Driving in Panama as an Expat: Licenses, Car Imports and Registration

Not legal advice. This guide is general orientation for expats who drive in Panama, based on public sources checked on 12 October 2026. It is not legal, tax or customs advice. Fees, forms and counter practice at Sertracen, the ATTT, the Autoridad Nacional de Aduanas (ANA) and your municipality change, sometimes without a new Gaceta. Claims marked (official) come from a statute, a decree, or a government or Sertracen procedure page. Claims marked (secondary) come from a named news outlet, law firm, broker or embassy page. Where sources are unclear or conflict, we say so, and you should confirm those points at the counter or with a licensed customs broker or lawyer before you pay or ship anything. Amounts are in balboas (B/.), which trade at par with the US dollar.

Who this guide is for

This guide is for expats who live in Panama or are about to move here and want to drive legally: first on the licence they brought, then on a Panamanian licence, and then in a car they either ship in or buy here. It covers the 90-day rule, converting (homologating) a foreign licence at Sertracen, what changes for pensionados, what a car import really costs in taxes, how a local purchase and traspaso work, the yearly plate, inspection and insurance cycle, and the Panapass toll tag.

It is a poor fit if you need commercial, taxi or truck licences. Foreigners cannot hold the public-transport categories (E1, E2, E3) at all, according to Sertracen (official). It is also not a residency guide. Your visa or residence category decides which documents you will hold, and this guide only explains what those documents unlock behind the wheel.

The short version

• As a tourist you may drive on your valid home licence for 90 days, and you cannot get a Panamanian licence while you are a tourist (official, Decreto Ejecutivo 640 de 2006, article 110).
• Once you are a resident, the US Embassy in Panama says plainly that you must apply for a Panamanian licence (secondary, March 2026).
• Converting a foreign licence at Sertracen needs your migration card, passport, the physical licence, a certified copy and certification of that licence authenticated by apostille, consular legalization or a diplomatic mission plus Panama's foreign ministry, a blood-type result if your licence does not show it, a translation by an authorized interpreter in Panama for any document not in Spanish, and a vision and hearing check at the branch. There is no theory or driving test, except a practical test from age 85 (official, Sertracen).
• A first licence or renewal costs B/.40.00 for most adults, with lower fees for older drivers (official, Sertracen fee table).
• Passenger cars imported into Panama pay a selective consumption tax (ISC) of 15 to 25 percent of CIF value, plus 7 percent ITBMS (official, Ley 45 de 1995 as amended; ANA).
• Qualifying pensionados under Ley 9 de 1987 may import one car every two years without the import levy, paying a reduced 5 percent ISC plus 7 percent ITBMS (official, ANA and Ley 45). It may apply only to holders of older pensionado visas, so confirm with ANA or a customs broker before you ship (see below).
• Every year you need a valid inspection (revisado), the municipal circulation tax and sticker, paz y salvo certificates and third-party insurance of at least B/.5,000 property damage and B/.5,000 per person, B/.10,000 per accident for injuries (official, Decreto Ejecutivo 640).

Driving on a foreign licence: the 90-day rule

Decreto Ejecutivo 640 de 27 de diciembre de 2006, the national traffic regulation, says that foreigners who enter as tourists cannot obtain a licence or driving permit, may drive only with a valid licence from their country of origin for 90 days, and cannot obtain a licence by extension either (official, article 110). The same decree lets Panamanians and foreigners with authorized residence, aged 18 or over, obtain a Panamanian licence if they meet its requirements (official).

What the decree does not say in a single sentence is the exact day a new resident must stop using the home licence. The US Embassy's guidance for its citizens, updated 12 March 2026, says tourists may drive for 90 days and that residents must apply for a Panamanian licence (secondary). We found no official grace period for new residents after the carné is issued. The safe reading is: once you hold residence, get the Panamanian licence before you rely on the foreign one again.

Two narrower cases sit in the same chapter. Foreigners with special stay permits may drive only with an ATTT permit after presenting their licence and a certification of its authenticity from their diplomatic mission or a competent authority (official, article 111). Diplomats' licences follow Decreto de Gabinete 280 de 1970, which this guide does not cover (official, article 111, paragraph).

An international driving permit does not replace any of this. Sertracen states that international licences and minors' permits cannot be homologated (official).

Converting a foreign licence at Sertracen (homologación)

Sertracen is the contractor that issues licences on behalf of the ATTT, and the US Embassy describes it the same way (secondary). The homologation page, last updated on 5 October 2026 and fetched on 12 October 2026, is the checklist to trust over any blog (official). For foreigners it asks for:

• Your original migration card (carné), valid and undamaged. If you are a permanent resident with a cédula E, bring the original cédula instead.
• Your original passport, of the nationality shown on the carné.
• The physical foreign licence to be homologated, valid and legible.
• A certification of the foreign licence (a document confirming it is valid, with its key data) and a cotejo (a faithful copy of both sides, freshly sealed and signed). Both must come from the issuing authority, or from your country's consulate, embassy or diplomatic mission in Panama, or a friendly embassy.
• Authentication of the signatures on those papers by one of three routes: an apostille if your country is in the Hague Convention; consular legalization at a Panamanian consulate, then Panama's foreign ministry (MIRE); or, if the papers came from your mission in Panama, authentication at MIRE's authentication and legalization department.
• A blood type and Rh result from a MINSA-authorized laboratory, only if your licence does not show it.
• A negative marijuana and cocaine test, only if a category you are converting equals Panama's category D (light trucks up to 8 tonnes, private buses up to 16 passengers). That lab result is valid for one month.
• A vision and hearing check done at the branch.
• Paz y salvo with the ATTT, and no more than 50 points on your driver history when you apply.

Three rules on that page catch people out (official):

• Any document not in Spanish must be translated and sealed by an authorized interpreter in Panama.
• Notaries do not count. Sertracen will not accept documents authenticated only by a notary public.
• Homologation is allowed once, and only when you apply for your first Panamanian licence. If you first take the Panamanian test, you do not get a second chance to homologate later.

The Panamá Digital pages for the same ATTT procedure (fetched 12 October 2026) list the same three authentication routes, the B/.40.00 fee "including the visual and auditory validation", and say the categories available are A, B, C and D (official). Category C is cars and pickups, B is motorcycles, A is bicycles, and D is light trucks and small buses (official, Decreto Ejecutivo 640, article on licence types). Sertracen adds that a foreigner with a limited migration status can only opt for A, B and C (official).

Apostille, consular route or embassy route

Which route is easiest depends on your country. If your licensing authority will certify a copy and your foreign ministry apostilles it, you can do everything before you fly. If not, many nationalities use their embassy in Panama. For US citizens, the Embassy's March 2026 sheet says to complete the notarial step at the consulate, then have MIRE validate it before going to Sertracen. It gives MIRE's fee for applicants without a cédula as B/.2.00 per document, payable at Banco Nacional, and says applicants with a cédula book through the Panamá Conecta platform (secondary, US Embassy, 12 March 2026). Other embassies set their own fees, so check with yours.

Which countries are exempt from tests

Sertracen's current homologation page does not list any country-by-country exemption, and it does not ask homologation applicants for a theory or practical test, apart from one age rule: everyone aged 85 or over must take the practical test for the categories being homologated (official). In practice, then, the "exemption" is the homologation route itself, open to any country whose licence you can certify and authenticate. Older lists of countries that skip the test still circulate online, but we found no such list on any current official page, so do not rely on them. If your papers cannot be authenticated, the alternative is the first-time licence: a driving-school course, theory and practical exams, blood type, and vision and hearing checks (official, Decreto Ejecutivo 640). The US Embassy says the Panamanian test is now offered in English and Spanish (secondary).

Validity and the medical side

A Panamanian licence is valid for four years, and for two years from age 70 (official, Decreto Ejecutivo 640). For temporary residents, Sertracen sets validity at the expiry of the carné or four years, whichever comes first (official). From age 70 you must also bring a certificate of good physical and mental health from an internist or geriatrician, no more than six months old (official, Sertracen). Below 70, the "medical exam" for a homologation is the vision and hearing check at the branch, plus the blood-type result if needed. Applicants with a hearing disability can bring an ENT diagnosis and an audiometry test under six months old instead of the hearing check (official, Sertracen).

Step by step

• Book an appointment at licencia.com.pa. Seniors, jubilados, pensionados and people with a disability do not need one (official, Sertracen).
• Get the certification and cotejo of your foreign licence from the issuing authority or your embassy.
• Authenticate them: apostille, consular route, or MIRE for embassy-issued papers.
• Have any non-Spanish document translated by an authorized interpreter in Panama.
• Get a blood-type result from a MINSA-authorized lab if your licence does not show it.
• Check your ATTT history and pay any pending tickets, so you are paz y salvo.
• Go to the branch with originals: carné or cédula E, passport, foreign licence, certification, cotejo, authentication and translations.
• Pass the vision and hearing check, then pay at the ATTT cashier in the same branch, by cash, card, online banking or ATM with the control number the operator gives you (official, Sertracen).
• Finish the procedure at the branch where you started it. Sertracen says a procedure started at one branch must be completed there (official).

What it costs

• First licence or renewal, women 16 to 54, men 16 to 59. Amount: B/.40.00. Source and date: Sertracen fee table, page dated 8 Oct 2024, fetched 12 Oct 2026 (official).
• First licence or renewal, women 55 to 69, men 60 to 69. Amount: B/.36.00. Source and date: Same table (official).
• First licence or renewal, age 70 and over (two-year licence). Amount: B/.16.00. Source and date: Same table (official).
• Duplicate licence. Amount: B/.20.00 (B/.10.00 from age 70). Source and date: Same table; Sertracen FAQ, 11 May 2026 (official).
• Optional mobile licence in the Panamá Conecta app. Amount: B/.6.90, one-time, taxes included. Source and date: Sertracen FAQ, 11 May 2026 (official).
• MIRE authentication, applicants without a cédula. Amount: B/.2.00 per document. Source and date: US Embassy Panama, 12 Mar 2026 (secondary).
• Certified translation, lab tests, embassy certification. Amount: Varies by provider. Source and date: Ask for a quote.

Sertracen notes that the age discounts apply to procedures that need the visual and auditory validation, and that applying Ley 6 de 16 de junio de 1987 on benefits for retirees, pensioners and seniors requires the corresponding document (official). Sertracen's table only shows age bands, so it is not clear whether a foreign pensionado below those ages can claim a lower fee with a pensionado carné. Ask at the branch.

Sertracen says the mobile licence has the same validity as the physical card under regulation OAL-512, published in the Gaceta Oficial Digital on 14 August 2025, and has been available since 14 April 2026. It is optional (official, Sertracen FAQ).

Pensionados and other residents

For the licence, a pensionado follows the same homologation checklist as any foreigner. The practical differences Sertracen publishes are walk-in service without an appointment for jubilados, pensionados and seniors, a priority line for jubilados, and the age-based fee bands above (official).

For a car, pensionados have a separate customs benefit, and the law behind it is Ley 9 de 24 de junio de 1987, not Ley 6 de 1987. Ley 6 is the age-based discount law Sertracen cites for licence fees. Ley 9 gives foreigners retired or pensioned by foreign governments, international bodies or private companies, holding the Visa de Turista Pensionado, total tariff exemption once for household goods up to B/.10,000 and total tariff exemption every two years for importing one motor vehicle for personal or family use (official, Ley 9, article 2, Gaceta Oficial 20835). Ley 9 also covers retired rentistas. Its original test for them, B/.750 a month in interest from a fixed-term deposit at Banco Nacional de Panamá (article 7), was repealed by the 2008 migration law (official, Decreto Ley 3 de 2008, article 141), although ANA's checklist still asks rentistas for a bank certificate for the deposit that earns the interest (official). Ask ANA which test applies to you. A car brought in this way cannot be sold, leased, pledged or auctioned without paying the taxes that were exempted (official, article 3).

The 2008 migration law, Decreto Ley 3 de 22 de febrero de 2008, says foreigners covered by Ley 9 are treated as permanent residents and keep the tax benefits and tariff exemptions of their special laws (official, article 22).

How it is charged today: ANA's procedure on Panamá Digital says qualifying pensionados and rentistas may import one vehicle every two years paying 5 percent ISC and 7 percent ITBMS (official). That matches Ley 45 de 1995, which sets a 5 percent ISC for vehicles acquired under a legal benefit that exempts them from import duty (official). The Embassy of Panama in Washington describes the same benefit as an import tax exemption for a new car every two years, with other taxes still due (secondary).

Three points are unsettled, and the official sources do not agree on them:

• Who qualifies today. Ley 9 refers to the old Visa de Turista Pensionado, and the Servicio Nacional de Migración's checklist, uploaded in June 2026, asks for a copy of the definitive turista pensionado card "from 2006 or earlier". Decreto Ley 3 article 22 can be read the same way. Read literally, the car benefit may apply only to holders of those older pensionado visas, and not to everyone granted today's pensionado permanent residence. We found no official page that settles the point. Before you buy or ship a car, confirm in writing with ANA or a licensed customs broker, and with SNM's OPEDE office, that your card qualifies.
• The tax wording. The same SNM sheet says beneficiaries "will pay import taxes, but not the 5% ISC + 7% ITBM", which is the reverse of ANA's page and of Ley 45. This guide follows ANA and the statute.
• The household-goods allowance. Ley 9 sets a one-time duty-free allowance for household and personal goods of up to B/.10,000. ANA's procedure page shows a different figure, B/.25,000. Plan on the amount in the law, and ask ANA or your broker which figure they apply before you ship.

The SNM checklist (official, June 2026) asks for, in original and two copies: a power and exemption request to the SNM director; the customs declaration; shipping documents, commercial invoice and the port's form; a letter from the paying company showing the pension amount, apostilled or consular-legalized and authenticated by MIRE; the car's original title; a notarized copy of the pensionado card; a notarized copy of the passport data page; and a confirmed national paz y salvo. ANA's version adds the bill of lading in your name, a sworn commercial invoice, the port's delivery order, and MEF's income-tax paz y salvo (official).

Importing a car through Aduanas (ANA)

The taxes

Ley 45 de 1995 on the selective consumption tax sets these ISC rates for passenger vehicles in tariff heading 87.03, based on CIF value, that is cost plus insurance plus freight (official, as amended by Ley 8 de 2010 and Ley 295 de 2022):

• Up to B/.8,000: 15%
• Over B/.8,000 up to B/.20,000: 18%
• Over B/.20,000 up to B/.25,000: 23%
• Over B/.25,000: 25%
• Electric cars: 0% until 31 Dec 2030, 5% from 1 Jan 2031
• Hybrid cars: 10%
• Cars adapted for a person with a disability: 5%
• Car imported under a legal duty exemption (for example Ley 9 pensionados): 5%

On imports the ISC base is CIF plus all customs duties and charges, excluding ITBMS (official, Ley 45). The law also sets a minimum ISC of B/.500 per imported vehicle, rising for used cars to B/.750 for more than 12 months since manufacture, B/.1,000 for more than 24 months and B/.1,500 for more than 36 months (official). On top, ITBMS of 7 percent applies, as ANA's pensionado page shows (official). Your broker calculates the exact ITBMS base.

A worked illustration, not a quote: a used sedan with a CIF value of B/.15,000 falls in the 18 percent band, so ISC is about B/.2,700 if no other duty is added to the base. ITBMS of 7 percent comes on top, plus broker fees, port handling, storage and the plate. Customs may also value the car above your invoice. The 2010 Playa Community note warned that customs valuations can push a car into a higher band (secondary, 15 June 2010).

Is there a separate import duty on top of ISC? The ISC law ties the vehicle rates to the repeal of the import duty, and the 2010 Pardini & Asociados summary of the reform describes vehicles as paying 7 percent VAT plus a selective tax of 5 to 25 percent (secondary). Some 2026 importer sites, such as ImportaPa (August 2026), instead quote a 15 or 30 percent "arancel" (secondary). Those figures do not match the statute as we read it, and we could not confirm a current tariff line. Ask your broker to show the tariff line, any duty rate and the ISC rate separately on the liquidation.

Is there an age limit?

No primary source fetched for this guide sets a maximum age for an imported private car. The ISC minimums above rise with months since manufacture, which implies older cars can come in. A Panamá América opinion piece from 25 September 2019 said a bill to regulate used-car imports never got past discussion and that anyone could bring in a vehicle (secondary). Some 2026 shipping and dealer sites, such as Panama Way, mention a five-year limit. That is dealer and shipper advice, not a rule we found in law. Ask your broker to confirm in writing that your car's year is not a problem.

The process, in order

• Confirm eligibility and costs with a licensed customs broker (corredor de aduana) before you buy or ship. Ask for the tariff line, the expected customs value, ISC, ITBMS, fees and port storage.
• Ship with a bill of lading in your own name. ANA treats the person named on it as the consignee who owes the taxes (official, ANA procedure).
• Keep the original title and the commercial invoice. The municipality will ask for the title of a used car (official, Municipio de Panamá).
• The broker files the customs declaration and liquidation, and you pay the taxes. Pensionados first get the SNM exemption note.
• Get the DIJ vehicle inspection certificate (a used-car requirement) and the ATTT pre-inspection (pre-revisado) (official, Municipio de Panamá pre-registration page).
• Pre-register the car with the municipality using the ANA pre-declaration and declaration forms, the original tax payment slip, the title, the bill of lading, your ID and the inspections (official).
• Register it and get the plate: pre-registration receipt, Registro Único de Propiedad Vehicular, pre-revisado certificate, ID and municipal paz y salvo (official, Municipio de Panamá).
• Buy insurance before you drive it on public roads.

If you only bring a foreign-registered car for a visit, Decreto Ejecutivo 640 lets it circulate for 90 days with an ATTT circulation permit (official, article 5). Foreign-registered cars also need insurance meeting Panama's minimums, and border authorities will ask for it (official). ANA's permit for tourists' foreign vehicles asks for the passport, bill of lading or carta de porte, title and tourist card. To keep the car for good you must have it valued and pay the taxes (official, ANA on Panamá Digital).

Buying locally, new or used

Buying in Panama avoids shipping, customs valuation and port storage, and the taxes are already in the dealer price. Ask the dealer for the invoice breakdown, since each dealer presents it differently. A new car from a dealer usually reaches you with the pre-registration done. Check that the plate and the Registro Único are in your name before you pay the last instalment.

For a used car in the Municipio de Panamá, the transfer (traspaso) requires (official, Panamá Digital and the municipality's citizen-service page, fetched 12 October 2026):

• The original Registro Único de Propiedad Vehicular plus a copy.
• The current year's vehicle inspection certificate (revisado) plus two copies.
• Two copies of the valid cédula or passport of seller and buyer.
• A digital transfer card (tarjeta de traspaso) generated in Alcaldía Digital. It has been mandatory since 1 January 2021 under Acuerdo 141 of 20 October 2020. Paper cards and cards from other municipalities are not accepted.
• If both parties attend, the card does not need a notary (Acuerdo 58 of 23 March 2021). If one is absent, a notarized authorization is needed.
• A current circulation tax (plate) and municipal paz y salvo for both parties.

Before you agree a price, ask the seller for a short municipal certification (certificación corta), which corroborates who owns the car and is valid for 30 calendar days (official). If the car has a lien, the municipality runs a separate "traspaso de vehículo con hipoteca" procedure, so ask whether one exists (official, list of municipal procedures). Ask the seller to cancel the Panapass sticker on the old account. ENA says the account owner must do that, with no negative balance (official, ENA FAQ).

The municipal treasury's general note for vehicle procedures says foreigners present an apostilled passport and, for the carné, "only permanent" (official, Tesorería Municipal). It is not clear what an "apostilled passport" means in practice, and the note may affect temporary residents. Bring your passport, carné and copies, and ask before you go.

Outside Panama City, the same steps run through your own municipality. Its forms and fees may differ, so check with that municipality.

Registration every year: plate, revisado, sticker and insurance

Every vehicle needs a single permanent plate issued through the municipality where it is registered (official, Decreto Ejecutivo 640). Since Ley 214 de 2021 the metal plate is issued for five years, but owners must still pay the paz y salvo, the annual inspection and the municipal circulation sticker every year (secondary, Eco TV, 4 May 2021). The current cycle is 2026 to 2030, and the 2026 sticker is green, according to the insurance broker Eprezto (secondary, updated 18 September 2026).

To receive the plate and the year's sticker, the decree requires the year's vehicle inspection certificate, the Registro Único de Propiedad Vehicular, the owner's municipal paz y salvo, the ATTT paz y salvo and payment of the circulation tax (official). The Alcaldía de Panamá told owners on 5 October 2026 that plates and stickers for January to August 2026 were ready, required a paid plate, paz y salvo, a valid revisado and a cédula or passport, and offered home delivery for B/.10.00 (secondary, Telemetro, 5 October 2026).

Your renewal month follows the last digit of the plate: 1 is January, 2 February and so on to 9 September, with 0 in October (secondary, Eprezto, September 2026). Confirm it in Alcaldía Digital.

• Plate and circulation tax, 5-passenger sedan, Municipio de Panamá. Amount: About B/.29.00 including B/.1 paz y salvo. Source and date: Eprezto, an insurance broker, updated 18 Sep 2026 (secondary, approximate).
• Same, 4x4 or SUV. Amount: About B/.44.00 including paz y salvo. Source and date: Same (secondary, approximate).
• Revisado (annual inspection), private car. Amount: From about B/.25 at one booking site; prices vary by workshop. Source and date: Revisados Panamá, a commercial booking site, 3 Jun 2026 (secondary, approximate).
• Late revisado. Amount: 10% surcharge on the inspection tax. Source and date: Decreto Ejecutivo 640 (official).
• Expired plate (ticket 11). Amount: B/.50.00 and 3 points. Source and date: Decreto Ejecutivo 640, infractions table (official).
• Plate home delivery, Municipio de Panamá. Amount: B/.10.00. Source and date: Telemetro, 5 Oct 2026 (secondary).

The revisado is done by the ATTT or its authorized workshops on dates the ATTT sets (official, Decreto Ejecutivo 640). We found no official ATTT price list for private cars, so the revisado price above is approximate and comes from a commercial site.

Insurance

Every owner must keep civil liability insurance of at least B/.5,000 for damage to others' property and B/.5,000 per person and B/.10,000 per accident for bodily injury (official, Decreto Ejecutivo 640). Infobae (27 August 2026) and Telemetro (25 August 2026) report that the ATTT and the insurance regulator, the SSRP, signed an agreement to verify this compulsory basic policy, called SOAT, electronically. Until that system is in place, drivers must keep complying with current document rules (secondary). Carry the printed policy for now. SOAT covers third parties only, not your own car (secondary, Infobae). Being in an accident without valid insurance carries a B/.100 fine. Failing to show the policy when asked carries B/.50 and retention of the car until you produce it (official, Decreto Ejecutivo 640).

Panapass and the ENA corridors

The Corredor Norte and Corredor Sur toll roads around Panama City are paid only by Panapass, a windshield sticker with a prepaid or card-linked account (official, ENA). According to ENA's FAQ (fetched 12 October 2026):

• Installing a new sticker, or replacing one, costs B/.10.00.
• Bring copies of the Registro Único Vehicular, the owner's cédula as shown on it, and a valid insurance policy. A non-owner needs the owner's signed authorization and copies of both IDs. ENA's FAQ is written around the cédula. If you have no cédula, ask ENA whether your passport is accepted.
• The installation centres are at Atlapa and Albrook, open Monday to Saturday 8:00 a.m. to 5:00 p.m., closed Sunday.
• The minimum top-up is B/.5.00. You cannot top up inside the corridor.
• A postpaid account needs a B/.15 deposit, refunded when you cancel.
• Motorcycles may use the corridors only above 250 cc.
• The suggested speed through a toll lane is 30 km/h, so the tag reads correctly.
• Help: call 192, or WhatsApp 6739-5810.

Reaching a toll booth without balance is ATTT infraction 71: a B/.10.00 fine and 1 point, under Decreto Ejecutivo 11 de 20 de febrero de 2025 (Gaceta 30223). The fine is charged to the vehicle's registered owner, and to pay it you must first be paz y salvo with ENA or the concessionaire. The same decree removed online payment for this infraction (official). Toll amounts per plaza are listed on ENA's tariffs page.

Fines, boletas and points

Tickets (boletas) are recorded against your licence. Sertracen points you to your driver history at licencia.com.pa to check pending tickets, and the Panamá Conecta app can show and pay fines if you have the mobile licence (official, Sertracen FAQ). Selected amounts from the infractions table in Decreto Ejecutivo 640, as consolidated on vLex and fetched 12 October 2026 (official):

• Talking on the phone while driving. Points: 3. Fine: B/.75.00.
• Not wearing a seat belt. Points: 3. Fine: B/.75.00.
• Speeding. Points: 5. Fine: B/.50.00.
• Running a red light. Points: 6. Fine: B/.100.00.
• Not stopping at a stop sign. Points: 5. Fine: B/.100.00.
• Not carrying your licence. Points: 2. Fine: B/.50.00, and the vehicle is retained.
• Transporting children without safety measures. Points: 5. Fine: B/.100.00.
• Driving with alcohol on the breath. Points: 5. Fine: B/.150.00.
• No balance at an ENA toll booth. Points: 1. Fine: B/.10.00.

Reaching 35 points in 12 months suspends your licence for one year, plus road-safety courses (official). Fines imposed by a traffic court and not paid within 48 business hours of notice carry a fixed B/.25.00 surcharge (official). El Siglo reported on 17 June 2026 that the fine for using a phone at the wheel is 75 dollars, which matches the table (secondary). vLex is a private consolidation, so a later decree could change a line. Check the amount on the ticket itself.

Alcohol and road safety basics

Panama measures alcohol in blood or breath (official, Decreto Ejecutivo 640):

• Level, blood (mg/dL): 10 to 50. Level, breath (µg/dL): 5 to 24. Classification: Tolerance. Consequence: Warning.
• Level, blood (mg/dL): 51 to 85. Level, breath (µg/dL): 25 to 40. Classification: Alcohol on breath. Consequence: Fine.
• Level, blood (mg/dL): 86 or more. Level, breath (µg/dL): 41 or more. Classification: Proven drunkenness. Consequence: Fine and vehicle retention.

For proven drunkenness, the decree sets B/.150, B/.300 and B/.600 for a first, second and third offence, with licence suspension of 3 months, 6 months and 2 years. If you cause an accident, damage or injuries while drunk, it is B/.1,000, B/.1,500 and B/.2,500, with suspension of 1 year, 3 years and then permanent cancellation (official). Refusing a test counts as serious evidence against you (official). Criminal liability for injuries is a separate matter this guide does not cover. The practical rule is simple: do not drive after drinking.

General speed limits under the decree are 40 km/h on residential streets, 60 km/h on avenues, 80, 60 and 50 km/h in the left, centre and right lanes of urban multilane roads, 100 km/h on highways (carreteras) and 120 km/h on expressways (autopistas), with 30 km/h near schools and busy sports venues during working hours, unless signs say otherwise (official). Seat belts are mandatory for all occupants, except passengers of public, school and tourist transport (official).

The road picture is not reassuring. El Siglo, citing the traffic police, reported more than 16,000 accidents in the first half of 2026 against 15,713 a year earlier, and 161 deaths from 1 January to 10 June 2026 against 137 in the same period of 2025. Speed, drunk driving and phone distraction were named as leading causes (secondary, 17 June 2026).

For a minor crash where one driver accepts fault, the decree allows a single standard form (Formato Único y Definitivo) for the ATTT and the insurers. Otherwise a traffic inspector attends, and the case goes to a traffic court (official). Call your insurer from the scene.

Practical tips for expats

• Start the licence paperwork before you move. The apostille or consular step is the slow part, and it is easier done in your home country.
• Keep your names identical everywhere. Sertracen asks for supporting documents and verification if names or numbers differ between your passport, carné and licence (official).
• If you change passport or move from carné to cédula, update your vehicle registry, tickets and court records to the new number before you renew (official, Sertracen).
• Do not rely on a notary to "certify" your licence. Sertracen rejects notary-only authentication (official).
• Before you ship a car, get a written estimate from a broker that separates ISC, ITBMS and any duty, and states whether your car's age is a problem. Then compare it with a local purchase.
• Pensionados: confirm in writing with SNM and a broker that your residence card qualifies under Ley 9 before you buy a car abroad to ship.
• Put your plate month in your calendar, and do the revisado early in that month.
• Get the Panapass in your first week if you will use the corridors, and set up automatic top-up.
• Keep the printed insurance policy, Registro Único and licence in the car. A missing licence alone means the car is retained (official).

FAQ

Can I drive in Panama on my US, Canadian or European licence?

Yes, as a tourist, for 90 days with a valid licence from your country of origin (official, Decreto Ejecutivo 640, article 110). Once you are a resident, get a Panamanian licence (secondary, US Embassy).

Does an international driving permit help?

Not for conversion. Sertracen does not homologate international licences (official). Article 110 relies on your home licence, so carry it. We found no official rule on whether police accept an international permit during your 90 days.

Do I have to take a driving test to convert my licence?

Not through homologation, according to Sertracen's current checklist, unless you are 85 or older (official). You do need the vision and hearing check, and the blood-type result if your licence lacks it.

Can I homologate later if I first got a licence by test?

No. Sertracen allows homologation once, at your first Panamanian licence (official).

How long is a Panamanian licence valid?

Four years, two years from age 70. For temporary residents it ends when the carné expires, if that comes first (official).

As a pensionado, can I bring my car tax-free?

Not tax-free. Ley 9 de 1987 removes the import levy for qualifying pensionados and rentistas once every two years, but ANA says you pay 5 percent ISC and 7 percent ITBMS (official). The benefit may apply only to holders of older pensionado visas, so confirm with ANA or a customs broker before you ship.

What does it cost to import a regular car?

ISC of 15 to 25 percent of CIF value depending on the band, 0 percent for electric cars until 2030, 10 percent for hybrids, plus 7 percent ITBMS and fees (official). Get a broker's written liquidation estimate.

Is there a maximum age for an imported car?

We found no age limit in law. ISC minimums rise with the car's age, which implies older cars can come in (official). The five-year limit some shippers mention is dealer and shipper advice, not law, so ask your broker to confirm for your car.

What insurance is mandatory?

Third-party liability of at least B/.5,000 property, B/.5,000 per person and B/.10,000 per accident (official).

What happens if I pass an ENA toll with no balance?

A B/.10.00 fine and 1 point under infraction 71 (official).

Not legal advice

This guide is general information for expats. It is not legal, tax, customs or insurance advice, and it does not replace Sertracen's checklist on the day you go, a written liquidation from a licensed customs broker, or a lawyer if your residency category or a pensionado exemption is in doubt. Rules and fees change. Check the official page again before you pay.

Sources

• Decreto Ejecutivo 640 de 2006, consolidated text (vLex Panamá) - 90-day tourist rule, licence types and validity, insurance minimums, plate and inspection rules, speed limits, alcohol levels, fines and points - fetched 12 Oct 2026
• Decreto Ejecutivo 11 de 20 de febrero de 2025, Gaceta Oficial 30223 (copy hosted by ENA) - infraction 71, B/.10 fine and 1 point for no toll balance, owner liability, no online payment - 20 Feb 2025
• Infojurídica, Procuraduría de la Administración - Decreto Ejecutivo 110 de 2016 amending licence articles 112 and 113 - fetched 12 Oct 2026
• Sertracen - licence homologation checklist for foreigners, authentication routes, validity for temporary residents, age rules - page updated 5 Oct 2026
• Sertracen - licence fee table by age and sex, Ley 6 de 1987 note - page dated 8 Oct 2024, fetched 12 Oct 2026
• Sertracen FAQ - appointments, ticket history, no public-transport categories for foreigners, mobile licence B/.6.90, physical licence B/.40 and duplicate B/.20 - 11 May 2026
• Panamá Digital, ATTT - first licence for foreigners with a foreign licence, three authentication routes, B/.40 fee - fetched 12 Oct 2026
• Panamá Digital, ATTT - first licence for foreigners on temporary stay with a foreign licence - fetched 12 Oct 2026
• Panamá Digital, ATTT - articles 110 and 111 for foreigners - fetched 12 Oct 2026
• US Embassy Panama - Welcome to Panama and Driver's License Validation: residents must get a Panamanian licence, MIRE steps and B/.2 fee - 12 Mar 2026
• US Embassy Panama - Living in Panama: validate or take the test, test offered in English - fetched 12 Oct 2026
• Ley 9 de 24 de junio de 1987, Gaceta Oficial 20835 (Justia copy) - pensionado and rentista car and household-goods exemptions, resale restriction, original rentista rule - 2 Jul 1987
• Decreto Ley 3 de 22 de febrero de 2008 (CEPAL copy) - article 22, Ley 9 beneficiaries keep tax benefits; article 141, repeal of Ley 9 article 7 - 22 Feb 2008
• Servicio Nacional de Migración, OPEDE - checklist for pensionado vehicle import exemption certificate - uploaded Jun 2026
• Panamá Digital, ANA - exemptions for foreign pensionados and retired rentistas, one car every two years, 5% ISC and 7% ITBMS - fetched 12 Oct 2026
• Ley 45 de 1995, consolidated text (vLex Panamá) - ISC rates for vehicles, electric and hybrid rates, 5% under exemption, minimum ISC by age, tax base - fetched 12 Oct 2026
• Panamá Digital, ANA - entry permit for foreign vehicles of tourists - fetched 12 Oct 2026
• Embassy of Panama in Washington - Retire in Panama: car import tax exemption every two years, other taxes due - fetched 12 Oct 2026
• Pardini & Asociados - Panama new tax law reform: vehicles pay 7% VAT plus 5% to 25% selective tax - fetched 12 Oct 2026
• Playa Community - New taxes on importing cars to Panama, customs valuation warning - 15 Jun 2010
• ImportaPa - 2026 import cost guide quoting a 15% or 30% duty, contrasted in this guide - Aug 2026
• Panama Way - 2026 import guide citing a five-year age limit, dealer and shipper advice rather than law - fetched 12 Oct 2026
• Panamá América - opinion on the lack of used-car import regulation and the stalled 2017-2018 bill - 25 Sep 2019
• Relofirm - pensionado import of car and household goods, 7% ITBM, resale duty - fetched 12 Oct 2026
• Municipio de Panamá - pre-registration of imported vehicles, ANA forms, DIJ and pre-revisado - fetched 12 Oct 2026
• Municipio de Panamá - vehicle registration and plate assignment - fetched 12 Oct 2026
• Municipio de Panamá - vehicle transfer, digital transfer card mandatory since 2021, notary rules - fetched 12 Oct 2026
• Panamá Digital, Municipio de Panamá - vehicle transfer requirements - fetched 12 Oct 2026
• Panamá Digital - vehicle transfer request, both parties' paz y salvo and current circulation tax - fetched 12 Oct 2026
• Municipio de Panamá - short certification of vehicle ownership, valid 30 days - fetched 12 Oct 2026
• Tesorería Municipal de Panamá - vehicle procedures list and requirements for foreigners - fetched 12 Oct 2026
• Eco TV - Ley 214 de 2021, five-year plate with yearly obligations - 4 May 2021
• Telemetro - plates for January to August 2026 ready, requirements, B/.10 home delivery - 5 Oct 2026
• Eprezto - plate cost B/.29 sedan and B/.44 4x4 - updated 18 Sep 2026
• Eprezto - plate renewal guide, month by last digit, 2026 to 2030 cycle and sticker colour - fetched 12 Oct 2026
• Revisados Panamá - private-car revisado from B/.25 - 3 Jun 2026
• Infobae - ATTT and SSRP move to electronic verification of SOAT, minimum coverage amounts - 27 Aug 2026
• Telemetro - printed policy still required until electronic verification is in place - 25 Aug 2026
• ENA - Panapass FAQ: B/.10 sticker, documents, B/.5 minimum top-up, B/.15 deposit, hours, no-balance fine - fetched 12 Oct 2026
• ENA - Panapass installation centres at Atlapa and Albrook - fetched 12 Oct 2026
• Telemetro - Panapass requirements and installation centres - 19 Jun 2024
• El Siglo - phone fine of 75 dollars, accident and death figures for 2026 - 17 Jun 2026