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You must have heard about the famous marchamo in Costa Rica. If you own a vehicle in Costa Rica, you have to pay the marchamo once a year. This is paid before the end of December. Let me tell you what a marchamo is all about. Before you read on, check our inventory of residential building lots for sale.
When you purchase a car in Costa Rica or bring your own, you must pay the annual marchamo or road tax. Costa Rican laws oblige all vehicles to carry proof of the derecho de circulación—circulation permission—as a sticker on their windshields.
All vehicles in Costa Rica pay this type of road tax annually. INS, the local government-owned insurance company, is in charge. INS means Instituto Nacional de Seguros-National Insurance Institute.
That means if you import a car from another country, the moment you pay your import duty and get your Costa Rica license plate, you will need this marchamo to drive on Costa Rican roads.
Road tax elsewhere
This road tax might surprise some foreigners, but many don’t realize that many countries charge all vehicle owners a road tax.
The UK, for example, charges Vehicle Excise Duty (VED). Once a car is three years old, it must be tested yearly to ensure it is roadworthy. An MOT certificate is issued to obtain a road tax disc, and it must be valid. The MOT certificate resembles our RTV or Vehicle Inspection (formerly RITEVE, now DEKRA).
There is no federal road tax in the USA, although all states levy an annual registration fee, which varies considerably from state to state.
In Massachusetts, for example, the excise tax is billed separately from registration fees by the town or city in which the vehicle is registered and was set at a fixed rate of 2.5% statewide by a 1980 law called Proposition 2½. Within some states, the fees may vary from county to county, as some counties have surcharges per vehicle.
Virginia’s personal property tax is an example. The state of New York, on the other hand, charges a tax based on the vehicle’s weight rather than on its value, which is charged at the time of registration renewal.
In California, the registration tax is calculated based on the vehicle’s current value, just like in Costa Rica. The registration tax is low if the car is old and low-priced. However, registration costs a few hundred dollars if it is a brand-new and expensive vehicle.
When to pay Marchamo in Costa Rica
The marchamo in Costa Rica can usually be paid from November 15th each year until December 31st. After that, you pay a fine. Almost every year, the government decides, because half the people haven’t paid yet, to give those who haven’t been able to cancel the marchamo a chance to pay for a couple more days without the fine.
Costa Rican employees receive a 13th month, like an Xmas bonus, from their employer in December, apart from their salary. This is part of the employer’s obligations to each employee. This is the time of the year when most Costa Ricans have more money available, which is why the government charges the marchamo in December.
When you pay the marchamo in Costa Rica, you will get a paper receipt showing what you are paying for on one side, the tag number, and the year of payment on the other. You can separate this and stick it on the windshield sticker they give you. You will receive a different color sticker every year so the traffic police can see at a distance if you have this year’s sticker. The traffic police will stop you If you don’t carry this year’s sticker. They give you a fine if you’re not paid up to date or even confiscate your license plates.
Insurance
Insurance required for all vehicles in the country covers injury and death of people (pedestrians and occupants of the car), victims of a traffic accident, whether or not the driver’s subjective responsibility by Traffic Act 7331. Therefore, Compulsory Car Insurance or Seguro Obligatorio Automotor-SOA is included in the marchamo. Check the details because this changes every year.
When to pay?
The INS is well organized. You can pay the marchamo in almost every bank, or you can check and pay for the marchamo online by going to the INS website after November 15th.
You can check the cost of the marchamo on their website. Fill out your tag number there. It will show how much you must pay to get your marchamo in Costa Rica. Don’t forget to stick it on your windshield. Do it as soon as you have paid and have received the physical marchamo.
Replacement
Some people mess up when they put the sticker on the windshield. If you are one of those, you can replace the sticker. To get a duplicate marchamo, the vehicle owner can go to any INS office to request a duplicate marchamo.
