Significant Reductions in Costa Rica’s 2024 “Marchamo” Fees: A Closer Look at the Impact on Vehicle Owners

n a noteworthy development for vehicle owners in Costa Rica, the “Marchamo” payment for 2024, the annual right of circulation fee, has exhibited considerable reductions across various vehicle models compared to the previous year. This change comes after the National Insurance Institute (INS) briefly suspended and then resumed the payment process due to data inconsistencies from the Ministry of Finance regarding vehicle property tax values.

Transformative Changes in Vehicle Property Tax

The notable feature of the 2024 “Marchamo” is the adjustment in the vehicle property tax, following the Legislative Assembly’s approval of a new calculation formula in late September 2023. Lawmakers established a depreciation table for cars up to 15 years old, resulting in an accumulated reduction of 87.10%. For motorcycles, the period is 10 years with an 80.13% accumulated decrease.

The Ministry of Finance acknowledged that due to these changes, there would be a minimum tax reduction of 10% and a maximum of 50% for registered vehicles. This decrease is primarily attributed to the legal reform that altered the fiscal value of vehicles, directly influencing the amount due for the tax.

Analyzing the “Marchamo” 2024 Fees

A review was conducted of the “Marchamo” costs for various vehicle makes and models. After the INS reactivated its platform with updated data, a new comparison was made with the 2023 fees. Every vehicle reviewed showed a decrease in the payable amount, ranging from 8.8% to 62.5%. This reduction in circulation rights costs stems from the lowered fiscal value of each vehicle under the new calculation methodology.

Specific Examples of Reduced Fees

• A 2020 Hyundai Grand i10 will pay ¢164,075 for 2024, compared to ¢274,000 in 2023, marking a ¢109,925 reduction.
• A 2019 Nissan Kicks’s “Marchamo” fee is set at ¢261,299, a significant drop from the previous year’s ¢375,000, saving the owner ¢113,701.
• The 2019 Toyota RAV4 will see its fee reduced to ¢282,293 from last year’s ¢425,321, amounting to a ¢143,028 decrease.

Ongoing Adjustments and Inconsistencies

Of the ten vehicles surveyed, eight maintained their circulation fee as per the initial consultation, while the other two underwent minor adjustments. In total, the INS is processing 1,706,625 circulation rights. However, during the updated database review, inconsistencies were identified for about 39,000 vehicles, for which the property tax calculation remains at zero.

INS has stated that this group of vehicles will not be included in the systems until the Ministry of Finance validates each case and determines the appropriate value to be charged.

A Positive Shift for Vehicle Owners

The 2024 “Marchamo” adjustments signify a significant relief for vehicle owners in Costa Rica. With substantial reductions in the payable amounts, this shift reflects the government’s efforts to adjust vehicle taxation in line with depreciation, potentially easing the financial burden on Costa Rican citizens.