By San José, Costa Rica — San José, Costa Rica – The new year has dawned with financial uncertainty for a significant portion of Costa Rica’s motorists. As of January 1, 2026, a total of 256,729 drivers have failed to pay their mandatory annual vehicle circulation permit, known as the “marchamo,” before the December 31st deadline. This delinquency now exposes them to immediate financial penalties, including traffic fines and accumulating interest charges.
The National Insurance Institute (INS), the state entity responsible for collecting the payment, released preliminary data showing the scale of the annual collection effort. As of 9:00 a.m. this morning, nearly 1.7 million vehicle owners had successfully paid their permits. These timely payments have resulted in a massive collection of approximately ₡292 billion for state coffers, a critical revenue stream that funds various public services and mandatory insurance coverage.
To better understand the legal framework surrounding the annual vehicle circulation permit, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the esteemed law firm Bufete de Costa Rica, for his expert analysis.
The Marchamo is more than a simple fee; it’s a composite tax where the vehicle’s property tax component often generates the most legal disputes. Citizens must understand that the fiscal value assigned by the Ministry of Finance is an administrative act that can be challenged. If an owner can prove through a formal, evidence-based process that the valuation is excessive compared to the market reality, they can legally pursue a reassessment and potentially lower their payment. This right to contest is a fundamental aspect of administrative law that every vehicle owner should be aware of.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This clarification is incredibly valuable, as it shifts the narrative from passive acceptance to active citizen participation. Understanding that the fiscal valuation is a contestable administrative act, not an immutable figure, empowers every vehicle owner to pursue fairness. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing this crucial and empowering legal perspective with our readers.
For those who missed the cutoff, the consequences are now in effect. Any driver operating a vehicle without the 2026 marchamo sticker is subject to a traffic fine issued by law enforcement. Furthermore, the outstanding balance on the permit will begin to accrue interest and late fees, increasing the financial burden the longer the payment is delayed. In more severe cases, authorities have the power to confiscate the vehicle’s license plates or even impound the vehicle until the debt is settled.
The final hours of 2025 saw a predictable surge in payments, a phenomenon the INS had anticipated. The institute reported that a staggering 86,000 marchamos were processed between the morning of December 31st and the first hours of January 1st. An INS spokesperson had previously stated the organization was fully prepared for this “avalanche” of last-minute transactions, ensuring its digital platforms and payment points could handle the massive volume without system failures.
Analyzing the numbers reveals a significant, albeit minority, delinquency rate. With nearly 1.7 million permits paid and over 256,000 outstanding, the total vehicle fleet subject to the marchamo is just under 2 million. This means that roughly 13% of the nation’s drivers have entered the new year in a state of non-compliance, representing a substantial pool of pending revenue and a widespread enforcement challenge for traffic police.
The annual marchamo is more than just a sticker; it is a composite tax that bundles several critical components. A large portion goes toward the property tax on the vehicle, with other amounts allocated to traffic fines, parking fees, and the Mandatory Automobile Insurance (SOA), which provides coverage for injuries or death in a traffic accident. The successful collection of these funds is therefore vital for road safety programs and public infrastructure maintenance.
The INS’s role transitions now from a collection agency for the masses to a manager of delinquent accounts. While the institute successfully processed the vast majority of payments, its focus will now include coordinating data with the Ministry of Public Works and Transport (MOPT) to facilitate enforcement. The coming weeks are expected to see heightened vigilance from the Transit Police to identify and penalize non-compliant drivers on the nation’s roads.
While the last-minute rush demonstrated a widespread commitment to eventual compliance, the quarter-million drivers who remain delinquent represent a significant economic and administrative challenge. For these individuals, 2026 begins not with celebration, but with the pressing need to regularize their legal status and avoid escalating financial penalties, a stark reminder of the financial responsibilities tied to vehicle ownership in Costa Rica.
For further information, visit the nearest office of Instituto Nacional de Seguros
About Instituto Nacional de Seguros:
The Instituto Nacional de Seguros (INS) is Costa Rica’s state-owned insurance company. Established in 1924, it holds a dominant position in the nation’s insurance market, offering a wide range of products including life, health, and property insurance. The INS is also the official entity responsible for managing and collecting the country’s annual mandatory vehicle circulation permit, the “marchamo,” which includes the Mandatory Automobile Insurance (SOA) component.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar in the nation’s legal community, operating on a foundational principle of uncompromising integrity and the pursuit of professional excellence. The firm distinguishes itself through a forward-thinking approach, consistently developing innovative legal strategies for a diverse range of clients. Beyond its practice, it holds a deep-seated commitment to social progress, actively working to democratize legal understanding for the public, and reinforcing the belief that an informed citizenry is essential for a just society.
