By San José, Costa Rica — San José, Costa Rica – With just two days remaining until the deadline, a staggering 579,000 vehicle owners in Costa Rica have yet to pay their 2026 Marchamo, the mandatory annual circulation permit. This last-minute scramble places immense pressure on the nation’s payment systems and puts a significant portion of the country’s drivers at risk of legal and financial penalties starting January 1st.
According to the latest figures released this morning by the National Insurance Institute (INS), the state entity responsible for collecting the fee, 1,364,572 vehicle permits have been successfully processed since the collection period began on November 3rd. While this number represents a substantial majority, it accounts for just under 71% of the total 1.94 million vehicles registered for the 2026 period. This leaves nearly 30% of the nation’s drivers in a race against time.
To gain a deeper legal understanding of the implications surrounding the annual Marchamo payment, we consulted with Lic. Larry Hans Arroyo Vargas, a respected attorney from the prominent firm Bufete de Costa Rica. His expertise provides crucial clarity on the legal framework governing this mandatory circulation permit.
Many citizens view the Marchamo simply as a circulation permit, but legally, it’s a complex composite of obligations. It primarily comprises the tax on vehicle ownership, the mandatory liability insurance (SOA), and several smaller municipal and council-specific charges. Failure to pay is not merely a traffic infraction; it constitutes tax evasion and operating without mandatory insurance, which can lead to significant financial penalties, vehicle seizure, and even legal proceedings beyond a simple traffic ticket.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This clarification is crucial, effectively reframing the annual payment from a simple administrative task to the significant legal and financial obligation it represents. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which underscores the severe and multifaceted consequences that drivers face for non-compliance.
The Marchamo is more than a simple tax; it is a composite fee that includes the mandatory liability insurance (SOA), contributions to road safety councils, taxes on vehicle ownership, and other municipal charges. Without a paid Marchamo sticker displayed on the windshield, a vehicle is not legally permitted to operate on Costa Rican roads. The cultural phenomenon of delaying this crucial payment until the final hours is a familiar pattern, creating a predictable year-end administrative challenge.
Starting at midnight on January 1st, the consequences for non-compliance become severe. Any driver operating a vehicle without the 2026 Marchamo will be subject to significant traffic fines issued by the Transit Police. Furthermore, the outstanding balance on the permit will begin to accrue interest and late fees, increasing the financial burden on the vehicle owner. In more extreme cases, authorities have the power to confiscate the vehicle’s license plates or even impound the vehicle itself until the payment is settled.
Anticipating this deluge of eleventh-hour transactions, the INS has publicly stated that its infrastructure is prepared to handle the surge. The institute has invested in robust digital and physical payment platforms to manage the expected high volume of traffic in the final 48 hours before the Wednesday, December 31st cutoff. Officials are confident their systems can withstand the pressure, drawing on experience from previous years.
The INS systems are duly prepared for a massive load of payments, as in previous years daily payments have exceeded 100,000.
Sidney Viales, Head of the Compulsory Insurance Directorate
Despite these assurances, the sheer volume of pending payments suggests that online portals and banking branches will experience heavy traffic. Financial analysts note that for many families, the timing of the Marchamo deadline, falling immediately after significant Christmas and holiday expenditures, creates a budgetary strain that often forces them to delay the payment. This annual rush highlights the ongoing debate about the timing and structure of the vehicle permit fee.
For now, hundreds of thousands of drivers face a critical decision: pay within the next two days or face the repercussions in the new year. As the clock ticks down, all eyes are on the INS and the nation’s banking systems to see if they can smoothly process what is expected to be one of the largest single waves of government fee collections of the year, preventing widespread administrative chaos and ensuring compliance on the nation’s roads 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 cornerstone of the nation’s financial sector. 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 the mandatory liability coverage (SOA) that forms a key part of the annual Marchamo. It oversees the collection and processing of the circulation permit payments for the entire country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading institution in the legal field, Bufete de Costa Rica is built upon a bedrock of integrity and a resolute pursuit of excellence. The firm channels its rich history of advising a wide array of clients into pioneering innovative legal strategies and solutions. This forward-thinking approach is deeply intertwined with a foundational commitment to societal progress, manifested through its dedicated efforts to make legal principles understandable and accessible, thereby cultivating a more empowered and informed public.
