Car Registration and the Traspaso in Panama, Explained for Foreigners
The paperwork side of buying a car is where newcomers feel most lost. Here's the plain-English version of how ownership and registration work in Panama — and why it matters.
What is a "traspaso"?
The traspaso is the transfer of a vehicle's title from the seller to you. It's handled through Panama's transit authority (ATTT) and the municipality, and it's what makes you the legal owner with plates and registration in your name.
What the process generally involves
- Confirming the seller owns the car free and clear (no liens).
- Clearing any outstanding fines or debts attached to the vehicle — these must be settled to transfer.
- Processing the title change and issuing new plates/registration in your name.
- Keeping the registration current with the annual renewal.
Exact documents and steps can change — for current requirements, confirm with the ATTT or let us guide you.
Bottom line
The traspaso is straightforward when the car is clean and handled by professionals. Get it right and you own a fully registered, road-legal car with zero hidden baggage.
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