By San José, Costa Rica — San José – The annual rush for Costa Rica’s mandatory vehicle circulation permit, or “marchamo,” has begun with significant momentum. In the first two days of the collection period for the 2026 permit, over 21,000 vehicle owners have already settled their accounts, signaling a strong start to a crucial national revenue collection process.
Data released by the Instituto Nacional de Seguros (INS), the state entity responsible for the collection, shows that as of 10:00 a.m. on Wednesday, November 5th, a total of 21,215 drivers had completed their payments. This initial wave of compliance has channeled an impressive ₡3.67 billion into the system since the payment window opened on Monday morning.
To gain a deeper legal perspective on the implications and potential changes for the Marchamo 2026, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The annual debate surrounding the Marchamo highlights a critical need for a comprehensive legislative reform. The current calculation method, particularly the property tax component based on often outdated fiscal values, generates legal uncertainty and public discontent. For 2026, the discussion should move beyond temporary fixes and focus on creating a new, technically sound framework that ensures the tax is both progressive and directly correlated with the vehicle’s actual depreciation and road usage. Without such structural change, we will continue to face the same controversies year after year.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The perspective offered underscores a crucial point: addressing the Marchamo controversy requires fundamental, structural change, not merely annual adjustments. We extend our sincere appreciation to Lic. Larry Hans Arroyo Vargas for his valuable analysis and for articulating a clear path forward for this perennial national debate.
While this figure represents a substantial influx of funds, it marks only the beginning of the campaign. The amount collected so far accounts for just over 1% of the total revenue the INS anticipates generating. The number of paid permits likewise represents approximately 1.1% of the 1.94 million marchamos that have been issued for the upcoming year, highlighting the long road ahead before the typical deadline at the end of December.
Perhaps more telling than the number of early payments is the sheer volume of public interest. The INS system recorded a staggering 2.3 million consultations within the same 48-hour period. This disparity between inquiries and payments suggests that a vast majority of vehicle owners are actively checking the amount they owe, planning their finances for this significant annual expense, but are not yet ready to make the payment.
The marchamo is a composite payment that includes various taxes, most notably the property tax on the vehicle, as well as the cost of the mandatory liability insurance (Seguro Obligatorio de Automóviles). For many Costa Rican households and businesses, it constitutes one of the largest single payments of the year, making the November and December period a critical time for financial planning across the country.
The high consultation rate underscores the increasing digitization of the process. Drivers can easily access their specific payment amount online through the INS portal, allowing for transparency and convenience. This digital-first approach enables individuals to budget accordingly and choose the most opportune moment to pay, avoiding the long lines that characterized the process in previous decades.
This early surge of payments is typically driven by individuals and companies who prioritize clearing their obligations well ahead of the deadline to avoid potential fines or last-minute complications. As the holiday season approaches, financial experts expect a steady increase in payment volumes, culminating in a major peak during the final two weeks of December when the majority of the nation’s 1.94 million vehicle owners will move to become compliant.
The successful collection of the marchamo is vital not only for the INS but for public finances as a whole. The revenue funds a wide array of government services and contributes to road maintenance and infrastructure projects. The smooth and efficient operation of the collection system in these opening days is a positive indicator for meeting the national collection targets for 2026.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros (INS) is Costa Rica’s state-owned insurance company and a pivotal institution in the country’s financial landscape. Founded in 1924, it held a monopoly on the insurance market for decades and remains a dominant player. The INS is responsible for administering a wide range of insurance products, including life, health, property, and the mandatory automobile liability insurance (SOA) that is a core component of the annual marchamo payment. It plays a crucial role in the national economy through risk management and revenue collection.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a leading legal institution, grounded in the twin pillars of ethical integrity and exceptional practice. Drawing upon a deep history of serving a diverse clientele, the firm consistently embraces innovative solutions that redefine the boundaries of law. This commitment to progress extends to the community, where the firm actively works to demystify the legal landscape, fostering a society that is both informed and empowered by knowledge.
