May 2, 2025
Limitless Team
If you are an Italian citizen and you live in Panama - whether temporarily for work reasons, as part of a venture or with permanent residence - it is likely that at some point you will need to drive a vehicle. And this is where the most common question among Italian residents comes up: Can I drive legally with my Italian license, or do I have to do some extra paperwork?
The answer isn't quite simple. Although Panama allows driving with foreign licenses for a limited time, if you have one residence in Panama or are you planning to stay for a long time, it is mandatory to convert your Italian license in a Panamanian license. This is where the validation process comes into play using Sertracen, the official entity that manages driver's licenses in the country.
In addition to the legal process, many Italians are unaware that a car insurance in Panama before driving legally; without that, even with the right license they could receive fines. The rules have been tightened in recent years, so if you are thinking of driving in 2025, it is essential to know the updated requirements, the necessary documents and how to prepare your application step by step.
In this practical guide, written in clear and direct language (you don't need to be a lawyer to understand it), we explain to you from if your license is valid for temporary driving, until how to start the license conversion process in Sertracen with all the required documents. We also address the costs involved, such as compulsory insurance, so you can rest easy knowing what to expect beforehand.
If your plan for this year includes working, entrepreneurship, or simply driving legally on the streets of Panama, this is the guide you need to start off on the right foot.
Can I drive in Panama with my Italian license?
The good news is that yes, as an Italian citizen you can driving in Panama with your Italian license, but only for a limited time and under certain conditions. According to Panamanian regulations, the foreigners without residence they can use their license from their country of origin as long as they have valid tourist status. This means that if you recently entered Panama under a tourist visa (regularly for 90 days), you can use your Italian license during that period.
However, if you already have a residence in Panama —whether temporary or permanent— or you're in the process of obtaining it, you can no longer drive with your foreign license. In that case, you'll need to start the process known as validation or approval of a foreign license to get a official Panamanian license.
What does the law establish?
Traffic Act 37 states that:
- Una foreign license It is valid only for non-residents as tourists.
- If you have residence in Panama, you must convert your license in one issued by Sertracen.
- Driving with a foreign license as a resident can result fines, vehicle restraint and legal problems.
Therefore, if you are going to live in Panama beyond the tourist period, it is best to start the validation process as soon as possible. Fortunately, Panama and Italy maintain an agreement that facilitates this management, making it possible to convert without the need for practical or theoretical exams in most cases.
Cases in which you should convert your license:
You must get the Panamanian license If:
- You have obtained residence in Panama
- Do you plan to live more than 90 days in the country
- You want to buy or insure a vehicle in your name
- Do you work as a driver or do activities that require regular driving
Therefore, although you can drive as a tourist for an initial period, if you stay longer — as do many Italians who undertake or work in Panama City — converting your license becomes a necessary and legally mandatory step.
In the next section, we explain What do you need to have ready to start this process in 2025.
Requirements to convert Italian license to Panama 2025
To perform the Italian to Panamanian license conversion process In 2025, you will need to gather certain documents and comply with mandatory steps before Sertracen, the Transit and Land Transportation Authority (ATTT), and the Embassy of Italy in Panama.
Required documents updated for 2025
Here is the list of required documents with their specific characteristics:
- Copy of the Panamanian residence card or immigration card: must be in force.
- Italian passport: original and copy of the page with your data.
- Current Italian driver's license: original and copy.
- Certification of authenticity of the Italian license: issued by the Embassy of Italy in Panama. This document verifies that your license is valid and legally issued.
- Official Spanish translation (if the license contains untranslated content): It must be done by an authorized public translator in Panama.
- Eye and ear exam: performed at centers authorized by Sertracen; it must be valid for less than 6 months.
- Payment of the procedure before Sertracen: includes the cost for the new Panamanian license and your official photo.
It is important to emphasize that the Procedure for approving a license in Sertracen Panama it can be more streamlined if all documents are complete and up to date. In addition, in some cases, the ATTT may request additional documents depending on the applicant's profile.
Where do you get certified by the Italian Embassy?
This certification is issued directly by the Embassy of Italy in Panama City. You will need to request an appointment and present your license along with your passport. The process can take up to 5 to 10 business days depending on the administrative burden.
Do tests have to be done?
In most cases, Italian citizens They are not required to take practical or written exams, thanks to bilateral agreements between Panama and Italy. However, it is mandatory to do the Eye and Ear Exam as a minimum medical check to grant the Panamanian license.
Estimated time of the process
El How long does it take to convert a license in Panama It depends on the speed with which you gather the documentation. If everything is in order, the procedure can be completed in 1 to 2 weeks. The appointment with the embassy is often the most time-consuming step.
Once completed, you will receive your Panamanian driver's license with a validity commensurate with your immigration visa.
In the next block, we explain step by step what the Process in Sertracen so you know what to expect at each stage.
Step by Step: Procedure at Sertracen for Italians
Once you meet the basic requirements to convert your Italian license in Panama, the next step is to manage the process with Sertracen, the entity responsible for issuing and validating driver's licenses in the country. Although the process may seem technical at first, if you break it down step by step, it's pretty simple. Here's how to start the procedure at Sertracen to validate a foreign license in 2025.
1. Check your immigration status
Before starting the procedure, you must have legal residence in Panama: permanent, temporary or temporary. License conversion is not available for tourists or visitors without formal residence. Carrying your migration card or approved residency resolution with you is essential.
2. Official translation and apostille
La Italian license must be officially translated into Spanish by an authorized translator in Panama. In addition, it must be previously apostilled by the Italian authorities — this verifies that the document is authentic for international legal use.
3. Validation at the Italian embassy
With the translation ready and the license apostilled, you must go to the Embassy of Italy in Panama to validate that your license is legitimate and valid. They will issue you an official letter (in Spanish) confirming your status as the holder of that license, an essential step to continue with Sertracen.
4. Eye exam
One of the most basic requirements in Panama is to submit a visual exam. You can do this at any of the centers authorized by Sertracen and it usually only takes a few minutes. The result must be sent directly by the center to the Sertracen system.
5. Application at Sertracen
With all the documentation collected, you are now ready to schedule your appointment and go to Sertracen. There you must submit:
- Passport and residence card
- Original Italian license
- Official translation and apostilled copy
- Validation letter from the embassy
- Visual exam result
The official will review all the documents, take your fingerprints and a photograph, and generate your new Panamanian driver's license.
How long does it take?
In most cases, the entire process—from validation at the embassy to obtaining the new license—can take between 5 and 10 business days, depending on the agility in scheduling appointments and collecting documents.
This step is required if you are planning driving in Panama with an Italian residence, since it circulates with a Expired or unvalidated foreign license can lead to fines and legal problems.
Cost of car insurance in Panama for foreigners
Even after obtaining the valid Panamanian license, you will not be able to driving legally in Panama not counting on a compulsory car insurance. This requirement applies to all drivers — domestic and foreign — and is supervised by traffic authorities. Insurance not only protects you from third parties, but it is a document required when registering or driving a vehicle in the country.
Mandatory insurance: What does it cover and who does it protect?
In Panama, the minimum insurance required is that of Civil Liability against Damages to Third Parties. It covers physical or material damage you may cause to others in an accident. It doesn't include coverage for your own vehicle unless you sign up for a more comprehensive plan (such as full coverage).
This insurance must be active and current at all times. If you're stopped at a checkpoint or have an accident and you can't present your insurance document, you could face fines—even if you have all your other papers in order.
How much does it cost to insure a car in Panama as a foreigner?
The costs of car insurance in Panama vary depending on several factors:
- Vehicle type and year
- Business value
- Type of coverage contracted (minimum or full)
- Driver's age and type of license
For a standard vehicle (sedan or basic SUV), the approximate values in 2025 range from:
✓ Minimum Insurance (Civil Liability): from USD $110 to $180 per year
✓ Full coverage: from USD $350 to $800 per year, depending on the value of the vehicle and the deductible.
In many cases, insurers may request additional documentation if you're a newcomer foreigner, such as you converted foreign license or your residence card.
Where to buy the insurance?
In Panama, there are numerous local insurers such as ASSA, Mapfre, Internacional de Seguros, and others. You can also purchase insurance directly through independent brokers or online insurance companies.
Practical advice
If you are a foreigner, it is advisable to quote with different insurers before making a decision, and to confirm that the chosen insurance is recognized by the Transit and Land Transportation Authority (ATTT).
Once you have your new license and valid insurance in hand, you'll be ready to move around the country legally without problems. In the next section, we share some useful tips for those who think live, work or start a business in Panama while driving on a daily basis.
Key Tips for Driving Legally in Panama
Once you have completed the procedure before Sertracen and got your new Panamanian license, it is essential to know some practical tips to always stay within the law when driving in Panama. Even if you have successfully completed the process of Italian license conversion, following certain recommendations will allow you to avoid fines, drive more safely and adapt more quickly to Panamanian road regulations.
Always drive with your documents in order
To circulate legally, you must carry your current driver's license, you compulsory car insurance and the vehicle inspection ballot if applicable (known as a Vehicle Technical Review). These documents can be requested at any time by traffic authorities.
Understand the difference between tourist and resident
If you are still a tourist, you can drive in Panama with your valid Italian license for a period of 90 days. But if you already have residence in Panama (temporary or permanent), that benefit is lost and you are legally required to perform the Sertracen conversion process. Failure to do so may result in financial penalties, vehicle retention, or even suspension of the right to drive.
Respect local traffic regulations
Panama applies many rules similar to European ones, but some differences may surprise you. For example, the use of a seat belt is mandatory in all seats, not just in front, and respect for traffic lights and pedestrian crossing areas is strictly enforced. The use of a cell phone while driving is also prohibited and not complying with it can result in high fines.
Stay up to date with compulsory insurance
In Panama, the car insurance is a requirement for all vehicles in circulation. You must renew it promptly every year, and make sure that the policy is active. In addition, if you drive a rented or borrowed car, check that it has current coverage.
Avoid driving without temporary or permanent plates
If you just purchased a vehicle, you can legally drive with a temporary (temporary) license plate for a limited period. Failure to drive with a valid license plate can result in your vehicle being fined or confiscated. Check the deadlines and renewal of your license plate carefully so as not to fall into uncomfortable situations.
Check the validity of your license in time
Most of the foreign licenses converted in Panama are valid for 4 to 6 years. Mark the expiration date on your calendar to renew it on time without running the risk of driving with an expired license.
Optional but useful: Consider a local driving school
Although not required, some people choose to take a few practical classes at Panamanian schools to familiarize themselves with local routes, rules and signs. It can be especially useful if you have been in the country for a short time.
In short
Driving in Panama as an Italian resident involves more than just having a valid license. From keeping your documents up to date to fully understanding local rules, following these tips will allow you to enjoy a safe and hassle-free experience.
✍🏼 Take note...
Convert your Italian driver's license in Panama in 2025 it is a clear process but with several aspects to consider. In this guide, we review if you can drive as a tourist, what to do if you are a resident of Panama, all the updated requirements, the specific steps to validate your license in Sertracen, the costs of the compulsory car insurance and the good practices you should follow to drive within the law.
With this information, you can drive with peace of mind, avoid penalties and adapt without problems to your new routines on wheels in Panama.
Do you have a residence in Panama and want to drive without complications? We can help you prepare your application to Sertracen, review your documents and guide you step by step through the process of Convert your Italian license. Our team knows the 2025 requirements and can make your journey much simpler. Contact us if you need personalized guidance or support to comply with all traffic regulations in Panama.