If the Law to Strengthen the Public Finances is approved by the Legislative Assembly, vacationing in Costa Rica will be even more expensive then it currently is.

This bill proposes the taxing of tourism services with a Value Added Tax of 4% at the beginning, 8% by the third year and finally reaching 13% by the fourth year; this would affect activities such as white-water rafting, boat rides, zip lining, car-rentals, etc.

Currently, only hotels and restaurants are obligated to pay the 13% sales tax.

When it comes to plane tickets, you would have to pay a 4% VAT for national flights and for international flights the 4% will be charged proportional to the miles traveled within Costa Rican territory.

The escalated amounts will be applied to all tourism companies that are registered with the Costa Rica Tourism Board, those that are not registered will have to pay the 13% tax from the moment the bill enters into effect.

“All sectors have to support the initiatives that are being implemented to solve the fiscal deficit in the country (debt), however, tourists are not residents, charging so much in value added tax is not right, we have always discussed a differentiated rate for the tourism sector. We have to maintain our competitiveness as a destination”, commented Sary Valverde, president of the Tourism National Chamber.

Services like AirBnB will also have to pay a 13% VAT when the service is offered in Costa Rica, while if the service is used for a lodging service outside of Costa Rica, the tax will be charged but the reimbursement can be requested from the treasury.

Uber services in Costa Rica would also be charged a 13% VAT.