Part of our job with the expat community is to be aware and remind them of any legal obligations pertaining their assets. Therefore, we will take a few minutes to explain the two most common obligations a car owner has in Costa Rica if they want to be spinning their wheels in the not so good Costa Rican roads.

Marchamo:

What is it exactly? The Marchamo is perhaps one of the most trending topics in the second half of the year in Costa Rica and one that is used by the Government and political parties for political gain. Marchamo is one of those topics that interests the masses along with the cost of beer, gasoline, and holidays.

Marchamo is the payment done by car owners to the Government for the yearly right to circulate a vehicle in the Costa Rican public roads. The breakdown of the payments included in the marchamo is comprised by taxes, stamps, and contributions that due to their nature we are not going to address here. It is just boring, and chances are you will forget, just as we do as soon as this article is closed.

The Marchamo is collected by the “Instituto Nacional de Seguros” or National Insurance Institute who acts as the entity in charge of representing the State with the organization, communication, and collection process of this duty. The two main reasons why the marchamo is normally part of the Costa Rican trending topics is because the roads have the fame of not being in great shape; hence, people object it and because it is always a surprise what the amount for marchamo a car will pay. Apparently, Costa Rica is the only country in the world where vehicles depreciate over time and the Government finds a way to have the marchamo increased every year. (Sorry, this is sarcasm, but it does happen).

Marchamo payment includes the SOA or “Seguro Obligatorio Automotor” which is a general insurance policy that every vehicle carries when the marchamo is paid with the objective to insure all persons that are injured as a result of a vehicular accident. This insurance provides coverage to up to 6,000,000.00 colones to victims of accidents in the event they suffer injuries or disabilities. Additionally, the SOA aids victims receiving prothesis, medical devices, compensation for injuries, hospital medical care and funerary services.

The Marchamo is usually notified to the public in the month of November of each year and INS has a phone line 800-Marchamo for consultation of the amounts. Also, you can check your Marchamo via their website www.grupoins.com or just google Marchamo and be directed to a the consultation platform.

Non-payment of Marchamo implies a series of interests rates that differ according to the tax applicable. Again, we will not refer to it, as it is boring and not useful to know. Also, if you are stopped by a traffic officer your plates will be taken and the car will need to be taken out of circulation, you will be applied a fine and you will need to do one of the most cumbersome processes in Costa Rica which is getting your car back from a lot managed by the Ministry of Work and Transportation.

Technical Revision (DEKRA):

The technical revision for vehicles is regulated in our Transit Law and it is part of the faculties the Ministry of Public Works and Transportation (MOPT) must enforce in Costa Rica. MOPT has the obligation to authorize and supervise vehicle inspection centers, technical studies, and through ARESEP establish the rates model for inspection and re-inspection of vehicles.

The technical revision for vehicles is an obligation that every vehicle has to comply with in Costa Rica to circulate on the public roads and it is directed to guarantee the Costa Rican vehicle fleet, public transportation and heavy-duty vehicles are in full compliance of safety and technical conditions to contribute to security and environmental protection.

Nowadays, the entity in charge of managing the Inspection Centers and performing the inspections and re-inspections is DEKRA. DEKRA is a foreign company specialized as global vendor of services related to vehicle testing, inspection and certification that was awarded the concession to operate the inspection centers in Costa Rica. DEKRA offers an efficient and expedited process with services that can be requested via their webpage dekra.cr. Through their webpage car owners can access the inspection stations located all over Costa Rica and request appointments that range from five or six in the morning to seven or eight in the evening.

Tariffs are also posted on their webpage and vary according to the type of vehicle; but all and all are fairly cheap. Also, the process is expedited and can be completed in fifteen minutes or so. Be aware that once you hit the line, you will need to polish your Spanish and pay close attention to the instructions provided by the inspectors.

Quatro Legal has a Compliance Department with Maintenance Package that assists expats and locals comply with marchamo payments and take the vehicles to the technical revision.

For more information on buying a car in Costa Rica, please fill out the courtesy e-meeting form at the bottom. We will be glad to assist you!