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Taxes are outlined today in amcostarica.com. They include a 15% tax on money coming into the country (like your pension?) and a tax on private medical care.
I shudder to speculate on how much money in Soc. Sec. and other pension benefits come in monthly from US expats. A 15% tax may sound good to the CR government but not to us. Then there is the booming overseas medical tourism business. What a headache!
And sports clubs currently pay no taxes? Why not?
Hi Victoria.
I changed your headline because it made it sound like that these tax proposals are focused on the expats, they are definitely not.
There are NO TAXES on the Social Security or retirement income of U.S. citizens living in Costa Rica as Permanent Legal residents of Costa Rica and these new proposals do NOT suggest that this will change.
1. Costa Rica has signed an exchange of information treaty with the United States with a view to promoting the necessary interchange of tax information and to ensure that the correct level of taxation is levied in both countries as well as to eradicate tax evasion.
2. And remember that Costa Rica is trying to become a member of the OECD and one the [url=http://www.ey.com/Publication/vwLUAssets/OECD_outlines_membership_process_for_Costa_Rica/$FILE/2015G_CM5637_OECD%20outlines%20membership%20process%20for%20CR.pdf]Core Principles[/url] is: ‘Eliminating international double taxation on income and capital through complying with the key substantive conditions underlying the OECD Model Tax Convention.’
So retired expats can breathe easy…
Lastly, these are only proposals at this stage, many of them will not go through.
Scott
The question then becomes if “97%” of Costa Rican population will not be impacted by the majority of these proposed taxes (as has been indicated by those proposing them) just who is it that will be footing the bill for the billion ($$$) plus in new revenue the politicians see this plan generating?
Having witnessed these types of proposals before I’m not concerned YET…. but instead will keep an eye on how they progress.
As to Scott’s first point. Might the open and automatic exchange of income/asset information obtained by CR from the US be used at some point in the future when setting taxes (such as the mandatory CAJA participation tax) on expats that live in CR? That has been a concern of mine for a while and part of the reason residency is not now in my future plans.
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