The Costa Rica News (TCRN) – Good news: You’ll pay less for vehicle registration (marchamo) in 2015 because reductions are expected in two of its major components.

The label has a number of components that determine the final cost: property taxes (calculated by the Ministry of Finance), the Compulsory Automobile Insurance (approved by the Superintendent of Insurance SUG) and amounts allocated to the Board of Public Transport (CTP), the Road Safety Council (Cosevi), and a fee for the budgetary authority (ARESEP).

In early October, Sugese approved a 9% reduction in insurance premiums for private cars, placing insurance at 18,975 colones by 2015 (a reduction of 1,881 colones). However, this is not the only reduction that will be seen by March 2015.

One of the main determinants of property tax, which accounts for almost 70% of the cost is taxable value on the vehicle. According to information provided by the Directorate General of Taxation, the vast majority of vehicles will have a reduction in the Valuation Index by -4.79%.

The “Index Valuation” is determined by the behavior of the inflation rate, an annual car depreciation of 10% and the rate of change of the tax burden affecting imports. Additionally, there is the minimum tax amount, which went from ¢ 24,700 to ¢ 26,000. (Crhoy)

The Costa Rica News (TCRN)

San Jose, Costa Rica