EVs in Costa Rica continue to enjoy significant tax benefits, to help them compete with internal combustion engine vehicles. In June of 2025 a new phase went into effect, while the exemption on taxes was 100% in 2022, the exonerations phase out over time. However there are still significant benefits in theory.
Update to Law Effective June 2025
If the vehicle is less than 5 years old (new or used), we have:
- The VAT of 13% is reduced to 0% in 2022, then each year 1% of the tax goes into effect until 2035 when EVs will pay the full 13%. (In 2025 this is now at 3%)
- Import duties — were 100% exempted in June of 2022. In June of 2025 EVs began to pay 25% of the duties, in June of 2028 they will pay 50%, in 2031 it will be 75% and as of 2034 they will pay 100%.
- Excise Tax – is 30% on all new passenger vehicles, so now EVs will pay 7.5% of the customs value for this tax.
- Customs Fee – new passenger vehicles pay 1% for customs fees, so now EVs will pay .25% of that value.
- Property tax (marchamo) — upon nationalization (permanent license plate), the EVs have a 40% discount in 2025 and will have a 20% discount in 2026.
You don’t have to worry too much about the specifics though, in the case of new cars the prices quoted by the dealers include all of these taxes, plus any legal / registry fees for the vehicle.
Analysis Incentives
- EVs now compete with internal combustion vehicles on price.
- Accounting for environmental benefits, health benefits, maintenance and operating costs – EVs are very competitive in 2025.
The intention of the law is to allow the consumer to more easily choose an EV based on price and features, independent of the environmental and health benefits of EVs. Nowadays, the EV compares favorably in initial price and features, not to mention the lower maintenance and operating costs. In part this is due to the advances in manufacturing, I compare it to flat screen TVs or laptops. Where the selling price of each segment tends to remain similar over time, but there are significant advances in features year to year.
Tale of the Tape
Click here to see an in depth analysis of a compact sedan in 2025, internal combustion versus electric vehicle.
Statistics October 2025
The number of EVs in Costa Rica continued to grow in 2025, ASOMOVE is the association that promotes EV use and electric mobility, they update statistics every month here: ASOMOVE Indicators
- October 2025 – 1029 EVs registered market share new 25%
- Including used vehicles, EVs percent of market 15%