Every vehicle owner in Costa Rica faces the same annual obligation: paying marchamo before December 31. Miss the deadline, and your plates can be withheld, your vehicle cannot legally circulate, and fines begin to accumulate. For expats, retirees, and business owners with multiple vehicles or tight year-end cash flow, marchamo can be a real pressure point — and understanding exactly what you’re paying, why, and what options you have is worth knowing.
What Is Marchamo?
Marchamo is the annual vehicle circulation rights fee (derecho de circulación) required by Costa Rican law. Every registered vehicle must pay it each year to remain legally on the road. The fee is collected by the National Insurance Institute (INS) on behalf of the government and covers several components bundled into a single payment:
Mandatory basic vehicle insurance (SOAP) — the Seguro Obligatorio de Automóviles, which covers injury liability to third parties in the event of an accident
Road use tax (impuesto a la propiedad de vehículos) — a property tax on the vehicle based on its registered fiscal value
COSEVI fees — contributions to the National Road Safety Council
MOPT transport fund contributions — a portion that supports road infrastructure
The total amount varies depending on the vehicle’s fiscal value, which the government updates annually. Older vehicles with lower fiscal values pay less; newer or higher-value vehicles pay more.
When Is Marchamo Due?
Marchamo payments open in November each year and must be paid in full by December 31. You can pay online through the INS website, at BN branches, or at authorized payment points throughout the country. Starting January 1, any unpaid vehicle is considered to be circulating illegally, and traffic authorities can retain the plates at checkpoints.
What Happens If You Don’t Pay on Time?
Late payment carries consequences. Beyond the legal restriction on vehicle circulation, delays can lead to:
Plate retention at routine traffic checkpoints
Fines and surcharges that increase the longer the debt remains unpaid
Complications with vehicle sale or transfer of ownership — a buyer cannot re-register a vehicle with unpaid marchamo
Potential difficulties renewing a driver’s license if outstanding fines are attached
How Much Does Marchamo Cost?
The exact amount depends on the registered fiscal value of the vehicle. INS publishes updated tables each year. As a general guide, a modest passenger vehicle registered at a low fiscal value might pay a few tens of thousands of colones, while a newer SUV or commercial vehicle can reach into the hundreds of thousands of colones or more. For property owners with multiple vehicles — a family car, a pickup for the property, a quad for the farm — the total obligation adds up quickly.
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Frequently Asked Questions
Can I pay marchamo in installments?
Marchamo is typically payable as a single annual amount, not in installments. The full balance must be settled before December 31 to avoid restrictions.
Does marchamo cover vehicle damage in an accident?
The mandatory SOAP insurance included in marchamo covers injury liability to third parties only — not damage to your own vehicle. Comprehensive vehicle insurance (póliza de automóviles) is separate and optional.
What if I have a vehicle I no longer use?
A vehicle registered in your name continues to accrue marchamo obligations whether or not it’s in use. If you no longer want a vehicle, the appropriate steps are to transfer or desadmit (deregister) it through COSEVI before the next marchamo cycle.
Do motorcycles pay marchamo?
Yes. Motorcycles, ATVs, and other registered motorized vehicles are subject to marchamo, though the amounts are generally lower than for passenger cars.
This article is for general information only and is not legal, financial, or tax advice. Marchamo requirements and fees are set by Costa Rican authorities and may change annually. Confirm current details with INS or an authorized payment point.
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Article by Glenn Tellier (Founder of CRIE and Grupo Gap)
We provide insights on financing a business in Costa Rica with private property-backed loans and essential details on loan-to-value and property value.
Learn about starting-a-business-loan-in-costa-rica with our guide on using real estate as collateral, ensuring a proper repayment plan and lender due diligence.
