Why it is best not to postpone your holiday to Costa Rica

Mon, 02/14/2022 - 18:41 - 
Iris

Is Costa Rica on your bucket list? Then you may want to put it right on the top as prices are about to rise significantly. Costa Rica is implementing extra taxes on all tourism related services. Aside from the "normal" yearly price increases, taxes are also rising (within a period of just a few years) by no less than 13%! And that's on top of the normal annual increase of 3 to 5% on average that local providers implement to offer their services.

A phased and substantial VAT reform in Costa Rica

The VAT must be applied to all tourist services such as overnight stays, transfers, activities, rental cars and the like. In short, on the total sum of your trip. So, if you can be flexible in your departure date, we advise you to take the timing of this new tax roll-out into account:

  1. From now until July 1st, 2022: you pay 4% VAT on the total amount of your trip. 
  2. From July 1st, 2022 to June 30, 2023: you pay 8% VAT on the total amount of your trip.
  3. From July 1st, 2023: you pay at least 13% VAT on the total amount of your trip.

Please note that it is not the date of the booking that matters but your actual travel date.

  • Example 1: You book a trip to Costa Rica on March 1st, 2022 with departure date July 2nd, 2023: 13% VAT will be counted on the total amount.
  • Example 2: You book a trip to Costa Rica on June 1, 2022 with departure August 1, 2022; 8% VAT will have to be paid on the total amount.
  • Example 3: You have already booked and are traveling to Costa Rica before July 1st, 2022; only 4% VAT will be included in your total price.

Needless to say, travel in Costa Rica will become significantly more expensive as a result of this new phased VAT measures, imposed by the Costa Rican government.

Are you flexible in the choice of your travel period? Have you always wanted to go to Costa Rica and/or are you still doubting whether you will travel to Costa Rica this year or the next? Take advantage of the information I share with you here and make the right choice for you.

Beat the rush

Costa Rica remains one of the most beautiful countries in the world. Perhaps even the most beautiful. It is home to many smiley people and a true "Pura Vida" vibe . Just to mention a few reasons why today, more than ever, there is a tremendous “rush” on Costa Rica. It is therefore highly recommended to plan your trip well in advance so that the desired accommodations are still available for your preferred travel dates.
2-toed sloth

Share your smile, go yugenstyle,

Iris

Comments

Do you have any questions or suggestions? Leave a message in the box below.