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Do You Need a Car in Panama City? Absolutely Not! Here’s What to Do Instead

This post is also available in: Español (Spanish)

I remember the first time I landed in Panama City: a skyline rising from the ocean, palm trees lining the bay, and the buzz of tropical energy in the air. My first instinct? Rent a car. My first mistake? Renting a car.

Here’s the truth: you absolutely don’t need a car to explore Panama City. In fact, you’ll probably have a better time without one.

Panama City is surprisingly compact, Uber is cheap, and many of the best experiences are located in walkable neighborhoods or include transportation. So whether you’re a laid-back traveler or just don’t want to mess with parking in the tropics, here’s how to make the most of your time, car-free and carefree.

Morning: Wake Up in Casco Antiguo & Wander Like a Local

Start your day in the heart of the historic district, Casco Antiguo. Here, the past and present mingle beautifully, think 17th-century cathedrals next to rooftop cafés and indie boutiques. This area is flat, easy to explore on foot, and full of personality.

view of colorful street in Casco Viejo, perfect for a walking tour in Panama

Recommended Tour:
Casco Antiguo Walking Tour
Join a passionate local guide who brings the city’s history to life — from colonial revolutions to rooftop revival.

Pro tip: Bring your camera. Casco looks especially photogenic in the soft morning light, and you’ll pass spots like Plaza Francia, the Presidential Palace, and colorful street art that tells Panama’s story with every corner you turn.

Midday: From Culture to Ceviche

When the heat picks up or the rain rolls in, head indoors — but keep the cultural vibes going.

Panama Canal & City Highlights Tour
This half-day tour includes pick-up from your hotel, air-conditioned transport, and visits to the Miraflores Locks, the modern city skyline, and local neighborhoods.

Panama Canal Transit Tour

Book it here →

Not into a formal tour? Catch a quick Uber to the Panama Canal Museum or Biomuseo, then stroll the Cinta Costera waterfront to the Mercado de Mariscos (Fish Market). Grab a cold beer and a cup of shrimp ceviche for under $5 — a true local experience.

Rainy Afternoon? Cook Up a Storm

If the skies start to drizzle (rainy season runs May–Nov), lean in — it’s the perfect time for something cozy and delicious.

people at a Cooking Class in Panama City's Casco Viejo

Recommended Experience:
Authentic Panamanian Cooking Class
→ Hosted in a breezy kitchen in Casco, you’ll prepare traditional dishes like arroz con pollo and yuca frita while hearing stories that connect food, family, and folklore.

It’s hands-on, filling, and a guaranteed highlight — no car or cooking experience needed.

Wildlife Without the Wilderness Trek

Think you need to drive for hours to see monkeys and rainforest? Think again.

Recommended Tour:
Monkey Island & Gatun Lake Eco Tour
Includes round-trip hotel transportation. You’ll cruise past rainforest-lined shores spotting howler monkeys, sloths, and crocodiles — all less than an hour from the city.

Monkeys at Monkey Island Panama

Bonus: The light mist from a tropical rainstorm makes the scenery even more cinematic. Just bring a poncho and your curiosity.

Evening Strolls & City Lights

Crowd watching live show at Emotions Dinner Theater

No need for wheels when the sun sets. Head back to Casco for dinner under the stars, a rooftop cocktail, or an exciting live dinner show at Emotions Dinner Theater in Panama City Want a more modern vibe? Use the Metro (just $0.35!) or Uber to hit hotspots in Obarrio or Via Argentina.

Where to go without a car:

  • Multiplaza Mall – Luxury shopping + food court
  • Cinta Costera – Perfect for a sunset walk
  • National Theatre of Panama – Elegant shows in a walkable district
  • Local nightlife – Think speakeasies, salsa bars, and craft rum lounges

Final Word: Skip the Car, See the City

Renting a car in Panama City is like bringing a sweater to the beach — unnecessary, and you’ll regret the effort. With your feet, Uber, and a few well-planned tours, you’ll experience more and stress less.

Ready to explore car-free?

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BookPanamaTours.com is your gateway to unforgettable adventures across Panama. Our passionate team of local guides creates immersive experiences that showcase the country's natural beauty, culture, and history. Join our Facebook Group for Travelers Who Love Panama and create memories that'll last a lifetime!