Planning a trip to Panama? Whether you’re heading to the vibrant streets of Panama City, the lush mountains of Boquete, or the remote beaches of San Blas, knowing what to expect can make your travels smoother. From entry requirements and currency tips to safety advice and cultural insights, this guide covers the things to know before traveling to Panama so you can be prepared for an amazing trip.

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Our Panama Background

Before diving into things to know before traveling to Panama, I want to give you a little background into our Panama journey. Back in 2009, we arrived in Panama as Peace Corps volunteers. I honestly didn’t know too much about the country at the time besides the canal and that Panamanians spoke Spanish.

I was amazed at how modern Panama City was with its many impressive skyscrapers. I was also intrigued by the diverse landscape and people that lived there. Additionally and unfortunately, I was saddened by the disparity between Latino and indigenous people. 

After serving two years in the Peace Corps, we intimately got to know the country’s ins and outs. We were fortunate to have traveled to so many different areas and truly enjoyed our experience.

In 2023, we were able to return to Panama and visit with our host family and friends we made during our 2 years of service. It was a memorable reunion.

In addition, we were able to see all the positive changes that had occurred since being there last. Panama has progressed in many ways which is fantastic!

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Travel Requirements To Panama

Before traveling to any country, it is necessary to know what the visa and travel requirements are. One of the most important things to know before traveling to Panama is that your passport must be valid for at least three months past your entry date for Americans and Canadians. If you are from the UK, it should be 6 months. 

The U.S. State Department says you need $500 dollars in cash or its equivalent, or credit card, bank statement, letter of employment or travelers checks. In all of our years traveling to Panama, we’ve never had immigration officials ask us to prove this, but it’s always best to be prepared just in case.

Stays can be up to 180 days for U.S and Canadian citizens and 3 months for UK citizens.

No visas are required. 

What Languages Are Spoken In Panama?

All Panamanians speak Spanish. There are other indigenous languages that can be heard and are spoken around the country. If you visit the San Blas Islands, for example, the Kuna people have a separate language. If you travel to the Bocas del Toro region, you will hear Ngäbere spoken by the indigenous people there. In both cases, they will also speak Spanish and a few will even be able to speak English with you.

Is English Commonly Spoken?

Another one of the things to know before traveling to Panama is that while Spanish is the main language, English is widely spoken in tourist areas such as Casco Viejo in Panama City, Boquete and the islands of Bocas del Toro.

If you stray from these areas, the ability to speak a little Spanish is helpful. You still might be able to find some people that speak English but it is just not as common. 

Common Phrases To Learn

Here’s a couple of phrases you should know before traveling to Panama. Greet people in Panama with “buenos”, if it is in the morning, and “buenas” in the afternoon or evening. Buenos dias, buenas tardes and buenas noches are used only in formal settings.

When you meet someone for the first time, say “mucho gusto” which means “nice to meet you.”

Thank you is “gracias”. 

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Panama Currency

Among the things to know before traveling to Panama, it’s useful to understand the currency system. The official currency of Panama is the Balboa but you will only see Balboas in their coins. The U.S. dollar is used throughout the country. Just note that you might find some of your quarters will look a little funny and won’t work in the US. 

How To Pay For Things In Panama: Cash Or Card

If you are visiting the touristy parts of Panama, the use of credit cards is becoming more common, especially if you are located in Panama City. The further out you travel from the City, the more cash you will need.

If you are coming from the U.S. I would advise taking out cash and bringing it with you before you go. Please note that it is better to have smaller bills with you as they are more commonly accepted.

If you do need to use an ATM, there are many around the country. I would suggest only using bank owned ATMs such as Banco Nacional, Banco General, Banistmo and Scotiabank. Be aware that most of the ATMs limit the amount of cash you can withdrawal to $250 dollars and will charge withdrawal fees.

I would suggest carrying some cash with you wherever you go just in case, even in Panama City. If you take out a large amount of cash, don’t carry it all in one place. It is always better to split your cash up when traveling anywhere. 

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Tipping In Panama

Tipping looks a little different in Panama than some other places in the world. Below are all the details for tipping that you need to know before traveling to Panama.

• Restaurants – Tipping is not expected in Panamanian restaurants but is done for exceptional service. A tip of 10% is customary for good service. One thing to note from personal experience, is that if you pay for your meal with a credit card, you will need cash if you want to leave a tip.
• Tour Guides – A small tip of around 10% is also good practice for tour guides. 
• Taxis and Ubers – Tipping is unnecessary for your taxi or Uber driver. If you are traveling for a longer distance and the driver is exceptionally friendly or helpful, a small tip is appreciated. 
• Hotels – Tipping 5-10 dollars for the housekeeping staff and 1-2 dollars per bag for porters is common practice in Panama. 

Is Panama Safe?

When researching things to know before traveling to Panama, safety is a common concern. As a whole, Panama is a very safe country, especially for the areas of the country tourists visit. Like all countries, being vigilant and aware of your surroundings is always advised.

Protect yourself from pickpockets when you are in busy areas by wearing a crossover purse and making sure all bags are zipped and close to your body. Never keep your phone or your wallet in your back pocket either. This is an easy spot for pickpockets to grab it. 

Panama City – Areas To Avoid 

There are certain areas of Panama City that are safer than others. I always find it helpful to know which neighborhoods to avoid in cities as I tend to like to wander. I wouldn’t want to stroll into an unsafe one.

Below is a list of neighborhoods to avoid, especially after dark. 

• Calidonia
• Curundú
• El Chorrillo
• Panama Viejo – it is okay to visit the Panama Viejo historic site during the day time hours. Just don’t stay after dark. 
• Rio Abajo
• San Miguelito, especially the following areas:
  • Amelia Denis de Icaza
  • Belisario Porras
  • Belisario Frias
  • Arnulfo Arias
• Santa Ana – if you are on the outskirts of Santa Ana, near Casco Viejo you are okay. We stayed near Plaza Santa Ana on our last trip and we felt perfectly safe walking back to our Airbnb during the day and in the evening. 
• Veracruz
• 24 de Diciembre

All advisories are from Travel.gc.ca

Safest Neighborhoods And The Best Areas To Stay In Panama City, Panama

These are the safest neighborhoods to visit and the best areas to stay in Panama City, Panama. These are also where most of the hotels are located! 

• Casco Viejo (please note that even though this area is close to El Chorillo and Santa Ana, this is one of the safest and best areas to stay and visit in the city!)
• El Cangrejo
• Avenida Balboa
• San Francisco
• Marbella
• Costa del Este

Other Areas Of Panama To Avoid

If you are looking into visiting other parts of Panama besides Panama City (and you should) there are only a couple of areas that should be avoided and are listed below. These are unsafe areas and should be avoided due to high crime. 

• Colon
• Darien province 
• Mosquito Gulf which includes Boca del Río Chiriquí to Coclé del Norte

Recommended Safe Areas And Best Places To Visit In Panama

There are so many beautiful and safe places to visit in Panama. Some of the areas listed below are popular safe locations for tourists to visit, but I threw in a few off-the-beaten path locations you should also consider! 

• San Blas Islands
• Bocas del Toro
• Boquete
• Taboga Island
• Chame
• El Valle de Anton
• Pedasi
• Pearl Islands
• Playa Venao
• Cerro Punta
• Coiba Island
• Boca Chica

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Can You Drink Tap Water In Panama?

The water in Panama City and much of the country is now clean and you can drink it right from the tap which is different from when we lived there in 2009-2011.

There are a couple of locations where you should still buy bottled water and those areas are in Bocas del Toro and the San Blas Islands. If you find yourself in a very rural village, bottled water is also recommended. 

Emergency Numbers In Panama

This may be surprising to some, but emergency numbers vary from country to country.

For Panama, you can use 911. You can also call specific numbers for different emergencies such as 103 for fire and 104 for police. 

Common Scams To Avoid In Panama

Being aware of common scams in Panama is not to scare you out of going but to make you aware of what they are. If you know what to look for, you are less likely to become a victim. 

Below are a few common scams and important things to know before traveling to Panama—plus tips on how to avoid them.

Taxi Overcharges

Taxis unfortunately like to take advantage of tourists in Panama and will overcharge you.

There are two ways to avoid getting ripped off. The first way is to negotiate the price before getting into the taxi.

The second is to not take taxis at all. Use Uber!

The “Person In Crisis” Scam

A common scam that we heard during our Peace Corps years and I recently read is still happening is what I will call the “Person in Crisis” scam. The situation is that someone got all their belongings stolen and needs to get to another place, but they have no money or way to get there.

Sometimes they ask people directly for money. Other times, they are more sly about it.

I specifically remember a time during the Peace Corps when I was waiting for a bus in Panama City. Someone was speaking very loudly on their cell phone right behind me about a very desperate situation they were in.

These people are very convincing and can really pull at your heart strings. Unfortunately, these are scam artists that do this for a living. You may want to help, but just walk away from the situation like I did.

Fake Tour Deals

Take in this scenario. Someone approaches you with an offer for an amazing tour. It is an unbelievably good price and you think, why not. They ask for payment and tell you all the details on where to meet and when.

Sadly, when you arrive the next day super excited for your tour, no one arrives.

How to avoid this one? Don’t pay for tours on the street in advance and research reliable, trusted tour guides online before arriving to Panama. 

Helpful Strangers Expecting Tips

This situation, to me, is not really as much of a scam as an annoyance. There are folks that will help you with directions or with your bags, and expect you to give them money after the fact.

It’s annoying because even when you don’t need the help they will “help” you anyway and expect a tip. But what we have noticed is that these folks are just trying to make a little money to help their families.

Tipping them a dollar or two is not the end of the world and will ultimately help the local economy! 

The Weird And Interesting Panamanian Facts

And before we say chao, I will leave you with a couple of interesting facts to know about Panama before visiting. 

Pointing With Lips

Many Panamanians don’t point with their fingers, but point with their lips. I love this about Panama and still catch myself doing it to this day! 

Airport Security

At Panama City’s Tocumen airport you will need to go through security a second time at your gate. This is very odd to me, and this is the only airport that I’ve been to that does this.

My advice – only buy liquids that you can consume before boarding the plane or otherwise they will be heading for the trash.

Panamanian Hat

The Panamanian hat is not from Panama but actually Ecuador!

Panamanians do have a traditional hat, but as you can see above, it is more like a quality straw hat.

I hope you enjoy your time in Panama! Let me know how your trip goes in the comments.

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