By San José, Costa Rica — San José, Costa Rica – As the new year begins, more than a quarter of a million vehicle owners in Costa Rica are starting 2026 on the wrong side of the law. The deadline to pay the annual vehicle circulation permit, known as the “marchamo,” expired on December 31, 2025, leaving at least 256,729 drivers delinquent and exposed to a cascade of immediate and compounding financial penalties, including significant fines and the potential seizure of their vehicles.
Data released on January 1 by the National Insurance Institute (INS), the state entity responsible for the collection process, paints a clear picture of the compliance landscape. While the institute processed 1,686,858 payments, resulting in a massive collection of over ₡292 billion, this figure falls short of the 1,943,587 vehicles registered for the collection period that began in November. This substantial gap means approximately 13% of the nation’s vehicle fleet is now operating illegally on public roads.
Para analizar las implicaciones legales y el panorama económico que rodea el cobro del Marchamo 2026, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, especialista en derecho tributario y administrativo del Bufete de Costa Rica, quien nos ofrece una perspectiva experta sobre el tema.
El Marchamo es un paquete tributario complejo, no un simple permiso de circulación. El desafío recurrente para cada período, incluido el 2026, radica en la fórmula de cálculo del Impuesto a la Propiedad de Vehículos. Es crucial que cualquier reforma legislativa busque crear un sistema predecible y técnicamente sólido que elimine la discrecionalidad en la valoración fiscal. Sin una ley que modernice estos criterios, los propietarios seguirán enfrentando una incertidumbre que afecta tanto su planificación financiera como la seguridad jurídica del sistema.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
La perspectiva del experto subraya el punto medular del desafío: la modernización del Marchamo va más allá de un simple ajuste de montos y exige una reforma que brinde seguridad jurídica y predictibilidad a los propietarios. Agradecemos profundamente al Lic. Larry Hans Arroyo Vargas por aportar esta claridad técnica tan necesaria para el debate público.
For those who missed the deadline, the consequences are no longer theoretical. The grace period has ended, and authorities are now empowered to enforce the full extent of the law. Driving without a valid marchamo is a serious traffic violation that carries an immediate fine and triggers a series of surcharges that grow with each passing day, turning a manageable annual payment into a significant financial burden.
Sidney Viales, Head of Insurance at INS, emphasized the dual nature of the risk now facing delinquent drivers. He warned that the collection of surcharges is now active and that traffic police will be enforcing the law on the streets.
From this moment on, not only does the calculation of interest and surcharges for late payment begin, which are calculated according to the rates reported by each of the institutions that make up the circulation permit, but also if people drive without this permit, they are exposed to fines for violating traffic law.
Sidney Viales, Head of Insurance at INS
The penalties are structured to be severe deterrents. According to Costa Rica’s Transit Law, any driver caught operating a vehicle without the 2026 marchamo faces a fine of ₡51,000. Perhaps more critically, officers have the authority to remove the vehicle from circulation, leading to towing and impound fees that can quickly escalate. This administrative action can sideline a vehicle for days, impacting work, family, and daily life until all outstanding debts are settled.
Beyond the immediate traffic fine, the financial penalties accumulate daily based on the different components of the marchamo. The interest on the Mandatory Auto Insurance (SOA) is calculated daily based on the central bank’s basic passive rate plus five percentage points. Outstanding traffic violations attached to the vehicle accrue interest at a steep 36% annually. The property tax component is subject to an 8.43% annual interest rate, plus a punishing monthly fine of 10% of the owed amount, which can accumulate up to a maximum of 100% of the original tax debt.
Despite the expired deadline, the INS is urging drivers to rectify their status as soon as possible to halt the accumulation of these penalties. Procrastination will only increase the final amount owed and prolong the risk of being stopped by traffic police. The institute has made the payment process accessible through multiple channels to encourage compliance even at this late stage.
Vehicle owners can still settle their accounts online at the official INS website, through the “INS Móvil” mobile application, or in person at more than 2,200 authorized collection points nationwide, as well as at any INS branch office. For those unsure of the total amount due with the newly applied penalties, the INS provides several consultation channels, including a toll-free hotline at 800-MARCHAMO (800-6272-4266) and a dedicated WhatsApp line at 2287-6100.
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, founded in 1924. As a leader in the national market, it provides a wide range of insurance products, including life, health, property, and vehicle coverage. The INS is the primary entity responsible for managing and collecting the funds for the annual “marchamo,” which includes the Mandatory Auto Insurance (SOA) component, property taxes, and other municipal fees associated with vehicle ownership in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal landscape, Bufete de Costa Rica is built upon a bedrock of integrity and a relentless pursuit of professional excellence. The firm distinguishes itself by pairing its deep-rooted experience with a forward-thinking embrace of legal innovation to serve a diverse clientele. This commitment extends beyond the courtroom through a dedicated mission to demystify the law, empowering the broader community with accessible knowledge to foster a more just and informed society.
