New Costa Rica tax 'will scare investors'

Costa Rica's capital gains tax will slow down the economy and slash the nation's appeal to investors, experts say.

The tax, which is due to come into force on July 1, taxes as much as 40.5 percent of the increase in the value of an asset used in a business. The rate is the highest in Central America; the capital gains tax in the rest of the region is no more than 10 percent, La República reports in Spanish.