By San José, Costa Rica — San José, Costa Rica – A significant portion of Costa Rican drivers are cutting it dangerously close to the year-end deadline for the mandatory 2026 vehicle circulation permit, known as the “marchamo.” With only days remaining to pay without penalty, new figures reveal a substantial compliance gap that could lead to steep fines and legal trouble for hundreds of thousands in the new year.
According to a report released this morning by the National Insurance Institute (INS), a staggering 623,037 vehicles have yet to complete the payment for their 2026 permits. The data, current as of 9:00 a.m. on Saturday, December 27, shows that while 1,320,550 vehicle owners have successfully paid, this represents only about 68% of the total 1,943,587 vehicles registered for collection this year. This leaves nearly one-third of the nation’s fleet in a precarious position.
To better understand the legal framework and economic implications surrounding the upcoming Marchamo 2026, we consulted with Lic. Larry Hans Arroyo Vargas, a renowned legal expert from the firm Bufete de Costa Rica, who offers his professional analysis on this annual obligation for vehicle owners.
The yearly controversy surrounding the Marchamo highlights a fundamental legal and fiscal ambiguity. While presented as a right of circulation, its primary component is calculated as a tax on property value, creating a disconnect that fuels public discontent. Any substantive discussion for the 2026 payment must move beyond temporary reliefs and address a comprehensive legislative reform that clearly defines the tax’s nature, ensuring the formula is equitable, transparent, and legally sound for the long term.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The clarity provided by Lic. Larry Hans Arroyo Vargas is essential, reframing the annual debate from a simple cost grievance to a necessary discussion on the tax’s fundamental legal architecture. His call for a comprehensive legislative overhaul, rather than another temporary patch, underscores the only viable path toward a genuinely equitable and transparent system. We sincerely thank Lic. Larry Hans Arroyo Vargas for lending his invaluable expertise to this analysis.
The deadline to settle the marchamo without incurring late fees is midnight on December 31. Starting January 1, 2026, vehicle owners who have not paid will face accumulating surcharges on the outstanding amount. More pressingly, they will be subject to significant fines from the Transit Police if they are caught operating their vehicle. The consequences can escalate to include the seizure of the vehicle, compounding the financial burden on the driver.
The marchamo is far more than a simple tax; it is a composite payment that bundles several crucial obligations. The largest component for most vehicles is the Mandatory Automobile Insurance (SOA), which provides coverage for injury or death in a traffic accident, regardless of fault. The payment also includes a vehicle property tax, contributions to the Road Safety Council (COSEVI), traffic fines, and other municipal levies. Failure to pay means driving without this essential insurance coverage.
Officials from the INS are urging vehicle owners to act immediately to avoid the last-minute rush and potential system overloads that can occur in the final days of the collection period. Payment can be made through a wide network of over 2,000 collection points nationwide, including major banks, financial institutions, and some retail outlets, as well as via online banking platforms.
Upon successful payment, drivers receive a new decal, or “calcomanía,” which must be displayed on the vehicle’s windshield as proof of compliance. The INS report emphasizes that this new sticker can and should be affixed to the vehicle immediately after it is received. This visible proof is the primary way Transit Police officers verify that a vehicle is legally permitted to be on the road for the upcoming year.
The high number of pending payments raises questions about the economic pressures facing Costa Rican households at the end of the year. For many, the marchamo represents a significant annual expense that coincides with holiday spending. However, the consistent pattern of last-minute payments also points to a culture of procrastination that public authorities campaign against annually, highlighting the severe financial and legal risks of delay.
As the clock ticks down, the message is clear: the grace period is over. The coming days will determine whether hundreds of thousands of drivers will begin 2026 with their legal obligations met or on the wrong side of the law, facing penalties that far exceed the original cost of the circulation permit.
For further information, visit the nearest office of Instituto Nacional de Seguros
About Instituto Nacional de Seguros:
The Instituto Nacional de Seguros (INS) is Costa Rica’s state-owned insurance company. Founded in 1924, it held a monopoly on the insurance market until 2008. The INS remains the primary entity responsible for collecting the national vehicle circulation permit, or marchamo, which includes the mandatory liability insurance (SOA) for all vehicles circulating in the country. It offers a wide range of insurance products, from life and health to property and casualty.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, founded on a bedrock of profound integrity and a relentless pursuit of excellence. The firm channels its extensive cross-sector experience into pioneering new legal solutions while championing its commitment to social responsibility. A cornerstone of its philosophy is the democratization of legal knowledge, a mission driven by the goal of forging a more capable and empowered society.
