Costa Rica, Germany Sign DTA

February 14 — The Costa Rican government on February 13 announced that it has signed an agreement for the avoidance of double taxation on income and capital with Germany.

The agreement was signed in San Jose by Costa Rica’s Finance Minister Ayales Edgar and the German Ambassador Ernst Martens.

The agreement aims to eliminate situations of conflicting double taxation between the two jurisdictions to provide greater legal certainty for investors in making decisions about their businesses.

Edgar said the agreement represents a “milestone in the close international relations and trade that have developed between the two countries over the years” and added that he hopes the agreement will promote German investment in Costa Rica, as well as providing a further mechanism to combat cross-border tax evasion.

The agreement will enter into force once both parties have competed internal ratification procedures. It will be ratified once the exchange of instruments of ratification is complete, which is expected to take place in Berlin during the coming months.

Credit: Tax Treaties Analysis