Panama 2026 on a US Licence: 90 Days, Same Right-Hand Side

Panama is one of the easier Central American countries for an American to drive — modern toll highways near the capital, the famous canal, and a coast-to-coast trip that is genuinely doable. Most of what you know already transfers; a couple of details do not.

The licence answer

You can drive in Panama on your American licence for up to 90 days: the State Department says foreigners may use “a valid foreign driver license, but only for 90 days.” No International Driving Permit is needed. Don’t drive anywhere without the licence on you, keep your passport with it for the frequent checkpoints, and remember that third-party liability insurance is mandatory.

What you do not have to relearn

The reassuring part for an American driver: Panama drives on the right, just like the United States. There is no side switch, no roundabouts turning the wrong way, none of the first-hour disorientation that comes with left-hand countries. Your instincts at junctions already point the right direction, so you can focus on the road rather than your reflexes.

The two real adjustments

First, the alcohol limit is 0.05, below the American 0.08 — the margin you may assume at home is narrower, so treat it as no drinking before driving. Second, watch the rural speeds: while motorways run to about 100 km/h, rural roads are signed lower at around 60 km/h, and away from the toll highways surfaces and signage drop off, so the posted number is the ceiling, not the target. Urban limits sit near 40 km/h.

Fuel is roughly $1.05 a litre, and the emergency number is 911, the same digits you use at home — easy to remember in a pinch.

Confirm exactly what your rental needs with the Driving Permit Checker, read the country detail on our Panama driving guide, and gauge any penalty with the Speeding Fine Calculator before you head off.

Sources

• U.S. Department of State, Country Information, Panama (“Foreigners can drive in Panama using a valid foreign driver license, but only for 90 days.”), last updated August 13, 2026: cadataapi.state.gov