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Costa Rica Tax Guide

North America
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
78/100
Tax Friendly
Business Tax Score
70/100
Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
25%
Structure
Progressive 0-25% on Costa Rica-sourced income

Foreign Income Treatment

System
Territorial
Details
Foreign income generally not taxed for individuals

Investment Income

Capital Gains
0-15%%
Dividends
0-15%%
Interest
0%

Generally exempt for individuals unless habitual activity


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Special Regimes

Pensionado Program
Residency with proof of stable income

Practical Notes

Popular retiree destination. Property taxes low (~0.25%). 13% VAT.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
30%
Effective Rate Note
Progressive rates 5-30% based on income level
Free Zone / Incentives
Free Trade Zone regime available with exemptions

Withholding Taxes

Dividends
0-15%%
Interest
0-15%%
Royalties
0-25%%

VAT / GST

Rate
13%
Note
13% VAT

Compliance & Substance

Substance Requirements
Moderate
Compliance Friction
Moderate

Notable Regimes

  • Free Trade Zone exemptions
  • Tourism incentives

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Costa Rica?

Costa Rica has a top personal income tax rate of 25%. The tax structure is: Progressive 0-25% on Costa Rica-sourced income. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Costa Rica?

Costa Rica uses a territorial system for foreign income. Foreign income generally not taxed for individuals

What are the residency requirements for Costa Rica?

Tax residency in Costa Rica generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Costa Rica?

No, Costa Rica does not have a wealth tax. No wealth tax

What is the corporate tax rate in Costa Rica?

The corporate tax rate in Costa Rica is 30%. Progressive rates 5-30% based on income level