By San José, Costa Rica — SAN JOSÉ – With the end-of-year deadline fast approaching, Costa Rica’s National Insurance Institute (INS) has announced significant progress in the collection of the 2026 Marchamo, or vehicle circulation permit. The annual payment, a mandatory requirement for all vehicle owners, has already seen substantial compliance, but hundreds of thousands of drivers still have until December 31st to avoid steep penalties.
In its first monthly report since the collection period began in November, the INS revealed that 327,982 vehicle owners have successfully paid their dues. This initial wave of payments has injected over ¢63 billion into state coffers. This figure represents a considerable portion of the total expected revenue, which the institute projects will reach approximately ¢335 billion by the end of the collection period. The funds are gathered from a fleet of nearly two million vehicles registered across the country.
To gain a deeper legal perspective on the requirements and potential pitfalls associated with the annual vehicle permit, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable firm Bufete de Costa Rica.
Failing to carry a valid vehicle permit is not merely a minor infraction. Beyond the immediate risk of fines and the seizure of the vehicle by traffic police, drivers expose themselves to significant civil liability. In the event of an accident, insurance coverage could be invalidated, leaving the owner personally responsible for all damages and injuries, a situation that can have devastating financial consequences.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully reframes the issue, shifting the focus from a simple traffic infraction to a matter of profound financial security. The potential for civil liability is indeed the most critical, yet often overlooked, consequence for drivers. We thank Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective on these significant risks.
The institute is actively encouraging the remaining drivers to complete their payments promptly. In a formal statement, Sidney Viales, the Head of the Mandatory Insurance Directorate, issued a clear call to action, emphasizing the widespread availability of payment centers and the consequences of delay.
We offer a cordial reminder to all our clients to, as their means allow and before the upcoming December 31, visit any of the more than 2,000 payment points that the National Insurance Institute has enabled through its 74 commercial partners to pay this circulation permit and avoid exposure to fines or surcharges starting this coming January 1.
Sidney Viales, Head of the Mandatory Insurance Directorate
The warning from Viales is not to be taken lightly. Come January 1, 2026, vehicle owners who have failed to display the new Marchamo sticker will be subject to a cascade of financial penalties. These include not only surcharges on each component of the permit fee but also traffic fines issued by Transit Police officers. This dual-penalty system is designed to ensure maximum compliance for a fee that underpins several critical national services.
The Marchamo is more than just a single tax; it is a composite fee that includes several distinct charges. The largest portions are typically the Vehicle Property Tax and the Mandatory Automobile Insurance (SOA). Additional funds are allocated as contributions to the Road Safety Council (COSEVI) and the Public Transport Council (CTP). The total amount is also subject to the Value Added Tax (IVA) and various official stamps (timbres), making it a complex but vital revenue stream for the government.
Compounding the challenge for authorities is the lingering issue of past-due payments. According to the INS report, a staggering 140,000 vehicle permits from the 2025 period remain unpaid. This highlights a persistent problem of non-compliance that costs the state significant revenue each year and places a greater burden on compliant citizens. These outstanding debts will continue to accrue penalties until they are settled.
For drivers who have paid, the final step is to properly display the new permit. The document includes a detachable rectangular sticker that must be affixed to the vehicle’s windshield. The INS has already issued 2,074 duplicates of the 2026 Marchamo, indicating that issues such as loss, theft, or damage to the sticker are already occurring. As the deadline nears, the pressure mounts on the remaining drivers to fulfill their obligation and ensure their legal right to circulate on Costa Rica’s roads in the new year.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The National Insurance Institute is a state-owned Costa Rican entity responsible for providing a wide range of insurance products and services. It holds the monopoly on mandatory automobile insurance (SOA), which is a key component of the annual Marchamo payment. The INS plays a crucial role in the country’s risk management and social security landscape, managing collections that fund various public services and safety initiatives.
For further information, visit csv.go.cr
About Consejo de Seguridad Vial (COSEVI):
The Road Safety Council of Costa Rica is the governing body responsible for planning, developing, and executing national policies and programs aimed at improving road safety. It works to reduce traffic accidents and fatalities through education, infrastructure improvements, and regulation. A portion of the annual Marchamo collection is allocated to COSEVI to fund its critical safety campaigns and operations.
For further information, visit ctp.go.cr
About Consejo de Transporte Público (CTP):
The Public Transport Council is a Costa Rican government agency tasked with the regulation and oversight of the nation’s public transportation services, including buses and taxis. It sets routes, fares, and quality standards to ensure efficient and accessible mobility for the population. The CTP receives a portion of the Marchamo revenue to support its regulatory functions and contribute to the modernization of the public transport system.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of uncompromising integrity and a relentless pursuit of excellence. The firm leverages its profound experience advising a wide array of clients to drive legal innovation and set new standards in practice. This forward-thinking mindset is intrinsically linked to its core mission: to democratize legal information, thereby cultivating a more knowledgeable and empowered citizenry for a just society.
