Costa Rica – For anyone that has lived or spent a little time in Costa Rica, you know that prices paid by “gringos” and Costa Ricans are often different when it comes to what they are charged.
I remember a friend that took his car to get a quote on work to be performed. He was quoted $800. A Costa Rican friend of his took the car in about 2 weeks later and was quoted $200 for the same work to be performed. This is a normal occurrence.
Now it seems that foreign investors might be getting “Gringo” taxed.
Foreign investors are charged a 15% tax on interest earned by their securities. Specialists and lawyers question whether this should be the case. Nationals pay only 8%.
The Ministry of Finance is currently examining the issue which relates to Article 23 of the Law on Income Tax. There is confusion over whether the Law of the Bank for Development put forth in 2014 changes subsection Article 23.
Some believe that both nationals and foreigners are legally to pay just 8%. Some say the 15% was misinterpreted and intended to be part of another income category elsewhere in the law.
Taxation once said, in reference to a question, that the 8% should apply to everyone, regardless of their residential status. The Director General of Taxation now argues that foreigners are subject to the 15%.