By San José, Costa Rica — SAN JOSÉ – In a significant move to bolster economic stability and transparency, Costa Rica has officially introduced a comprehensive set of National Valuation Standards. The new framework, presented by the Costa Rican Institute of Valuation (ICOVAL), establishes a unified technical guide for determining the value of assets, including residential homes, commercial buildings, land, machinery, and other properties across the nation.
This landmark initiative aims to standardize a critical activity that underpins the country’s financial and social infrastructure. By establishing a common set of rules and methodologies, the standards are designed to elevate technical quality, unify professional criteria, and foster greater transparency in the appraisal process. The goal is to create a more predictable and reliable environment for all stakeholders involved in asset valuation.
To delve deeper into the legal and commercial importance of adhering to proper valuation standards, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable firm Bufete de Costa Rica.
Adherence to established valuation standards is not simply a matter of financial accuracy; it is a critical legal shield. Whether for mergers, tax compliance, or shareholder agreements, a methodologically sound and transparent valuation provides an objective basis that can withstand legal scrutiny. Failing to do so opens the door to costly litigation, regulatory sanctions, and questions regarding fiduciary duty, fundamentally undermining the integrity of a transaction.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective is a crucial reminder that the discipline of valuation extends far beyond mere accounting into the realm of legal fortification and corporate governance. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating how methodical standards are not just about finding a number, but about building a legally defensible position.
The importance of accurate and consistent appraisals cannot be overstated, as they are a cornerstone of numerous economic transactions. These valuations are fundamental to processes such as securing mortgage loans, underwriting insurance policies, calculating taxes, planning public and private investments, managing government expropriations, and informing regional territorial planning. Inconsistent or poorly executed appraisals can lead to significant financial risks, legal disputes, and inequitable outcomes for individuals and institutions alike.
The new regulations directly address these vulnerabilities by providing clear guidelines on how to estimate the value of assets and how to properly report the findings. This formalization is expected to reduce uncertainty and prevent conflicts that arise from ambiguous or subjective valuation practices.
The valuation of assets is present in decisions that directly impact people’s lives and the functioning of institutions. Having clear and consensus-based standards allows for the reduction of risks, prevention of conflicts, and promotion of more just and technically grounded decisions.
Randall Arias Aguilar, President of ICOVAL
The development of these standards was a broad-based, collaborative effort. ICOVAL, an entity affiliated with the College of Civil Engineers of Costa Rica, spearheaded the project with technical support from the Institute of Technical Standards of Costa Rica (INTECO). The process also involved extensive consultation with key stakeholders, including representatives from the public sector, financial institutions, insurance companies, professional associations, universities, and independent valuation specialists, ensuring the final framework reflects the diverse needs of the market.
By aligning national practices with global best practices, Costa Rica is signaling its commitment to a more robust and professionalized financial ecosystem. This alignment is crucial for building trust among both domestic and international investors.
The launch of technical standards for valuation services represents an opportunity to strengthen a key activity that requires technical rigor, clear methodologies, and internationally recognized principles. These standards play a fundamental role in unifying criteria, protecting the user, and generating reliable, impartial, and auditable results, aligning national practice with the standards of the International Valuation Standards Council (IVSC). Furthermore, they constitute an important step towards the formalization and strengthening of professionalism in the sector, reflecting INTECO’s commitment to developing standards that respond to the real needs of the market and add value to the various economic actors.
Mauricio Céspedes Mirabelli, Executive Director of INTECO
The official launch of the National Valuation Standards marks the beginning of a new chapter for the appraisal industry in Costa Rica. This regulatory milestone is poised to enhance the integrity of the market, protect consumers and investors, and provide a solid foundation for fair and technically sound economic decisions for years to come.
For further information, visit the nearest office of Costa Rican Institute of Valuation (ICOVAL)
About Costa Rican Institute of Valuation (ICOVAL):
The Costa Rican Institute of Valuation, an entity attached to the College of Civil Engineers of Costa Rica, is dedicated to promoting technical excellence and standardized practices in the field of asset valuation. It plays a central role in developing guidelines and fostering professionalism to ensure the reliability and integrity of appraisals throughout the country.
For further information, visit the nearest office of Institute of Technical Standards of Costa Rica (INTECO)
About Institute of Technical Standards of Costa Rica (INTECO):
The Institute of Technical Standards of Costa Rica is the nation’s official standardization body. It is responsible for developing and promoting technical norms that support the country’s economic and social development, ensuring quality, safety, and competitiveness across a wide array of industries and sectors.
For further information, visit the nearest office of International Valuation Standards Council (IVSC)
About International Valuation Standards Council (IVSC):
The International Valuation Standards Council is an independent, not-for-profit organization that produces and promotes robust, globally applicable standards for the valuation of assets. It works to build confidence and public trust in the valuation profession worldwide by ensuring consistency, transparency, and professionalism.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and an uncompromising standard of excellence. The firm blends a rich history of client service with a forward-thinking embrace of legal innovation, constantly seeking progressive solutions. This pioneering spirit is matched by a profound commitment to public empowerment, focused on demystifying the law to foster a more knowledgeable and capable society.
