Bill 301.

Summary.

The bill assigns authority over and regulation of short stay tourist accommodation to the Tourism Authority (Autoridad de Turismo). It provides for registration in the National Tourism Registry (Registro Nacional de Turismo) under statutory and regulatory conditions. The Tourism Authority would also include this activity in its data collection, research, and studies. The Ministry of Housing and Land Use Planning (Ministerio de Vivienda y Ordenamiento Territorial) would use those data to monitor the accommodation’s effect on real estate in specific areas and would publish and share its findings with the relevant municipalities.

For purposes of Decree Law 4 of February 27, 2008, the bill defines short stay tourist accommodation as paid public lodging in residential properties, provided regularly or temporarily by individuals or legal entities. It distinguishes the service from other tourism establishments established by law and covers direct marketing as well as marketing through proprietary or intermediary platforms connecting the provider and the consumer. The definition would become paragraph 7 of Article 3, with the remaining paragraphs renumbered.

Through an amendment to Law 74 of December 22, 1976, the bill provides that the Tourism Authority of Panama (Autoridad de Turismo de Panamá) issue regulations specifying technical requirements, minimum services, and the means of qualifying for each category. For properties offering short stay accommodation, those regulations would take account of their differences from other tourism establishments. The requirements would seek to protect guests’ safety and integrity, follow international good practices, and avoid unjustified impediments to offering the service.

The bill also amends Law 284 of February 14, 2022. An Owners’ Assembly could approve or restrict short stay tourist accommodation in one or more units of a condominium property through a decision supported by 51 % or more of all property units. The condominium’s rules would set the conditions for providing the service, which would also have to comply with the regulations of the Tourism Authority of Panama.

Under Article 1057-V of the Tax Code (Código Fiscal), the bill subjects accommodation supplied by providers or hosts to the ten percent (10%) Tax on the Transfer of Movable Tangible Property and the Provision of Services. It also subjects providers, hosts, and marketing or intermediary companies to income tax under the Tax Code, Executive Decree 170 of October 27, 1993, and other applicable tax rules. The Tourism Authority would provide the National Tourism Registry to the Directorate General of Revenue (Dirección General de Ingresos) to facilitate tax oversight. That directorate could enter into cooperation agreements with marketing or intermediary companies without tax residence in the Republic of Panama to facilitate tax collection. Finally, the bill repeals Article 21 of Law 80 of November 8, 2012, and provides that it take effect the day after promulgation.

The provisions concern the Tourism Authority, the Tourism Authority of Panama, the Ministry of Housing and Land Use Planning, the Directorate General of Revenue, the National Tourism Registry, and the relevant municipalities. They would reach accommodation hosts and providers, marketing or intermediary companies, guests, and condominium properties, and could interest the tourism, real estate, and tax sectors.