Panama (PA)
Panama is one of the most popular expat countries in the Americas in 2026, especially for retirees, remote-income households, investors, entrepreneurs and families who want US-dollar living, strong air connectivity, private healthcare and established expat communities.
Driving in Panama
Licence exchange, road rules, fines, buying a car, and cycling.
Panama drives on the right. The road network ranges from well-maintained urban expressways in Panama City to rough unpaved tracks in interior provinces and the Darién. Panama City traffic is highly congested during peak hours (7–9am and 5–7pm) — the Metro (2 lines) is a practical alternative for city-core travel. Driving is essential for living outside Panama City and for reaching beach communities (Coronado, Santa Catalina, Bocas del Toro). Panama uses the US Dollar (USD/Balboa) as its currency — all vehicle costs, fines, and fees are in USD. The ATTT (Autoridad de Tránsito y Transporte Terrestre) regulates licensing, registration, and road safety.
Driving Licence Exchange
Panama accepts valid foreign driving licences for short-term visitors. Long-term residents must obtain a Panamanian licence (licencia de conducir panameña) through the ATTT. Panama has bilateral recognition with several countries allowing direct conversion without a practical test.
EU licences are not recognised as a bloc — there is no EU-wide bilateral agreement with Panama. For tourist stays: valid EU licence + passport accepted. For long-term residents: apply at an ATTT regional office. Required: valid EU licence (with certified Spanish translation if not in Spanish), passport, resident card/cédula de extranjero, proof of Panama address, blood type certificate, eye test, photos, and applicable fee. A written theory test on Panamanian traffic law (Reglamento de Tránsito) may be required.
Spanish-language EU licences (Spain, some other EU states) do not require translation. Check current bilateral status at attt.gob.pa.
USA, Canada, Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, Belize, Dominican Republic
SICA (Central American Integration System) member states and some bilateral partners have simplified conversion. US and Canadian citizens can convert at ATTT with: valid foreign licence, passport, resident card, blood type certificate, eye test, and applicable fee — no practical road test required. SICA members: regional mutual recognition applies. Apply at your nearest ATTT regional office.
Always confirm current bilateral status at attt.gob.pa — the recognised country list is subject to update. An IDP is recommended for tourist-status driving in the first months.
Nationals of countries without a bilateral agreement must complete the full ATTT process: valid foreign licence with certified Spanish translation, resident card, proof of address, blood type certificate, eye test, written theory test (examen teórico), and practical road test. ATTT regional offices in Panama City, David, Colón, and Santiago handle applications.
Your valid foreign licence is accepted during the first 90 days of a tourist stay. Do not delay starting the ATTT process after receiving your resident card.
Road Rules
Urban roads and city streets: 40–50 km/h. Primary avenues and boulevards: 60–80 km/h. National highways and interurban roads: 80–100 km/h. Speed cameras and radar enforcement on the Corredor Norte, Corredor Sur, and Autopista Arraiján–La Chorrera. School zones: 20 km/h when in session.
0.08 g/L blood alcohol (80 mg/100 mL) for private drivers under the Reglamento de Tránsito. 0.04 g/L for commercial and professional drivers. DUI above limit: fine $300–$500 + vehicle impoundment + licence suspension; criminal prosecution for serious cases. Sobriety checkpoints (alcabalas) operate Friday–Sunday nights in Panama City and along the Interamerican Highway.
Using a handheld mobile phone while driving is prohibited under Law 14 of 2015. Fine: $100. Hands-free devices are permitted. Enforcement is active in Panama City.
Seatbelts are mandatory for all occupants in all seats under the Reglamento de Tránsito. Fine: $50–100 per unbuckled occupant.
Children under 12 years or under 1.50m must use an appropriate child restraint system. Fine for non-compliance: $50–100. Bring your own certified child seat — quality and availability are inconsistent locally.
Panama City operates Pico y Placa plate-based traffic restrictions on main arteries during peak hours (7–9am and 5–7pm) — vehicles with odd/even-numbered plates are restricted on alternating weekdays. No formal low-emission zone (LEZ) entry restriction system exists in Panama as of 2026. Annual emissions verification (revisión técnica) is required for vehicle registration renewal.
Traffic Fines (Bußgeldkatalog)
Traffic fines in Panama are issued by ATTT officers and traffic police. Fines are denominated in USD (Balboa). Request an official receipt (comprobante) for any fine paid — do not pay unofficial cash to officers. Fines can be paid at ATTT offices, the Banco Nacional, and some government online portals. Unpaid fines block vehicle registration renewal.
| Offence | Fine | Points |
|---|---|---|
| Speeding: 1–20 km/h above posted limit | $50–100 | — |
| Speeding: 21–40 km/h above posted limit | $100–200 | — |
| Drink driving (BAC >0.08 g/L) | $300–500 + vehicle impoundment + licence suspension | — |
| Using handheld mobile phone while driving | $100 | — |
| No seatbelt (driver or passenger) | $50–100 per unbuckled person | — |
| Running a red traffic light | $100–200 | — |
| Driving without a valid licence | $100–300 + vehicle detention possible | — |
| Driving without mandatory insurance (SOAT) | $200–500 + vehicle impoundment | — |
Buying a Car
Panama has an active used-car market. Major platforms: Encuentra24 (encuentra24.com) and OLX Panama (olx.com.pa) for private and dealer listings. Car dealers concentrate along Via España, Vía Transistmica, and the area around the Atlapa convention centre in Panama City. Japanese imports are common; US-spec vehicles are also widely available.
- 1.Search on Encuentra24 (encuentra24.com) or OLX Panama (olx.com.pa) for listings.
- 2.Verify the title (ficha del vehículo) through the Registro Público de Panama — confirms registered owner and any liens or gravámenes.
- 3.Check for outstanding ATTT fines and unpaid emissions verification using the plate number at attt.gob.pa.
- 4.Commission an independent mechanical inspection (budget $50–100).
- 5.Execute a written sale agreement (contrato de compraventa) — both parties' cédula/passport, VIN, price, and vehicle details.
- 6.Transfer title at the Registro Público de Panamá — both parties attend with IDs, sale agreement, and applicable fees.
- 7.Obtain SOAT (mandatory third-party insurance) before driving the vehicle.
- 8.Register the vehicle change of ownership at ATTT within 30 days of purchase.
- •Ficha del vehículo (Registro Público) — verify owner, VIN, and any liens (gravámenes).
- •ATTT outstanding fines check via attt.gob.pa.
- •Valid revisión técnica (technical inspection) certificate.
- •Valid SOAT (Seguro Obligatorio de Accidentes de Tránsito) insurance certificate.
- •Stolen vehicle check via ATTT or Policía Nacional.
- •Independent mechanical inspection — check AC (critical in tropical heat), tyres, underbody.
Budget for: purchase price (used compact sedan 3–5 years old: $8,000–18,000; SUV: $15,000–35,000), Registro Público transfer fee (~$50–150), ATTT registration fee (~$30–80), SOAT insurance (~$100–300/year), comprehensive insurance (~$500–2,000/year), annual revisión técnica (~$15–30), and road tolls on Corredor Sur/Norte (~$1–4 per trip).
Registration, Insurance & Tax
Vehicle registration is administered by ATTT. On change of ownership: transfer the title at the Registro Público de Panamá, then update registration at ATTT within 30 days. Required: sale agreement, ficha (title), both parties' IDs, SOAT certificate, and fees. Annual registration renewal is required — pay at ATTT offices or Banco Nacional. The vehicle registration sticker (marbete) must be displayed on the windscreen.
SOAT (Seguro Obligatorio de Accidentes de Tránsito) is legally mandatory for all vehicles on Panamanian roads. SOAT covers injury to third parties and occupants in accidents; it does not cover vehicle damage or property. Annual SOAT premium: approximately $100–300 depending on vehicle type. Purchase from any Superintendencia de Seguros-regulated insurer (ASSA, MAPFRE Panama, etc.). Comprehensive insurance is strongly recommended for vehicle damage, theft, and third-party property.
Annual vehicle registration fees paid to ATTT include a road use component based on vehicle weight and engine size. Approximate annual fees: passenger car $30–80; heavier vehicles more. Additionally, an annual revisión técnica (emissions and roadworthiness) must be passed for registration renewal. No separate annual "vehicle ownership tax" comparable to European systems — most vehicle costs are bundled into registration and insurance.
Revisión Técnica (technical inspection) is required for all vehicles as part of annual registration renewal. Conducted at ATTT-authorised inspection centres (centros de revisión técnica vehicular). Inspections cover emissions, brakes, lights, tyres, steering, and safety equipment. Cost: approximately $15–30. Vehicles failing the inspection must be repaired and retested before registration can be renewed. Driving with an expired inspection sticker: fine $100–200.
Cycling
Cycling in Panama City requires caution — the Cinta Costera (waterfront boulevard) and Parque Recreativo Omar are the most accessible and safest recreational cycling areas. Boquete (Chiriquí highlands) and the Bocas del Toro archipelago are popular with cycling tourists. Commuter cycling in Panama City is growing but limited infrastructure demands defensive riding.
- •Cyclists must ride on the right side of the road and obey all traffic signals.
- •Lights — front white and rear red — are required at night.
- •Helmets are not legally mandatory for adults but are strongly recommended.
- •Do not cycle on expressways (Corredor Sur, Corredor Norte, Autopista Arraiján–La Chorrera).
- •Cycling under the influence of alcohol: the 0.08 g/L BAC limit applies to cyclists.
- •Use designated bike lanes on the Cinta Costera and Calzada de Amador where available.
- •The Cinta Costera (waterfront, Phase 3) and Calzada de Amador are the best flat, safe cycling routes in Panama City — especially pleasant in the early morning.
- •Boquete is excellent for cycling — cool highland climate, scenic coffee-farm roads, and an active expat cycling community.
- •Lock your bicycle with a quality D-lock through frame and wheel — theft is a real concern in urban areas.
- •Panama City's Sunday ciclovía closes selected streets to cars for recreational cycling — check the MUPA or ATTT announcements for dates.
- •Carry water at all times — Panama City heat and humidity are intense year-round.