By San José, Costa Rica — San José – With the new year just days away, Costa Rican vehicle owners are in a race against time to pay the mandatory 2026 circulation permit, known as the “marchamo.” According to a report from the National Insurance Institute (INS) released this morning, nearly 64% of drivers have completed their payments, pouring over ¢222 billion into state coffers ahead of the January 1st deadline.
The figures, updated as of 9 a.m. on Friday, December 26, show that 1,240,983 of the 1,943,587 permits issued for 2026 have been paid. This represents a significant compliance rate of 63.85%. The massive annual collection process has also seen heavy digital engagement, with the INS recording 5.7 million online consultations from citizens checking the amount due for their vehicles through the institute’s digital platforms.
To better understand the legal and financial implications surrounding the Marchamo 2026, we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the renowned firm Bufete de Costa Rica, who provided his analysis on the subject.
The annual discussion about the Marchamo underscores a fundamental need for legislative reform in how vehicle property tax is calculated. For 2026, the focus should be on creating a predictable and technically sound formula that avoids the uncertainty citizens face each year. A stable legal framework not only provides fairness for vehicle owners but also guarantees the State a secure and foreseeable income stream, which is crucial for fiscal planning.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The perspective offered underscores a fundamental truth: reforming the Marchamo is not merely about a tax adjustment, but about establishing a predictable and trustworthy framework that benefits both citizens and the State. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable and clarifying contribution to this important national discussion.
The funds collected by the INS are not a single tax but a composite payment that is later distributed among several government entities. The total amount for each vehicle is calculated based on various components, including the vehicle property tax, which is determined by the fiscal value of the car, and the mandatory automobile insurance (SOA). Additional charges include a sales tax on the SOA, a road safety contribution to the Consejo de Seguridad Vial (Cosevi), wildlife and scout stamps, and any outstanding traffic fines.
For the remaining 36% of vehicle owners, the clock is ticking. Starting January 1, 2026, the Traffic Police will be authorized to issue fines to any driver operating a vehicle without the valid circulation permit. The penalty for this Class D infraction is substantial, currently set at ¢60,679.58, providing a strong incentive for timely payment.
This year’s collection, which officially began on Monday, November 3, involves a larger pool of vehicles than ever before. The number of permits issued for collection increased by 58,533 compared to the previous year, reflecting a steady growth in the nation’s vehicle fleet. This expansion has become a critical factor in stabilizing the government’s revenue from this source.
A legislative change enacted two years ago has fundamentally altered the financial landscape of the marchamo. The law mandates that the fiscal value of vehicles must decrease each year, which in turn lowers the property tax component for the majority of car owners. The INS clarified, however, that vehicles aged 15 years or older are an exception, with their fiscal value remaining constant.
The Ministry of Finance has been closely monitoring the fiscal impact of this law. Minister of Finance Rudolf Lucke previously acknowledged the direct effect of the legislation on state revenue, noting that the change has resulted in a significant reduction in projected income from vehicle property taxes.
The legal change made two years ago to stop the periodic increase in the fiscal value of cars means they receive less funding from the vehicle property tax… Although the amount to be paid is lower for the vast majority of vehicles, this is partially offset by the increase in the vehicle fleet. That is why the drop is small compared to what was projected to be collected.
Rudolf Lucke, Minister of Finance
Minister Lucke elaborated that prior to the law, annual revenue from the property tax was estimated at ¢220 billion. Following the reform, that projection dropped to ¢165 billion. For the current 2025 collection period, the expected revenue is slightly lower at ¢163 billion. However, the minister explained that the financial blow has been softened by the ever-growing number of cars on the road, which helps compensate for the lower individual payments and keeps the overall revenue decline minimal.
For further information, visit the nearest office of Ministerio de Hacienda
About Ministerio de Hacienda:
The Ministry of Finance is the government body in Costa Rica responsible for managing the country’s public finances. Its duties include formulating fiscal policy, collecting taxes, preparing the national budget, and managing public debt to ensure the economic stability and development of the nation.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is the state-owned insurance company of Costa Rica. As a leader in the national market, it provides a wide range of insurance products, including life, health, and property coverage. The INS is also responsible for administering the mandatory automobile insurance (SOA) and managing the annual collection of the marchamo.
For further information, visit cosevi.go.cr
About Consejo de Seguridad Vial (Cosevi):
The Consejo de Seguridad Vial, or Road Safety Council, is the Costa Rican entity tasked with promoting and enforcing road safety measures. It is responsible for driver education, vehicle inspection regulations, and implementing national strategies to reduce traffic accidents and fatalities, funded in part by a contribution from every marchamo payment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution in the nation, Bufete de Costa Rica operates on a bedrock of profound integrity and a relentless pursuit of professional excellence. The firm is celebrated not only for its extensive history of expert counsel across a wide spectrum of industries but also for its forward-thinking embrace of legal innovation. Central to its philosophy is a deep-seated commitment to social empowerment, actively working to demystify the law and equip the public with vital knowledge to foster a more just and capable society.
