Registering a Vehicle to Your Name
How it works in Costa Rica
The actual purchase of a vehicle in Costa Rica hinges upon the key factor of actually having the vehicle registered in your name in a reasonable time frame.
Believe it or not, some people who buy cars in Costa Rica do not complete this step !
In a cash purchase, the process isn't too complicated. The buyer and seller must both sign the sales contract in front of a lawyer. In Costa Rica the sales contract is known as the "escritura".
The lawyer submits the paperwork to the National Registry, and in a few days the title has been transferred to the new owner.
Read on below for detailed information on how the entire process works.
The Sales Contract "Escritura" -- We have an article on the what the sales contract involves, click on this box or the image to see detailed information.
What Does the Lawyer Charge?
In Costa Rica, transfer costs are based on the fiscal value of the vehicle, this is determined yearly by the Tax Ministry. It may be higher, lower or the same as market value. Nowadays most vehicles have a fairly accurate value, but you have to look at the current marchamo to know for sure.
To estimate the amount you will need according to your budget, you can use 5% of the market value of vehicles you intend to purchase.
Or take 5% from the money you have allowed, to see what your budget for the vehicle itself can be.
The lawyer will also charge a fee and the 5% should allow for that as well, although some lawyers do charge more than the minimum.
Digital Title in Costa Rica
It is no longer necessary to get a printed title or have it in the vehicle.
Click on this box to see the article on the paperless property title for vehicles in Costa Rica.
The National Registry
The National Registry is the central clearinghouse for all property in Costa Rica, this includes Intellectual Property (like patents and trademarks), Real Property (raw land and developed property) and Portable Property (vehicles of all types, including maritime).
While some transactions may be done personally by the owner of the property in question, the transfer of ownership may only happen when authenticated by a notary public.
In Costa Rica they are all attorneys as well. While some may criticize this setup as overly bureaucratic, it is also true that it gives the new vehicle owner peace of mind.
Prior to the purchase, the attorney can check for the clear title and history of the vehicle. If everything is clear, the attorney will prepare the sales contract.
Once this "escritura" is submitted to the registry, an annotation that a transfer of title is in progress appears immediately.
If the sales contract is in order, the registry will approve the change of ownership and the new owner's name will appear online in a few business days.
Case 1 - Pre-owned Cars with Permanent Tags
This is the most straightforward, when you purchase a vehicle that was bought new from the dealer here, or previously imported as a used car.
It has already been nationalized and has a metal license plate. You may be purchasing from a private owner, or from a dealer who has taken the car as a trade in.
Either way the purchase is relatively painless, you will go to a lawyer's office -- or the lawyer will come to the dealership.
- You will review the sales document which states the vehicle information and terms of sale.
- You will pay the current owner cash. Or you have already paid a dealer by international wire transfer.
- Both parties will sign the sales document, you get the keys and off you go!
The lawyer will submit the contract to the National Registry and in a few business days you can check online to confirm the vehicle is in your name. (account required - Click here to visit the Registry Online )
Case 2 -- Vehicles Just Being Imported to Costa Rica - AGV
Dealer plates are now called AGV tags, they are issued by the Department of Public Transportation in limited numbers.
New car dealers and importers of used vehicles will have some for their use. You will get a temporary plate to keep on the windshield, and a letter with your name that authorizes you to used the AGV plate for a specific time.
For used car importers, the temporary plate can take about a week to obtain. New car dealers take from 1 to 6 months to process their paperwork.
In either case, you can bring the AGV plate back to the dealer and they will install the permanent tag plus the associated stickers.
Case 3 - Vehicles in Customs or No AGV Plate
Some importers don't have AGV plates and may even offer vehicles that are sitting in a bonded warehouse and have not paid taxes as yet. In that case you have to go through the following procedure:
- You pay the dealer for the vehicle and get a receipt (better use a reputable dealer!)
- You provide your information to the dealer and sign the sales document
- You wait 3 - 4 days while the dealer's lawyer submits the paperwork and it goes through*
- You return to pick up the vehicle
* You may wonder why the procedure for new plates takes so long for the dealer to complete.
Here is the basic procedure: 1)Documents on sale and importation presented to registry, 2) 72 hours later the plates are ready to pick-up 3) The dealer must go to the Dekra inspection station to pick up the sticker (inspection may be performed without plates, but Dekra holds the sticker until they verify that plates were issued) 4) The dealer must go to the INS to pick up the marchamo - which may not be issued until the Dekra has confirmed the license plate number on the vehicle / title.