Harry W. Says:
What’s the tipping culture in Panama?
IL Panama Editor Jessica Ramesch Says:
Hi Harry,
In Panama City, which is a cosmopolitan capital with world-class restaurants, sometimes people will tip 15-20% for an excellent meal, though for most cafeteria-type places 10% is just fine. Outside of Panama City, generally 10% is fine.
Restaurants aren’t allowed to automatically add tips unless it’s a large group, so check the bill and specify before paying whether you’d like to tip via credit card. Staff will often ask when ringing you up: Desea incliur el servicio? If you say sí (yes), they may ask you to specify a percentage or they’ll just punch in 10%. Staff often appreciate cash tips, and some places—generally outside the city—only accept cash.
Generally the check will show you suggested tipping amounts (10%, 15%, and 20%) so you don’t have to worry about calculating the tip after a few rum and cokes. (Panama has fabulous rum, try the Abuelo brand.)
Expect to pay a 7% tax on restaurant bills—this is not a tip and does not go to staff or the restaurant. Panama has strict electronic invoicing and restaurants are obligated to pay this tax to the government.
For airport and hotel porters, tip as you would in the US ($5 for wheeling a couple of bags from your Uber to check-in, for example).
If you take taxis, don’t tip drivers unless they’ve gone above and beyond the normal call of duty. The same goes for pangas or water-taxis. (I recommend using taxis only outside Panama City. In Panama City you can use ride-share services like Uber that have clear and consistent pricing and GPS tracking for safety.)
You can tip tour guides and tour bus drivers, boat captains, and private drivers for good service (5% to 10% is fine and usually greatly appreciated).
It is customary to tip housekeeping in nice establishments. You can leave $2 to $3 on your pillow every morning, or leave a lump sum on the day you check out. Consider adding a few extra dollars if you are traveling with kids or received special attention.
Discover the pros and cons of living in Panama on our newly-revamped IL website.
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