Importing a car into Costa Rica is an expensive endeavor. Buying one is expensive as well. Either way, be prepared to pay a lot if you want a car. And trust me, there is no way around it. Many think they can drive their vehicle into the country and get around the tax issue. That’s impossible. In fact, if you don’t do your homework, you may purchase a car from someone who did just that and never paid the import tax. Now you’re stuck with an $8000 tax bill to make the car legal. I know someone this happened to.

Many are hearing about the new law (Costa Rica Law N. 9996) that was passed, giving expats the ability to import two cars and household items, tax-free. There is a lot of confusion about this, so allow me to clear some things up.

1. This bill was only for people who are applying for residency. Residency can take upwards of a year. Perhaps longer. This is not an option for perpetual tourists or for people applying for the Digital Nomad Visa.
2. No one is quite sure when, or if,  the government will enact this.

Things move slowly in Costa Rica. And often, a law is passed that is later rescinded. Here is my take on things.

When the pandemic hit, Costa Rica wanted to entice more expats. But the strangest thing happened: they didn’t have to. Thousands of people moved to Costa Rica, flooding the tourist towns and buying up real estate.

I think I can speak for many Ticos in that Costa Rica looked drastically different pre-pandemic. At least from the perspective of living in or near a tourist town. And with that, I’m not sure what will happen to this new law. If everyone is coming anyway, why offer this tax break when the country desperately could use these tax dollars?

This is what I would do. If your heart is set on moving to Costa Rica, just do it. I wouldn’t wait around to see when this law takes effect. The Costa Rica Escape Manual 2023 is loaded with useful information, especially on how to get residency. And that is the first step if you want to qualify for this tax exemption.

Many times we wait to begin our adventures. And sometimes, we wait too long. So, if you want to live the pura vida lifestyle,  start today. Take a vacation and travel the country. Talk with expats and investigate if it’s right for you. Maybe the pull will sweep you off your feet like a riptide. “We’re definitely moving!” you say to your wife. Or perhaps the trip was just that, a delightful way to get away from it all. And getting away is often the best thing to do when we need to recharge our batteries. And there is no better place to do that than Costa Rica.

**Find out more about buying a car, paying import taxes, and applying for residency in The Costa Rica Escape Manual 2023.