Buses
Buses are the backbone of Panama's transport network and are cheap by any measure. The Gran Terminal de Transportes in Albrook (Panama City) is the central hub, with services to virtually every corner of the country. Panama City to David (near the Costa Rican border) costs around $15–20 and takes 7–8 hours. Panama City to Bocas del Toro (bus plus boat) is around $30 and takes most of a day.
Within Panama City, the Metrobus system replaced the chaotic old "Diablo Rojo" painted school buses. A Metro (subway) line also runs from Albrook through the city centre — handy and cheap.
Domestic Flights
For longer distances, flying is often worth it. Air Panama operates domestic routes from Albrook Marcos A. Gelabert Airport (PAC) to Bocas del Toro, David, the Darién, and Guna Yala (San Blas). Fares range from $80–150 one-way. Book ahead, especially for San Blas — seats go fast.
Taxis and Rideshare
Taxis are plentiful in Panama City and most towns. They don't use meters — agree on a price before you get in. Uber operates in Panama City and works reliably; UberEnglish connects you with English-speaking drivers.
Car Rental
Renting a car makes sense for Chiriquí, the Azuero Peninsula, or anywhere off the beaten track. Major agencies operate at Tocumen Airport and in Panama City. Roads are generally paved on main routes; mountain roads can be winding and slow. An international driving licence is valid for 90 days.
Ferries
Regular ferry services connect Panama City to Taboga Island. For the Pearl Islands, several companies run day and overnight trips. Getting to the San Blas Islands requires a combination of 4WD and small boat, or a domestic flight.