More than 125,000 vehicles are currently circulating on Panama’s roads with expired license plates due to a major administrative delay. The country’s Land Transit and Transportation Authority (ATTT) has failed to issue new plates for 2026, a situation also stranding over 5,000 brand-new cars without any registration at all.
This crisis stems directly from the implementation of Law 214 of May 4, 2021 (Panama). That legislation changed the national vehicle registration plate system, establishing a five-year validity for metal plates starting with those issued in 2021. Those first plates under the new law officially expired in December 2025. The law also introduced annual windshield stickers for renewal, aiming to cut costs and waste by eliminating yearly metal plate replacements.
“The topic is being processed with the Chapala Vocational School, the institution authorized by law for the manufacture of the plates.” [Translated from Spanish]
The ATTT provided that brief statement when questioned about the mounting problem. According to the 2021 law, the authority was required to design and issue a new plate series valid from 2026 through 2030. Officials have not publicly explained the reason for the delay or provided a clear timeline for resolution. Internal meetings were reportedly held as recently as January 23 to address the issue.
Drivers across Panama are now caught in a bureaucratic limbo. Owners of vehicles with 2021 plates cannot legally renew their registration. People who purchased new cars cannot get their first plates issued. Both groups are being forced to obtain temporary municipal permits just to drive legally, creating extra cost and hassle.
Tender Process Blamed for Systemic Delay
The core of the problem appears to be a stalled bidding process. The ATTT has not finalized the public tender required for the new plate design and materials. This procurement step needed completion well before the old plates expired. Its failure now threatens to extend the crisis throughout the entire 2026 calendar year.
Confusion over responsibility has clouded the issue. The Chapala Vocational School, legally tasked with physically manufacturing plates, stated it lacks authorization to discuss tenders or the process status. A knowledgeable source, who requested anonymity, clarified the chain of command. They explained the ATTT alone defines the guidelines, timelines, and procedures.
Chapala’s role is strictly fabrication. The school does not handle the material acquisition tender, which is awarded to an external company. This delay directly impacts the vocational school’s institutional funding, which relies on plate sales to support feeding, health, and education programs for approximately 200 students.
Drivers Face Legal and Financial Uncertainty
For Panamanian motorists, the administrative failure translates into daily risk and uncertainty. A primary concern is increased police checkpoints. Traffic laws still mandate a valid plate and current annual sticker. Authorities can enforce these rules regardless of the ATTT’s distribution failure.
The ATTT itself has previously warned that driving with expired plates carries penalties. Those sanctions include a $50 fine. A repeat offense within a 24-hour period can lead to vehicle impoundment. Drivers worry police may begin stricter enforcement, penalizing them for a situation entirely outside their control.
Insurance coverage presents another serious worry. Policyholders and companies are navigating unclear territory regarding vehicles operating without valid state registration. Contracts for new cars lacking plates entirely face similar ambiguities. This legal gray area could complicate accident claims and liability determinations.
Officials have not announced any grace period or formal directive to police regarding the widespread expiration. The lack of communication from the ATTT continues to fuel public frustration. Drivers are essentially left guessing whether their necessary commute will result in a costly citation.
Panama’s plate crisis highlights a significant breakdown in public service delivery. A law designed to modernize registration and promote sustainability has backfired due to poor execution. Thousands of citizens are now paying the price for institutional delay, navigating complex workarounds for a basic governmental function. The ATTT has not indicated when it will open the tender or when new plates might finally reach distribution centers.