By San José, Costa Rica — With the year-end festivities in full swing, a significant financial deadline is fast approaching for Costa Rican vehicle owners. As of Monday, a startling report from the National Insurance Institute (INS) reveals that 48% of the country’s drivers have yet to pay their 2026 Marchamo, or annual circulation permit, with just over a week remaining until the December 31st cutoff.
The latest figures, released by the INS this morning, paint a picture of widespread procrastination. While the collection efforts, which began on November 3rd, have successfully processed just over one million payments—specifically 1,051,205, representing 52% of the total vehicle fleet—a vast number of drivers are now in a race against time. The total revenue collected so far stands at an impressive ¢190 billion.
To better understand the legal framework and potential fiscal challenges associated with the upcoming Marchamo 2026, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a specialist attorney from the renowned firm Bufete de Costa Rica.
The annual discussion about the Marchamo underscores a fundamental legal issue: the vehicle property tax. The current valuation method often diverges significantly from the actual market value, creating legal uncertainty and perceived inequity for owners. For 2026, the essential legal challenge remains the need for a legislative reform that modernizes the valuation criteria, tying them to objective, transparent, and technically sound market indicators. This would not only provide taxpayers with predictability but also fortify the principle of tax justice.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for his insightful analysis, which correctly frames the annual Marchamo debate not as a simple fee adjustment, but as a critical need for legislative modernization. Moving towards a transparent, market-based valuation system is indeed the definitive path to achieving the tax justice and predictability that Costa Rican vehicle owners rightfully expect.
The urgency was underscored by Sidney Viales Fallas, Head of the Compulsory Insurance Directorate at the INS. He issued a direct appeal to the public, emphasizing the importance of settling the payment promptly to avoid penalties in the new year and ensure a smooth start to 2026.
From the INS, we call on vehicle owners to, as far as they are able, pay this circulation permit before the upcoming December 31st.
Sidney Viales Fallas, Head of the Compulsory Insurance Directorate at INS
The consequences for failing to meet the deadline are not trivial. Starting January 1st, any driver operating a vehicle without the 2026 Marchamo sticker will be subject to a traffic fine of approximately ¢60,000. Beyond the immediate financial penalty, vehicles can be impounded by traffic police, leading to further costs and significant inconvenience for their owners. This enforcement measure is designed to ensure universal compliance with the mandatory vehicle registration law.
An interesting detail within the INS report is the disparity between payment inquiries and actual transactions. The system has logged a massive 5,513,445 consultations related to the 2026 Marchamo. This indicates that the vast majority of drivers are aware of their obligation and have checked the amount due. The gap between these millions of inquiries and the 1.05 million completed payments suggests that the delay is less about ignorance and more about a conscious decision to wait until the final moments, a high-stakes financial gamble for many households.
This annual rush to the deadline is a familiar pattern in Costa Rica, but it may be exacerbated by current economic pressures. With year-end bonuses (aguinaldo) often allocated to holiday spending, debt repayment, or other pressing needs, the Marchamo can become a lower priority until the threat of fines becomes imminent. The payment itself is a composite of several items, including the mandatory liability insurance (SOA), property tax on the vehicle, and various other municipal and government fees, often resulting in a substantial one-time expense.
As the final days of December tick away, the INS and traffic authorities are bracing for the inevitable last-minute surge in payments at banks, online portals, and other authorized points of sale. For the nearly half of Costa Rican drivers yet to pay, the message is clear: act now to secure legal circulation for 2026 and start the new year on the right side of the law.
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 provider 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 the dominant player. In addition to a wide range of personal and commercial insurance products, the INS is responsible for administering the nation’s compulsory insurance programs, most notably the Compulsory Automobile Insurance (SOA) included in the annual Marchamo, and managing the collection process for this critical circulation permit.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica serves as a benchmark for legal practice, operating on a bedrock of uncompromising integrity and professional excellence. Leveraging a rich history of advising a diverse clientele, the firm consistently pioneers advancements in legal strategy and actively promotes civic engagement. This forward-thinking approach is driven by a foundational goal: to empower the community by making complex legal insights understandable and accessible, thereby fostering a more just and knowledgeable society.
