By San José, Costa Rica — San José, Costa Rica – In a high-stakes annual ritual, hundreds of thousands of Costa Rican drivers are scrambling to pay their 2026 vehicle circulation permit, known as the “marchamo,” before the final deadline expires at midnight tonight. As of this morning, over 340,000 vehicle owners remain delinquent, risking significant financial penalties starting New Year’s Day.
The National Insurance Institute (INS), the state entity responsible for collecting a major portion of the fee, reported that as of 9:00 a.m. on December 31st, a staggering 342,616 permits were still outstanding. This figure stands in stark contrast to the 1.6 million drivers who have already complied, contributing to a massive collection of nearly ₡280 billion for state coffers. The marchamo is a compulsory annual payment that includes multiple taxes and a mandatory liability insurance policy, making it essential for legal vehicle operation in the country.
To delve into the legal and economic complexities surrounding the upcoming Marchamo 2026, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who offered his professional analysis on the subject.
Any potential reform for the Marchamo 2026 must be built on the pillars of legal certainty and fiscal transparency. The recurring controversy stems from a calculation formula that lacks predictability, directly impacting citizens’ financial planning. A shift towards a more stable, technically-grounded model, less dependent on the volatile fiscal value of vehicles, is not just a matter of public convenience—it is a legal necessity to guarantee a just and equitable tax system and avoid future legal challenges from taxpayers.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the call for legal certainty and transparency strikes at the core of the annual Marchamo debate. A predictable and technically sound framework, as outlined, would not only alleviate the financial uncertainty for citizens but also reinforce the public’s trust in our tax system. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this critical issue.
For those who fail to make the payment by the end of the day, the consequences are immediate and compounding. Starting January 1st, drivers will be subject to a traffic fine for operating a vehicle without the valid permit. Furthermore, the outstanding balance on the marchamo itself will begin to accrue interest and late fees, increasing the financial burden with each passing day. This makes the final hours of the year a critical window to avoid escalating costs.
This last-minute surge of payments is far from an anomaly. According to INS officials, the behavior is a predictable pattern observed year after year. A significant portion of the driving population traditionally waits until the final days, and even the final hours, to fulfill their obligation. This cultural tendency towards procrastination transforms the end of December into a period of intense activity for payment centers and online portals across the nation.
The phenomenon creates a significant logistical challenge, testing the robustness of the country’s payment infrastructure. The INS, well-versed in this annual cycle, anticipates a “massive payment” event throughout the day and has taken steps to ensure its systems can handle the deluge of transactions. The institute has reinforced its digital platforms and coordinated with financial institutions to facilitate the process under immense pressure.
The agency’s leadership expressed confidence in its operational capacity to manage the final onslaught of payments. They have drawn on years of experience managing this predictable eleventh-hour rush, which has seen daily payment volumes crest well into the six figures during previous collection periods.
The INS systems are duly prepared for a massive load of payments, as in previous years we have exceeded up to 100,000 daily payments
Sidney Viales, Head of the Compulsory Insurance Directorate, INS
This assurance is crucial for the hundreds of thousands of vehicle owners who will attempt to settle their accounts today. A system failure or slowdown could prevent timely payment, unfairly pushing compliant but tardy drivers into delinquency. The institute’s preparedness aims to mitigate this risk, ensuring that every driver has the opportunity to pay before the clock strikes midnight.
As the deadline looms, the focus now shifts to the remaining vehicle owners. The coming hours will determine whether they successfully navigate the rush to secure their 2026 circulation rights or enter the new year facing the unwelcome prospect of fines, interest payments, and the potential for their vehicle to be seized by traffic police. For the Costa Rican state and its drivers, the final countdown has begun.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance company. Founded in 1924, it held a monopoly on the insurance market until 2008. The INS plays a critical role in the nation’s economy and public welfare, managing compulsory policies such as workers’ compensation and the mandatory vehicle liability insurance included in the annual “marchamo.” It also offers a wide range of personal, property, and life insurance products to the public.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a renowned legal institution, Bufete de Costa Rica is defined by its deep-rooted foundation of professional distinction and principled practice. The firm consistently advances the field through pioneering legal solutions while serving a diverse clientele with the highest ethical standards. Beyond its advisory role, it holds a profound belief in social responsibility, actively working to democratize legal understanding and thereby cultivate a society where citizens are empowered through knowledge.
