The draft law which aims to create tougher sanctions for those renting homes to tourists will be presented to cabinet ministers in the coming weeks, according to statements made to Prensa.com by Gustavo Him, administrator of the Panama Tourism Authority.

Him explained that "... currently the institution applies the sanctions through the chief magistrate, a procedure that in his view slows the process. 'We have to look at more energetic mechanisms, in addition the process is sometimes ambiguous and we have to practically find the person inside the apartment in order to start the process.' "

See "Hotels vs. Airbnb : Innovate or Perish "

"... Although Article 21 of Law 80 of 2012 sets fines of between $5,000 to $50,000, depending on the seriousness of the offense, the bureaucratic process makes the sanction process slow and sometimes prevents us from gathering evidence against the people and companies engaged in this activity. Since 2012 49 files were opened against clandestine accommodation services which did not have permission to engage in this activity, but few people end up paying penalties. "

Source: Prensa.com

More on this topic

Vacation Rentals: New Law Projected to Decline

September 2019

With the legal framework approved in Costa Rica, which regulates the provision of tourist rental services in housing through digital platforms, Airbnb executives anticipate a considerable drop in the number of hosts in the country.

On September 5, the Legislative Assembly reported that file 20865, the framework law for the regulation of non-traditional hosting and its intermediation through digital platforms, was approved for the second debate.

Changes in Proposed Vacation Rental Taxes

March 2019

A 3% additional to the 13% VAT that was expected to be charged in Costa Rica as a tax on accommodation services provided through the Airbnb platform and other similar platforms was finally removed from the bill being discussed in the Legislative Assembly.

Bill 20.865 for the regulation of non-traditional hosting and its intermediation through digital platforms, which is discussed in the Legislative Assembly and determines the taxes to be charged for the activity, will be modified by the Economic Affairs Commission.

Trends in "All Included" Tourism in Panama

November 2014

American and European tourists who visit the country are most likely to choose this type of service, where in the province of Cocle alone it represents 95% of the hotel supply.

Following the global economic crisis which began in 2008, tourists are looking for a hotel service that allows them to enjoy a more comprehensive service, paying a fixed fee for everything.

Panama: Lodging Tax Could Increases to 11%

June 2013

The proceeds will pay for the costs of the Convention and Visitors Bureau of Panama, an office dedicated to promoting the country as a venue for conferences and conventions.

The Tourism Authority of Panama could increase between 0.5% and 1% the lodging tax which is currently 10%.