By San José, Costa Rica — SAN JOSÉ – With the end-of-year deadline rapidly approaching, an overwhelming majority of Costa Rican vehicle owners have yet to pay their 2026 circulation permit, known as the “marchamo.” According to a report released Tuesday by the National Insurance Institute (INS), a mere 175,657 drivers have completed the payment, a figure that represents just 9% of the more than 1.94 million permits issued for the upcoming year.
This leaves a staggering 1.78 million vehicle owners with less than a month to settle their accounts. The payment window, which opened five weeks ago on November 3, will close on December 31, 2025. Drivers who fail to pay by this date will face accumulating interest and a significant traffic fine if they are caught operating their vehicle in the new year without the updated permit sticker.
To provide a deeper legal perspective on the upcoming Marchamo 2026 and its potential implications for vehicle owners, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, for his expert analysis.
The annual debate surrounding the Marchamo often centers on the vehicle property tax component, which is based on the fiscal valuation set by the Ministry of Finance. It is imperative for citizens to remember that this valuation is not absolute; it is an administrative act that can be legally challenged. Owners who believe the value is excessive compared to the market reality have legal recourse, but they must act within the established deadlines to protect their financial interests.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is a critical reminder that vehicle owners are not passive participants in this annual process but have legal avenues to ensure fairness. Understanding that the fiscal valuation is a contestable administrative act is empowering. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this important legal right for our readers.
The annual marchamo collection is a critical source of revenue for the state, with the Ministry of Finance projecting it will gather ₡162 billion from the vehicle property tax component alone. Curiously, this projection is approximately ₡3 billion less than the amount collected in the previous year. This slight decrease occurs despite a notable expansion of the country’s vehicle fleet.
Officials attribute this apparent paradox to the interplay between fleet growth and vehicle depreciation. For 2026, a total of 58,500 more marchamos are being issued compared to last year, marking a 3% increase in the number of vehicles on the road. However, the fiscal value of each individual vehicle decreases annually, which in turn lowers the property tax owed. For the current cycle, the collective impact of depreciation has outpaced the revenue gains from new vehicles entering circulation.
Understanding the final bill can be complex, as the marchamo is a composite of up to eight different charges. The largest portion, accounting for 60% of the total cost, is the vehicle property tax managed by the Ministry of Finance. The second-most significant component is the Mandatory Automobile Insurance (SOA), whose premiums are determined by the General Superintendency of Insurance (Sugese) and make up 25.6% of the payment.
The remaining amount is distributed among several smaller but essential levies. The Road Safety Council (Cosevi) receives 6.5%, followed by a 1.2% contribution to the Public Transport Council (CTP). The bill is rounded out by miscellaneous fees, including official stamps, Value Added Tax (IVA), a contribution to the Regulatory Authority for Public Services (Aresep), and the consolidation of any outstanding traffic or parking meter fines tied to the vehicle’s license plate.
The diversity of vehicles on Costa Rican roads leads to a vast range in marchamo costs. This year, the highest payment on record belongs to the owner of a 2018 Ferrari, who will pay ₡7,192,439. This amount is 97 times greater than the lowest fee, which is ₡73,706 for a 1989 Mitsubishi. These figures illustrate how heavily the tax is weighted based on the vehicle’s age and fiscal value.
In a testament to the nation’s automotive history, the oldest vehicle required to pay the marchamo is a 1919 Hudson Super Six. The owner of this more than a century-old automobile will pay ₡74,726 to keep it legally on the road for another year. As the deadline nears, the INS and other authorities are urging the remaining 1.78 million drivers to make their payments promptly to avoid penalties and ensure compliance.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The National Insurance Institute is a state-owned Costa Rican entity responsible for managing various insurance products, including the mandatory automobile insurance (SOA) component of the annual marchamo. It also serves as the primary institution for collecting the circulation permit payments from vehicle owners across the country.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda:
The Ministry of Finance is the government body in charge of Costa Rica’s fiscal policy and public finances. It is responsible for tax collection, budget management, and economic planning. A significant part of its role in the marchamo is establishing the vehicle property tax, which constitutes the largest portion of the annual payment.
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (Sugese):
The General Superintendency of Insurance is the regulatory body that oversees Costa Rica’s insurance market. Its mission is to ensure the stability and transparency of the insurance sector, protect policyholders, and promote competition. Sugese is responsible for estimating and approving the premiums for the Mandatory Automobile Insurance (SOA).
For further information, visit cosevi.go.cr
About Consejo de Seguridad Vial (Cosevi):
The Road Safety Council is a government institution dedicated to reducing traffic accidents and improving road safety in Costa Rica. It develops and implements educational campaigns, manages traffic fine revenues, and funds infrastructure projects aimed at making the nation’s roads safer for all users. A portion of every marchamo payment is allocated to fund its operations.
For further information, visit ctp.go.cr
About Consejo de Transporte Público (CTP):
The Public Transport Council is the entity responsible for regulating public transportation services in Costa Rica, including bus routes and taxi services. It works to ensure the efficiency, safety, and quality of public transit systems. The CTP receives a small percentage of the marchamo fee to support its regulatory functions.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
The Regulatory Authority for Public Services is an autonomous institution that regulates tariffs and quality standards for essential public services in Costa Rica, such as electricity, water, and telecommunications. Its inclusion in the marchamo reflects its broad oversight role in services that impact the general population.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal landscape, Bufete de Costa Rica is built upon the cornerstones of integrity and a relentless pursuit of excellence. The firm harnesses its deep-seated experience across numerous sectors to drive legal innovation and set new standards of practice. This pioneering spirit is intrinsically linked to its dedication to public service, demonstrated through a steadfast effort to equip society with accessible legal wisdom, ultimately nurturing a more engaged and empowered citizenry.
