Importing a car to Costa Rica or buying a car in Costa Rica
Not sure if you should import your vehicle to Costa Rica or buy a new or used one when you arrive? Here is our handy 2022 guide for all of the options to consider when importing or purchasing a vehicle in Costa Rica.
Importing a Car to Costa Rica
Importing a vehicle to Costa Rica can definitely be done but it will be expensive. There is a sliding import tax scale that ranges from between about 50% and 80% of the value depending on the age of the car. Typically, the older the vehicle, the higher the tax rate. The assessed value will also be higher than in the United States and is not based on the Kelly blue book value, but instead is based on what the Costa Rican government thinks the vehicle is worth in this country. Vehicles that are too old will not be accepted for import at all.
It is important to consider the cost of putting a vehicle in a shipping container with anything else you are importing to Costa Rica. Shipping containers are available in 20 and 40 foot lengths. If bringing a car pushes you to a larger container or an additional container, it probably isn’t worth the cost of importing the vehicle.
Vehicles entering Costa Rica must be certified as safe for overseas travel, which includes draining any flammable liquids (you should have no more than a 1/4 tank of gas). Make sure you have all of the necessary paperwork, including the bill of sale, and the car should be in good working order.
Once it arrives in Costa Rica, the vehicle must be inspected and pass Riteve, the national Costa Rica vehicle inspection organization. You will also have to pay for the Marchamo registration fee, which is a mandatory annual insurance. The entire process from when the car arrives in Costa Rica to when you are able to pick it up is about three months.
The great news is that although cars are relatively expensive, they are cheap to maintain. For repairs that would cost thousands back in the U.S., you’ll pay hundreds here. And cars hold their value very well. Expect to not get much less than you paid if and when you decide to sell your car.
Buying A New Car In Costa Rica
On average, new cars and trucks in Costa Rica are about 25-30% more expensive than in the United States. This can work out to be close to the same as the cost of importing a used vehicle to Costa Rica. It is important to make a thorough assessment to see if it is worth your time and effort to bring a car to Costa Rica. It may likely be more in your favor to sell it before you leave your home country and purchase a new one when you move to Costa Rica.
When buying a new car in Costa Rica, keep in mind that dealers won’t always have the car you want in stock. The cars you see on display are actually ready for delivery to other customers who have already purchased them. It will take about six to eight weeks for delivery if you would like to select color, option package, and model. This wait time can be remedied by purchasing a car before you move to Costa Rica, which many dealerships will be happy to arrange for you.
Bear in mind that not all dealerships in Costa Rica will have English-speaking sales agents. Getting the information you need to find the right car for you may be a challenge if you don’t speak Spanish and the purchase procedure may be difficult. It can help to hire an English-speaker broker in Costa Rica to help you shop around.
Best Types Of Cars To Own In Costa Rica
The most popular car brands on the roads in Costa Rica are Toyota, Nissan, and Mitsubishi. The Japanese models are considered to be more reliable and their parts are easier to source locally. Because they are so numerous, mechanics in Costa Rica will tend to have more experience with these brands. By far, the easiest car brand in Costa Rica to get parts for and maintain is Toyota, which is why the prices for Toyotas in Costa will be at a premium, even if used.
If you do decide to bring your vehicle to Costa Rica, you may want to check that there will be parts available locally for the model of your vehicle. If not, parts will have to be imported. This will be expensive and take a lot of time. A Toyota from the U.S. or Canada will not be exactly the same as the counterpart models that are prevalent in Costa Rica. There are numerous differences, for instance, between a Toyota Hilux in Costa Rica and a Toyota Tacoma in the United States.
It may seem intuitive to think that the Jeep Wrangler would be the perfect car for Costa Rica because it was built for off-pavement driving, which is still prevalent in our South Pacific region. However, the inability to find parts locally makes them a challenge to own. You can eventually get parts but they will have to be imported and this will cost time and money, including potentially renting a vehicle while you wait for repairs.
You will, however, want to buy a 4×4 in Costa Rica that is comfortable and reliable. Four-wheel drive is not necessary if you live near the city, but in South Pacific Costa Rica, at least half the fun requires driving down a few dirt roads to get to. If you plan to live in a more rural area as we do, an SUV with high clearance is the way to go.
Things To Watch For When Buying A Car In Costa Rica
Cars in Costa Rica will tend to have lower mileage than in other countries because of the small size of this landscape because people are not generally commuting a hundred miles a day. Even still, there are other obvious signs of age such as wear and tear from bumpy dirt roads and rust from the humid, salty air.
There are some used cars in Costa Rica that have rolled back mileage/km (especially if the car’s odometer is in miles). You can use CarFax to check the VIN report of any car that has been imported from the U.S. (this report costs $40). However, it is important to mention that cars that have been imported from the U.S. may also be in a far better state than those from elsewhere as they have likely not been driven on as many bumpy roads and can tend to have less rust damage, especially if from a state with no snow and therefore no road salt damage.
When looking at used cars in Costa Rica, it is highly recommended to buy from one of the reputable used car dealerships around the country that have a good reputation. Still, you will want to get any used car inspected prior to purchase. Some notable things for you or your mechanic to look over when purchasing a used car include checking the oil dipstick looking for signs of engine failure. Check the four-wheel-drive by jacking up one side of the car at a time to see if both wheels spin. Also, check the undercarriage for rust and make sure that the chassis is straight as these are all signs of more serious (read: expensive) issues.
Favorite Car Dealerships In Costa Rica
New car dealerships are always a top option for those who can afford to buy a new car in Costa Rica. Most of these are found in and around San Jose, Costa Rica’s capital. You can find most of the top global brands, including Audi, BYD, Chery, Chevrolet, Citroen, Ford, Geely, Hino, Honda, Hyundai, Isuzu, JAC, Jaguar, Jeep, Land Rover, Lexus, Maserati, Mahindra, Maxus, Mercedes Benz, MG Morris Garage, Mitsubishi, Nissan, Peugeot, Ram, Subaru, Suzuki, Toyota, Volkswagen, ZNA.
When it comes to buying a used car, some say that the best used car lots in the country are also in and around San José, which has a drier climate, and better-maintained roads. About an hour northwest of San José is Grécia, a small town known throughout the country for its used car lots that line the road from the PanAmerican Highway to the center of town.
There are also a number of reputable used vehicle dealerships around Costa Rica that offer warranty on the cars they sell. (Contact us for recommendations info@osatropicalproperties.com)
Steps For Buying A Car In Costa Rica
You don’t need to be a Costa Rican resident or citizen to buy a car, you can buy it in your name or in your Costa Rican corporation if you have one.
Once you find the car you want, and you have test driven it, it is extremely important that you have a qualified mechanic do an inspection to let you know the mechanical condition before buying the car.
The next step is to hire a Costa Rican lawyer that is also a Notary (not all lawyers in Costa Rica are public notaries). They will perform the legal work and check the history of the car. Used assets in Costa Rica can commonly have liens, notations, and collisions that are still pending in court. The lawyer will do a study of the registry where all these records are kept in Costa Rica.
The lawyer will inform you of how much you have to pay in taxes, which is a percentage of the approximate value of the vehicle. In Costa Rica, there are two values for the vehicle: the market value (the price you pay for the car) and the fiscal value (the taxable value, similar to the Blue Book value). You will pay taxes on the fiscal value, which most of the time is higher than market value. The lawyer will also charge their transfer fee based on the fiscal value.
The buyer always pays the lawyer fees and taxes unless there is an agreement otherwise.
Once the transfer document is presented in the National Registry (Registro Nacional de la Propiedad), it could take up to three weeks for the car to be transferred into your name. The average cost of this service is around $400.
How To Pay For A Car In Costa Rica
Not having a local bank account in Costa Rica is not a problem when looking to purchase a car. There are three very good and safe options to pay for a car in Costa Rica.
The first option is to do an international transfer from your bank anywhere in the world. The estimated time frame for this transfer is up to 72 hours, depending if your bank has to go through other bigger banks to do the transfer. Bigger banks that offer the international transfer service will take minutes to transfer the money to a bank in Costa Rica. It rarely takes more than 48 hours.
A buyer can transfer the funds to a trustworthy intermediary (like an escrow company or a local Costa Rican lawyer) rather than directly to the buyer, so there won’t be that moment of uncertainty while waiting for the money to arrive. Banks in Costa Rica will ask for proof of funds origin if the amount is over $10,000 so this is an important step to consider before transferring the money.
The second option for purchasing a vehicle in Costa Rica is to pay in cash. This option is more feasible for lower budgets, since you have the option to bring cash with you on a plane. Each person is allowed to bring up to $10,000 on their person. Paying with cash can be a point of negotiation so there can be the additional bonus of a cash discount.
When purchasing from a car dealership, the third way is to pay by credit or debit card. Individuals won’t have a way to accept a payment with this method. However, you can also use payment apps if the seller has these, the most popular of which is SINPE in Costa Rica. If you are buying from an expat, they may likely have other more familiar apps like Venmo or PayPal set up with their home bank.
What Are Riteve And Marchamo?
Owning a car has 2 costs involved per year: Riteve and Marchamo.
Riteve is a yearly technical inspection that every car in Costa Rica must pass. It is due in the month corresponding to the last digit of the license plate (May Riteve will have the last number 5). The cost for the Riteve inspection is around $35 and when you pass, you will get a sticker that goes on the windshield.
Marchamo is a national registration and mandatory liability insurance. This mandatory form of insurance covers a minimum amount of liability (less than $13,000 in 2020) for injuries people suffer if your vehicle is in an accident, regardless of who the driver is or whether or not the driver is at fault. Marchamo fees are paid once per year between November 1 and December 31 and it allows a vehicle to circulate on the public roads of Costa Rica. The annual cost for this is 5% of the car value as per the National register office (Check your Marchamo fee). You also get a windshield sticker for this.
Cars being registered for the first time in Costa Rica are paid on a prorated basis when the car is imported. If you purchase a vehicle that already has a license plate then the Marchamo should be valid (the license plate never changes on a car).
Robert
on said
The articles are fascinating.
Alexandra Luty
on said
Hello Robert. That is very kind of you to comment that. Please let us know if there are any topics you would like us to cover.
Pissed off
on said
Thanks for the information, but gawd damn I hope it’s not entirely true. Reading that just pissed me off!!!
I am going to Costa Rica for 3 to 9 months, and my -1st option of purchasing a car down there was out the window, because of the high cost involved even for a shit box.
-2nd option, driving my car to Costa from Canada went out the window, because it was either that or me and my pet dog’s body parts would most likely be going out the window, as they disposed of my body in the jungle in Central America somewhere and load it onto a flatbed
3rd option… after spending five hours tonight on the Internet I came up with a perfect plan, even better than my first option and was feeling fantastic, 3 minutes later I’m reading your website, wow I can’t believe what I read. If it’s true it’s fucking bullshit, I am PISSED!!!
I was going to drive from Toronto Canada, to Miami Florida, have my vehicle shipped to Costa Rica and catch a flight with me and my dog from Florida to Costa Rica. The flight was cheaper from Florida than Toronto, the cost of shipping the vehicle was much cheaper than I expected. I could sightsee along the way.
And then you tell us to that, we HAVE to PAY an IMPORT TAX of between 50-80% of the VALUE of the VEHICLE???
So, i would HAVE to PAY aprox 60% of the VALUE (that they say its worth) of my VEHICLE that, I already OWN its in MY NAME, and is already PAID OFF, in which 13% of what I paid WAS in, CANADIAN SALES TAX…. So, just to have my own vehicle rolled off the ship for me to driver around in Costa Rica while I am there for 3-6 months,
The Costa Rican government wants me.to give them aprox $8,000, so I can have the connivence to drive my own car around while I am there???
No wait, even if I wanted to give them a ridiculous amount of money, you then tell me it’s going to take 3 MONTHS, for someone to open the container, and move the car from the pier to the parking lot.
Do you know what, fuck you Costa Rica… I’ll buy my $200,000 vacation home it’s been my $60,000 plus a year in another country pricks
Alexandra Luty
on said
Hello Rob,
Sorry to hear about your negative reaction to Costa Rica’s policies. We do not try to hide the challenges of moving to Costa Rica (it is in our best interest to help our clients go into this journey with open eyes). Some things are genuinely more expensive here, however, others are quite below market value when compared to other countries (real estate, for one, tends to be much less expensive in Costa Rica). It sounds like your mind is made up that Costa Rica may not be for you and that is fair. I hope that you find your dream location somewhere in the world! Best of luck.
Tamara
on said
What an amazing source of information! Thank you! Do you have any reputable attorneys you can refer me to—for both real estate and car purchase? Please and thank you!
Alexandra Luty
on said
Hi Tamara,
Thanks for your comment! We really like working with Alberto Saenz’s team at Invicta Legal. They are in different offices around the country. Here is his contact info:
alberto.saenz@invicta.legal
Main (506) 4036-5050 Ext.5067 Mobile (506) 8880-5252 Fax (506) 4036-5060
Daniel G
on said
Très bonne information. Quand est-il pour les véhicules hybrides et électriques ?
Alexandra Luty
on said
Hello Daniel,
Thank you for your comment. As of yet, we still don’t know the exact details for importing gas and diesel vehicles tax-free. However, since 2018, Costa Rica has allowed for the tax-free importation of electric vehicles — new and used (up to $30,000 USD in value is tax-free with a sliding scale afterwards and anything above $60,000 in value pays full import taxes). Imported electric vehicles also benefit from an exemption from paying the annual Marchamo fees. These benefits are set to extend until 2035.
Mark Haskell
on said
Thank you for the very informative article. Can you clarify please what age car is “too old” to pass the initial inspection and import. We drive a low mileage 2000 Toyota 4runner which we would like to bring when we relocate to CR before the end of the year. Would appreciate any advice….
Alexandra Luty
on said
Hello Mark,
Thanks for your comment! According to this article in the Tico Times (although from 2015), Costa Rica has decided not to allow the import of vehicles older than 14 years old due to the country’s emissions guidelines. But based on the tiered taxes, it really only makes sense to import newer cars.
https://ticotimes.net/2015/10/23/government-car-dealers-agree-stop-importing-used-cars-14-years
douglas mackinnon
on said
what happened to the law they passed over a year ago that supposed to allow the duty free importation of two vehicles?
Alexandra Luty
on said
Hi Douglas,
Thanks for your question. As with Costa Rica’s Digital Nomad Visa (also passed in July of 2021), the regulations took until this month to establish. The importation of vehicles tax free is likely a more complex set of regulations and is taking more time. It does seem, though, that this new government is working efficiently to complete the steps to tourism and economic recovery and we are likely to see this law enacted soon. For further details, we advise you to get in touch with your legal team in Costa Rica who can likely help you get started with the process so that you are ready to go out the gate. Best wishes.
Chris Pietszak
on said
Hello
Like many people we are very interested in moving to Costa Rica. We were very excited about the change in the law that would allow us to ship a vehicle tax free. It’s been over a year since the law was passed. My question is, will immigrations eventually be required to implement the new laws or can they simple chose not to implement the laws indefinitely?
Alexandra Luty
on said
Hi Chris,
All of the lawyers who we have spoken to on this matter say that the regulations are still being worked on. Because there was a change in government recently, there is a small delay on completing the regulations to accompany this new law. So far, the Digital Nomad Visa (passed last year around the same time) has been finalized and people are able to apply under this visa. But the tax-free importation of vehicles and other household goods is a more complex set of processes that are requiring a lot of deliberation. It is my personal opinion that it will eventually be implemented because Costa Rica is counting on increased immigration, which this law would amplify.
Alexandra Quiros
on said
Hi Alexandra, thanks for the info! Do you know any details about import tax exceptions on Electric Vehículos!?
I have a Toyota hybrid, and I’m trying to find out if Hybrids are also
consider EV?? Or if it must be completely “plug in”…!?
Would really appreciate any leads,
Thank you!
Alexandra Quiros
Alexandra Luty
on said
Hi Alexandra
Thanks for your comments and questions! To answer, it is my best understanding that this exemption does not apply to hybrid vehicles and the exemption itself will be phased out over time until 2027 when there will be no more exemption on electric vehicle imports (other than potentially for those applying under the proposed tax-exempt residency scheme that is still having the details worked out and we do not know when it will be available). Here is a recent helpful article that translates the most recent laws for electric vehicle tax exemption:
https://thecostaricanews.com/exemption-of-100-property-tax-for-electric-cars-in-costa-rica-comes-into-effect-in-2022/
derudder
on said
Bonjour, cet article est très complet merci à vous pour tout vos précieux conseil. Juste mon témoignage, j’ai acheté il y a quelques mois un Montero assez vieux 13.000 dollars, mais en bon état, chez Price Auto à Uvita vendeuse Alysson. Comme il y avait un problème de lève vitre et un solénoide à changer, je l’ai laissé deux semaines dans leur grand et beau garage a Parrita. Quand je l’ai récupérer, ils avaient échangé mes deux parechocs en très bon état contre deux autres en mauvais état et syphoné de l’essence, je venais de faire le plein. J’ai interpelé Doug le patron un américain qui m’a traité de menteur. Quand je serai installé définitivement j’achèterai du neuf, en attendant je ne fais plus confiance à personne ici.
Alexandra Luty
on said
Hola Laurent,
Thank you for your kind feedback on our article. I am sorry you had a bad experience with a company listed in our write up. We understand your frustration and we hope that it is resolved for you soon. Wishing you the best.
Vani
on said
Coucou et merci pour ces bons renseignements
Alexandra Luty
on said
C’est gentil, merci !
Fred Manuel
on said
I agree with “pissed off”. Taxing folks who would move to this Country , retire with American dollars to spend there after moving is now a foregone conclusion for me. I will take my retirement dollars elsewhere now… unbelievable !!!! I did not know that this Country is into making unlimited amounts of money from retiring United States citizens. Probably lining the corrupt pockets of the countries and Cities leaders . USA after reading your article on how they “shakedown” people who move there , is looking better and better now…
Russell Davis
on said
I have a classic 1965 Chevy Corvair
Can I import it to Costa Rica, and what would be the approximate cost
Thanks
Alexandra Luty
on said
Hi Russell,
Because of the age of your car, it is possible that it would be prohibitively expensive to import it to drive in this country. The Costa Rican embassy says that it is possible:
“It is possible to export a classic car from the United States to Costa Rica, but you must search for a shipping/exporting company that provides you all the necessary details and requirements.”
Here is a company that can help you: https://csight.crowley.com/crowley/s/
Chuck Thompson
on said
It’s not a shakedown. You just don’t understand how tariffs work.
Cecilia Lowenthal
on said
“ Pissed off “ is entirely correct – our car is still in Costa Rica . We were supposed to pay the Costa Rican government $8000 for a 2012 Buick that we shipped . All paid for – daylight robbery !!
When we tell our friends how we enjoy Costa Rica and then also tell them about our car, they tell us that everything nice we told them about Costa Rica dissipated in the light of the car policies.
For the record : we are still “ pissed” and our car is still there. We are back in the USA without a car – a lawyer told us we had a 50% chance of getting it back if/ when we went to court with this.
Alexandra Luty
on said
Did your lawyer explain why you cannot get your car back? Your story is not clear as to why your car was not released.
Chuck Thompson
on said
Of course, you could have done your research before shipping your car. This is all common knowledge. It’s why 90+% of people DON’T ship their cars here! I’m sure dozens of people told you not to, but you did it anyway, and now you’re “pissed off” at reality being exactly as predicted. SMFH
Cecilia Lowenthal
on said
“When it comes to buying a used car, some say that the best used car lots in the country are also in and around San José, which has a drier climate, and better-maintained roads. About an hour northwest of San José is Grécia, a small town known throughout the country for its used car lots that line the road from the PanAmerican Highway to the center of town.”
Funny that the voted most “ecological” country in the world is also a collector of scrap metal and used cars – stolen from visitors and people not being able to pay exorbitant car licenses .. what a contrast !
Alexandra Luty
on said
Hello Cecilia,
I don’t follow the stolen comment but you are entitled to your thoughts and I’ve approved your comment for others to read and make up their own minds. Older, more polluting cars pay higher import fees for the reason that they are less ecological and Costa Rica is trying to discourage their use in this country, while also promoting the use of electric vehicles which have far lower (sometimes no) import fees.
proton
on said
thank you
REGGIE SHARPE
on said
I AM CONSIDERING MOVING TO COSTA RICA FROM THE USA, HOWERVER I OWN A 2005 PORSCHE 911 CARRERA CABRIOLET 997, I WOULD PREFER TO BRING MY CAR WITH ME TO COSTA RICA..IT WOULD BE CONSIDERED A ‘CLASSIC’ HOPEFULLY (IT IS 18 YRS OLD AND IN GREAT CONDITION, PASSING ALL EMMISSIONS INSPECTIONS AND SAFETY IN THE USA…WHAT ARE THE CHANCES OF BRINGING MY PORSCHE THERE ON A “CLASSIC CAR” STATUS???
Alexandra Luty
on said
Hi Reggie,
Thanks for reading and for submitting your question. From our research into this subject, we have heard from people who have successfully imported classic cars. They have said that the import fees are high (over 70% of the blue book value) but that it is possible. It is helpful to contact a classic car club to ask for more details from others who have successfully imported vehicles. Best of luck!