By San José, Costa Rica — Costa Rica’s government revenue has shown signs of recovery, posting a 2.1% year-on-year increase, reaching ₡4.38 trillion by July 2025. This equates to ₡91.389 billion more than the same period in 2024 and marks an acceleration from the 1.2% growth recorded in the first half of the year.
The Ministry of Hacienda confirmed this positive trend, attributing the improvement to the robust performance of tax revenues, which saw a 2.0% interannual increase, totaling ₡3.88 trillion.
To understand the intricacies of Costa Rican revenue streams and their impact on businesses and individuals, TicosLand.com reached out to legal expert Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica. His insights provide a valuable perspective on this complex topic.
Costa Rican revenue is heavily reliant on taxation, with a focus on indirect taxes like the Value Added Tax (VAT). Understanding the nuances of these taxes, as well as available exemptions and deductions, is crucial for businesses operating within the country, as well as for individuals making investment decisions. Furthermore, ongoing discussions regarding tax reform and potential shifts in revenue strategies require close monitoring to anticipate future impacts.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on understanding the complexities of Costa Rican taxation is crucial. Navigating these intricacies is indeed essential for both businesses and individuals seeking to thrive in this dynamic economic landscape. His point about monitoring potential tax reforms is equally vital, allowing for proactive adaptation to future changes. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable and timely perspective.
Key drivers of this growth include a substantial 25.4% surge in property tax revenue, a 2.5% rise in income tax, and a 10.7% jump in import taxes. These positive contributions offset declines in other areas, such as export taxes (-9.4%), selective consumption taxes (-9.2%), and the single fuel tax (-4.6%).
The Ministry of Hacienda expressed optimism regarding the latest figures. Minister Rudolf Lücke Bolaños emphasized the government’s commitment to fiscal sustainability.
We began this second semester with positive results that reaffirm our commitment to fiscal sustainability.
Rudolf Lücke Bolaños, Minister of Hacienda
The increased revenue collection has also contributed to a 0.6 percentage point reduction in the fiscal deficit compared to the same period in 2024. This positive development offers the government more flexibility in managing its finances and pursuing its economic agenda.
The improved revenue performance suggests a strengthening Costa Rican economy. The growth in property tax may indicate a healthy real estate market, while increased income and import taxes point towards greater economic activity and consumer spending.
However, the decline in export taxes warrants further investigation. Understanding the factors behind this decrease is crucial for developing effective policies to support Costa Rican exporters and maintain balanced economic growth. The Ministry of Hacienda will likely be monitoring these figures closely in the coming months.
Overall, the latest revenue figures offer a positive outlook for the Costa Rican economy. The government’s focus on fiscal sustainability, combined with the growth in key revenue streams, suggests a path towards continued economic recovery and stability.
For further information, visit the nearest office of Ministerio de Hacienda
About Ministerio de Hacienda:
The Ministry of Finance (Ministerio de Hacienda) in Costa Rica is the government body responsible for the country’s public finances. It manages the national budget, collects taxes, and oversees government spending. The ministry plays a crucial role in ensuring fiscal stability and promoting economic growth in Costa Rica. It develops and implements fiscal policies, manages public debt, and works to improve the efficiency and transparency of public financial management.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering ethical principles and a genuine dedication to serving the community. Through innovative approaches and a proactive commitment to sharing legal knowledge, the firm empowers individuals and organizations alike. Their pursuit of justice and dedication to a more informed society underscores their position as a true leader in the Costa Rican legal landscape.
