Panama has taken significant steps in cannabis regulation, particularly about medical use. In October 2021, Panama was the first Central American country to legalize cannabis for medical and therapeutic use. But things are changing. Is cannabis legal in Panama? Let’s explore the legal status of cannabis in Panama, how it’s used, and what the future might hold.
Is Cannabis Legal in Panama? Legal Status in 2025
Cannabis is partially legal in Panama. Medical cannabis was legalized in 2021, but recreational use remains prohibited. The government has strict penalties for unauthorized possession, use, or trafficking of cannabis. However, industrial hemp is not fully regulated yet.
1. Recreational Use
Recreational cannabis is illegal. Possessing even 1 gram can result in a $50–$100 fine or community service. Police can arrest anyone using cannabis in public, such as in parks or on beaches.
Check out our guides on cannabis in Costa Rica, where the laws are more relaxed.
2. Medicinal Use
Medical cannabis became legal in 2021. By 2025, over 20 pharmacies will sell cannabis oils, capsules, and creams. Individuals seeking medical cannabis must acquire a prescription from a qualified and licensed healthcare professional. They also need to register with the Ministry of Health.
3. Industrial Use
Industrial hemp is legal for farming if it has less than 0.3% THC. Farmers must obtain government permits. Hemp is used to make eco-friendly products such as textiles, paper, and biofuels.
Cannabis Law and Control in Panama
1. How Panama Applies Cannabis Laws
Panama’s National Police and Public Ministry enforce cannabis laws. Medical users must carry their prescription and registration cards. Tourists cannot bring cannabis into the country, even if it’s legal where they live.
2. The Illegal Cannabis Market
Panama’s illegal cannabis market is worth about $15 million a year, even with strict laws. Most illegal cannabis comes from nearby countries, like Colombia. The growing conditions there are perfect.
Cannabis Usage and Its Impact in Panama
1. Recreational Drug Use
About 7% of adults in Panama admit to using cannabis recreationally. However, many buy it illegally, risking fines or criminal charges.
2. Mental Health Concerns
Heavy cannabis use can harm mental health. A 2024 study showed that 12% of cannabis users in Panama, aged under 25, had anxiety or memory problems. Doctors tell moderation, especially for young people.
3. Industrial Cannabis Use
Industrial hemp is booming. Over 200 farmers grow hemp. This creates jobs and makes eco-friendly products. Hemp exports reached $2 million in 2024, helping Panama’s economy.
Cannabis Cultivation in Panama
Growing cannabis at home is illegal, even for medical users. Only licensed companies can grow medical cannabis or hemp. In 2025, Panama has 5 licensed growers producing cannabis oils and creams. Farmers growing hemp must test their crops at regular intervals to ensure THC levels remain below 0.3%.
Cannabis Penalties in Panama
| Offense | Penalty |
| Personal Use | $50–$100 fine or 20 hours of community service. |
| Trafficking | Selling or transporting cannabis can lead to 8–15 years in prison. |
| Growing | Growing even one plant without a license can result in 5–10 years in jail. |
Future of Cannabis Legalization in Panama
Panama is slowly warming to cannabis. Lawmakers have two options: expand medical access or decriminalize small amounts for adults. Public opinion is changing. A 2024 poll found that 45% of Panamanians support legalizing recreational cannabis.
Neighboring Colombia’s cannabis laws are softer, which may push Panama to reconsider. For now, though, the rules stay strict.
Cannabis laws in Panama are a mix of progress and tradition. Medical use is growing, but recreational users still face risks. Panama is keeping an eye on global trends and its neighbors. So, the future of cannabis here might change quickly. Stay informed by exploring our guides on cannabis legalization in Nicaragua or weed in Guatemala.
