Home / Business  / Accounting  / Taxes  / Transfer Taxes for Vehicles

Transfer Taxes for Vehicles

I recently had two identical situations with two different people. They have to pay the transfer costs for vehicles, and were telling me that I charge too much. That their calculations are lower. Here is the

I recently had two identical situations with two different people. They have to pay the transfer costs for vehicles, and were telling me that I charge too much. That their calculations are lower.

Here is the breakdown of how much it costs to transfer a vehicle worth $10,000 USD.

 

Detailed Description of the fees and taxes.

  1. The Bar Association Fee is set up according to Law N° 3245 from December 1963 and Section 102 of Decree N° 36562-JP from January 2011.
  2. The National Registry fee was created by section 1 of Law N° 4656 from 1970.
  3. The Treasury fee was created by section 272 of the Treasury Code which is law N° 8 from 1885 and the corresponding amendments through the decades.
  4. The Red Cross Fee was created by sections 2, 4, and 7 of Law N° 5649 from 1974, and Law N° 7591 from 1996.
  5. The National Park fee was created by section 7 of the National Parks Law N°6084 from 1977.
  6. The Archives fee was created by section 3 of the National Archive Law N°43 from 1934.
  7. The Farm Fee was created by section 13 of Law N° 5792 from 1975.
  8. Transfer tax was created by section 13 of Law N° 7088 from 1987.
  9. Notary Public Fees. These fees are based on the fee scheduled issued by the Costa Rican Lawyers Bar Association published in 2015 by decree number 39708-JP.

You can estimate that the total cost for the transfer of the vehicle can be roughly 5.41% of the higher of the purchase price or the tax value of the vehicle. However, the fees may change as some of them are based on a sliding scale, while other ones are fixed. But it is safe to say that it will cost 5.41%. You can see on the table above, which fees are fixed and which ones are based on a percentage. Only the notary public fee is based on a sliding scale.

Wrongfully, some people think that they only have to pay the 2.5% transfer tax, while there more to the equation. 

As some of you know, some people have vehicles in corporations, and therefore, the transfer of a corporation is going to have a different cost compared to the transfer of a vehicle. My suggestion is to first consult an attorney in order to get a clear idea of what the process is and the possible cots related to it.

I hope this information to be helpful.

 

Regards,

Share

rvalverde@outlierlegal.com

Attorney and Entrepreneur with more than 15 years experience in: immigration law in the US and Latin American countries including Argentina, Chile, Colombia, Brazil, Costa Rica and Panama. In addition, Rafael has extensive experience in Business Law, Estate Planning, and Real Estate. Lastly, Rafael has developed experience in people management, talent development and business development.

Review overview
2 COMMENTS
  • Brian Dean May 9, 2017

    There is a car in Panama that was transferred to Panama but never registered there. The owner died and his wife is trying to sell the car, plates are gone too. I want to bring it back to Costa Rica and make it legal. It has 8 marcharmos due and no current CR rtv.

  • smith June 15, 2018

    Hi, honestly superb blog thanks for the sharing new one

    classic cars for sale

POST A COMMENT