Many factors contribute to changing costs in construction in Costa Rica. Since September 2021 the Value Added Tax in Costa Rica adds additional construction costs for both materials and services.
Back in 2018, the legislative assembly of Costa Rica approved the project that began a value added tax charge in construction, however, it came into effect in September 2021. A tax charge of 4% IVA must be added to construction services, which are engineers, architects, topographers and civil works construction provided in projects registered or endorsed by the Federal Association of Engineers and Architects (CFIA).
In addition to the incorporation of the 4% IVA, the price of construction materials has increased considerably, therefore, this factor also increases the investment that must be made to build a property.