Through Executive Decree No. 145 of May 2, 2020, published in Official Gazette No. 29015 of May 1, 2020, the Government of the Republic of Panama has adopted measures to protect tenants affected by the crisis generated the by COVID-19 pandemic, from eviction proceedings, penalties and implementation of usage restrictions by landlords/owners.

The measures apply to lease agreements of all kinds (e.g., commercial, industrial, residential, educational); such measures shall remain in place through the duration of the State of National Emergency.

To supervise the observance of these measures, the Executive Decree suspended the effect of other Executive Decrees that had excluded from the general application of the Lease Contracts Law, certain types lease agreements (residential leases agreements above US$150.00 per month, and professional, industrial, commercial, and educational more than US$200.00 per month). Supervision of lease agreements and tenant-landlord relations are under the jurisdiction of the Ministry of Housing and Territorial Planning.

The measures adopted through Executive Decree No. 145 include:

• A general stay of eviction proceedings while the State of National Emergency is in place.
• Lease agreements that have reached their term will be extended, in the same conditions, for the term of the State of National Emergency.
• While the State of National Emergency is in place and up to two months after the lifting of this measure, the freezing of all clauses related to renting amount, rent increase clauses, early termination clauses, and late payment interest clauses.
• Tenant and landlord can directly negotiate the payment agreement for the due rent and agree for a payment period of up to two years after registration with the General Direction of Leases.
• Restrictive measures by the landlord, such as cutting gas, water, and energy supply, are prohibited and may result in fines.

It is important to note that all tenants who have not been economically affected during the State of Emergency, are obliged to comply with the payment the accorded rent. Otherwise, they may be fined according to the provisions of Law 93 of 1973.