Transportation in Panama
Panama offers varied transportation options depending on location, with Panama City having modern public transit while other areas require personal vehicles.
Public Transportation - Panama City
Panama Metro:
- Modern, air-conditioned rail system
- Line 1: North-South through city
- Line 2: East-West
- Line 3: Under construction
- Cost: $0.35-0.50 per ride
- Safe, clean, efficient
- Runs 5am-11pm weekdays, extended weekends
- Uses rechargeable Metro Card
Metro Bus:
- Extensive bus network
- Air-conditioned, modern buses
- $0.25 per ride
- Can be crowded during rush hour
- Combined with Metro covers most of city
Diablos Rojos (Red Devils):
- Old colorful school buses
- Being phased out
- Chaotic but authentic Panama experience
- Very cheap ($0.25)
- Declining in number
Ride-Hailing
Uber (Panama City):
- Widely available
- Very affordable: $3-6 typical rides across city
- $8-15 to airport from city center
- Drivers generally reliable
- Some speak English
- Best transportation option for expats in capital
InDriver:
- Alternative to Uber
- Negotiate price with driver
- Often slightly cheaper
- Growing popularity
Cabify:
- Similar to Uber
- Less common but reliable
Taxis
Official Yellow Taxis:
- Licensed and regulated
- Don't use meters - negotiate price before entering
- More expensive than Uber
- Safe during daytime
- Panama City: $2-5 short rides, $5-10 longer
- Use Uber instead when possible
Outside Panama City:
- Taxis more necessary (no Uber in most areas)
- Negotiate prices
- Ask locals for fair rates
Driving in Panama
Getting a Driver's License:
For temporary residents:
- International Driving Permit valid for tourists
- Can drive on foreign license + IDP for 90 days
For residents:
- Exchange foreign license (some countries)
- Or take Panama driving test
- Medical exam required ($15-25)
- Eye test
- Written and practical test
- Total cost: $50-100
- Relatively straightforward process
Buying a Car:
For residents:
- Can finance or buy cash
- Prices similar to US for new cars
- Used cars can be expensive (import duties)
- Process straightforward with residency
- Registration required
- Transfer at notary
Popular vehicles:
- Toyota, Nissan dominate market
- SUVs popular (roads, status symbol)
- Small cars practical for Panama City
- 4x4 useful for rural areas
Driving Costs
Gas:
- $3.50-4.00/gallon (varies with oil prices)
- Cheaper than Europe, similar to US
Insurance:
- Mandatory liability: $300-500/year
- Full coverage: $800-1,500/year (depends on car value)
- More expensive for new drivers without local history
- Shop around - rates vary significantly
Maintenance:
- Labor cheap ($30-50/hour)
- Parts can be expensive (imported)
- Japanese brands have good parts availability
- Regular maintenance essential in tropical climate
Parking:
- Panama City: $1-3/hour in paid zones
- Monthly parking: $50-150 in buildings
- Most apartments include parking spot
- Outside capital: Usually free
Driving Conditions
Panama City:
- Modern roads, generally good condition
- Traffic can be heavy (rush hours 7-9am, 5-7pm)
- Drivers somewhat aggressive but less than many Latin countries
- Parking challenging in old areas
- Easy in suburbs
Pan-American Highway:
- Main artery connecting regions
- Generally good condition
- Tolls: $1-3 depending on section
- Watch for slow trucks on hills
Rural areas:
- Roads vary from excellent to poor
- Some gravel roads to remote beaches/mountains
- 4WD helpful but not always necessary
- Watch for livestock on roads
Driving culture:
- More aggressive than US/Canada
- Use of turn signals sporadic
- Expect to be cut off
- Honking common (communication, not always anger)
- Defensive driving essential
Car Rental
Major companies in Panama:
- Hertz, Avis, Budget, National
- Local companies often cheaper
- $30-70/day depending on vehicle
- Insurance: $15-25/day additional
- Credit card often required
- International license accepted for tourists
Tips:
- Book in advance for better rates
- Check insurance coverage carefully
- Inspect car thoroughly before leaving lot
- Take photos of existing damage
Do You Need a Car?
Panama City:
- Not necessary
- Uber + Metro very functional
- Parking expensive and challenging
- Traffic frustrating
- Many expats happily car-free
- Rent for weekend beach trips
Boquete:
- Yes, highly recommended
- Everything spread out
- Limited taxis, no Uber
- Hills make walking difficult
- Essential for groceries, errands
- Mountain roads require car
Beach areas (Coronado, Pedasi):
- Yes, recommended
- Spread out communities
- Limited public transit
- Beach hopping requires car
- Can manage without but limits freedom
Bocas del Toro:
- No - Island, water taxis
- Golf carts or bicycles
- Boats for inter-island travel
Motorcycles & Scooters
- Popular in Panama
- Cheap transportation ($2-5K used)
- Good for Panama City traffic
- License required
- Accident rates high - be careful
- Year-round riding (no winter)
Bicycles
Panama City:
- Growing bike infrastructure
- Cinta Costera has bike path
- Some dedicated lanes
- Can be dangerous on main roads
- Heat/humidity challenging
Boquete:
- Mountain biking popular
- Hills challenging for casual cycling
- Cool weather advantage
Long-Distance Travel
Domestic:
- Air Panama: Flights to interior destinations
- Buses: Albrook terminal - connections nationwide
- Very affordable bus travel ($5-25 typical)
- Comfortable long-distance buses
International:
- Tocumen International Airport: Hub for Copa Airlines
- Direct flights to US, Canada, Latin America, some Europe
- Modern, efficient airport
- Taxi/Uber to city: $25-35
Pro Tips
- •Uber is best way to get around Panama City - cheap and reliable
- •Don't need car in Panama City, but essential in Boquete/beach areas
- •Defensive driving essential - traffic more aggressive than US
- •Insurance rates vary widely - shop around before buying
- •Metro is modern, safe, and air-conditioned - use it!
Have questions about transportation in Panama?