Many expats in Panama may be facing an upcoming rental contract expiring during the national COVID-19 emergency.
Will they be forced to move when the lease expires if the landlord refuses to extend or agree to a new lease?
I posed the following questions to Panama's top law firm Morgan & Morgan:
1. What happens to a tenant in a private lease agreement (not filed with the government) when the residential lease expires during the COVID-19 national emergency?
2. If the landlord refuses to extend or agree to a new lease, must the tenant leave?
3. If the tenant suffers an "economic hardship" during the current national emergency, but always pays his rent and electricity bills on time and wishes to pay every month and remain in the apartment, can the landlord "evict" the tenant when the lease expires?
I got a reply from:
Ramón Varela
Partner | Morgan & Morgan
T: 507 265-7777 ext.7721
[email protected]
MMG Tower | 23rd Floor | Ave. Paseo del Mar | Costa del Este Panama City, Republic of Panama
He wrote: "If the lease expires while the ‘declaración de emergencia' is in force, the landlord cannot vacate the tenant."
Thus, all residential leases remain in effect even after the expiration date while the current government Declaration of Emergency remains in force.
Stay safe and healthy!
Steven Rich, MBA