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government

Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from 25% and up to 50% in taxes, fees, services, and other municipal charges. The legislator María José Corrales, for instance, proposes that such reduction of 50% in the taxes collected by the municipalities, should apply to those quarters of 2020 that will be defined by municipal agreement, only to benefit those taxpayers who are up to date with their municipal property taxes, and that should be granted to periods that have not been endorsed by the union of local governments. Moreover, as also proposed by that same bill, a total or partial remission of the surcharges, interest, fines, and other charges for penalties owed in municipal charges should be granted. Such a measure would apply in the period from the first quarter of 2020 to the closing of the second quarter of the current year. And in order to be eligible for special reduction or tax condonation benefits, the taxpayer must be subscribed to a commercial license and should be up to date with the payments corresponding to the last quarter of 2019. On the other hand, this past Tuesday March 31st, a bill was introduced by the senators which proposes that the municipalities grant a moratorium, which would allow to transfer the dates of tax payments until April 2021. This would, help as these senators mentioned, “to guarantee that workers, entrepreneurs, and merchants, in their communities, have options that would allow them to face their commitments to the municipality”. In addition, the National Union of Local Governments (UNGL), which is the organization that represents municipalities as a group, announced that they will also present their own proposal on the matter. As informed by them, “they have tried to agree with the entire municipal system on a bill that tries to specifically benefit the taxpayer, through direct benefits that they could receive in terms of permits, licenses, and the different contributions that they carry out with each one of the local governments”. According to the UNGL, for them the most important thing is not to affect some of the essential services such as waste collection, safety issues, water, track cleaning, and additional services. For now, as mentioned, all of these options are being discussed, so we would need to wait and see what is the final decision on the matter.
PropertyReal EstateTaxes

Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from

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GovernmentHealth CareImmigration

It is well known that we are all facing difficulties as a result of the COVID-19 crisis. These are complicated times which have forced governments around the world to make harsh decisions in an effort to contain the spread of the virus. Speaking specifically about Costa Rica, the number of cases has

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tax relief costa rica
BusinessGovernmentTaxes

According to the latest guidelines promulgated by the Government, the Tax relief measures will be applicable to: a) VAT taxpayers, meaning people who sell assets or services. This includes: importers, exporters, and people subject to the simplified regime, as well as those who sell exempt assets or services. b) Taxpayer of the selective consumption

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Withdrawal from the Labor Capitalization Fund
BusinessGovernmentLabor

The Labor Capitalization Fund (LCF) in Costa Rica is similar to unemployment benefits in the United States. Employers make contributions to the fund so employees can receive income in case of future unemployment.  The general rule is that this benefit becomes available after five continuous years working for the same employer,

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Holy Week Vehicle Restriction & Curfew
BusinessImmigration

This afternoon, Wednesday, April 1, 2020, the President announced the following new restrictions aiming to control the spread of the COVID-19 virus: 1. Long-distance transportation services (buses) will be restricted to travel less than 75 kilometers. 2. Places with sanitary operation permits (restaurant, cafes, sodas) must remain closed. Home delivery services are

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CP-230-2020 1 April 2020
GovernmentImmigrationTravel

Measures do not restrict access to basic services. Night-time vehicle restriction nationwide is extended between Friday April 3-Tuesday April 7 from 5:00 p.m. to 5:00 a.m. Long-distance public transportation is also restricted, and closure of establishments holding sanitary permits and open to the public will be carried out. Home delivery

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vehicle restriction and exceptions
GovernmentImmigrationTravel

Note: As informed on Friday 27th, the nationwide vehicle restriction, now runs from 8 p.m to 5 a.m on weekends and 10 p.m. to 5 a.m. on weeknights. Attention: Only these vehicles will be permitted in traffic nationwide from 10:00 p.m.–5 a.m.  To be enforced nationwide between 10:00 p.m – 5 a.m. Emergency,

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About the Solidarity Tax
BusinessGovernmentTaxes

This afternoon, the Costa Rican government proposed applying a “solidarity tax.” The President of the Republic, Carlos Alvarado, commented that other measures and resources available to the government will be exhausted first, so the measure would be implemented only “if necessary.” Under the proposal, a mandatory contribution would be imposed

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if I travel my status would be cancelled
CitizenshipGovernmentImmigrationResidencyTravel

As announced earlier in the week, the President alerted that any foreign national with legal status (meaning Residents, people with Special Categories, Estancias or applications in progress) who departs the country during the COVID19 crisis will automatically lose their immigration status. The summary of the press conference can be found

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Reduction of work schedule
BusinessLabor

Last Saturday, the President of the Republic signed a new law which allows employers to reduce the work schedule up to a 75% during the State of Emergency Declaration caused by the COVID-19 crisis. This bill has been in effect since last Monday, March 23rd, recorded as law No. 9832.

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