Panama etiquette: the dos and don’ts

By Javier Moreno, Panama host 27 August 2026 6 min read

A captivating aerial view of Panama City's Casco Viejo at night, illuminated by vibrant city lights. — Photo by K on Pexels

The heat hits you like a damp blanket as you step out of the metro at Iglesia del Carmen, the air thick with the smell of diesel and frying plantains from a nearby fonda. A thunderstorm is brewing over the bay, and the man next to you, clutching a briefcase and a cup of geisha coffee, catches your eye and offers a simple, warm “¿Qué hubo?” — what’s up? This is Panama City in late August: sticky, alive, and far more intimate than the glass towers of Punta Pacifica suggest. To move through it with grace, you need more than a map. You need to understand the code of convivencia — the quiet rules of respect that make this city tick.

Greetings: The Art of the Handshake and the Kiss

In Panama, the handshake is standard for men, but a light kiss on the right cheek (a besito) is common between women or when greeting someone you know well. It’s not a passionate gesture, just a soft brush of cheek against cheek with a little muah sound in the air. If you’re a man meeting a woman, wait for her to extend her hand first; if she offers her cheek, lean in. Don’t be stiff about it. Use their title when appropriate — Licenciado (for professionals) or Ingeniero (engineer) — but most younger Panamanians prefer just first names.

Eye contact matters. Panamanians value a genuine look when saying hello. A distracted, phone-in-hand greeting is considered rude. When you’re introduced to a group, greet each person individually — do not wave at the collective. And while the casco is relaxed, never greet a police officer or a business partner with a kiss. A firm handshake with your right hand, left arm slightly extended or touching elbows, is the respectful play.

Tipping: What to Leave and Where

Tipping in Panama is less aggressive than in North America but still appreciated. At a mid-range restaurant like La Pulpería in Casco Viejo or anywhere on Via Argentina, a 10% service charge (servicio) is usually added to your bill. Check before you double-tip. If it’s included, leave a few balboas loose on the table if the service was stellar. If not included, 10–15% is standard. The currency is the balboa, pegged 1:1 to the US dollar — so a US dollar bill is perfectly accepted everywhere.

For taxis (which you’ll negotiate before the ride, around PAB 3–5 across town), you do not need to tip, though rounding up to the nearest dollar is polite. At the Mercado de Mariscos, where a cup of corvina ceviche costs about PAB 2–3, a small tip of 25 or 50 cents in the jar is appreciated. Airport porters and hotel bellhops: a dollar per bag, max two. And for guides at the Panama Viejo ruins — tip PAB 5 if they gave you the full history of Henry Morgan’s looting.

Dining Manners: Keep Your Hands on the Table

Panamanian table manners are a blend of American formality and Latin warmth. Wait for the host to say “buen provecho” before you start eating. Keep your hands visible — wrists resting on the edge of the table, not in your lap. The fork stays in your left hand, knife in your right, American style. But don’t be alarmed if a local offers you a piece of their carimañola from their own plate; that’s friendship, not a hygiene breach.

When you sit at a fonda — a local lunch counter where a comida corriente (rice, beans, a meat, and fried plantains) runs about PAB 3–6 — you’ll often share a table with strangers. That’s fine. Say “permiso” when you sit, and “buen provecho” when they’re eating. Try the chicheme — a sweet corn drink — if it’s on the menu, because maíz nuevo season is peaking. The one hard rule: never start eating the soup before you’ve added a squeeze of limón and a dash of Cholula-style hot sauce that sits on the table. It’s not seasoning; it’s ritual.

Dress: Breezy but Never Sloppy

The climate is brutally humid — 31°C with a feel of 38°C — so you’ll want light cotton or linen. But Panamanians take pride in presentation. You can wear sandals to the Casco Antiguo during the day, but for the rooftop bars at Amarla Boutique Hotel or a dinner at Kaandela, wear closed-toe shoes and a collared shirt. Men: avoid shorts after 7 pm in nicer restaurants. Women: casual elegance is the norm — a sundress and flat sandals work for most places.

For the Miraflores Locks Visitor Center or a nature trail at Parque Natural Metropolitano, you’re fine in athletic wear, but pack a light rain jacket. The thunderstorm will hit suddenly, flooding the streets briefly. And a baseball cap is common, but a Panama hat (the pintao) is a national symbol — wearing one as a visitor is seen as an homage, not a costume, as long as it’s made of real straw.

Small Customs: The Rules of Space and Time

Panama runs on hora chapín — a relaxed sense of time. If you’re invited to someone’s house, arriving 15 minutes late is on time. Arriving early is an imposition. When entering a shop or a friend’s apartment, say “buenos días” or “buenas tardes” and wait for the response before making your request. It’s a small courtesy that opens doors.

In Casco Viejo — the UNESCO old town — never touch the ruins or the colorful mosaics on the Iglesia de San José. The lanes are cobblestone; wear flat shoes. And when you’re at the Biomuseo (Frank Gehry’s only Latin American building), ask before taking photos of the Guna women in traditional dress — they will often pose for a coin or a small tip, but never photograph without asking.

Personal space is smaller than in the US. Queues are not sacred; people will gently nudge ahead. Don’t take it personally. Baristas at a place like Cabrera Coffee Brew House on Via Argentina expect you to order quickly but then linger — cafes here are for conversation, not for WiFi-working. If you’re on your laptop, buy a second coffee (about PAB 3) to be polite.

Money, Transit, and the Unwritten Rule of Generosity

Roughly one balboa equals one US dollar, so don’t pull out confusing change — use US coins freely. The metro costs PAB 0.35 per ride, one of the cheapest in the world. But here’s the local secret: when you ride the Metro Bus (PAB 0.25), you must pass the fare card to the driver verbally via the cobrador — and if you’re at the back, rely on the chain of hands. That chain, a series of strangers passing your card forward and change back, is the city’s real etiquette. Say “gracias” to each person in the chain. This is not charity; it’s the compact of the vecino (neighbor).

Finally, if you see a pollo guisado or sancocho stall during the evening commute, do not haggle. A bowl at a fonda costs about PAB 3–6 — pay the full price, eat it standing, and offer the fruit seller’s kid a dollar if they carry your bag. That’s how you’ll be remembered: not as a tourist, but as someone who understands la cultura.

Panama is not a place where you tip the meter maid or kiss the mayor’s ring. It’s a place where you say buen provecho to strangers, where you tip the ceviche vendor an extra quarter, where you don’t wear shorts to a salsa night at Mahalo Cocina y Jardin. Do that, and this city — with its 507-year-old ruins and its canal that still moves the world — will open its arms to you.

Frequently asked questions

Is it expected to tip 20% in Panama City restaurants?

No. A 10% service charge is often included in the bill at mid-range restaurants. If it's added, leave a few balboas on the table for great service. If not, 10-15% is fine. Never tip 20% unless you're at an ultra-luxury spot in Casco Viejo.

What is the proper greeting when meeting someone in Panama for the first time?

A firm handshake with eye contact is standard for men. Between women and in mixed settings, a light kiss on the right cheek (a besito) is common if you're introduced by a mutual friend. Wait for the woman to offer her cheek first.

Can I use US dollars for everything in Panama?

Yes, the Panamanian balboa is pegged 1:1 with the US dollar, and US bills are accepted everywhere. US coins are also fine, but you'll often receive balboa coins as change — they're the same size and value.

What should I wear for dinner in Casco Viejo in August?

Expect humidity and evening thunderstorms. Men should wear a light long-sleeve shirt or a clean polo with trousers or dark jeans; women can wear a sundress. Closed-toe shoes are recommended for the cobblestones after rain. No shorts for nicer restaurants.

Is it rude to negotiate the price of food at local fondas or markets?

Yes, haggling over food is poor form. A bowl of sancocho or a comida corriente at a fonda costs about PAB 3-6. Just pay the posted price. You can negotiate for souvenirs at the Artisan Market, but never on food or taxi fares when the meter is set.

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