The Global Expat Hub
PanamaPanama drives on the right. Here is how to rent, buy and get legal behind the wheel.
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RentingShort-term rental for the scouting trip, long-term rental and subscription cars for the first months; deposits and insurance excess.🛒
BuyingNew versus used prices, dealer versus private sale, registration, road tax and import duty on a car you bring.🪪
Your foreign licenceHow long you may drive on it (typically 3–12 months), whether an International Driving Permit is needed, and which countries' licences can be exchanged without a test.📝
Getting a local licenceTheory and practical tests, medical certificate, translations, typical fees and waiting times in Panama City.🛡️
Insurance & inspectionsMandatory cover, no-claims history from home, annual roadworthiness tests.⛽
Running costsFuel about $0.95/litre, tolls, parking and low-emission zones.Rules of the road
- Drive on the right; overtake on the left.
- Speed limits, alcohol limits and phone rules, and how strictly they're enforced.
- Roundabout and right-of-way conventions that catch foreigners out.
- Official rules: Gaceta Oficial de Panamá ↗
Official & reference sources
Labelled partner · Advertise with usCar rental & purchase partnerLong-term rental, leasing and trusted dealers in Panama City for newcomers
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