Moving to Panama and considering bringing your car with you? While importing a vehicle can be a great way to maintain familiarity, it requires careful planning and adherence to local regulations. In this guide, we’ll cover everything you need to know about how to import a car when you move to Panama, from legal requirements to customs procedures and associated costs.
1. Determine Whether Importing a Car Is the Right Choice
Before deciding to import your car, consider the following factors:
- Cost: Import taxes and fees can be significant, sometimes making it more economical to purchase a car locally.
- Compatibility: Your car must meet Panama’s emission and safety standards. Vehicles with right-hand drive are not allowed.
- Availability of Parts: Some car brands and models may be harder to service due to a lack of locally available parts.
- Resale Value: Imported vehicles may depreciate differently compared to locally purchased ones, which could impact future resale value.
- Time and Effort: The process of importing a car involves paperwork, inspections, and possible delays at customs, which may not be worth the hassle for some individuals.
Research thoroughly to determine whether importing your car is worth the cost and effort.
2. Understand Panama’s Car Import Regulations
Panama has specific laws governing vehicle imports, including:
- Vehicles older than 10 years are generally not allowed for import unless they qualify as classic cars.
- You must pay import duties, which are calculated based on the car’s age, value, and engine size.
- If you are a retiree moving to Panama under the Pensionado Program, you may qualify for certain duty exemptions on importing a vehicle.
- Right-hand drive vehicles are not permitted, so ensure your vehicle is compliant before shipping.
- Some modifications may be required to bring your car in line with Panamanian vehicle regulations.
3. Gather the Necessary Documentation
To import a car when you move to Panama, you’ll need the following paperwork:
- Original car title and registration
- Bill of sale or invoice showing the purchase price
- Bill of lading from the shipping company
- Emissions and safety compliance certificate
- Passport and visa/residency documents
- Proof of insurance (required for driving in Panama)
- Customs clearance paperwork provided upon arrival
- Inspection certificate verifying the vehicle meets local standards
Having all your documents in order before shipping your car can help avoid unnecessary delays and extra costs.
4. Choose a Shipping Method
There are two primary ways to ship your car when you move to Panama:
- Roll-On/Roll-Off (RoRo): The most cost-effective method, but your vehicle must be completely empty (no personal belongings inside).
- Container Shipping: More expensive but allows you to transport personal items along with your car, providing added security.
- Air Freight: The fastest but most expensive option, suitable only for high-value vehicles or urgent needs.
Container shipping offers added protection but comes at a higher cost, while RoRo is more budget-friendly but restricts what can be transported inside the vehicle.
5. Navigate Customs and Import Fees
Once your car arrives in Panama, it must go through customs clearance. The process includes:
- Paying import duties, typically ranging between 15% and 25% of the vehicle’s CIF (Cost, Insurance, Freight) value.
- Completing customs declarations and ensuring all paperwork matches the shipment details.
- Getting the vehicle inspected to confirm compliance with local standards.
- Receiving an import approval certificate from customs.
- Paying port handling fees, documentation fees, and registration fees as applicable.
- Working with a customs broker can simplify the process and ensure compliance with regulations.
6. Register Your Vehicle in Panama
After clearing customs when you move to Panama, you must register your vehicle before driving legally. This involves:
- Paying registration fees and obtaining Panamanian license plates.
- Getting local insurance coverage to legally drive in the country.
- Passing a technical inspection to confirm roadworthiness and compliance with Panamanian traffic laws.
- Obtaining a driver’s license in Panama if you plan to drive regularly.
Final Thoughts
Importing a car when you move to Panama requires meticulous planning, paperwork, and financial preparation. However, with the right guidance, you can navigate the process efficiently and ensure your car arrives without complications.
At International Relocation Partner, we assist expats in managing the car importation process, ensuring compliance with Panamanian laws and handling customs formalities for a seamless experience.
Thinking about importing your car when you move to Panama? Contact us today for expert assistance!
