Taxes and Construction Costs

It is estimated that construction costs in Costa Rica could increase up to 9% once the new fiscal plan comes into effect.

Friday, April 5, 2019

From next July 1, the collection of value added tax (VAT) will be staggered, because in the first year new buildings will not pay taxes, in the second pay 4%, in the third 8% and in the fourth 13%.

You may be interested in "Construction: What to Expect this Year"

Francisco Avilés, general manager of Argo Estrategia, explained to Crhoy.com that "... the services that will be taxed with the entry into force of the Law to Strengthen Public Finances will be construction services, architecture, engineering and similar."

Avilés added that "... there will be a less dramatic adjustment in the notary's fees for the transfer of property of 13% of VAT. This will mean in the worst-case scenario, a 0.27% increase in the transaction, always taking place after June 30, 2019."

Also see "More than $4 Billion in Residential Construction"

Regarding the price of construction materials, the latest report of the National Institute of Statistics and Census, details that the price indexes of buildings and housing of social interest registered in February 2019 year-on-year variations of 0.88% and 0.77%, respectively.

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More on this topic

Panama: Prices of Building Materials

August 2013

Price Indexes of Major Retail Construction Materials in the districts of Panama and San Miguelito, up to July 2013.

A statement from the Comptroller General of the Republic of Panama reads:

The Price Index of Major Retail Building Materials (IPMC), available in the districts of Panama and San Miguelito, compiled up to July 2013, showed the following behaviors:

Costs Prevent Building Houses Under $30,000

April 2013

For promoters in Panama, construction of social housing is no longer profitable, mainly because of the high cost of materials and construction supplies.

"... only about eight years ago there was a proliferation of developments in the areas east and west of the capital with average sales of between $18,000 and $25,000.

Rising Prices of Construction Materials

January 2013

In Panama cement prices increased between 11 and 12% from the first of January, and other materials are also rising.

Capital.com.pa reports that "With the construction boom and the arrival of the dry season, the country’s hardware stores have begun to record price increases in many of its products."

Building in Guatemala is Increasingly More Expensive

July 2011

Prices of materials such as iron rods and cement, among other things, have gone up compared to 2010.

The rise in the price of oil and other raw materials at international level is one of the main reasons for the sharp increase observed in the prices of building materials in Guatemala.

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Inmsa Argo International

INMSA, leading company in the design, manufacture and assembly of steel structures and steel tanks, is established in San Pedro Sula, Honduras, in the year 1972
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (504) 556 8364 - (504) 9991 2938

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