What is Marchamo?
Marchamo is the annual mandatory vehicle tax in Costa Rica. It is a fee that every vehicle owner must pay to the Instituto Nacional de Seguros (INS), the government-owned insurance company. The payment gives the vehicle the right of circulation for the upcoming year. The proof of payment is a sticker placed on the vehicle’s windshield.
Importance of Marchamo in Costa Rica
In Costa Rica, the Marchamo is of significant importance. It is not just a road tax but also includes mandatory liability insurance coverage for third parties injured or killed in an accident involving the insured vehicle. This makes it a critical component of the country’s vehicle regulation system. The funds collected from the Marchamo are used for infrastructure, road safety programs, and to cover the costs of accidents.
A brief history of Marchamo
The concept of Marchamo was introduced in Costa Rica many years ago as a way to fund road maintenance and safety measures. Over the years, it has evolved and now includes several components, including liability insurance, property tax, and various other fees. The INS is responsible for collecting the Marchamo, and the deadline for payment is usually at the end of December each year.
How Marchamo is calculated
The cost of the Marchamo is calculated based on several factors. The most significant factor is the value of the vehicle. Other factors include the type of vehicle, the year of the vehicle, and the engine size. The INS provides an online calculator on their website where vehicle owners can estimate their Marchamo payment.
How to pay for Marchamo
Paying for Marchamo is a straightforward process. It can be paid at any bank, INS office, or online through the INS website. Once the payment is made, the vehicle owner receives a receipt and a sticker that must be displayed on the vehicle’s windshield.
Consequences of not paying Marchamo
Not paying the Marchamo can lead to severe consequences. If a vehicle is found on the road without a valid Marchamo sticker, the vehicle can be seized, and the owner can be fined. In addition, the vehicle will not be allowed to circulate until the Marchamo is paid, including any fines and interest.
Marchamo and vehicle importation
When a vehicle is imported into Costa Rica, the owner must pay the import duty. Once the duty is paid and the vehicle is registered, the owner must also pay the Marchamo before the vehicle can be driven on Costa Rican roads. This ensures that all vehicles, whether locally owned or imported, contribute to the maintenance and safety of the country’s roads.
The Impact of Marchamo on Costa Rican Society
The Marchamo plays a significant role in Costa Rican society. It not only ensures that every vehicle owner contributes to the maintenance and safety of the country’s roads, but it also provides a financial safety net for individuals who may be injured in a vehicle accident. The funds collected from the Marchamo are used for infrastructure, road safety programs, and to cover the costs of accidents. This system helps to maintain the quality of the roads and contributes to the overall safety of the country’s transportation system.
Tips for Paying Marchamo
Paying the Marchamo is a straightforward process, but here are a few tips to make it even easier:
- Pay early: The INS usually announces the start of the collection period in November. Paying early can help you avoid the last-minute rush.
- Use the online calculator: The INS provides an online calculator on their website where you can estimate your Marchamo payment. This can help you budget for the payment.
- Pay online: Many banks in Costa Rica allow you to pay the Marchamo online, saving you a trip to the bank or the INS office.
Conclusion
In conclusion, the Marchamo is a critical component of Costa Rica’s vehicle regulation system. It ensures that all vehicle owners contribute to the maintenance and safety of the country’s roads and provides financial protection for individuals who may be injured in a vehicle accident. Paying the Marchamo is a civic duty for all vehicle owners in Costa Rica, and understanding how it works can help ensure that you are complying with the law and contributing to the safety and quality of Costa Rica’s roads.
-Written by Glenn Tellier (Founder of CRIE and Grupo Gap).
Frequently Asked Questions
When is the Marchamo due?
The Marchamo is due annually, with the deadline typically set for the end of December.
What happens if I don’t pay the Marchamo on time?
If the Marchamo is not paid on time, the vehicle can be seized, the owner can be fined, and the vehicle will not be allowed to circulate until the Marchamo is paid, including any fines and interest.
How is the cost of Marchamo determined?
The cost of the Marchamo is calculated based on several factors, including the value of the vehicle, the type of vehicle, the year of the vehicle, and the engine size. Check HERE for prices.
Can I pay for Marchamo online?
Yes, Marchamo can be paid online through the INS website or through many Costa Rican banks that offer online payment options.
What is the relationship between Marchamo and RITEVE?
RITEVE is the mandatory vehicle inspection in Costa Rica. While separate from the Marchamo, a vehicle must pass the RITEVE inspection before the Marchamo can be paid.
What does the Marchamo cost include?
The Marchamo cost includes several components, such as property tax, liability insurance, and various other fees.
What do you need to pay your Marchamo?
To pay your Marchamo, you need the vehicle’s registration details and a method of payment (cash, debit, or credit card).
What is Marchamo in Costa Rica?
Marchamo is the annual mandatory vehicle tax in Costa Rica that also includes mandatory liability insurance coverage for third parties injured or killed in an accident involving the insured vehicle.
Can I pay Marchamo with a credit card?
Yes, you can pay your Marchamo with a credit card either online or at a bank or INS office.
Why are cars so expensive in Costa Rica?
Cars are expensive in Costa Rica due to import duties and taxes, including the Marchamo.
How much does the Marchamo cost?
The cost of the Marchamo varies depending on the value, type, year, and engine size of the vehicle. Click HERE for prices.
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Article by Glenn Tellier (Founder of CRIE and Grupo Gap)