9.90° N · 84.10° W
Costa Rica Tax Guide
North AmericaLast verified June 2026Territorial system
- Top income tax
- 25%
- Capital gains
- 0-15%
- Corporate
- 30%
- VAT / GST
- 13%
- Residency test
- 183 days
Progressive 0-25% on Costa Rica-sourced income
In short
- Costa Rica offers territorial taxation, spring-like Central Valley weather, strong nature and a well-trodden path for North American retirees.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Violent crime has risen sharply in recent years, and imported goods and cars are surprisingly expensive.
Verified June 2026 · 2 sources
Recent changes
No changes logged since the last full verification.
Full change logBest 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
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax 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 rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate 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 matrixBeyond tax
Living in Costa Rica
Costa Rica offers territorial taxation, spring-like Central Valley weather, strong nature and a well-trodden path for North American retirees.
- Expat hub
- San José (Central Valley)
- Monthly budget
- ~$2,300
- Climate
- Tropical, 21°C
- Time zone
- UTC-6
- Tax78
- Cost of living$$
- Safety52
- Healthcare75
- English55
- Internet110 Mbps
- Warm climate80
- Residency access70
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Digital Nomad visaUS$3,000/month foreign income (US$4,000 with family), health insurance
- PensionadoLifetime pension of at least US$1,000/month
- RentistaUS$2,500/month guaranteed for 2 years, or a US$60,000 bank deposit
Watch out: Violent crime has risen sharply in recent years, and imported goods and cars are surprisingly expensive.
See how Costa Rica ranks for remote workers, retirees and familiesData 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.
The Atlas · membership by intake
Is Costa Rica right for you? Get a plan built around you.
Answer 12 quick questions and the Atlas builds your personal dossier: whether Costa Rica actually fits you, where your company should sit, the regimes you could qualify for and the traps for your situation.
Want Costa Rica rate alerts?
Get the 2026 cheat sheet (all jurisdictions, one page) plus an email when Costa Rica changes its tax rates or residency rules.
No spam. One email when rates materially change. Unsubscribe in one click.
Related on TaxAtlas
- Is this the right country for you?4-question quiz scores 53 countries against your situation
- 2026 Global Tax Cheat SheetSide-by-side comparison of all 53 jurisdictions
- 2026 international tax changesRecent updates affecting jurisdictions like this one
- Get help with a Costa Rica moveRequest a response within 1–2 business days