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Best Airbnb Markets to Invest in Panama

Best Airbnb Markets to Invest in Panama

Are you interested in investing in Airbnb but are unsure of where to begin? Consider an Airbnb in Panama. We will go through the several factors that make this the ideal place for investing in short-term rentals. The "World's Most Famous Beach" is located in this city, which is why investing in real estate through Airbnb rentals is the best option.

Why people visit Panama

For a lot of people, Panama is the ideal holiday spot. You can see why so many people think of it as the perfect escape, as its sugar-sand beaches are flanked by swaying palm trees.

Every kind of traveler can find something to do and an adventure to go on in the waterfront town. In the city of Panama, there are a ton of things to do. You can go kayaking or swimming through the shallow bays and azure lagoons, or you can go hiking or cycling through the wilderness areas of state parks.

The following are some of the must-do activities in Panama:

  • Shipwreck diving: More than a dozen wrecks and man-made reefs are just a short boat ride away from Panama City Beach's sugar-white shores.
  • Pier Park is an open-air entertainment hub for the entire family, complete with stylish shops, delectable restaurants, and thrilling activities.
  • Camp Helen State Park's coastline shores appeal to all types of activity seekers.
  • Gulf World Marine Park, Zooworld, Ripley's Believe It or Not Museum, WonderWorks, Miracle Strip Amusements, Andrews State Park, and Aaron Bessant Park are among the many attractions.

Is it Legal to Operate an Airbnb in Panama?

Is it Legal to Operate an Airbnb in Panama?

Yes, it is legal, but there are some criteria that must be met. Anyone hosting short-term stays (less than 181 consecutive nights) in Panama, for example, is obliged to register their short-term rental with the city.

If your goal is to make money in real estate by renting out your Panama property as an Airbnb host, you will need a vacation rental license as long as your stays are less than 181 consecutive nights. It should be noted, however, that the legislation can alter overnight. As a result, for the most up-to-date information, it's always advisable to contact the city's licensing offices directly or speak with a local lawyer or tax professionals.

Why You Should Invest in an Airbnb in Panama

The perception of Panama has long been that it is a peaceful beach community where southern families go on vacation. Since Panama City Beach's stereotypical image has evolved over the past five years, it is now the ideal location to invest in both long-term and short-term rentals. In addition, luxury beachfront resorts were developed in place of hotels, and a brand-new airport serving both Southwest and Delta was constructed. The construction of a mega-mall with an entertainment and dining complex has also doubled the city's tourism rate!

Is it a great moment to make a purchase of Airbnb in Panama? Undoubtedly, yeah! You may be confident that these are wise investment methods that will yield a good return on investment if you're wanting to rent out your apartment to guests or buy a vacation home rental property. The real estate market in Panama City Beach is successful for a variety of reasons. Let's examine them closely.

The numbers:

According to Mashvisor, the leading short-term and traditional rental analyzer, in Panama:

Median Property Price: $177,000 Airbnb Rental Income: $2,650 Traditional Rental Income: $970 Airbnb Cash on Cash Return: 13.0% Traditional Cash on Cash Return: 2.8% Airbnb Cap Rate: 17.2% Traditional Cap Rate: 6.4% Airbnb Occupancy Rate: 54.6%

Being among the least expensive cities, it provides excellent Airbnb rental income. With cap rate and cash-on-cash return in the double digits, Airbnb is highly profitable in this location.


The percentage of real estate appreciation in Panama has risen to 14.2% as a result of rising home prices. City homes have increased in value by twice as much as the national average. In comparison to other nearby cities, housing prices are relatively reasonable despite the significant surge in appreciation. If you are a real estate investor who is considering making an investment in an Airbnb in Panama City Beach, you should embrace this fantastic opportunity.


As was already mentioned, the housing market in Panama offers more inexpensive home prices than most US housing markets. Thanks to its reasonable cost of living, which is 10.6% lower than the state average, this city is not only a fantastic area to invest in, but also a terrific place to live. Both those looking to relocate and those coming on vacation flock to Panama City Beach from all over the nation. This is the cause of the city's population growth of 3.8% since the previous year.

A Thriving Economy:

It is common knowledge that no real estate market can function well without a robust economy. Having said that, Panama City Beach has a 5.5% unemployment rate. Furthermore, this city is predicted to enjoy significant job development in the years to come.

No Personal Income Tax and High Tourism:

In general, many real estate investors prefer the Florida real estate market because there is no personal income tax to pay. This is fantastic news for anyone thinking about investing in Florida.

Because of the city's high tourism, we can all agree that Airbnb Panama is the best rental plan. Vacation home rentals and condos are attractive forms of investment properties since they provide positive cash flow and offer a high return on investment. With this city's gorgeous beaches, beautiful parks, and opulent resorts, you can be certain that investing in Airbnb is a wise decision.

Best Airbnb Markets to Invest in Panama

Best Airbnb Markets to Invest in Panama

Provincia Bocas Del Toro:

The Bocas Del Toro province, which represents Panama's lively Caribbean culture, includes both the Panamanian mainland and a chain of Caribbean Sea islands. Expect to encounter a relatively unspoiled terrain and a welcoming, laid-back feel in Bocas. Bocas is also home to a tropical rainforest, indigenous cultures such as the Ngäbe and NasoTjerdi, and many of the country's most attractive beaches. In Bocas Del Toro, there are three main islands: The main island, Isla Colon; Isla Bastimentos, which is one of Panama's largest islands; as well as the little island of Isla Carenero.

Those visiting Bocas Del Toro can spend their days exploring the local nature and evenings enjoying the nightlife. Experienced divers may be able to take a science dive with the Smithsonian. Other accessible marine activities include surfing, snorkeling and diving in the Isla Bastimentos National Park. With 95% of the Caribbean coral species found in Bocas del Toro, visitors can expect to see a wonderful variety of tropical reef creatures, including nurse sharks, stingrays, and many species of crab and lobster. Other activities include taking a bioluminescent tour or exploring the Nivida Bat Cave.

According to AirDNA:

Average Daily Rate: $111 Occupancy Rate: 57% Revenue: $1,385 Active Rentals: 687 54% of the listings are entire homes, while 43% offer single rooms. The most popular minimum stays are single nights (51%) followed by 2 nights (30%).

Anton Valley

El Valle de Anton is a lovely mountain village set in the crater of a long-since-extinct volcano. El Valle de Anton, located on the mountainside of the Riviera Pacifica, is the ideal complement to a beach vacation. Not only is there enough to do and see there, but the town sits 600 meters above sea level, so it avoids the heat of the lowlands. Stunning scenery, flower-lined alleys, and lush, green mountains are common sights in El Valle de Anton. Fresh, crisp mountain air and temperatures varying from 10o to 25oC, means the valley is ideal for hiking, making sports tourism very popular.

According to AirDNA:

Average Daily Rate: $201 Occupancy Rate: 59% Revenue: $1,379 Active Rentals: 938 81% of the listings are entire homes, while 18% offer single rooms. The most popular minimum stays are single nights (48%) followed by 2 nights (39%).

Boquete, Chiriqui

Boquete is a picturesque, little, picture-postcard mountain hamlet that caters to tourists all year. It is nestled in a small valley and is shadowed by Volcan Baru. The vibrant hues of the native flowers, trees, and shrubs bring life to the town. Coffee farms and greenhouses blanket the mountains. The Caldera River runs through the heart of town, creating its own attraction. Throughout the year, festivals and events keep both local and international visitors coming back for more.

According to AirDNA:

Average Daily Rate: $92 Occupancy Rate: 45% Revenue: $820 Active Rentals: 850 66% of the listings are entire homes, while 33% offer single rooms. The most popular minimum stays are single nights (52%) followed by 2 nights (33%).

In Conclusion:

Is it worth it to invest in an Airbnb in Panama? OF COURSE IT IS! This city has shown to be one of the finest locations for short-term rental investments. Invest now, before it's too late, and begin making money like you've never seen before!

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