Money: USD and the Balboa
Panama has used the US dollar as legal tender since 1904. The local Balboa exists at parity with the USD and circulates only as coins (1, 5, 10, 25, 50 cents, plus a 1 Balboa coin). There are no Balboa banknotes. US dollar bills are accepted everywhere.
Credit cards vs cash
Panama City, Casco Viejo, hotels, large restaurants, and shopping malls all take Visa and Mastercard. Amex and Discover are less accepted. Outside the capital, cash is king. Bring enough small bills ($1, $5, $10) for taxis, tips, and markets. Avoid large bills ($50, $100) because many small businesses will not break them.
Tipping
Restaurants: 10 percent if not already included (some places add 10 percent automatically, check the bill). Tour guides: $5-10 per person for a half-day tour, $10-20 for a full day. Taxi drivers: round up, no percentage expected. Hotel housekeeping: $1-2 per night.
Visa rules by nationality
- Visa-free 90-180 days: US, Canada, EU, UK, Australia, New Zealand, Japan, South Korea, most of Latin America
- Visa required: some African and Asian nationalities, including India, China, Indonesia. Check with the Panamanian consulate
- Passport requirements: valid for at least 6 months beyond entry date, with one blank page
- Proof of onward travel: airline ticket or bus ticket out of Panama. Rarely checked but sometimes requested at the airport
- Proof of funds: $500+ on a card or in cash. Rarely checked
Entering through Tocumen Airport
Panama City Tocumen Airport (PTY) is the main entry point. Immigration is usually 30-60 minutes. Fill the electronic arrival form online before landing (Panama Migration app) to skip the paper form. Taxi to downtown is $30-40 (metered), Uber is $20-30. Budget 45-60 minutes in traffic.
Leaving Panama
There is a $40 departure tax for international flights, but it is almost always included in your ticket price. No cash required at the airport. Arrive 3 hours before international flights, Tocumen security lines can be long during peak times.
Frequently asked questions
Panama uses the US dollar as its official currency. The local Balboa is pegged 1 to 1 with the USD and exists mostly as coins (there are no Balboa banknotes in circulation). US bills and coins are fully accepted everywhere.
Most nationalities (US, Canada, EU, UK, Australia, most of Latin America) do not need a visa and can stay 90 to 180 days visa-free. You need a passport valid for at least 6 months, proof of onward travel, and proof of funds ($500+ on a card is usually enough).
Yes in most of Panama City, tourist areas, hotels, and large restaurants. Visa and Mastercard are widely accepted. Amex and Discover less so. Always carry some small USD bills ($1, $5, $10) for taxis, tips, and small street vendors.
Yes in Panama City, Casco Viejo, shopping malls, and tourist zones. ATMs dispense USD. Withdrawal fees are typically $4-6 per transaction plus your home bank fee. Outside the capital, ATMs are less common, withdraw cash before heading to the interior.
