Renting in Panama can be tricky, especially if you don't speak Spanish. Here is some information to help make the process easier by explaining some rules and regulations.
In Panama, rental regulations are simple. The rent can be freely agreed between you and the landlord. The content of the contract can also be freely agreed, as long as it is not contrary to the law. When the contract has been finalized, it must be registered at the Directorate of Leases at the Ministry of Housing. Doing so will legitimize the contract, giving you assurance that it will be fulfilled. You can find the proper forms on the website of the Ministry of Housing.
The security deposit is one month’s rent. It must be consigned to the Ministry of Housing – the form is available on their website (link above). You will recover your security deposit once the lease agreement has terminated, as long as the property is still in good conditions.
There are no restrictions or limitations regarding the duration of the contract, and its extension period. Either you or the landlord can end the contract at any time, with one month (30 days) notification. As in many countries, the law is more protective to the tenant and it is very difficult for a landlord to evict a tenant.