Panama is a country where driving is a necessity in many places, and a helpful asset in many others. If you’re thinking about how to ship a car to Panama and weighing the pros and cons of doing it, there’s a lot to consider. It’s not a secret that Panamanians love their cars and love the convenience a car brings them for both business and personal travel. Due to the hot, tropical climate, and somewhat outdated public transportation in much of the country outside of the city, driving your own car can feel like a true luxury. Here’s a more detailed breakdown to help you make the best decision before relocating to Panama.
How to ship a car to Panama.
Can You Ship a Car to Panama?
The answer is YES, you can ship a car, van, truck, SUV, or motorcycle to Panama as long as you have the correct paperwork and a bit of patience. Older cars, which are classified as cars over 10 years of age, are not permitted to ship unless done with a special permit designed for classic or collectible vehicles. You must also adhere to Panama’s emission standards and pay the taxes and fees associated with putting a car on the road in Panama as well, in order to ship and use your vehicle. These fees are payable upon arrival.
There are two ways you can ship a car to Panama:
Container Shipping: This is the most popular option, and the most expensive. It’s more expensive, however, because it’s the safest, keeping your vehicle from outside elements. This is the best option if you can afford it, especially if you’re shipping other goods via container for your relocation to Panama.
Roll-On/Roll-Off: This method of how to ship a car to Panama is as simple as it sounds. Your car is driven onto a cargo ship in a port in your home country, locked in on board, and driven off when the ship arrives in Panama. The drawback to this method is that your car is more exposed to the elements and other cargo. The benefit is that shipping companies charge a lot less for the service.
Documents You’ll Need to Ship a Car to Panama
To clear customs, you’ll need:
- Original title and registration (in your name)
- Proof of purchase invoice (to determine value)
- Bill of lading (from your shipping company)
- Passport and Panama residency visa (if applicable)
- Proof of insurance
It’s important to get all of these documents sorted out long before your move, as some may take some time, and you’ll want to have your car shipped as soon as possible. You’ll present these documents to customs when your car arrives at the port and should bring them with you in a physical copy form, with digital backups just in case. Your shipping company may have its own policies for additional documents needed on their end, but these are the ones that the Panamanian government requires for you to legally get your vehicle into the country.
You’ll also need to consider Panama fees and taxes. Panama has specific fees for importing cars. These include an import duty of 15–25% based on the car’s CIF (Cost Insurance Freight) value, a sales tax (ITBMS) of 7%, and a luxury tax of an additional 5–10% for high-value vehicles. If you are a retiree moving to Panama, you might be eligible for exemptions on one vehicle import every two years.
After customs clearance, your vehicle must pass an environmental inspection and mechanical evaluation. Once it passes, you can obtain Panamanian license plates, register with the local transit authority (ATTT), and get Panamanian insurance.
Reasons You Should NOT Ship Your Car to Panama
You should not ship a car to Panama if it is over 10 years old, as this is generally prohibited unless you can get a rare classic car exemption. High import costs can also be a problem; importing a car can cost between $5,000 and $8,000 USD, making it often cheaper to buy locally. If your car is a less common model, finding parts and services may be hard. Additionally, many expats in places like Panama City live without cars, using affordable public transport instead. Buying a car in Panama is usually easier, as there are many new and used vehicles available, and you won’t pay import taxes. It’s advisable to wait until you’re settled to buy a car locally.
Shipping a car to Panama can be a good choice for expats who want to keep a specific vehicle or need it with their household goods. However, for some, the cost and red tape might make it less appealing. It’s important to consider your long-term transportation needs and budget before making a decision. If unsure, consult a relocation expert or customs broker who knows Panamanian vehicle import laws. International Relocation Firm can assist you with your move, regardless of whether you bring your car. Contact us online to find out more.
