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Vehicle transfer in Costa Rica: how to buy or sell a used car

What to check before buying a used car in Costa Rica, how the transfer is done before a notary and why it should be recorded at the National Registry.

Updated: · DaLic Abogados

Quick answer: In Costa Rica, the transfer of a used vehicle is formalized before a notary public and recorded at the Movable Property Registry of the National Registry. Before signing, check the registry search (liens, attachments and annotations), the annual circulation fee, the technical inspection and any fines. The vehicle is in the buyer's name once the Registry records the transfer.

Buying or selling a used car is one of the most common legal transactions in Costa Rica. Although the process is simple, doing it properly avoids common problems, such as fines issued in the seller's name, liens nobody knew about, or a vehicle that is still in someone else's name years later. The transfer (traspaso) is recorded at the Movable Property Registry (Registro de Bienes Muebles) of the National Registry (Registro Nacional).

What should you check before buying a used vehicle?

1. Registry search on the vehicle. Using the license plate number, you can check at the National Registry who the registered owner is and whether the vehicle has:

  • pledges or liens (prendas, which secure loans),
  • attachments (embargos) or court annotations,
  • recorded traffic violations or collisions,
  • restrictions due to a tax exemption.

If the vehicle has a lien, it must be cancelled, or the buyer must expressly assume it with the creditor's authorization.

2. Annual circulation fee (marchamo). Make sure the current year's circulation fee (derecho de circulación, commonly called marchamo) has been paid and that no prior periods are outstanding.

3. Vehicle technical inspection (revisión técnica vehicular). Confirm that the vehicle has a valid technical inspection or, at the very least, know its status before buying.

4. Fines. Outstanding traffic fines can affect later procedures. Check whether there are any before you pay.

5. Physical match. Compare the VIN or chassis number, the engine, the color and the features with the registry information. Discrepancies can prevent registration or point to a bigger problem.

6. Tax-exempt vehicles. If the vehicle was imported into the country with a tax exemption, its transfer has special requirements and, in some cases, requires paying the exempted taxes or obtaining prior authorization.

How is the transfer done?

A vehicle transfer is formalized before a notary public. In Costa Rica, notaries are lawyers authorized to exercise public faith; the notary drafts the sale deed in his or her protocol (official record book), verifies the identity of the parties and the condition of the vehicle, and files the certified copy (testimonio) with the Movable Property Registry.

In general terms, you will need:

  • Valid identification for the buyer and the seller (or proof of legal representation, if either is a company).
  • The vehicle's details (license plate and features).
  • The agreed price and the method of payment.
  • Payment of the transfer tax, the stamp duties (timbres) and the applicable registration fees. The tax is calculated on the vehicle's fiscal value as set by the Tax Administration (Administración Tributaria), or on the price, if higher.

The vehicle is in the buyer's name once the Registry records the document. If there are defects, the notary corrects them and files it again.

Why isn't an informal "piece of paper" or handing over the keys enough?

Until the transfer is recorded, for registry purposes the vehicle still belongs to the seller. This can have consequences:

  • For the seller: they may receive notices of fines, circulation fee charges or even claims for accidents caused by someone else with a vehicle that is no longer theirs.
  • For the buyer: they may find attachments or liens recorded after the purchase, or have difficulty selling the vehicle later on.

That is why it is advisable to sign the transfer and file it with the Registry at the time the vehicle and the money change hands, not afterwards.

Special cases

  • If the seller is a company, the person signing must have sufficient authority according to the company's current proof of legal representation (personería), and the notary must verify this.
  • If the seller is outside the country, they can sign through an attorney-in-fact holding a sufficient power of attorney which, if granted abroad, normally must be apostilled.
  • If the owner has died, the vehicle forms part of their estate (sucesión), and the transfer must be made once the person entitled to dispose of the assets has been appointed.
  • If the vehicle has another type of plate (for example, cargo, special service or tourism plates), additional requirements or authorizations from other institutions may apply.

Practical tips

  • Run the registry search on the day of signing, even if you have already done it before.
  • Use payment methods that leave a record, such as a bank transfer.
  • If the vehicle has a lien, coordinate with the creditor so that the cancellation and the transfer take place in a single act.
  • Keep a copy of the transfer document and of the receipt showing it was filed with the Registry.

Frequently asked questions

Does a vehicle transfer have to be done before a notary?

Yes. The transfer is formalized before a notary public, who drafts the document in their protocol, verifies the identity of the parties and the vehicle's details, and files the certified copy with the Movable Property Registry. A private document or simply handing over the keys does not change the registered owner.

How can I find out whether a used car has liens or attachments?

Using the license plate number, you can check at the National Registry who the registered owner is and whether the vehicle has liens, attachments, court annotations, traffic violations or tax-exemption restrictions. It is advisable to repeat the search on the day of signing.

How much does it cost to transfer a vehicle in Costa Rica?

You pay the transfer tax, calculated on the vehicle's fiscal value or on the agreed price if higher, plus stamp duties, registration fees and the notary's fees under the official fee schedule. It is advisable to ask for a breakdown before signing.

What happens if the transfer is not recorded at the Registry?

For registry purposes the vehicle remains in the seller's name. The seller may receive fines, circulation fee charges or claims for accidents they did not cause, and the buyer may face liens or attachments recorded after the purchase, or have difficulty selling the vehicle later.

Official sources

Disclaimer: This article is for general information only and is not legal advice. Every case requires its own analysis. Laws and fees change; check the current rules before making decisions. If you would like us to review your case, email [email protected], message us on WhatsApp or call +506 6290-5407. Bilingual service in Spanish and English.

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