Luxury Tax on Cars
The Costa Rica Government, in efforts to improve the standard of living, and handle the rising prices of oil, had introduced Luxury Tax that covered costly homes and vehicles. A tax is to be paid at the rate of 50 percent on all vehicles costing more than 18 million colons ($35,000). In addition, there is a detailed taxation regulation for import of cars. The Luxury Tax on Vehicles is in addition to the Road Tax that is charged in the country. For example, the Costa Rica Government also levies a 35% to 53% Consumption Tax on vehicles depending upon the model, engine size, and car type.
The Law Firm of Meléndez & Bonilla has an expert understanding of the Costa Rica legal system. We would be able to help you in not only calculating what tax is to be paid, what documents are to be processed, and how to make the best of all the tax breaks.
For example, the Costa Rica Government has lowered taxes that are to be levied on low-emission and energy-efficient cars. The tax break includes vehicles like electric cars, hybrids, and vehicles that are powered with the help of by bio-fuels like ethanol. We could help you assess your overall tax on the basis of several factors.
Buying or importing a car in Costa Rica is much more expensive in Costa Rica than several other countries. The import tax on vehicles is 52.29% for car models that have been rolled out during the last three years. The tax calculations do not take the condition or mileage into account. In fact, it is almost banned to import cars that are six or seven years old due to environmental considerations. Cars that are four to five years old attract and import tax of about 63.91%. Older cars attract a higher tax of 79.03%. There are additional shipping and customs fees to be paid also when you import a vehicle.
The registration costs are also much more on newer cars, luxury cars, and special cars like convertibles, luxury SUVs, sports cars, etc.
The Law Firm of Meléndez & Bonilla have years of experience in handling all tax-related legal work in Costa Rica. We could help you assess your existing luxury car for the correct tax to be, and help you with imports of new luxury cars also. Most people desiring to import a vehicle to Costa Rica let expert lawyers handle the process for them.
Our experts have an in-depth knowledge of taxation and all others aspects of Costa Rica law. We would be able to come up with a systematic plan for you to reduce your overall tax liability. We would also be able to advise you on the assessment of your house for the Luxury Tax as well. Our team of professionals provide the most efficient and cost-effective services. You get the best counsel in the country on all legal matters in Costa Rica. We could save you thousands of dollars with legitimate tax breaks. Call us today, and leave your tax concerns to us.