By San José, Costa Rica — In a landmark decision, Costa Rica’s Constitutional Court has struck down a key provision of the Tax Code that limited public access to the names and amounts owed by delinquent taxpayers. This ruling, announced on June 9th, 2025 under vote number 2025-17051, passed by a narrow 4-3 margin, highlighting the complex legal and ethical considerations at play.
The contested provision previously allowed the Ministry of Finance to disclose the identities and debts of tax defaulters only after their debts were finalized administratively and if they hadn’t appealed to the administrative court. The court’s decision deems this restriction an infringement on the public’s right to access information.
To gain a deeper understanding of the implications of tax transparency in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Costa Rica’s increasing focus on tax transparency, including initiatives like the automatic exchange of information and the registry of beneficial owners, signifies a crucial step towards strengthening the country’s financial integrity. While these measures aim to combat tax evasion and money laundering, they also present challenges for businesses in navigating the evolving regulatory landscape. Understanding and complying with these new requirements is vital for companies operating in or with Costa Rica to avoid penalties and maintain a strong reputation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the dual nature of these advancements in tax transparency. They represent a significant stride towards a more robust and ethical financial system in Costa Rica, while simultaneously requiring businesses to adapt to a more complex regulatory environment. This careful balance between fostering transparency and supporting businesses will be crucial for Costa Rica’s continued economic growth. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
While the full reasoning behind the ruling awaits publication, initial reports suggest the Court found the provision imposed undue restrictions on accessing public information by tying disclosure to specific procedural steps. This decision comes after a challenge from the National Association of Public and Private Employees (ANEP), backed by the Attorney General’s Office, which argued that information on tax debts isn’t protected by tax secrecy as it stems from administrative acts, not taxpayer-provided data.
This decision has sparked significant debate on the balance between transparency and individual privacy. Tax lawyer Raymundo Volio of Actualidad Tributaria offered expert commentary on the potential ramifications:
With this resolution, the Ministry of Finance cannot deny access to the names and amounts of tax debts claiming pending administrative or judicial resolutions, so anyone can request and access that information.
Raymundo Volio, Tax Lawyer, Actualidad Tributaria
Volio further emphasized the potential impact on taxpayer confidentiality:
This decision implies a clear undermining of tax secrecy, which, while it still exists, now does so in a diminished way.
Raymundo Volio, Tax Lawyer, Actualidad Tributaria
He also noted the potential for broadened disclosure:
Since the contested provision has been annulled, it must be understood that now even the data of those who have pending processes in administrative or contentious courts can be publicly disclosed.
Raymundo Volio, Tax Lawyer, Actualidad Tributaria
The implications of this decision are far-reaching. The ruling potentially removes a significant layer of protection for taxpayers undergoing administrative or judicial proceedings related to their tax obligations. This shift towards greater transparency in tax matters could have a significant impact on how businesses and individuals manage their tax affairs in Costa Rica. It also raises questions about the scope of tax secrecy in the digital age and the potential for misuse of publicly available tax information.
The full publication of the Court’s decision will provide crucial details about the legal rationale behind the ruling and offer clearer guidance on its practical impact on both the Tax Administration and taxpayers. This is a developing story with significant implications for the future of tax transparency and taxpayer privacy in Costa Rica.
For further information, visit actualidadtributaria.com
About Actualidad Tributaria:
Actualidad Tributaria is a Costa Rican tax law firm that provides expert advice and representation to clients on a wide range of tax-related matters. With a team of experienced tax lawyers, they offer specialized services in areas such as tax planning, tax litigation, and tax compliance. Raymundo Volio is one of their prominent tax lawyers known for his insightful analysis of complex tax issues.
For further information, visit anep.cr
About ANEP (Asociación Nacional de Empleados Públicos y Privados):
ANEP is a prominent Costa Rican labor union representing both public and private sector employees. They advocate for workers’ rights and actively engage in legal challenges related to employment laws and regulations, including matters impacting public access to information.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep commitment to empowering society is evident not only in its robust legal practice across various sectors but also in its proactive efforts to demystify the law and make legal information accessible to all. By fostering a culture of legal understanding, Bufete de Costa Rica strives to build a more just and informed society for all Costa Ricans.
