Casco Antiguo is not only Panama’s historic heart — it is also one of the real estate markets with the greatest potential for appreciation and returns in Central America. Its limited supply, the tax incentives available for heritage restoration, and steady tourism growth make it a unique opportunity for both local and international investors.
According to figures from the Comptroller General’s Office, Panama received 2,775,405 international visitors in 2024, an increase of roughly 10.6% over the 2,509,513 recorded in 2023. That same year, tourism spending reached approximately $6 billion, about $548 million more than in 2023. The trend has continued: between January and November 2025, the country had already logged more than 2.65 million visitors — 7.6% more than the same period in 2024 — generating close to $5.981 billion in tourism revenue, according to the Panama Tourism Authority (ATP).
If you’re weighing where to make your next investment, at Activentas we’ve outlined the reasons that make Casco Antiguo an attractive addition to your portfolio.
1. Strong demand for residential and short-term rentals
The combination of steady tourism, international executives, expatriate professionals, and residents who want to live near the city center creates opportunities for both long-term leases and projects aimed at the residential market, always within the framework of current regulations and applicable municipal rules.
This dynamic supports sustained occupancy and makes Casco Antiguo’s real estate market an attractive option for anyone looking to generate recurring rental income.
2. Tax benefits for heritage properties
Beyond its historical, architectural, and cultural richness — recognized by UNESCO as a World Heritage Site since 1997 — Casco Antiguo offers a favorable environment for investment thanks to the tax incentives built into Panamanian legislation for the preservation of historic heritage.
The current framework rests on Law 136 of December 31, 2013, which updated the special tax regime for the restoration and revitalization of the Historic Monumental Complex of Casco Antiguo, and which was later expanded by Law 53 of 2017. In March 2026, Panama’s National Assembly approved on third debate Bill 80, put forward by the Ministry of Culture, which modernizes and extends this regime: it renews tax incentives for rehabilitating properties, brings the entire Santa Ana district into the benefited zone, and — for the first time — extends a similar scheme to the Historic Center of the city of Colón. As of this publication, the bill was still awaiting presidential sanction and subsequent publication in the Official Gazette before taking effect.
Depending on the type of project and compliance with the requirements set by the relevant authorities, heritage properties restored in accordance with current regulations may qualify for benefits such as:
- Exemptions from property tax for the periods established by law.
- Incentives related to transfer taxes in certain cases.
- Tax benefits for restoration and rehabilitation projects.
- Provisions designed to encourage private investment in historic properties.
These incentives help improve project profitability and encourage the recovery of Panama’s architectural heritage. Each benefit’s application depends on compliance with current regulations and the corresponding approvals from the National Directorate of Historic Heritage and other relevant authorities.
3. Steady growth in property values
Ongoing restoration of historic buildings, the development of new projects, and the limited availability of properties keep Casco Antiguo’s real estate supply exclusive, while demand remains strong over the long term. Factors driving this appreciation include:
- Growth in new hotels and restaurants in the area.
- Sustained growth in private investment in restoration projects.
- Scarcity of heritage properties available for sale.
4. Strategic location
Casco Antiguo sits just minutes from the Cinta Costera, Balboa Avenue, and the main access routes into Panama City, close to the financial district, the airport, and the city’s major shopping centers. This connectivity makes life easier for residents and simplifies business operations, adding to the area’s appeal for living, investing, and developing commercial projects.
5. Diversified investment opportunities
Casco Antiguo’s real estate market offers options for different types of investors. You can find:
- Restored apartments.
- Heritage properties awaiting rehabilitation.
- Commercial spaces.
- Venues for dining and hospitality.
- Properties ideal for residential rental.
Let’s talk about your next investment
At Activentas, we’ve connected investors with the best opportunities in the Panamanian market for more than four decades. We put our market knowledge and a broad portfolio of properties for sale and rent at your disposal, helping you make decisions backed by experience and trust.
Write to us at ventas@activentas.com.pa | Call us at 6616-7776
