From January 1, 2017 the agreement ratified between both parties to avoid double taxation of income and assets will come into effect.
From a statement issued by the Ministry of Foreign Affairs in Costa Rica:
On Wednesday August 10 at the headquarters of the Federal Ministry of Foreign Affairs in Germany, a ceremony was held to exchange instruments of ratification of the agreement between Costa Rica and Germany to avoid double taxation on income and on assets.
This important agreement has as its main purpose the provision of clear rules for both countries to eliminate double taxation situations which might arise as a result of the collection of taxes on income and capital. For domestic purposes, this international legal instrument is applicable to taxes on income, property and ownership of motor vehicles, boats and aircraft.
The agreement was reached after a long process of negotiation and study, our country signing the agreement inFebruary 2014, the Legislative Assembly approveing it in February this year.
According to the Foreign Ministry, the approval of this agreement is consistent with the actions and efforts undertaken by the Government of Costa Rica to substantially improve its standards at international level on fiscal transparency.
The agreement will enter into force on January 1, 2017.