Costa Rica Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
Best for
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- Foreign income exempt
Territorial system — overseas income generally outside the local tax net.
- No wealth tax
No annual tax on net worth or assets.
- No inheritance tax
Estate and lifetime transfers not subject to inheritance tax.
- Crypto-friendly
0% CGT plus favorable foreign-income treatment make this strong for crypto holders.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
Generally exempt for individuals unless habitual activity
Wealth & Inheritance
Special Regimes
Practical Notes
Popular retiree destination. Property taxes low (~0.25%). 13% VAT.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Free Trade Zone exemptions
- Tourism incentives
OECD Pillar Two (15% global minimum tax)
No Pillar Two legislation enacted.
See full implementation trackerTax Treaty Network
No US tax treaty despite large US-expat population. Limited treaty network overall.
See full treaty matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
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
US citizen moving to Costa Rica? Read this first.
Costa Rica uses a territorial system for foreign income. For US citizens this often combines well with FEIE.
- •Foreign-source income may be exempt or only taxed on remittance in Costa Rica, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Costa Rica tax paid is the standard combination.
- •Self-employment tax (15.3%) is owed in full — Costa Rica has no totalization agreement with the US.
- •Carefully document whether income is "Costa Rica-source" or foreign-source. The classification drives both Costa Rica and US tax outcomes; getting it wrong is the #1 audit risk in this category.
- •Residency requires 183 days. Special regimes may further reduce Costa Rica tax — check the country page for current options.
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TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Costa Rica cases.
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