Taxes

Can Costa Rica present itself as an advanced, or at least, soon-to-be developed economy, while also keeping one hand out for foreign aid? Some analysts say yes.

Airlines operating in Costa Rica finally can start including the country’s $29 exit tax into the cost of flights next week, according to Vice President Ana Helena Chacón, who made the announcement at the president’s weekly press conference at Casa Presidencial on Tuesday. But no airlines have yet announced when they will begin using the Exonet system.

The Constitutional Chamber of the Supreme Court, or Sala IV, on Wednesday evening ruled three articles of the country's Corporate Tax Law unconstitutional, and as a result, collection will be suspended starting next year. The tax must be paid this year, however, by this Saturday's deadline.

Moving to another country like Costa Rica is always a big step, especially if you don’t have all the information together to be able to follow the rules. In most countries the tax authority or city will send you a notice when it’s time to pay your taxes. That’s not the case in Costa Rica, and you will be fined for late payment. Needless to say there are a couple of taxes you should know about.

The National Insurance Institute (INS) at noon Wednesday closed collection at their facilities of the year-end auto registration fee and mandatory vehicle circulation permits, known as marchamos, and reported that some 78.9 percent of motorists made the payment on time.

Potential property owners are likely quite familiar with property taxes. However, a relatively newer tax has hit the real estate market that you should keep in mind should you consider purchasing property in Costa Rica. It’s called the Impuesto Solidario para el Fortalecimiento de Programas de Vivienda (roughly translated as the Solidarity Tax for the Strengthening of Housing Programs)

Following the announcement last week that Costa Rica’s $29 airport exit tax will be rolled into the price of airline tickets beginning Dec. 3, Bancrédito officials have clarified that they will continue collecting the tax at airport counters for at least 90 more days to facilitate travelers who already purchased tickets.

The cost of mandatory technical vehicle inspections in Costa Rica will remain unchanged for the next 12 months, as the Public Services Regulatory Authority (ARESEP) on Tuesday evening rejected a rates-hike request of up to 202 percent, depending on the type of vehicle.

Costa Rica’s former two-term President Óscar Arias Sánchez (1986-1990 and 2006-2010) hasn’t even waited a full year before twice publicly criticizing the new administration of Luis Guillermo Solís, who once belonged to Arias’ political party, the National Liberation Party, and was a member of the 1980s peace delegation that helped end the wars in Central America and delivered Arias a Nobel Peace Prize.

Costa Rican President Luis Guillermo Solís has won perhaps one of his biggest challenges to date, as lawmakers on Thursday struck down three separate proposals to slash the administration's ₡7.9 trillion ($14.5 billion) budget proposal for 2015.