handed over in at the start of the contract. Ideally, this should be accompanied by a dated photo inventory. This is the reference point against which the condition at the time of return will be assessed, and it determines whether the deposit can be used for repairs.

What the rent includes and what it doesn't. Whether the rent includes building maintenance fees, water, gas, internet, or any other service. Ambiguity on this point is the most frequent source of disputes at the start of a lease.

Pet policy. Whether pets are allowed or not, what types, what size, and any building-specific conditions. Some building bylaws prohibit pets, and the contract should reflect that.

Subletting policy. Law 93 establishes that any sublease requires the landlord's prior, express consent. Explicitly including this prohibition or condition in the contract avoids ambiguity.

Repair procedures. Who's responsible for which type of repairs: structural and installation issues fall to the landlord, everyday maintenance to the tenant. Also, the process for reporting issues and the maximum response time.

Conditions for renewal or early termination. The notice period required from each party, penalties for early termination without justified cause, and the conditions under which the landlord can recover the property before the term expires.

Rent increase clause. If the parties agree to rent increases for renewal periods, the percentage or adjustment mechanism should be specified in the contract from the start. Increases during the term of a contract are restricted by law.

What a landlord cannot legally do

Law 93 establishes tenant protections that a landlord cannot ignore even if the contract says otherwise. Any clause that violates these protections can be voided:

Cannot refuse to rent based on discrimination. Law 93 prohibits refusing to rent based on race, sex, marital status, nationality, age, political or religious beliefs, or because the tenant has children.

Cannot raise the rent during the term of the contract. Increases during the agreed-upon period aren't valid unless expressly provided for in the contract and within legal limits.

Cannot evict a tenant without legal process. The eviction process must be handled through MIVIOT or the competent court. A landlord who cuts off services, changes locks, or applies pressure to force a tenant out without following the legal process can face penalties.

Cannot withhold the deposit arbitrarily. If the tenant met their obligations and returned the property in the agreed-upon condition, the landlord must arrange for the deposit's return through MIVIOT when the contract ends.

What a tenant should know before signing

On the tenant's side, there are concrete points worth verifying before signing:

Verify that whoever signs as landlord is the owner or has authority to lease the property. Ask for a copy of the title deed or the Public Registry certification. Renting from someone who doesn't have the right to lease the property can lead to a complicated legal situation if the true owner shows up.

Confirm that the deposit will be filed with MIVIOT. Ask for the filing receipt after registration. A landlord who doesn't file the deposit with MIVIOT is violating the law, and the tenant loses the legal protection over that money.

Request the stamped copy of the registered contract. A contract without MIVIOT's stamp doesn't carry the same legal validity. Keep that document somewhere safe for the entire term of the lease.

Read the building bylaws before signing. The lease agreement coexists with the building's bylaws, which can have restrictions on pets, noise, use of amenities, moving hours, and other conditions that affect your daily life.

Furnished and short-term leases: the special regime

Furnished apartments leased for short periods—weekly or monthly on a permanent basis—are subject to a slightly different regime. Executive Decree 7 of 1995 specifically regulates contracts for furnished rooms in properties used for this activity on a permanent or occasional basis.

For Airbnb-style or short-term leases on digital platforms, the situation is more ambiguous. MIVIOT, as part of its ongoing modernization of Law 93 in 2026, is evaluating how to regulate this segment, which has grown significantly in recent years. Until that modernization is complete, short-term rental operators should consult a lawyer about the regime that applies to their specific situation.

Frequently asked questions about lease agreements in Panama

Is it mandatory to register the lease agreement with MIVIOT?
Yes. Law 93 establishes that the landlord must deliver a copy of the contract to MIVIOT's General Directorate of Leases within five business days of signing it. Failure to comply can result in penalties for the landlord. Registration produces the stamped copy, which is the document with full legal validity for both parties.

Who gets paid the security deposit?
Legally, the deposit must be filed with MIVIOT's General Directorate of Leases, not handed directly to the landlord. The landlord collects the money from the tenant and is the one required to file it with MIVIOT at the time of registration. When the contract ends, it's returned to the tenant unless the landlord has valid claims.

Can the landlord raise the rent during the contract?
Not during the agreed-upon term, unless the contract itself includes expressly agreed adjustment clauses from the start. When renewing the contract, the parties can freely negotiate a new rent for Type B contracts (rent over $150 a month).

How much notice does a tenant need to give to move out?
Law 93 establishes a minimum of 30 calendar days' prior notice for residential contracts. The contract can stipulate a longer period. If a tenant leaves without giving the required minimum notice, they may be subject to penalties as established in the contract.

Can the landlord evict a tenant before the contract expires?
Only for valid causes established by law: failure to pay rent, using the property for a purpose other than what was agreed, subletting without authorization, or serious damage to the property. The eviction process must be handled legally through MIVIOT or the competent court. A landlord cannot unilaterally evict a tenant without following the legal process.

A good contract protects both parties equally

A lease agreement isn't just a bureaucratic formality. It's the document that defines each party's rights and obligations throughout the term of the lease, and it becomes key evidence if any dispute arises.

A well-drafted contract—with all the legally required elements, additional clauses that anticipate the most common situations, and properly registered with MIVIOT—protects the landlord against a tenant who doesn't pay and protects the tenant against a landlord who doesn't meet their obligations. Investing the time needed to do it right from the start avoids conflicts that can drag on for months and cost far more than the time it would have taken to do it properly.