Registering leases in Panama has no cost
The properties in Panama destined for rent must comply with the conditions of salubrity, safety, and hygiene provided in the article 8 of Law 93 of October 4, 1973.
According to article 5 of Law 93 of October 4, 1973 “Every lease contract must be formalized in writing in formats provided by the “Dirección General de Arrendamientos”. There are three types of contract:
- Housing up to $150
- Housing greater than $150
- Commercial contract
Naydú Rudas, General Director of Arrendamientos del Ministerio de Vivienda y Ordenamiento Territorial (Miviot) reported that clandestine rents were being carried out in order for people to register their contract.
The director said that the lease contract registration in Panama has no cost and urged that it must register properly and avoid sanctions because the entity performs surprise operations.
“As for the sanctions, a fine of up to one thousand dollars is imposed against the person responsible for not registering the contract or imposing a fine for the deposit of guarantees, which establishes 10 times the lease fee,” explained Rudas, Director General of Leases of the Ministry of Housing and Territorial Ordering.