Costa Rica – Buying or Importing a Car

How do I buy a new car in Costa Rica as a foreigner?

Foreign nationals face no legal prohibition on purchasing a vehicle in Costa Rica — the country places no formal barrier on such transactions. That said, the practical landscape is more complicated, and identical car models can cost up to 50% more than in certain other markets, a direct consequence of the import taxes and duties applied to vehicles.

Your residency status has a direct bearing on both the purchasing process and your registration options. Requirements differ substantially depending on whether you are visiting as a tourist, hold temporary residency, have permanent residency, or are a citizen. For those who do not yet hold residency, some expats choose to buy through a locally registered corporation — either a Sociedad Anónima or an SRL — though recent regulatory updates have introduced additional verification steps for corporate vehicle purchases, and all corporations must meet transparency and compliance requirements.

When purchasing new from a franchised dealership, you will generally need to present your passport, evidence of lawful entry or residency status, a local address, and a tax identification number (called an NIT, or a cédula jurídica if buying through a company). New vehicles from authorised dealerships typically come with three to five years of manufacturer warranty and offer stronger legal protections against fraud than private sales.

Financing a vehicle as a foreigner adds yet another layer of complexity. Most transactions are conducted in cash, and banks impose strict criteria for loans. Lenders generally require temporary or permanent residency, proof of income sourced from a Costa Rican salary or pension, and commonly ask for a down payment of between 30% and 50%, with interest rates running at roughly 10–15%. Some dealerships — particularly for new models — offer in-house financing with quicker turnaround times and may accept foreign buyers when a co-signer is provided. Always verify current lending conditions directly with the relevant banks and dealerships, as terms evolve regularly.

Toyota, Nissan, Hyundai, and Suzuki maintain the most extensive dealer and service networks in the country. Chinese marques including Changan, Geely, and Great Wall are growing in competitiveness and offer solid warranties. The most established brands hold their resale value better and present fewer challenges in sourcing spare parts — always research a dealer’s track record, after-sales service facilities, and length of operation before committing.

How do I buy a used car in Costa Rica?

Purchasing a secondhand vehicle in Costa Rica is a considerably more formal affair than in many other countries, where a simple signature on a transfer document might suffice. Here, the process bears closer resemblance to a property transaction in terms of its legal requirements and paperwork. These formalities apply equally whether you buy from a private individual or a used-car dealer.

Thorough due diligence before any agreement is made is essential. Verify whether the vehicle carries outstanding fines, unpaid road tax (Marchamo), or any registered encumbrances. Legal transfer in Costa Rica requires the involvement of a notary public or lawyer, who will handle the sale documents and confirm whether the vehicle is free of debts or liens. The Ministry of Finance’s vehicle valuation database (Autovalor/Cartica) and the Registro Nacional (National Registry) are both useful tools for checking ownership history, registered charges, and legal standing.

At the point of sale, both the buyer and seller must appear together before a licensed notary public, who will prepare a formal deed of transfer (escritura de traspaso). This deed is then lodged with the National Registry, which serves as the definitive official record of vehicle ownership in Costa Rica. It is worth confirming in advance whether the agreed sale price covers the Marchamo, the RITEVE inspection sticker, and transfer fees, as some dealers include these in their asking price.

Once the transfer deed has been submitted to the National Registry, it must be formally inscribed before the new owner is officially recognised in the system. The previous registered owner may continue to appear on official records until inscription is finalised, so buyers should follow up to confirm the process has been completed and keep copies of both the notarised deed and the National Registry confirmation for their records.

Can I import a vehicle into Costa Rica, and how does the process work?

Given how expensive vehicles are to purchase locally due to taxation, some expats explore whether importing their own car might be a more economical alternative. In the majority of cases, however, importing a vehicle — new or used — ends up costing roughly the same as, or more than, buying an equivalent model within the country. Even so, some people pursue this route, typically those with a particular attachment to a specific vehicle or those who qualify for the tax exemption described below.

Costa Rica imposes specific age and emissions restrictions on imported vehicles to uphold environmental and safety standards. Vehicles older than roughly five years are generally ineligible for private import, and all incoming vehicles must satisfy national emissions requirements. The country drives on the right-hand side, making left-hand-drive vehicles the standard. Right-hand-drive vehicles are not explicitly prohibited but are highly impractical and may run into difficulties during the mandatory inspection process. Always confirm current import eligibility rules with the Ministerio de Hacienda (Ministry of Finance) and the EXONET portal before initiating a shipment.

Brand-new electric vehicles are exempt from import duty, subject to approval from the Ministry of Environment, Energy and Telecommunications (MINAE). For those committed to going through the import process, electric vehicles may represent a financially worthwhile option worth investigating.

Tax-free import for new residents: Law 9996

In 2021, Costa Rica enacted legislation — the Law for the Attraction of Investors, Renters, and Retirees — permitting qualifying new residents to import vehicles into the country free of import tax, customs duties, and value-added taxes. Eligible applicants may bring in up to two vehicles per household for personal or family use under this exemption.

The most critical factor for anyone considering using this law is that the application window officially closes on 14 July 2026. After that date, new residency applicants will no longer be able to take advantage of the tax-free vehicle import provisions of Law 9996. The process itself is not swift: obtaining the exemption approval through the EXONET portal alone can take up to two months.

Once the exemption is granted, the recipient commits to maintaining their Costa Rican residency for ten years from the date of the approval. Should residency be cancelled for any reason before that decade is up, the full amount of duties originally waived becomes immediately payable, along with accrued interest. Only the beneficiary, their spouse, or dependent children under the age of 25 may operate the exempted vehicle. The car may not be sold or transferred to another party for ten years without settling the full duties owed, plus interest.

Standard import process (step by step)

1. Verify eligibility: Confirm the vehicle’s age, emissions compliance, and your own legal status (tourist, temporary resident, permanent resident) with the Customs Office (Dirección General de Aduanas) and the Ministry of Finance, who set and enforce Costa Rica’s vehicle import regulations.
2. Arrange shipping: Vehicles are typically shipped to either Limón on the Caribbean side or Caldera on the Pacific side. Choose between container shipping (more secure) or roll-on/roll-off (RoRo) services.
3. Prepare documentation: The original title proves ownership; you also need the bill of lading showing how the car was shipped. Both must be available in Spanish to assist with the customs process. You will also need a commercial invoice, proof of insurance, and your passport or residency documents.
4. Engage a customs broker: It is strongly recommended to use a customs broker or agent to assist with the customs process. Shipping companies usually provide a clearing agent at the destination port, often for an additional fee.
5. Pay duties and taxes: All taxes and duties must be settled before the vehicle is released from customs. Use the Ministry of Finance’s import duty calculation tool (available via the Ministerio de Hacienda website) to estimate the total in advance.
6. RITEVE inspection: Once the vehicle is released from customs, there is a 48-hour window to complete the mandatory roadworthiness inspection with RITEVE (DEKRA), Costa Rica’s official vehicle inspection authority.
7. Registration: After clearing customs, the vehicle must be registered with the National Registry (Registro Nacional). The owner must appear personally before a Notary Public — or delegate a third party via a Power of Attorney — to have the registration deed prepared and submitted.
8. Pay the Marchamo and collect plates: Pay the annual Marchamo (which combines road tax and mandatory liability insurance) and collect your licence plates to drive the vehicle legally on public roads.

For temporary stays of up to 90 days, a Temporary Import Permit (TIP) allows a vehicle to enter Costa Rica without full import duties being applied. This is a common arrangement for tourists but offers no long-term solution for residents. A modest fee and insurance from the National Insurance Institute (INS) are required. The vehicle must depart the country before the permit lapses to avoid significant penalties.

What are the costs involved in importing a car to Costa Rica?

Importing a vehicle into Costa Rica involves multiple overlapping expense categories. Anyone planning this process should account for all of the following. All figures below are approximate and should be verified with the Ministerio de Hacienda before proceeding, as rates are subject to change.

Import duty (as of 2025)

The age of the vehicle determines the applicable duty rate. Cars less than three years old are taxed at approximately 52.29% of their assessed value. Vehicles between four and five years old face a rate of around 63.91%, while those six years old or more are subject to approximately 79.03%. These percentages are not applied to the original purchase price but to the higher of either the CIF (Cost + Insurance + Freight) value or the figure listed in the government’s official Valuation Database, known locally as “Autovalor.”

For context, vehicle import duties for personal use across most of Europe and Latin America typically range between 5% and 35%. Costa Rica’s rates rank among the steepest in Central America, making the financial burden considerable — a car with a declared value of $30,000 could easily attract more than $23,000 in import taxes alone.

VAT (value-added tax)

A value-added tax of 13% is levied on most goods and services, including imported items. This is charged in addition to — not instead of — the import duty, substantially increasing the overall tax liability.

Shipping costs

Shipping a vehicle valued at $20,000 to Costa Rica can result in total taxes and duties exceeding $8,500, with sea freight from Miami to Costa Rica averaging around $1,000. The final figure depends on the port of origin, chosen shipping method (container or RoRo), and vehicle size.

Registration fees

Registration costs are calculated on a sliding scale based on the vehicle’s assessed value as determined by the tax authority. As a general estimate, plan for approximately 4.5% of the vehicle’s assessed value to cover registration.

Customs broker fees

Using a licensed customs agent (agente aduanero) is effectively indispensable for navigating the import process. Professional fees for legal and brokerage services will amount to several hundred dollars. Always obtain quotes from multiple licensed brokers before making a commitment.

Inspection and compliance

Every vehicle must pass a RITEVE roadworthiness and emissions inspection before it can be registered and legally driven. If the vehicle requires modifications to meet local standards — such as changes to lighting, safety systems, or emissions equipment — these will add further to the total cost. Review current requirements with RITEVE before importing the vehicle.

How do I register a vehicle in Costa Rica?

Whether you have purchased a vehicle locally or brought one in from abroad, formal registration with the Registro Nacional (National Registry) is a legal prerequisite before you may drive it on Costa Rican roads. Registration fees themselves are relatively modest; however, once a vehicle is on the register, the annual Marchamo — which combines road tax and mandatory insurance — becomes an ongoing obligation.

For a locally purchased vehicle, the notary public overseeing the deed of sale will generally submit the transfer documentation directly to the National Registry. Once the inscription is processed, the new owner appears on the official register. The buyer should verify that inscription has been completed and keep documentary proof for their records.

For an imported vehicle, registration follows on from customs clearance and the RITEVE inspection. Once the vehicle has been released from customs, the owner must appear before a Notary Public — or appoint a representative through a Power of Attorney — to have the official registration deed drafted and submitted to the National Registry.

The step-by-step procedure for registering an imported vehicle following inspection is as follows:

1. Complete the RITEVE inspection and obtain the interim inspection documentation.
2. Engage a Notary Public to draft the registration deed (escritura de matrícula).
3. The notary submits the deed to the National Registry for formal inscription.
4. Pay the Marchamo — the annual road circulation tax and mandatory liability insurance. The Marchamo is administered by the National Insurance Institute (INS), and an estimate of the amount payable can be obtained via the INS website.
5. Collect licence plates from the appropriate authority.
6. Return to the RITEVE inspection station so that the final report and compliance sticker can be issued, confirming the vehicle is fully registered and meets roadworthiness standards.

The body responsible for road safety policy is COSEVI (Consejo de Seguridad Vial), while the ministry overseeing transport infrastructure is the MOPT (Ministerio de Obras Públicas y Transportes). Always check the current registration requirements with these authorities directly before beginning the process.

What insurance do I need to drive legally in Costa Rica?

Costa Rica’s vehicle insurance framework differs markedly from the competitive private markets found in most of Europe, North America, or Australia. Mandatory third-party liability insurance — known as the SOA (Seguro Obligatorio de Automóviles) — is operated as a state monopoly by the Instituto Nacional de Seguros (INS), Costa Rica’s national insurer.

The Marchamo bundles the annual road circulation tax and the mandatory SOA liability insurance into a single payment, administered by INS. To estimate what the Marchamo will cost for a particular vehicle, INS provides an online calculator, typically accessible from November each year on the official INS Marchamo website (marchamo.ins-cr.com).

The amount owed varies considerably from one vehicle to another. The primary determinants are the vehicle’s fiscal value, its age, and its category — newer, higher-value vehicles carry a greater fiscal value and therefore a higher Marchamo payment.

The SOA provides only basic third-party liability protection. Optional comprehensive coverage — covering theft, fire, own-damage, and collision — is available through private insurers, and since the insurance market was opened beyond the SOA, several private providers now operate in Costa Rica. However, the mandatory baseline cover must still be obtained from INS through the Marchamo. Foreign no-claims records are not formally recognised in Costa Rica, meaning you may need to establish a fresh claims history when arranging optional comprehensive cover. Always compare policies carefully and confirm the scope of each with the insurer directly.

The Marchamo also incorporates a range of smaller levies, including municipal taxes, COSEVI road safety contributions, and — importantly — any outstanding traffic fines. If you have unresolved parking violations or other penalties, these will be added to your Marchamo payment.

What driving licence do I need in Costa Rica as an expat?

A 2024 amendment to Article 91 of Costa Rica’s Traffic Law (Ley 9078) brought significant clarity to foreign driving privileges: a valid foreign driver’s licence is now recognised for the same period as the holder’s legally authorised stay in the country. If immigration grants a tourist entry stamp permitting up to 180 days, that visitor’s foreign licence is valid throughout that entire period. This reform resolved a longstanding inconsistency under which the driving rules had permitted only 90 days regardless of the immigration status granted.

Tourists are not eligible to obtain a Costa Rican driver’s licence — that right is reserved for residents and citizens only. Once you receive your Costa Rican residency — whether temporary or permanent — you may convert your foreign licence through a process known as homologation. This allows holders of a foreign licence to obtain a Costa Rican equivalent without sitting a driving test, provided the Dirección General de Educación Vial approves and validates the application.

How to convert a foreign licence to a Costa Rican licence

1. Book an appointment online with COSEVI (the Consejo de Seguridad Vial).
2. Wait three business days, then book a follow-up appointment at the Banco de Costa Rica (BCR), where the process is concluded and the physical licence is issued.
3. Gather the required documents: your valid foreign driver’s licence, your DIMEX (residency card) or official evidence of a pending residency application, your passport, and a medical examination certificate.
4. Obtain a certified Spanish translation of your foreign licence from a translator accredited by the Costa Rican Ministry of Foreign Affairs.
5. Obtain a Certification of Exits and Entries from the Immigration Department, which COSEVI now requires from foreign applicants.
6. Attend your COSEVI appointment to have your documents verified and entered into the system, then attend your BCR appointment a few days later to pay the applicable fees and have your licence produced.

As of 2025, the initial licence fee is estimated at between $60 and $100; renewal costs between $20 and $40; and the medical examination is approximately $35. Verify current fees with COSEVI at the time of your application. A first-time Costa Rican driver’s licence issued to a new resident is valid for three years; subsequent renewals are issued for six-year periods.

The primary licensing authority is COSEVI (Consejo de Seguridad Vial), with its main office in San José (La Uruca) and additional locations throughout the country. From October 2025, Costa Rica planned to introduce an online licence renewal service, designed to reduce queues at BCR branches and improve access for residents living outside the capital.

How do I sell a car in Costa Rica?

Selling a vehicle in Costa Rica is every bit as procedurally demanding as buying one. Unlike in countries where handing over a signed slip of paper is sufficient, the process here is governed by strict formalities. As the seller, you are responsible for ensuring the vehicle’s documentation is fully in order before the transaction, and you remain the legally registered owner until the transfer is formally inscribed in the National Registry.

Before listing the vehicle for sale, make sure the Marchamo is paid and current, the RITEVE inspection sticker has not expired, and there are no outstanding fines registered against the vehicle. Unpaid penalties or taxes will either obstruct the transfer or become the seller’s liability if they are not declared and settled beforehand.

The transfer process requires both parties to attend an appointment with a licensed notary public, who will verify the vehicle’s status, prepare the deed of transfer (escritura de traspaso), and submit it to the National Registry for inscription. Until this inscription is completed, the seller continues to appear as the registered owner in official records — a situation that can expose them to theoretical liability for any traffic violations or incidents involving the vehicle in the interim.

From a tax standpoint, Costa Rica does not impose a specific capital gains tax on the private sale of personally used vehicles in most circumstances. However, if the vehicle has been used commercially or as part of a business operation, different rules may apply. Tax legislation changes over time — consult a qualified local tax adviser or the Ministerio de Hacienda to confirm your obligations at the time of any sale.

If the vehicle was originally imported under the Law 9996 tax exemption, bear in mind that it cannot be sold or transferred for ten years unless the full duties originally waived are paid. Even after the ten-year period, sellers must pay 30% of the vehicle’s value as assessed at the time of the original import, with no standard depreciation allowance applied.

What are the ongoing costs of vehicle ownership in Costa Rica?

Owning a vehicle in Costa Rica comes with a defined set of recurring financial and legal obligations that all drivers must honour. In broad structural terms, these are comparable to the combined roadworthiness test, road tax, and insurance requirements found in many other countries — but in Costa Rica, several of these components are merged into a single annual payment called the Marchamo.

The Marchamo (annual road tax and mandatory insurance)

The Marchamo consolidates the annual road circulation tax and mandatory SOA liability insurance into one payment. It falls due each year, typically by the end of December, and must be paid for any vehicle to circulate legally on public roads. The Marchamo also incorporates municipal taxes, COSEVI road safety contributions, and any outstanding traffic fines — unpaid violations will be bundled into the total owed. Payment can be made at most banks, at MOPT offices, or online through the INS website. The amount varies significantly by vehicle, with the primary determining factors being the vehicle’s fiscal value, age, and category.

RITEVE — mandatory vehicle inspection

Vehicles must be registered with COSEVI to receive local licence plates and a registration certificate, and must pass an annual RITEVE inspection to confirm compliance with Costa Rican emissions and safety standards. Broadly similar in concept to the UK’s MOT or Germany’s TÜV, the RITEVE examination covers roadworthiness, emissions output, lighting, brakes, and safety equipment. Unlike some jurisdictions where periodic inspections occur every two or three years, Costa Rica mandates annual compliance for all vehicles. Inspections can be scheduled through the RITEVE website.

Fuel costs

As of early 2025, petrol costs approximately $5.40 per gallon in Costa Rica — noticeably higher than in the United States and broadly in line with many European countries. Fuel prices are regulated by the government and adjusted on a periodic basis.

Maintenance

Costa Rica’s road network includes unpaved stretches, pothole-riddled surfaces, and steep mountain terrain, all of which accelerate wear on suspension components, tyres, and brakes. If you intend to drive regularly on rural or mountain roads, budget for around 20% more than typical maintenance costs elsewhere.

For the most current Marchamo rates, RITEVE fees, and any updates to inspection requirements or frequency, consult INS (for Marchamo information), RITEVE (for inspection bookings and standards), and COSEVI (for road safety and registration requirements).

Frequently asked questions

Can I buy a car in Costa Rica without residency?

Foreign nationals face no legal prohibition on purchasing a vehicle in Costa Rica. However, obtaining financing without residency is practically impossible, meaning a cash or wire-transfer transaction is the only realistic route. Some non-residents opt to buy through a locally registered corporation, though this path introduces additional compliance obligations. Seek advice from a local lawyer to confirm the current rules before proceeding.

How long does it take to transfer ownership of a used car?

The notarised deed of transfer (escritura de traspaso) can usually be drafted within a day or two of the sale completing, but formal inscription with the National Registry may take longer. Until inscription is confirmed, the seller continues to appear as the registered owner in official records. Always follow up to verify that registration has been finalised and retain written confirmation of the completed transfer.

Are there any restrictions on which vehicles can be imported to Costa Rica?

Costa Rica imposes restrictions on the age and emissions of imported vehicles in order to meet environmental and safety requirements. Cars older than roughly five years are generally ineligible for private import, and all vehicles must satisfy national emissions standards. The vehicle’s title must be free of any encumbrances, and salvaged or written-off vehicles cannot be imported. Confirm the current restrictions with the Dirección General de Aduanas before arranging any shipment.

What is the deadline for the tax-free vehicle import exemption under Law 9996?

The application window for the tax benefits provided under Law 9996 officially closes on 14 July 2026. After that date, new residency applicants will no longer be able to import vehicles tax-free under this legislation. Given the length of the application process, anyone contemplating this option should act promptly. Check the current status of the deadline with the EXONET portal and a qualified Costa Rican immigration lawyer.

Can I drive using my foreign licence in Costa Rica?

Following the 2024 amendment to Costa Rica’s Traffic Law, a valid foreign driver’s licence is now recognised for the same period as the holder’s legally authorised stay in the country. If immigration stamps your passport to permit a stay of 180 days, your foreign licence is valid throughout that period. Once you obtain residency, you will need to convert your licence to a Costa Rican one through the homologation process at COSEVI. No driving examination is required to make this conversion.

What happens if I drive without a valid Marchamo?

Operating a vehicle without a valid Marchamo is illegal in Costa Rica. The vehicle may be impounded and the driver issued with fines. The Marchamo must be renewed each year — typically by the end of December — and the sticker must be displayed on the vehicle. Use the INS online calculator at marchamo.ins-cr.com to check and pay your Marchamo. Confirm payment deadlines with INS annually, as they may vary.

Is comprehensive car insurance available in Costa Rica?

Yes. Although the mandatory SOA liability cover is exclusively provided by INS through the Marchamo, optional comprehensive insurance — covering theft, fire, own-damage, and collision — is available from a range of private insurers now operating in the Costa Rican market. Foreign no-claims histories are not formally recognised, so you may need to build up a local record over time. Compare policies carefully and seek guidance from a licensed insurance broker to find the most appropriate cover for your circumstances.

Do I need a Costa Rican tax identification number (NIT) to register a vehicle?

Resident foreign nationals will use their DIMEX (residency card) number as their primary identifier for official processes, including vehicle registration. Where a purchase is made through a company, the company’s cédula jurídica is required. Non-residents purchasing without residency should consult a local lawyer regarding the documentation applicable to their specific situation, as requirements can change. Always verify the current requirements with the National Registry and a qualified notary public before completing any purchase.