In Panama, the acronym «PH» (short for Propiedad Horizontal — the local term for «Horizontal Property») refers to condominiums or apartment buildings whose use may be residential, commercial, or tourist-oriented.

Tourist Horizontal Properties (Tourist PHs) refer to developments made up of real estate units for commercial-tourism use, properly registered under the PH regime and the Tourism Authority Registry, and designated for public and tourist accommodation. This condition must also be clearly stated in the property’s Co-ownership Regulations.

Tourist PHs are designed as short-term rentals (STRs), ideal for tourists and temporary visitors. Their main goal is to maximize income through tourism and business travel. These types of properties are permitted in strategic tourist areas such as Casco Viejo and the Panama Canal area, where demand for accommodation remains high year-round.

While Panama City’s rental law establishes a minimum stay of 45 days, exceptions apply in tourist zones, such as those mentioned above, as long as the properties have an official license issued by the Panama Tourism Authority (ATP). To continue strengthening the sector, Panama is currently discussing Bill No. 35 of 2025, which seeks to regulate and establish a formal framework for short-term tourist lodging, including taxation aspects.

Registration is therefore a key factor in the successful operation of any Tourist PH. All property owners who wish to rent their units short-term must register with the ATP and comply with the requirements listed on its official website.

For those seeking recurring income while also enjoying their property occasionally, Tourist PHs are an ideal choice. Panama is a charming and growing destination that attracts thousands of travelers each year, ensuring steady demand for this type of accommodation.

Additionally, when managed professionally, these properties often generate higher net returns than traditional long-term rentals. Among their main advantages are flexibility of use and strong return on investment. They also offer convenience, strategic location, and the opportunity to generate extra income. The ability to personally enjoy the property while earning rental revenue makes this model especially appealing.

In conclusion, Tourist PHs in Panama present an excellent opportunity to diversify real estate investments into the tourism and short-term rental sectors. Their advantages are numerous, and potential returns can be significant —especially in sought-after areas like Casco Viejo. With professional management from experts such as Arco Properties, investors can maximize performance, ensure compliance with tourism regulations, and secure a prime position in Panama’s most in-demand locations.