Liquor license in Panama
We help you get the permit to sell alcoholic drinks at your business. We check the location first, because the wrong premises cannot be fixed with paperwork.
- Authority
- Mayor's office and Municipal Treasury, with an operating notice in Panamá Emprende (MICI)
- How it is filed
- Mixed: operating notice online; mayor's report and inspection in person
- Typical timeframe
- Variable. For level 2, the law gives the mayor 30 days to issue the prior report
Who it is for
- Restaurants, cafés and mini marketsBusinesses where alcohol is not the main activity (level 1).
- Bars, nightclubs, cantinas and beer gardensBusinesses where alcohol sales are a significant share of the operation (level 2).
- Buyers of a business that already sells alcoholYou need the operating notice, the permit and, for level 2, the bond in your own name.
Problems we solve
- You found premises but do not know if they are 500 meters from a school or church.
- You are not sure whether your business is level 1 or level 2.
- The municipality denied the mayor's prior report.
- You sell alcohol under an operating notice that does not cover it and fear a fine or closure.
- Your bar stays open late and has no late-night permit.
- You have no municipal tax clearance, and that stalls everything.
Key terms before you start
The aviso de operación (operating notice) is the sworn registration every business files in Panamá Emprende. That online system is run by MICI, the Ministry of Commerce and Industry.
The informe previo favorable is the mayor's prior approval for bars and similar venues. The paz y salvo municipal is a certificate showing you owe nothing to the municipality.
Level 1 or level 2: which permit you need
Law 55 of 1973 governs alcohol sales at district level. Law 2 of 2013 amended it and set two levels.
Level 1 covers restaurants, cafés, supermarkets, mini markets, grocery stores, markets and other businesses where alcohol is not the main activity. You need the operating notice and a one-time fee (derecho único).
Level 2 covers bars, pubs, nightclubs, cantinas, liquor stores, beer gardens, grills and cevicherías. On top of the notice and the fee, it requires a bond and the mayor's prior report.
The 500-meter rule: choose your premises carefully
Law 2 of 2013 sets a minimum distance for bars, cantinas, nightclubs and similar venues. They must be at least 500 meters from schools, hospitals or places of worship.
The law also bars them from exclusively residential neighborhoods or areas. The municipality checks the distance during an inspection before issuing its report.
Our advice is simple: look for premises far from schools and churches. Measure the distance before you sign a lease or pay for a remodel.
After the permit: monthly tax, hours and late-night permit
The business pays a monthly municipal tax on alcohol sales. Under article 17 of Law 55 of 1973, the Municipal Treasurer sets it based on sales volume and population.
The mayor may set opening hours. If your business stays open late at night, the Municipality of Panama requires a separate late-night permit.
If the premises are new or changed use, you may also need an occupancy permit, which your architect or engineer files. See the municipal permits we handle.
Requirements
- Operating notice in Panamá Emprende declaring alcohol sales and the level. Official source
- Payment of the one-time fee (derecho único) through Panamá Emprende. Official source
- Level 2: performance bond in favor of the National Treasury, valid for three years and renewable. Official source
- Level 2: the mayor's prior report, requested by letter to the mayor and filed through a lawyer. Official source
- Valid municipal tax clearance (paz y salvo municipal). Official source
- Location sketch, color photos of the premises and land-use certification. Official source
- Copy of the legal representative's ID and a Public Registry certificate if a company applies. Official source
Steps and timeframes
-
We review the premises and the level
We handle itWe confirm whether your business is level 1 or 2. We check the distance to schools, hospitals and churches, and the land use.
1 to 3 business days
-
Tax clearance and documents
We handle itWe obtain your municipal tax clearance and build the file with the sketch, photos and certificates.
-
You sign the power of attorney
You handle itFor level 2, you sign a power of attorney to one of our lawyers, who files the request with the mayor.
-
Inspection and mayor's report
The authority handles itThe municipality inspects the premises and checks the distance. The law gives the mayor 30 days to decide and requires a reasoned decision to deny.
Up to 30 days by law
-
Operating notice, fee and bond
We handle itWe register or update the notice in Panamá Emprende. You pay the one-time fee and, for level 2, buy the bond.
-
Late-night permit, if needed
We handle itIf the business opens at night, we file the late-night permit with the municipality.
Costs
| Item | Amount |
|---|---|
| One-time fee, level 1 Official source | US$600 in Panama City, Colón, David and San Miguelito; US$300 elsewhere |
| One-time fee, level 2 Official source | US$1,000 to US$5,000 in those four districts, by type and size; less elsewhere |
| Performance bond, level 2 (three years) Official source | US$5,000 to US$75,000 in those four districts, by type and size |
| Monthly municipal tax on alcohol sales Official source | Set by the Municipal Treasurer based on sales and population |
| Municipal inspection and late-night permit fees | Current municipal rate |
| Tramita Todo fee | We will quote you |
The law states amounts in balboas (B/.), which trade at par with the US dollar. These are the Law 2 of 2013 amounts; we confirm current rates and the bond cost when we review your case.
What our service includes
- Review of the premises: level, distances and land use.
- Municipal tax clearance and preparation of the file.
- Request for the mayor's prior report, filed by our lawyers.
- Operating notice in Panamá Emprende.
- Follow-up on the inspection and the mayor's decision.
What it does not include
- Payment of the one-time fee, the bond and municipal taxes.
- Buying the bond from an insurance company.
- Noise or fire-safety work on the premises.
Who handles your case
- Handling procedures before Panamanian authorities since 2008.
- Certified public accountants on our team.
- Our own office in Obarrio, Panama City.
- We also serve clients who live outside Panama.
Frequently asked questions
How much does a liquor license cost in Panama?
It depends on the level and the district. Under Law 2 of 2013, the level 1 one-time fee is US$600 in Panama City, Colón, David and San Miguelito, and US$300 elsewhere. Level 2 pays US$1,000 to US$5,000 in those districts, plus a bond.
How long does a liquor license take?
Level 1 moves with the operating notice and the one-time fee. Level 2 needs an inspection and the mayor's report, and the law gives the mayor 30 days to decide. Earlier documents, such as the tax clearance, add time.
Can I open a bar near a school or a church?
No. Law 2 of 2013 bars bars, cantinas, nightclubs and similar venues within 500 meters of schools, hospitals or places of worship. Check the distance before you lease the premises.
Does a restaurant need a liquor license?
Yes, if it sells alcoholic drinks. A restaurant is usually level 1: an operating notice that declares alcohol sales, plus the one-time fee. It must declare that alcohol is not its main activity, and MICI may verify it.
Can I apply online or from abroad?
Partly. The operating notice and the fee are handled in Panamá Emprende. The level 2 mayor's report includes an on-site inspection and is filed with the municipality. With a power of attorney, we can file for you while you are abroad.
Can a foreigner get a liquor license in Panama?
Panamanian law reserves retail trade to Panamanians and certain other cases. Our lawyers check whether your business can operate in your name or your company's name before you start.
Related procedures
Municipal permits in Panama
We handle your municipal paperwork in Panama: liquor license, written filings and municipal tax clearance. We tell you what the municipality requires and coordinate every document.
Learn moreMunicipal filings and tax clearance in Panama
Letters to the Treasurer and Mayor, fine reviews, business closure and municipal tax clearance.
Learn more