Airbnb in Coronado, Panama: Profitability, Regulations & Investment Opportunities

Why Invest in Airbnb in Coronado, Panama?

Located in Panamá Oeste province, Coronado and San Carlos have become two of the most attractive beach destinations for both tourism and retirement.
Just 1 hour and 15 minutes from Panama City, Coronado offers easy access for both domestic and international visitors — creating a strong opportunity for investors seeking passive income through short-term rentals (Airbnb, VRBO, Booking.com, etc.).

Profitability: What Can You Expect?

According to AirROI (2025):

• Coronado currently has 229 active short-term rental properties.

• The average annual income for an Airbnb listing in Coronado is approximately US$13,034.

• The top 10% of hosts earn over US$3,800/month, while the top 25% exceed US$2,200/month.

• The average daily rate (ADR) is around US$175–180, with moderate occupancy rates throughout the year.

Expenses & Net Return

To estimate net profitability, investors must deduct several costs beyond the property purchase price:

• Property acquisition – highly variable depending on location, amenities, ocean view, and condition.

• Furnishing & setup – a successful Airbnb requires quality furniture, appliances, AC, décor, and reliable Wi-Fi.

• Operations & maintenance – frequent cleaning, laundry, utilities, and small repairs.

• Management fees – if you outsource hosting, expect to pay a percentage of gross income or a flat monthly fee.

• Marketing & platform fees – Airbnb and similar platforms charge service and transaction fees.

• Seasonality – high and low seasons impact occupancy. For instance, February tends to be the most profitable month, while June sees lower demand.

Estimated ROI (Return on Investment)

When factoring in average operating costs (25–40% of gross income), a well-located and well-managed property in Coronado can yield a net annual ROI of 7–10%.
Returns can be higher with premium locations, strong amenities, and professional management.

Regulations: What You Need to Know

Operating an Airbnb or short-term rental in Panama requires understanding the evolving legal framework to avoid penalties or compliance issues.

National & Municipal Laws

• Law 80 of 2012: Prohibits rentals under 45 days within the district of Panama City for hosts without a tourism accommodation license.

  • This law applies mainly to Panama City, not to Coronado or San Carlos.

• Bill No. 35 (2025 – under discussion): A proposed national regulation for short-term rentals.

  • Seeks to create legal certainty for Airbnb hosts.

  • May remove penalties from Law 80 for compliant hosts.

  • Introduces clear tax obligations similar to those of hotels (for instance, a proposed 15% ITBMS tax).

Licensing & Compliance

Operating legally may require:

• A tourism or lodging license from the Panama Tourism Authority (ATP).

• Municipal permits and compliance with zoning and safety standards.

• Proper tax registration and declaration of rental income.

Failure to comply can lead to fines or closure orders.

Local Regulations in Coronado

As of now, Coronado has relatively light regulation compared to Panama City.

That means:

• Fewer zoning restrictions on short-term rentals.

• Fewer required licenses or less strict enforcement.

• Lower barriers to entry for investors.

However, investors should monitor upcoming legislation, as Panama’s national laws on digital rentals are currently evolving.

Investment Opportunities in Coronado

1. Location Strategy

Focus on properties:

• Near or with direct beach access.

• With ocean views or proximity within 10 minutes from the beach.

• With amenities such as pools, security, parking, and outdoor spaces.

• Close to restaurants, supermarkets, and entertainment options.

2. Design & Guest Experience

• Invest in interior design and comfort (high-quality furniture, linens, A/C).

• Offer extra services like frequent cleaning or airport pickup.

• Use professional photography and strong digital marketing.

3. Efficient Management

• Automate pricing and bookings (dynamic pricing tools).

• Hire local property managers for check-ins, maintenance, and guest support.

• Maintain strong reviews to improve listing visibility.

4. Diversification

• Build a portfolio of 2–3 properties to reduce risk.

• Combine short-term and long-term rentals during the low season.

5. Legal & Fiscal Monitoring

• Stay informed about new Airbnb and short-term rental regulations (e.g., Bill No. 35).

• Ensure compliance with ATP licensing, ITBMS (VAT), and income tax obligations.

6. Financial Strategy

• Structure financing so mortgage and maintenance costs stay below average monthly income.

• Keep a positive cash flow even in off-peak months.

Risks to Consider

• Regulatory changes may tighten restrictions or raise taxes.

• Seasonality can cause fluctuating cash flow.

• Increased competition can reduce occupancy or ADR.

• Unexpected maintenance costs or damages.

• Reputation management — negative reviews can significantly impact bookings.

Final Thoughts

Coronado, Panama offers a solid opportunity for real estate investors seeking passive income through Airbnb and short-term rentals:

✅ Growing tourism market
✅ High average daily rates
✅ Light local regulation (for now)
✅ Attractive ROI potential

However, success depends on doing your homework — analyzing the local market, calculating all costs, staying legally compliant, and managing operations efficiently.

Looking for properties with Airbnb potential in Coronado?

Contact us today — we’ll help you identify the most profitable investment opportunities in Panama’s Pacific beach region.