Import your vehicle to Panama: the guide to taxes and procedures
We break down the tax calculation, necessary documents, and every step of the process so you can navigate importing your vehicle with complete confidence.
Vehicle importation guide
- The key decision: import or buy locally?
- Calculation of import taxes
- The importation process step by step
- Key players in your importation
- From port to road: the final steps
- Documents you will need
- Exemption for retirees and pensioners
- The alternative: buying a car in Panama?
- Frequently asked questions about importation
The key decision: import or buy locally?
Bringing your own vehicle to Panama is a possible process, but it requires careful planning and a clear understanding of the costs and procedures involved. For many, a car is more than just a means of transportation; it is an important part of their life. This guide will provide you with all the information you need to decide if importing your vehicle is the right choice for you, and how to navigate the process if you decide to go ahead.
“Importing a vehicle is both a financial and an emotional decision. The key to success is to understand the taxes in advance to avoid surprises and to ensure that the sentimental and practical value of your car justifies the cost of the process.”
Estimate your vehicle’s taxes
Enter the CIF value (Cost + Insurance + Freight) of your vehicle in USD to get an approximate estimate of the import taxes.
The approximate total of import taxes is:
This is an estimate. The final value is determined by the Customs Authority.Calculation of import taxes
The main cost of importation is the taxes, which are calculated on the CIF value (Cost, Insurance, and Freight) of the vehicle. The National Customs Authority is the entity in charge of this process.
| Type of Tax | Applicable Rate | Important Notes |
|---|---|---|
| Import Tax (Tariff) | 15% – 25% of CIF value | The rate varies depending on the type and value of the vehicle. |
| ITBMS (VAT) | 7% on (CIF value + Tariff) | This is the standard transfer tax. |
| Selective Consumption Tax (ISC) | Variable (0% – 25%) | Depends on the vehicle’s value. Luxury cars pay more. |
Additionally, you must consider the costs of the customs agent, sea freight, and insurance.
The importation process step by step
Key players in your importation
You won’t be alone in this process. Two professionals are essential to ensure a successful and smooth importation.
🚢 Shipping Company (Freight Forwarder)
This is the company you hire in your home country. They handle all the logistics of the sea shipment: they pick up your vehicle, prepare it for container transport, and manage all shipping documentation until it arrives at the port in Panama.
✍️ Customs Broker
This is your legal representative in Panama. This professional handles the entire vehicle nationalization process: they submit the documents to the National Customs Authority, pay the taxes, and ensure your car is legally released from the port.
From port to road: the final steps
Once your vehicle has been released from customs, the final procedures remain for it to be legally driven in Panama:
- Vehicle Inspection: Your car must pass a physical and emissions inspection to certify that it complies with Panamanian regulations.
- Municipal Registration: With the customs documents and the inspection, the vehicle is registered in the Unique Vehicle Registry through the ATTT and the corresponding municipality.
- Obtaining the License Plate: Once registered, you will be assigned your Panamanian license plate number and receive your plate to be able to drive. Congratulations, your car is now Panamanian!
Documents you will need
Accuracy in documentation is key to a smooth process. Prepare the following documents:
- Original Title of Ownership: In your name, free of liens or debts.
- Bill of Sale: To verify the vehicle’s value.
- Bill of Lading (B/L): Provided by the shipping company.
- Personal Identification: Copy of your passport and, if applicable, your residency card.
Exemption for retirees and pensioners
One of the biggest advantages for those who apply for the Pensionado Visa is the right to a total tax exemption on the importation of one vehicle every two years. This benefit represents a saving of thousands of dollars and is a very powerful incentive for retirees who wish to bring their own car.
The alternative: buying a car in Panama?
After analyzing the costs, many expats ask the same question. Here is a balanced view:
- Advantages of Buying Locally: You avoid the complex importation process and taxes. You have immediate access to the vehicle, dealer warranty, and local financing options.
- Disadvantages of Buying Locally: Car prices (new and used) can be higher than in the US or Europe for certain models. The variety of brands and models may be more limited.
Our recommendation: If your car has a high value (sentimental or monetary) or is a hard-to-find model, importation may be ideal. For standard cars, it is often more practical to sell in your country and buy another in Panama.
Frequently asked questions about importation
How old can the vehicle I want to import be?
Generally, passenger vehicles should not be more than 7 years old to be imported into Panama. Exceptions exist for classic or collectible vehicles.
Can I drive in Panama with my foreign license?
You can drive with your valid foreign license for a maximum period of 90 days from your entry into the country. After that time, you are required to obtain a Panamanian license. Check our guide on how to validate your driver’s license.
Is it better to import my car or buy one in Panama?
It depends. If you have a high-value vehicle or a model you are very fond of, importing it may make sense. However, due to taxes, for standard vehicles it is often simpler and more economically viable to sell your car in your home country and buy a new or used one in Panama.
Simplify all aspects of your move
Importing a vehicle is just one part of the process. Let us guide you through all the procedures, from residency to managing your move, for a stress-free transition.
Contact us for comprehensive advice