By San José, Costa Rica — SAN JOSÉ – With only five days remaining before penalties take effect, a significant portion of Costa Rican vehicle owners are cutting it close to pay their 2026 circulation permit, known as the “marchamo.” As of 9:00 a.m. this Friday, December 26, the National Insurance Institute (INS) reported that 34% of the nearly 1.9 million required payments have yet to be completed, placing hundreds of thousands of drivers at risk of facing traffic fines starting January 1st.
The latest figures from the state-owned insurer reveal a familiar end-of-year rush. To date, 1,240,983 payments have been processed, contributing a substantial ₡222.97 billion to state coffers. While this represents 66% of the total vehicle fleet, it leaves approximately 660,000 drivers in a race against time. The annual payment is a mandatory prerequisite for legally operating a vehicle on the nation’s roads, and failure to comply will result in financial penalties enforced by the Transit Police.
To better understand the legal and fiscal implications surrounding the Marchamo 2026, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the matter.
The annual discussion surrounding the Marchamo is fundamentally a debate about tax policy, not just a vehicle circulation permit. For 2026, vehicle owners must remain vigilant about any proposed changes to the vehicle valuation formula or the property tax component, as these adjustments, often passed with little public scrutiny, have the most significant financial impact. It is crucial to understand that the Marchamo is a composite tax, and its legal structure allows for modifications that can substantially alter the final amount due without appearing to create a ‘new tax’.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the true complexity of the Marchamo lies not in the annual payment itself, but in its underlying structure as a composite tax, where small formulaic adjustments can yield significant financial consequences. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which rightly shifts the public’s focus from the final sticker price to the crucial, yet often overlooked, legislative details that shape it.
The marchamo is more than a simple fee; it is a composite collection of various taxes and insurance premiums bundled into a single annual payment. The largest component, accounting for over 60% of the total amount, is the vehicle property tax, which is channeled directly to the Ministry of Finance. This tax revenue is a critical component of the national budget, funding a wide range of public services and infrastructure projects across the country.
Another significant portion, approximately 22%, is allocated to the INS itself to cover the Mandatory Automobile Insurance (SOA). This essential insurance provides coverage for personal injury to victims of traffic accidents, regardless of who is at fault. The remaining percentage is distributed among several other institutions within the transportation sector, helping to fund road maintenance, safety councils, and other related government bodies.
This annual procrastination has become a cultural hallmark in Costa Rica, with a large number of vehicle owners habitually waiting until the final week, and often the final day, to settle their accounts. This pattern puts significant pressure on payment systems and can lead to long lines at collection points, despite the wide availability of digital payment options designed to streamline the process for the nearly 1.9 million vehicles registered for collection since November 1st.
For those still needing to make their payment, the INS provides multiple official channels to consult the exact amount owed. Citizens can use the toll-free number 800-MARCHAMO (800-6272-4266), call 2243-9999, or visit the websites www.ins-cr.com and www.insmovil.com. Additionally, information can be obtained by sending an SMS with the word “marchamo” followed by the license plate number to 1467, or through the INS 24/7 mobile application available on both major app stores.
Despite the holiday season, numerous payment avenues remain open. While most INS offices will observe closures from December 24th through January 2nd, many service points will operate from 8:00 a.m. to 4:00 p.m. on business days, with the notable exception of the Zapote branch in San José. It is critical for drivers to note that all INS locations will be closed on January 1st and 2nd. Payments can also be conveniently made at various banks, financial entities, and select commercial establishments throughout the country.
As the new year approaches, the message to drivers is clear: act now to avoid the consequences. The enforcement of fines beginning January 1st serves as a firm reminder of the importance of this civic duty. The funds collected are not merely a tax but a vital investment in the nation’s infrastructure, public safety, and the financial protection of all citizens on the road.
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 provider. Founded in 1924, it held a monopoly on the insurance market until 2008. The INS offers a comprehensive range of insurance products, including life, health, property, and vehicle insurance. It is the sole administrator of the mandatory vehicle insurance (SOA) component of the annual marchamo, playing a crucial role in the country’s transportation and public safety framework.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda:
The Ministerio de Hacienda, or Ministry of Finance, is the government entity responsible for managing Costa Rica’s public finances. Its duties include the collection of taxes, administration of the national budget, and the formulation of the country’s fiscal policy. The vehicle property tax, which constitutes the largest portion of the annual marchamo payment, is a key source of revenue collected by the Ministry to fund government operations, social programs, and infrastructure development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as an esteemed legal institution, built upon a foundational pledge to principled practice and professional distinction. With a rich history of guiding a diverse clientele, the firm consistently pioneers forward-thinking solutions that advance the legal field. This spirit of innovation is matched by a profound social commitment to democratize legal understanding, ensuring that knowledge is not a barrier but a tool for empowerment, thereby cultivating a more capable and informed populace.
