Buying a Car in Costa Rica: What You Need to Know

Buying a car in Costa Rica is a significant investment, and just like purchasing real estate, it requires careful legal and technical due diligence. While the process may seem straightforward, failing to check key legal and mechanical aspects could lead to costly mistakes. Below, we outline everything you need to know before purchasing a vehicle in Costa Rica.

Why You Need an Attorney

One of the most important steps when buying a car in Costa Rica is ensuring that the title is clear and that the transfer process is done correctly. This is why having an attorney is essential. Before signing any document or making any payment, your attorney should:

• Check the vehicle’s title to ensure there are no liens, pending legal claims, or ownership disputes.
• Verify the license plate number in the National Registry to confirm that the seller is the legitimate owner.
• Handle the official ownership transfer before a notary public to ensure the vehicle is legally registered in your name.

Cost of Transferring a Vehicle

The costs associated with transferring vehicle ownership are typically around 4% of the car’s value. This includes:

• Transfer tax (usually 2.5% of the vehicle’s fiscal value)
• Legal fees for the notary public
• Stamps and registration fees

Your attorney can provide an exact breakdown of the costs depending on the car’s valuation and any additional legal requirements.

Legal Issues to Consider

Before purchasing a car, make sure the following legal requirements are in order:

Marchamo (Road Tax) Is Paid

The marchamo is a mandatory yearly tax that covers insurance and road use fees. If a vehicle has unpaid marchamo for previous years, the new owner will be responsible for settling the debt.

DEKRA (Technical Inspection) Is Up to Date

Costa Rica requires all vehicles to pass Dekra inspection (also known as RTV or Riteve), a government-mandated technical inspection that ensures cars are roadworthy. If the vehicle does not have an updated RTV, it could be illegal to drive until it passes inspection.

Technical Issues to Consider

Besides legal aspects, it is crucial to assess the car’s mechanical condition. You should always:

• Hire a trusted mechanic to inspect the vehicle before purchasing.
• Check for past accidents or major repairs that could affect performance.
• Verify the car’s electrical and mechanical systems, including brakes, engine, transmission, and air conditioning.

Final Thoughts

Purchasing a vehicle in Costa Rica can be a smooth process if done correctly. However, never sign any document or make a payment before consulting with an attorney to verify the legal status of the car. Additionally, ensure a mechanic inspects the vehicle for technical issues to avoid unexpected costs.

At LandCo Law, we assist clients with legal due diligence for vehicle purchases, ensuring they are secure and compliant with Costa Rican regulations. If you are considering buying a car, contact us for expert guidance.

For more insights on legal matters in Costa Rica, visit our other blog posts at www.landcolaw.com/blog.