Rules for overlanding in Panama

Our summary of the country advice published by the Italian Ministry of Foreign Affairs (Viaggiare Sicuri) on 19 February 2026.

Which licence you need

All vehicles — An Italian licence is what the ministry lists. Check what applies to the licence you hold.

An International Driving Permit states the categories it covers: check yours covers what you will actually drive. A car licence does not cover a motorcycle, and a heavy camper or a truck can need a higher category.

At the wheel

Insurance — Third-party liability cover is recommended.
Roads — There is only one motorway, the Pan-American, with four lanes for about 150 km and two after that, running towards Costa Rica along the Pacific coast. In the other direction, towards Colombia, the road is in worse shape and stops at Yaviza, roughly 100 km short of the Colombian border. Main roads are in fair condition while secondary ones are often passable only with a 4x4, especially in the rainy season, and road maps are very approximate.
No night driving — Driving after dark is very dangerous, particularly outside the capital, because vehicles and farm carts move around without lights. The advice is to avoid intercity journeys after sunset.
After a crash — If you are in a crash with a hire car, do not move the vehicle until the police arrive.
Buses and taxis — Intercity buses are of very poor quality and often without air conditioning, and they are not recommended even for journeys within a city. Use only radio taxis from the more reliable companies, and avoid public transport other than the Metro and Metrobus.

What catches travellers out

Drugs — There is no substantial distinction between soft and hard drugs: possession and trafficking normally bring 6 to 8 years in prison, depending on the quantity seized. Checks at the border, at airports and on arrival in tourist areas, the islands included, are getting stricter as trafficking grows.
Customs declaration — A customs declaration has to be completed online to enter Panama, and currency of more than USD 10,000 must be declared on arrival. Leaving the country carries a departure tax of USD 40 per person, normally already included in the ticket.
Cash in dollars — The US dollar is legal tender; the national balboa exists only as coins. Banks almost never offer exchange, and euro to dollar conversion is limited to a few banks in the capital and a handful of bureaux, so travel with dollars in 20 and 50 notes, which are accepted more readily. Cash withdrawals with foreign cards generally work at ATMs in the larger cities.
90 days, no extension — No visa is needed for tourism for up to 90 days. Since 1 October 2021 the maximum stay has been cut from 180 to 90 days, with no exceptions and no possibility of extension; after that you need a residence visa from the immigration office. Entry also requires a passport with at least three months left and a return or onward ticket out of the country.

Before you rely on this

This is our summary of advice written by the Italian Ministry of Foreign Affairs for Italian travellers, published on 19 February 2026. We summarise in good faith, but we cannot guarantee it is accurate, current or complete, and we take no responsibility for decisions made on the basis of it. Rules change without notice and are applied by officials at the border, not by websites. Always read the original source and the travel advice your own government publishes for Panama before you travel. GuideMeet has no way of checking whether an individual guide meets any standard mentioned here — ask them directly.

Source: Viaggiare Sicuri — Italian Ministry of Foreign Affairs, updated 19 February 2026. Last checked by GuideMeet on 2026-09-20.