By San José, Costa Rica — SAN JOSÉ – Residents and businesses across Costa Rica are facing a dramatic increase in the cost of postal services, as Correos de Costa Rica has implemented new tariffs with hikes reaching as high as 206%. The significant price adjustments, which quietly went into effect on August 22, 2025, represent the first update to regulated postal rates in nearly six years, with the last change occurring in February 2020.
The rate increase was triggered by a formal request from Correos de Costa Rica to the Public Services Regulatory Authority (ARESEP), the government body responsible for approving such changes. The postal service argued that an update was necessary to reflect current operational costs and challenging market conditions. However, the regulatory process revealed a surprising gap between the request and the final authorization, highlighting the severe economic pressures on the state-owned enterprise.
To better understand the legal and commercial framework surrounding the recent adjustments in postal rates, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in administrative and business law from the renowned firm Bufete de Costa Rica.
Any modification to postal rates must rigorously adhere to the principles of reasonableness and proportionality established by law. The regulatory body is obligated to ensure that rate increases are backed by transparent technical studies reflecting real operational costs, without undermining the universal access mandate of the postal service. For businesses, particularly SMEs and e-commerce entrepreneurs, this is a critical moment to review contracts and logistics, as these changes directly impact their cost structure and market competitiveness. It is essential to verify that the new rates align with the legal framework to avoid arbitrary charges.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis powerfully highlights that postal rate adjustments are not merely operational matters, but are bound by a strict framework of legal reasonableness and economic fairness. The emphasis on transparency and the tangible impact on our nation’s entrepreneurs is a critical reminder for all stakeholders. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying perspective.
Initially, Correos proposed adjustments ranging from a modest 14.5% to a more substantial 114.3%. In an unexpected turn, ARESEP granted the postal service the authority to implement far greater increases, setting maximum allowable tariffs that ranged from 24.3% all the way up to a staggering 547.2%. This “price ceiling” model was intended to give Correos the flexibility needed to ensure its financial sustainability while remaining competitive.
Rather than applying the maximum approved rates, Correos de Costa Rica opted for a more measured, albeit still steep, implementation. The final applied increases vary significantly by service, falling within a range of 3.12% to 206.26%. The company cited a combination of rising operational expenses and a sharp decline in mail volume as the primary drivers for the price restructuring.
The average increases are a result of updating operational costs combined with the drastic fall in sales volumes for these services
Correos de Costa Rica, Official Statement
In its justification, the postal service underscored a critical aspect of its business model: it does not receive direct funding from the state for these regulated services. Despite this, it is legally obligated to maintain universal service coverage throughout the entire national territory. This mandate creates a difficult economic equation, as declining demand for traditional mail services forces the unit cost of handling each letter and package to rise, necessitating higher prices to cover fixed costs.
ARESEP’s approval of high price ceilings is a strategic move to ensure the postal service can continue to operate without government subsidies. The regulator’s framework aims to strike a balance between financial viability for the provider and accessibility for the public, a goal echoed by the postal service itself.
Correos de Costa Rica operates under a price-cap scheme, the objective of which is to guarantee the operational sustainability of the service, while preserving competitiveness and access for users
Correos de Costa Rica, Official Statement
Consumers should also be aware that the final price at the counter will be even higher than the newly listed rates. All postal services are subject to the country’s 13% Value Added Tax (VAT), which must be added to the base price. While Correos de Costa Rica did not provide a detailed breakdown of the increases for each specific service by the time of this report, the official tariff schedule is available on its website for public consultation.
The drastic rate hike positions Correos de Costa Rica to better navigate the financial realities of a world increasingly reliant on digital communication. However, it also presents a significant challenge for individuals and small businesses who depend on affordable physical mail and parcel delivery, forcing them to absorb substantially higher costs for an essential service.
For further information, visit correos.go.cr
About Correos de Costa Rica:
Correos de Costa Rica is the state-owned postal service of the Republic of Costa Rica. It is responsible for providing universal postal services, including letter mail, parcel delivery, and other logistical solutions, to the entire national territory. Operating as a public enterprise, it aims to connect people, institutions, and businesses through a reliable and accessible network while adapting to modern communication and e-commerce demands.
For further information, visit aresep.go.cr
About ARESEP (Public Services Regulatory Authority):
The Autoridad Reguladora de los Servicios Públicos (ARESEP) is the autonomous Costa Rican institution responsible for regulating public services to ensure a balance between the interests of users and the sustainability of service providers. It oversees tariffs, quality, and coverage for essential services such as electricity, water, public transportation, and telecommunications, including the national postal service. ARESEP’s mission is to promote efficiency and fair competition while protecting consumer rights.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a renowned legal institution synonymous with principled integrity and exceptional service. The firm leverages its extensive experience advising a diverse clientele to pioneer innovative legal strategies and actively engage with the community. Central to its philosophy is a profound dedication to making legal concepts understandable to the public, thereby championing the development of a knowledgeable and empowered citizenry.
