Getting around in Costa Rica is one of those topics that sounds simple until you actually start digging into it. Buy or import? Bus or car? What is a Marchamo? How do you avoid getting scammed on a used car purchase?
We hear these questions constantly from people preparing to relocate. So we sat down and answered the most common ones — drawing from years of living here, driving here, and making plenty of our own mistakes along the way.
Should You Buy a Car Locally or Import One?
Buy locally. We are of the collective agreement on this one.
Importing a car into Costa Rica is bureaucratic, expensive, and often not worth the hassle. Even if you qualify — which depends on your visa status and a handful of other factors — there are real practical concerns beyond the paperwork. Does Costa Rica have the parts to fix your car? Do mechanics here know how to work on that particular model?
Cars that are tried and true in Costa Rica — Toyota, Hyundai, Suzuki, Mitsubishi — are going to be your best insurance that you can actually keep the vehicle running and properly maintained over time. The used car market here is plentiful, and buying something reliable that local mechanics already know inside and out will save you headaches for years to come.
For a deeper dive on the buying process, check out our guide to buying a car in Costa Rica.
How Reliable Is Public Transportation?
Buses in Costa Rica are cheap and the network is extensive, especially in and around the Central Valley. If you are living in San José, Heredia, Alajuela, or the surrounding areas, you will have solid bus options for getting around.
Rural and beach areas are a different story. Service is limited, schedules are less predictable, and routes can be confusing if you are new to the country. You will also want to feel reasonably confident in your Spanish, because asking for directions, finding the right stop, and navigating unfamiliar routes all require at least basic conversational ability.
Uber is available in many parts of the country and is a popular option for newcomers. Traditional taxis — the red ones — are also widely available, but know ahead of time whether they take cards or only cash (colones). The closer you are to a town center, the better your transit options will be.
For more on what daily life looks like across different regions, see our guide to the best places to live in Costa Rica.
Do You Need an International Driver’s Permit?
It is not required, but some people recommend carrying one as a backup. Your home country driver’s license is valid in Costa Rica as long as your visa stamp is current. Once your stamp expires, you will need a Costa Rican driver’s license.
Here is the important part that catches people off guard: you are legally required to carry your passport when you drive. Not a copy. Your actual passport. A lot of people — Patrick included — do not carry it because of the fear of losing it. But legally, it is required.
If you choose not to carry the original, at the very least take a photo of both your passport and your visa stamp. Having both on your phone is better than nothing, and you are more likely to be sent on your way by a police officer if you can show both.
For more on the visa and residency side of things, read our overview of Costa Rica residency options.
How Does Car Insurance Work in Costa Rica?
All drivers in Costa Rica must carry mandatory liability insurance (seguro obligatorio). This covers damage you cause to other people or property. If you are renting a car, this is included in the rental. If you own a car, it is bundled into your annual Marchamo payment.
But here is the thing: that mandatory insurance only covers liability — not your own vehicle. To cover damage to your car, theft, or other incidents, you need separate comprehensive insurance from a private provider. INS (Instituto Nacional de Seguros) and Qualitas are the two biggest names.
One thing worth knowing: the majority of drivers on Costa Rica’s roads carry only the bare minimum insurance. Patrick made the deliberate decision to over-insure specifically because he knew most other drivers around him did not. That is advice we pass along to every one of our community members.
The policies are significantly more affordable than what you would pay in North America, so getting comprehensive coverage is well worth it. We can connect you with a knowledgeable insurance broker who can walk you through the options.
How Do You Find a Reputable Used Car Dealer?
We maintain a list of reputable used vehicle dealerships that we share with our community members. The used car market in Costa Rica is plentiful, but it does come with a significant caveat: there is no CarFax equivalent here. There is no centralized system to look up a vehicle’s history, accidents, or maintenance record.
That means you need to do your homework. Ask where the car came from. Was it a trade-in? Who owned it before? How many owners has it had? What is the maintenance history? These are all questions you need to be asking — and getting satisfactory answers to — before you even consider making an offer.
How to Avoid Scams When Buying a Car
This advice applies no matter what country you are in, but it is especially important in a market without a vehicle history reporting system:
- Use reputable dealers. Ask around. Talk to people who have bought cars here. Find dealers who have sold vehicles to your neighbors or people in your community.
- Avoid Facebook Marketplace scams. If a listing feels off, it probably is.
- Always use bank transfers, not cash. A wire transfer creates a paper trail. If something goes wrong, an attorney or the police can trace where the money went. Cash disappears.
- Meet in public places. We see car transactions happening in parks all the time — it is common and smart.
- Hire a mechanic for a pre-purchase inspection. This is the single most important step. We can connect you with mechanics who will do a thorough evaluation before you commit to anything.
- Use a notary attorney for the transfer. Vehicle transfers in Costa Rica are formal legal transactions. A notary public must draft the transfer documents and register the sale with the National Registry. You cannot just sign over a title like you would in the United States or Canada.
For more on common mistakes when moving to Costa Rica, including financial pitfalls, check out our comprehensive guide.
What Is the Vehicle Registration Process?
Vehicle registration and ownership transfers in Costa Rica must be handled through a notary public. This is not optional — it is a formal property transaction. Here is what you will need:
- Valid passport — for identification purposes
- Driver’s license — to prove you are authorized to drive
- Residency status (recommended) — not mandatory for purchasing, but having temporary or permanent residency simplifies the process significantly, especially for long-term driving privileges
- Legal documentation — the notary drafts and submits ownership transfer documents to the National Registry
If the car is new or imported, you will receive new license plates. For used car purchases, the plates stay with the vehicle. This is actually one of the reasons the legal process is so important — without a formal transfer, anything tied to the previous owner’s use of that car could revert to you.
For an overview of residency pathways that can simplify these processes, see our guide on whether you need residency to live in Costa Rica.
What Is the Marchamo?
Every year in November and December, vehicle owners in Costa Rica must pay their annual Marchamo. Think of it as your all-in-one vehicle registration renewal. It bundles together:
- Mandatory liability insurance
- Vehicle taxes
- Registration renewal
You can pay it online or at a bank. Aaron learned the hard way that the online process does not always go smoothly — one year it did not go through properly. Patrick has gone to the bank in person ever since. You will receive a new sticker for your windshield. Put it on correctly the first time. Aaron did not, twice, and had to go back for replacements.
It is one of those small but real parts of daily life in Costa Rica that nobody tells you about until you are standing at the bank in December wondering why there is a line out the door.
Our Recommendation: Over-Insure
If there are two things we recommend over-insuring in Costa Rica, they are your vehicle and your property. Insurance premiums here are a fraction of what you would pay in North America, and the peace of mind is worth every colón. Most drivers around you are carrying only the legal minimum — protect yourself accordingly.
We walk our community members through all of this. Transportation is one of those topics that seems straightforward until you are actually living it. The Marchamo, the notary requirement, the lack of CarFax, the passport rule — these are the details that trip people up.
That is exactly why we are here. We have made the mistakes so you do not have to.