Valid licence plus IDP (1949 Geneva)
RequiredUK/EU licence is accepted for tourist stays up to 90 days alongside a 1949 Geneva Convention International Driving Permit; carry both physically in the car.
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Country driving guide · 2026
Driving in Panama
Everything UK and EU drivers need before crossing the border into Panama: 10 legal requirements + 7 other things worth knowing.
10
Required
3
Recommended
4
Good to know
Tick before you go
Pre-departure checklist for Panama
10 legal must-haves. Print it, tick them off, throw it in the glovebox.
Valid licence plus IDP (1949 Geneva)
UK/EU licence is accepted for tourist stays up to 90 days alongside a 1949 Geneva Convention International Driving Permit; carry both physically in the car.
Passport with entry stamp
Carry your passport showing the tourist entry stamp at all times when driving; police checkpoints on the Pan-American Highway routinely ask for it.
Local third-party insurance compulsory
Panamanian third-party liability insurance (seguro obligatorio) is mandatory; rental cars include it, private/imported vehicles must buy a local policy as UK/EU green cards are not recognised.
Drive on the right
Traffic drives on the right; overtake on the left. Right turn on red is NOT permitted unless a sign explicitly allows it.
Speed limits in km/h
Urban 40 km/h, rural roads 80 km/h, Pan-American Highway and Corredor Sur/Norte expressways 100 km/h unless signed lower.
BAC limit 0.05 g/L 21+, zero for under-21
Blood alcohol limit is 0.05 g/L (0.5 g/L); drivers under 21 and professional drivers must be at zero. Random breath tests (alcoholimetria) are common at weekends.
Seatbelts and no handheld phone
Seatbelts compulsory for all occupants, children under 5 in a child seat, and handheld mobile phone use while driving is banned (fine around USD 100).
Panapass electronic toll on Corredores
Corredor Sur, Corredor Norte and the Autopista Panama-Colon are free-flow electronic only via a Panapass transponder (USD 5-15 top-up at supermarkets); rental cars come fitted, no cash booths exist.
Warning triangle and reflective vest
Vehicles must carry a warning triangle and a hi-vis reflective vest; spare tyre, jack and wheel brace are also checked at roadside inspections.
Declare cash over USD 10,000 at border
Amounts of USD 10,000 or equivalent must be declared to customs on entry/exit; failure to declare leads to seizure.
Documents
Passport with entry stamp
RequiredCarry your passport showing the tourist entry stamp at all times when driving; police checkpoints on the Pan-American Highway routinely ask for it.
Local third-party insurance compulsory
RequiredPanamanian third-party liability insurance (seguro obligatorio) is mandatory; rental cars include it, private/imported vehicles must buy a local policy as UK/EU green cards are not recognised.
Driving rules
Drive on the right
RequiredTraffic drives on the right; overtake on the left. Right turn on red is NOT permitted unless a sign explicitly allows it.
Speed limits in km/h
RequiredUrban 40 km/h, rural roads 80 km/h, Pan-American Highway and Corredor Sur/Norte expressways 100 km/h unless signed lower.
BAC limit 0.05 g/L 21+, zero for under-21
RequiredBlood alcohol limit is 0.05 g/L (0.5 g/L); drivers under 21 and professional drivers must be at zero. Random breath tests (alcoholimetria) are common at weekends.
Seatbelts and no handheld phone
RequiredSeatbelts compulsory for all occupants, children under 5 in a child seat, and handheld mobile phone use while driving is banned (fine around USD 100).
Emergency number 911
Good to knowDial 911 for police, ambulance and fire; Transito (traffic police) also reachable via 911. Accidents must not be moved until police arrive or insurance is voided.
Aggressive local driving style
RecommendedLane discipline is loose, diablos rojos buses and taxis stop without warning, and motorbikes filter on both sides; drive defensively and avoid Panama City rush hour 07:00-09:00 and 16:30-19:00.
Tolls
Panapass electronic toll on Corredores
RequiredCorredor Sur, Corredor Norte and the Autopista Panama-Colon are free-flow electronic only via a Panapass transponder (USD 5-15 top-up at supermarkets); rental cars come fitted, no cash booths exist.
Toll cost roughly USD 2-4 per 100 km
Good to knowTypical Corredor tolls run USD 1.00-3.00 per segment; budget around USD 2-4 (EUR 2-4) per 100 km on tolled urban expressways. The Pan-American Highway itself is free.
Required equipment
Warning triangle and reflective vest
RequiredVehicles must carry a warning triangle and a hi-vis reflective vest; spare tyre, jack and wheel brace are also checked at roadside inspections.
Money
Currency: US dollar (Balboa pegged 1:1)
Good to knowPanama uses the US dollar; the Balboa exists only as coinage at 1:1. No vignette or road tax sticker required.
Fuel around USD 0.95/L (EUR 0.88)
Good to knowPetrol (gasolina 95) is roughly USD 0.95-1.05 per litre, diesel similar; pumps are attendant-served and a USD 0.50-1.00 tip is customary. Cards accepted at major-city stations, cash needed in the interior.
Declare cash over USD 10,000 at border
RequiredAmounts of USD 10,000 or equivalent must be declared to customs on entry/exit; failure to declare leads to seizure.
Environment
Darien Gap is impassable
RecommendedThere is NO road link to Colombia; the Pan-American Highway ends at Yaviza and the Darien jungle beyond is a no-go zone for any vehicle. FCDO advises against all travel to Darien Province east of Meteti.
Rainy-season flooding May-November
RecommendedHeavy afternoon downpours flood underpasses in Panama City and wash out rural roads; avoid driving mountain roads (Boquete, Cerro Punta) after dark in the wet season.
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Drive on the right
RequiredTraffic drives on the right; overtake on the left. Right turn on red is NOT permitted unless a sign explicitly allows it.
Speed limits in km/h
RequiredUrban 40 km/h, rural roads 80 km/h, Pan-American Highway and Corredor Sur/Norte expressways 100 km/h unless signed lower.
BAC limit 0.05 g/L 21+, zero for under-21
RequiredBlood alcohol limit is 0.05 g/L (0.5 g/L); drivers under 21 and professional drivers must be at zero. Random breath tests (alcoholimetria) are common at weekends.
Seatbelts and no handheld phone
RequiredSeatbelts compulsory for all occupants, children under 5 in a child seat, and handheld mobile phone use while driving is banned (fine around USD 100).