Eviction for Non-Payment in Panama (Lanzamiento por Mora).

A process built into the Ministry of Housing, not the ordinary courts

When a tenant stops paying rent in Panama, the landlord's remedy is lanzamiento por mora — eviction for non-payment — a process governed by Law 93 of 1973 and heard by the Rental Commissions of the Ministry of Housing, not the ordinary civil courts. This distinction matters procedurally: the process, timelines, and available defenses are shaped specifically by rental law and by the administrative body created to apply it, and it is legally distinct from removing someone who was never a tenant in the first place — covered separately in our guide to eviction of a trespasser in Panama.

The two-month threshold

Article 49 of Law 93 sets a specific trigger: a tenant is considered in default (mora) when rent is not paid within the month following its due date, and eviction for non-payment proceeds once that default reaches two or more months. A landlord cannot initiate this specific eviction process over a single late payment — the law requires the non-payment to accumulate to this threshold first.

The tenant's right to stop the case by paying

One of the most significant tenant protections in this process: depositing the amount owed, at any stage of the case, terminates the eviction lawsuit for non-payment. This means a tenant facing eviction is not without recourse even after the process has started — as long as they can pay what is actually owed, they can stop the case. For landlords, this means the practical goal of an eviction filing is often less about removing a tenant at any cost and more about creating the legal pressure that leads to payment.

The hardship defense for residential tenants

Residential leases carry an additional protection that commercial, industrial, or professional leases do not: eviction for non-payment does not proceed when the tenant, or others living with them, are genuinely unable to pay due to illness, unemployment, or lack of other non-salary income — but this defense requires the Housing Commission handling the case to actually verify those circumstances, not simply accept the tenant's assertion. A landlord facing this defense should expect the Commission to scrutinize the claim, not dismiss the case automatically.

Why documentation from day one matters

Because the process is administrative and specifically tied to the terms of the lease itself, a landlord's position is considerably stronger when the underlying lease was properly drafted and filed with the General Directorate of Rentals, as our guide to lease agreements in Panama explains. A landlord who cannot clearly show the agreed rent, the payment due date, and a documented pattern of non-payment starts the eviction process at a real disadvantage, regardless of how genuine the non-payment actually is.

What happens after a successful eviction case

A Commission ruling in the landlord's favor authorizes recovery of the property, but the practical removal of the tenant, if they still do not vacate voluntarily, follows its own enforcement steps through the competent authority — this is not a step a landlord can take into their own hands directly, regardless of how clear the ruling is.

Building the case before you file

The strength of an eviction-for-non-payment case is largely determined before it is ever filed: a compliant, properly filed lease, a clear payment record, and documented communication with the tenant about the arrears all shape how quickly and cleanly the process resolves. See our guide to lease agreements in Panama if your lease itself needs review before you file.