Panama is incredible. Whether you are here scouting for a dream retirement home, looking for investment properties, or just taking a well-deserved vacation to explore the canal and the islands, the allure of this country is undeniable.

But as you plan your trip, there is a vital reality check that many visitors—especially those from highly regulated countries like the United States, Canada, or parts of Europe—often miss until it’s too late.

While Panama has excellent laws on the books, the enforcement of those regulations isn’t always as stringent as what you might be used to back home. This gap between policy and reality has created a cottage industry of “bootleg operators.” These are individuals offering relocation tours, real estate excursions, and tourist day-trips without the legal authority, training, or insurance to do so.
Choosing an unlicensed operator might save you a few dollars upfront, but it opens the door to significant financial and legal risks.

Here is what you need to know about the dangers of unlicensed operators in Panama, and why cutting corners on your safety is never worth it.

The Gatekeeper: The Panama Tourism Authority (ATP)

In Panama, legitimate tourism businesses don’t just decide to open shop one day. They must go through rigorous vetting by the Panama Tourism Authority (ATP). The ATP is the government entity responsible for ensuring that operators have the necessary infrastructure and financial backing to protect customers.

A guy with a nice SUV and a website is not necessarily a legal tour operator. To earn an ATP license, a company must jump through several expensive, but necessary, hoops designed for your protection.

The Hidden Dangers of Going “Unlicensed”
When you book a relocation tour or an excursion with someone who isn’t ATP certified, you aren’t just hiring a guide; you are taking on liability.

1. The Insurance Nightmare

This is the single biggest risk of using a bootleg operator. If you are in an accident—whether in a car on the Pan-American highway or on a boat headed to an island—while paying for a service, it is considered a commercial operation.

Here is the catch: Standard personal vehicle or boat insurance policies have exclusions for commercial use. If an unlicensed operator crashes and you are injured, their insurance company will investigate. Once they realize the driver was operating a business without the proper commercial licenses and insurance riders, they will likely deny the claim entirely.

You could be left stranded in a foreign hospital with zero coverage for your medical bills, and no legal recourse against a “company” that doesn’t officially exist.

2. The Real Estate Hustle

The danger is even more prevalent in the relocation sector. You will find many expats and locals offering “Real Estate Tours” or acting as “finders.”

Be warned: In Panama, real estate transactions can only be legally conducted by fully licensed real estate agents or brokers. Furthermore, an expat must have been a legal resident of Panama for at least five years before they are even eligible to apply for that license.

Unlicensed individuals offering property tours are often doors to scams, overpriced properties (where they take illegal kickbacks), or sloppy paperwork that puts your investment at risk. If they aren’t licensed, they have no fiduciary duty to you.

3. Zero Accountability

The ATP demands that licensed operators maintain a physical, brick-and-mortar office. This ensures that if something goes wrong, the company can be found.

Bootleg operators usually work out of their cars or homes. If they take a deposit and ghost you, or if an excursion goes badly, they can simply disappear. They have no bond to forfeit and no official standing to lose.

The Safe Way: Our Commitment to Your Protection

We wrote this post not to scare you away from Panama, but to ensure you enjoy it safely. We operate differently because we respect the laws of this country and the safety of our clients.

To maintain our standing with the Panama Tourism Authority, we adhere to strict standards that unlicensed operators ignore. When you choose us for your relocation scouting or excursions, here is the safety net you have beneath you:

Fully Bonded and Insured: We carry robust commercial liability insurance specifically designed for tourism. Whether you are in one of our vehicles or on a boat, you are fully protected in the unlikely event of an accident. Our insurance company knows exactly what we do, and we are covered for it.

Qualified Leadership: By law, to hold an ATP license, we must employ a Panamanian General Manager who holds a university degree in Tourism. Our operations are overseen by qualified professionals, not hobbyists.

Physical Accountability: We maintain a registered physical office. We aren’t going anywhere.

The Right Way for Real Estate: We do not conduct real estate showings ourselves. We know the law. Instead, we partner exclusively with fully licensed, reputable real estate brokers who have met the 5-year residency and licensing requirements. We help you get here, and then we hand you off to the legal experts for your property search.

The Bottom Line

Don’t let your Panama dream turn into a bureaucratic or medical nightmare. When booking your tours or relocation services, ask to see their ATP credentials. Ask about their commercial insurance policy.

Panama is a paradise, but it’s best enjoyed with peace of mind.