Incentives for the promotion of electric vehicles (Law 10209 from 2022 modifying Law 9518 from 2018)

Costa Rica offers a comprehensive package of tax and non-tax incentives for electric vehicles, including fuel cell electric vehicles (FCEVs). These include a 1% VAT rate in the first year, increasing by 1% annually until it reaches the standard rate. There is a full exemption from the selective consumption tax and customs value tax for the first three years, gradually phased out over 12 years. The vehicle property tax is fully exempt in the first year, with a gradual phase-out over five years. Incentives also apply to used EVs up to five years old. Additional benefits include exemption from traffic restrictions in San José, preferential and free parking in many public and private areas, and exemptions from general sales tax, customs tax, and CIF (cost, insurance, and freight) charges, depending on the vehicle’s value.

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