Costa Rica Proposes Gradual VAT Reduction and Cadastre Reform to Modernize Tax System

• Costa Rica introduced Bill No. 25.239 in October 2025 to gradually reduce the VAT rate from 13% to 10% over three years.
• Year 1 applies the 10% VAT rate to essential goods and services; Year 2 focuses on expanding the National Unique Cadastre; Year 3 extends the 10% VAT rate to all goods and services.
• The reform aims to shift the tax burden from household consumption to accumulated wealth, modernize fiscal tools, reduce evasion, and strengthen public finances.
• The bill was sent to the Legislative Commission for review on November 5.

Source: fintua.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---