Christopher Howard's Costa Rica Books
Books about travel, living, retiring, investing or working in Costa Rica
HOME
ABOUT US
OUR BOOKS
SERVICES
LINKS
 
Sign Up for our Free Costa Rica Update newsletter
 
 

 

 

Calculating Taxes on a Vehicle

 

Long-term imported vehicle duties are calculated by multiplying the Vehicle's Appraised Value (VCAV) at the Ministerio de Hacienda by following the percentages according to model year. The VCAV is the sum of the vehicle's market value, freight and freight insurance. Freight is the cost of transporting your vehicle to Costa Rica.

Duties are determined by the age of your vehicle. If your vehicle is a 2006, 2005 or 2004, you pay 52.28 percent of the retail value plus shipping. If your car is a 2003 or 2002, you pay 63 percent of its value plus shipping. For any vehicle older than 2001, a tax of 79.02 percent plus shipping will be charged.

If there is no bill of lading or if you drove your vehicle, freight will equal seven percent of the market value of your vehicle, which could equal thousands of dollars more than actual freight charges. Freight insurance is the amount of money you pay to insure your vehicle. If you did not pay insurance, Customs will multiply the sum of the market value and freight first by 110 percent, then by 1.5 percent.

As you can see, taxes are now higher for used cars. In order to establish the value of a used vehicle, you present the commercial invoice with the purchase value of the vehicle. If you do not have an invoice, you have to declare the value.

Do not think you can fool the Customs inspectors by putting an arbitrary value on your vehicle. They have a list showing the manufacturer's suggested retail price of every vehicle manufactured when it was new, including extra equipment.

In the past, Customs agents would refer to the market value based on the Black Book, a manual published in the U.S. with a listing of new and used car wholesale auction prices for United States car dealers and loan officers. We were just informed that Customs agents no longer depend on this book. However, if you want to get an idea of the value of your vehicle, contact National Auto Research at 2620 Barrett Road, PO Box 758, Gainsville, GA, 30503, Tel: (800) 5541026, Fax: (770) 532-4792, http://www.blackbookguides.com. Another good resource is http://www.crautos.com.

Duties may be checked at the Ministerio de Hacienda. (http://www. hacienda.go.co/autovalor). However, to obtain a better estimate of the duties to be paid, send a fax or E-mail to the Association of Residents or Charles Zeller at E-mail: shiptocostarica@racsa.co.cr, toll- free 1-866-280-9036, Fax: 258-7123. Be sure to include the make of the car, model, serial number (VIN), automatic or stick shift, extras such as air conditioning, power windows or other non-standard equipment. Be sure to specify the country from where you plan to ship the car.

After reading the above, if you still decide to import a used vehicle, we recommend using a Customs broker to run around, obtain all the necessary documents and massive paperwork, and help with the taxes. After going through this process, a friend of ours told us, A good customs agent can save you money. A bilingual attorney is also important and will save you days of running around from one office to another. He can take you step-by-step through the whole ordeal.

However, if you do decide to do this yourself, you will need to follow the procedure below. First, you have to go to either the east or west coast to pick up your vehicle at the port of entry. This can be a real pain in the neck, requiring a lot of paperwork and patience. It is best to have a Customs agent do all of this for you or go with you in person to pick up the vehicle. A good Customs agent will have all the paper work done and your car out of the aduana when you arrive at the port of entry.

When we picked up our 1990 Montero in Limón, we arranged everything beforehand. We took an early-morning bus from San José and arrived in Limón with our agent three hours later. Our car was waiting for us in a private parking lot. We just signed one paper, got in the car and returned to San José. The process would not have gone as smoothly had we not planned carefully and coordinated everything with our Customs agent.

Next, you need to register your car, which usually takes a few working days. First, get your paperwork from customs. Then have your vehicle checked at the nearest Rieteve SyC Inspection Center (http://www.rtv. co.cr). At present there are 11 inspection centers scattered around the country. Call 800-788-0000 to make an appointment and to locate the nearest station to your home. Cars also have to be taken to these stations yearly for general inspections to assure they are roadworthy. Then take the papers they give you to the Registro Público or Public Registry vehicle section (Registro de Vehículos) in the suburb of Zapote. Call 224-0628 if you need information. The cost of your registration depends on the value of your car. Finally, take the documents from the registry to the Ministry of Public Works (Ministerio de Obras Públicas y Transportes) at Plaza Víquez, south of downtown San José. Your temporary paper license plates will be issued a few months later at the Registro in Zapote.

You will have to wait for your permanent metal plates. In the meantime, you will be issued a temporary paper plate that you have to affix to the windshield of your vehicle. There is an expiration date on the temporary paper plate. If your metal plates still aren't ready you may renew the paper plate. If you let it expire, there is a fine.

When your permanent metal plates are ready, you'll need to take the following documents to the National Registry (Registro Nacional) in Zapote: the temporary paper plate (placa provisional), title of ownership (título de propiedad), yellow registration card (tarjeta de circulación) and resident ID card (cédula) or passport.

You can find information about vehicles and property by viewing the National Registry's website at http://www.registronacional.com.

Every year you have to pay your marchamo or sticker indicating you have paid your obligatory liability insurance. It has to be renewed between November 1 and December 31. You also have to pay $10 for an echo marchamo. This is a certificate that shows your vehicles emissions are within the legal limit. It is like a smog certificate in the United States. A car without a marchamo decal on the windshield after the first of January may be impounded.

You may pay the marchamo in person at many banks and even on- line with The Banco Nacional de Costa Rica.

From "The New Golden Door to retirement and Living in Costa Rica" by Christopher Howard.
ALL RIGHTS RESERVED. No part of this article may be reproduced without written permission of the authors and copyright owner.
 

"Baby boomers are redefining retirement - and leading the move to a new generation of dream countries"

AARP Magazine

----------------------
The Golden Door to Retirement and Living in Costa Rica

Christopher Howard's The New Golden Door to Retirement and Living in Cost Rica, is important when doing research about moving to Costa Rica.

By Hillary Chura
New York Times
July 30, 2005

----------------------

Costa Rica Relocation and Retirement Tours - the first logical step to making the move to Costa Rica

 
Retirement communities in Costa Rica, Active adult Community
 
  Contact Us

Copyright © 2005 Costa Rica Books - All rights reserved.
All logos and trademarks in this site are property of their respective owner.
The comments are property of their posters, all the rest © 2004 by me. All Rights reserved.