American Expatriate Costa Rica

Tourism would drop if law against tax evasion is approved

If you frequently use apps such as Airbnb when planning your vacation, have your wallet ready.

The Tax Fraud Bill imposes a 13% tax to temporary accommodation. The draft has already been approved in the first reading in the Legislative Assembly and it’s currently in consultation on the Constitutional Court.

Libertarian Movement legislator Otto Guevara is one of the main opponents. Guevara said that if the project is approved, the tourism sector could be affected.

The tax is a way to get money from the middle class, which uses apps like Airbnb. This affects us as a tourist destination, because vacationing in Costa Rica gets increasingly expensive,”

said the libertarian.

Guevara says that those who rent their homes through this application will have to register for tax and issue an invoice each time they offer the service.

David Cortés lives in a fairly large house in Sabana. 8 months ago he decided to start renting it through Airbnb and assures he would not be against taxes, as long as they are not excessive.

The government is looking for the best positioned businesses to charge taxes and that’s not fair. Having to pay taxes for using Airbnb will take away competitiveness and, in the end, the user is the one who loses, because we must have a profit,”

added Cortés.

The application allows property owners to have a dynamic rate, so prices vary depending on the season.

The Court has one month to determine whether the project has any vice of unconstitutional nature. The text also forces small and medium merchants to accept the card as payment.

crhoy.com