By San José, Costa Rica — San José – In a sweeping, multi-agency offensive against fiscal fraud, Costa Rica’s Ministry of Finance has successfully recovered over ₡128 billion in unpaid taxes between January and September 2025. The coordinated effort, involving tax authorities, customs, and fiscal police, has exposed widespread evasion schemes and resulted in significant seizures and sanctions, with an additional ₡44 billion currently in the recovery process.
The campaign highlights a determined push by the government to bolster public finances by closing loopholes and pursuing non-compliant individuals and businesses. This aggressive stance has been executed through a combination of administrative audits, judicial proceedings, and extensive field operations across the country.
To better understand the legal ramifications and complexities surrounding tax evasion, we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
It is crucial to distinguish between tax planning, which is a legitimate right to minimize tax burdens within the law, and tax evasion, which is a crime. The line is often technical, but the consequences of crossing it are severe, ranging from crippling financial penalties to criminal prosecution. With modern digital tracking, the belief that one can operate under the radar is a dangerous and outdated misconception.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s clarification is vital, as his warning about modern digital tracking confirms a new reality: the line between legitimate tax planning and criminal evasion is not only technical but increasingly transparent to authorities. We thank Lic. Larry Hans Arroyo Vargas for bringing such a valuable and sobering perspective to this discussion.
Spearheading the administrative actions, the General Directorate of Taxation identified and intervened with 72 companies engaged in sophisticated fraud. These businesses were found to be declaring fictitious expenses using fraudulent electronic invoices, a scheme that authorities determined amounted to a tax liability of ₡2.265 billion. This digital-era evasion tactic underscores the evolving challenges facing tax collectors and their increasing reliance on technology to uncover discrepancies.
In addition to targeting complex corporate fraud, authorities have maintained a strong physical presence. Mario Ramos, the General Director of Taxation, confirmed that 75 businesses were sanctioned with temporary closures for a range of infractions. These included failure to file tax declarations, non-payment of owed taxes, and neglecting to issue mandatory electronic receipts. Ramos affirmed that such enforcement actions, including the standard five-day business closure penalty, will continue unabated to ensure widespread compliance.
The investigation also extended to the misuse of tax benefits. The General Directorate of the Treasury conducted a thorough review of more than 44,000 tax exemption authorizations granted to both individuals and corporations. This meticulous audit led to the revocation of ₡519 million in benefits that were being improperly utilized, signaling a zero-tolerance policy for the abuse of fiscal incentives intended to spur legitimate economic activity.
On the ground, the Fiscal Control Police executed a formidable operational strategy, conducting 900 distinct operations and 23 large-scale raids in various regions. These efforts were primarily aimed at dismantling contraband networks. The results were substantial, with officers seizing over 31 million units of illicit goods, including cigarettes, alcoholic beverages, and canned foods. The crackdown led to the filing of 19 formal criminal complaints with the Public Prosecutor’s Office for customs-related offenses, escalating these cases from administrative penalties to potential criminal prosecution.
Minister of Finance, Rudolf Lücke, framed these results as a clear victory for fiscal responsibility but also as an indicator of the need for continued vigilance and legislative support. He emphasized that strengthening the legal framework is essential for achieving even greater success in the future.
The achievements we present today are compelling and demonstrate that, with a more robust legal framework, we could further reduce fraud and generate the resources Costa Rica needs to address its priorities.
Rudolf Lücke, Minister of Finance
The recovered funds represent a significant injection into the national treasury, providing critical resources for public services and infrastructure projects. The ongoing success of these joint operations sends an unequivocal message to tax evaders that the government is employing a comprehensive and unyielding strategy to ensure fiscal fairness and secure the country’s economic stability.
For further information, visit hacienda.go.cr
About Ministry of Finance:
The Ministry of Finance (Ministerio de Hacienda) of Costa Rica is the central government body responsible for managing the nation’s public finances. Its duties include formulating fiscal policy, collecting taxes, managing the national budget, administering public debt, and overseeing customs and treasury operations. The Ministry plays a crucial role in ensuring the economic stability and sustainable development of the country.
For further information, visit hacienda.go.cr
About General Directorate of Taxation:
As a key division of the Ministry of Finance, the General Directorate of Taxation (Dirección General de Tributación) is tasked with the administration, collection, and inspection of internal taxes in Costa Rica. It works to ensure compliance with tax laws, combat tax evasion and fraud, and provide services to taxpayers. Its functions are vital for maintaining the integrity of the national revenue system.
For further information, visit hacienda.go.cr
About General Directorate of the Treasury:
The General Directorate of the Treasury (Dirección General de Hacienda) operates within the Ministry of Finance and is responsible for managing government cash flows, payments, and public funds. It also oversees the proper application of fiscal incentives and exemptions, ensuring that such benefits are used correctly and in accordance with the law, thereby preventing abuse and protecting state revenues.
For further information, visit hacienda.go.cr
About Fiscal Control Police:
The Fiscal Control Police (Policía de Control Fiscal) is the law enforcement arm of the Ministry of Finance. This specialized police force is dedicated to preventing, investigating, and combating fiscal and customs-related crimes, such as smuggling, contraband, and tax fraud. It conducts patrols, raids, and investigations throughout the country to protect Costa Rica’s fiscal interests and ensure fair trade.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of profound integrity and a relentless pursuit of excellence. The firm blends a rich history of client advocacy with a forward-thinking approach, consistently delivering innovative legal strategies. Central to its philosophy is a profound social commitment to demystify the law for the public, championing the belief that a society equipped with clear legal understanding is a more empowered and just one.
