Panama short-stay nomads face proposed 15% tax on tourist rentals

A proposed 15% lodging tax in Panama would affect digital nomads using short-term tourist rentals, compared with 10% for registered hotels. Article 30 of Bill 713 contains the higher rate and the measure remained under discussion in reporting published Oct. 3 by TVN Panamá.

Direct bookings would count too

The proposal covers temporary tourist or vacation accommodation in houses, apartments, rooms and other residential properties. Booking directly with an owner wouldn't avoid the proposed rate; the measure covers direct transactions as well as digital platforms, La Prensa reported.

When a platform acts only as an intermediary, the 15% would apply to the accommodation charge, separately from any tax on the platform's commission. Registered hotels and other registered public tourist accommodation would retain the 10% rate.

Short-stay nomads would face the lodging charge

For remote-worker visa holders, visiting nomads and foreign residents, the practical distinction is the accommodation used. That means a foreign employer or overseas clients wouldn't, by themselves, put a qualifying rental outside the proposed lodging tax. This is a tax on accommodation, not a new tax on remote-work earnings.

For a budget illustration, the hotel association cited rental rates of $30 a night in TVN's report. At that rate, a 30-night booking would have a $900 accommodation charge and $135 in tax at 15%, versus $90 at 10%. The $45 difference compares the proposed rate with the hotel rate, not with a verified current tax bill for that rental.

The rate and rental rules remain separate

Airbnb wants Article 30 removed and a uniform 10% rate across accommodation types. Small property owners would be directly responsible for the proposed tax, the company said in its statement published by Revista LEA.

Paying the proposed tax wouldn't automatically authorize a rental to operate. Existing permits, registration requirements and restrictions would still apply, La Prensa reported. The reviewed reporting doesn't establish a stay-length cutoff for Article 30 or an implementation date.