Mar 7, 2025
On February 18, 2025, the Council of the European Union (Ecofin) announced the exclusion of Costa Rica from its "grey list" of non-cooperative jurisdictions in tax matters. This decision responds to the implementation of reforms in tax transparency and supervision of special tax regimes, required by the European Union (EU) since its inclusion in 2022.
The decision was confirmed by the Costa Rican Ministry of Finance through Communiqué CP-10-2025, which highlights that the country has adapted its regulations to international standards of tax cooperation and transparency.
Costa Rica was included on the gray list in February 2022, when the EU identified deficiencies in the regulation of preferential tax regimes. The main problem highlighted was the lack of clear rules on tax exemptions and special tax benefits, which raised concerns about compliance with transparency and international tax cooperation standards.
The EU recommended that the country amend its legislation to strengthen oversight and the exchange of tax information with other jurisdictions, avoiding potential risks of tax avoidance.
Since its inclusion on the grey list, the country has worked on regulatory and administrative adjustments to address the EU's observations. The main actions implemented include:
Reforms to the regulation of tax exemptions, establishing stricter criteria for their granting and supervision.
Greater control over the fiscal transparency of special regimes, such as Free Trade Zones.
Strengthening the exchange of tax information, allowing for greater cooperation with other jurisdictions.
These measures were evaluated by the EU and the OECD, which determined that Costa Rica now meets international standards for taxation and transparency.
Impact and considerations for the business sector
Removing the gray list strengthens Costa Rica's image as a reliable destination for foreign investment and international trade. This could translate into:
Fewer restrictions on financial and banking transactions with European entities.
Greater access to financing and favorable conditions for foreign investors.
Reducing reputational risk for companies with international operations.
Conclusion
Costa Rica's recognition as a fiscally cooperative jurisdiction by the European Union strengthens the country's economic and financial stability. However, local authorities must continue implementing measures to ensure compliance with the commitments made and avoid future observations by international organizations.
📄 Official Source: [Communiqué CP–10–2025, Ministry of Finance of Costa Rica]