Costa Rica: from green paradise to tax haven…

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According to the decision approved last February by the Ministers of Economy and Finance of the European Union, the latest list of tax havens in the EU now includes sixteen territories: the four newcomers which are Costa Rica, the Russian Federation of Russia, the British Virgin Islands and the Marshall Islands, as well as Panama, American Samoa, Fiji, Guam, Palau, Trinidad and Tobago, Samoa, the US Virgin Islands, Vanuatu, the Bahamas, Anguilla and the Turks and Caicos, which were already on the list.

The list, which is updated every six months, includes countries that fail to meet EU standards for tax transparency, tax fairness or implementation of international rules to prevent erosion. tax base or profit shifting and fail to take steps to address these issues.

Response from the Costa Rican authorities

The Costa Rican president’s website said in a press release that the measure was “due to non-compliance with the commitment made by the previous government to reform the tax system to tax offshore passive income by December 31, 2022. “.

According to European Union guidelines, passive income earned by an individual or business abroad should be taxed in Costa Rica to avoid “unfair competition” between countries’ tax systems and to ensure that there is a non-taxable income,” the Costa Rican government added.

A rogue state that does not keep its promises on “sustainability”

In addition, in terms of tax havens, Costa Rica is on the OECD blacklist. It is one of three countries refusing to comply with new global tax laws.

As we published on February 9, this small country considered the Switzerland of Central America does not keep its promises in terms of environmental protection, which were advertised for a long time with the slogan “Pura Vida” during marketing campaigns aimed at attracting tourists.

Catherine Mills Avatar