Electric Cars: Incentives Increase Demand

With the tax benefits granted to the import of electric cars, the number of units entering Costa Rica went from 40 in 2017 to 350 in 2018.

Tuesday, April 9, 2019

Last year, the Law of Incentives and Promotion for Electric Transportation came into force, which grants fiscal benefits to the import of electric cars, such as the exoneration of between 50% and 100% for sales, consumption and customs taxes, according to the import value of each car.

See "Tax Exemptions for Electric Vehicles Comes into Effect"

Not all imported units are new, because according to data from the Ministry of Finance, of the 350 electric vehicles that entered Costa Rica in 2018, 33% are used and 67% are new.

You may be interested in "Automotive business in Central America"

Erick Orlich, president of the Costa Rican Association of Electric Mobility (Asomove), explained Nacion.com that "... with the approval of the Law of Incentives and Promotion for Electric Transportation, on December 14, 2017, a greater interest was awakened among buyers to know and acquire this type of vehicles.

Also see "Auto Brands in Central America: Figures at the end of 2018"

Orlich, added that "... 2018 was the first full year the Act was in effect and it is clear that there is greater interest in people buying electric vehicles. There are already four companies in the country that import these types of used cars to sell them at lower prices compared to new ones.

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More on this topic

Electric Bicycles: Booming Business in Costa Rica

January 2020

Because the cost of electric bicycles is considerably lower than other types of electric vehicles, the number of units imported into the country has increased exponentially in recent years.

According to figures from the Ministry of Finance, during 2019 3,585 electric bicycles and motorcycles were imported into the country, 93% more than the 1,857 reported in 2018.

New Boost for Electric Car Sales

October 2019

Favorable financing conditions for the purchase of this type of vehicle and lower rates for freight services are part of the actions proposed by the government of Costa Rica to boost sales of electric vehicles.

The state-owned Banco Popular, Banco Nacional and Banco de Costa Rica are the financial entities that will offer attractive conditions in their credit lines for the purchase of electric transportation units.

Tax Incentive for Second-Hand Electric Vehicles

November 2018

In Costa Rica, the government approved a decree that exonerates from the payment of the selective consumption tax to second-hand electric cars that are 5 or less years in service.

To encourage the use of electric vehicles in the country, the Alvarado administration signed the Executive Decree 41426-H-MINAE-MOPT, which grants a fiscal benefit to second-hand electric vehicles whose antiquity is equal to or less than 5 years from the year of its model.

Costa Rica: Used Cars Lose Appeal

March 2016

In the past five years used cars lost 24% of market share due to improvements made in installment terms and interest on loans for buying new vehicles.

The market for used vehicles in Costa Rica has seen five years of decline, lacking attractive incentives for imports and being at a competitive disadvantage to the new vehicles market.

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