Costa Rica
Central America • UTC-6 • America/Costa_RicaCosta Rican Territorial Tax System
Costa Rica taxes only income sourced within its borders. The system includes personal income tax, corporate tax, and VAT, with no tax on foreign income.
Income Tax
0%–25%
Territorial tax system
Corporate Tax
30%
Standard corporate tax rate
VAT / GST
13%
Standard VAT rate
Nomad Visa
Available
Rentista and Pensionado visas
Tax System Overview
Costa Rica operates a territorial tax system, taxing only income sourced within the country. This system includes personal income tax, corporate tax, and VAT.
System Type
Territorial tax system
Resident Taxation
Residents are taxed only on Costa Rican-source income.
Non-Resident Taxation
Non-residents are taxed on Costa Rican-source income at the same rates as residents.
Tax Year
January 1 – December 31
Income Tax Bands
Costa Rica's progressive income tax bands based on annual taxable income in CRC (2025).
Tax Treaty
Double Taxation Agreements help prevent individuals and businesses from being taxed twice on the same income.
Spain
Treaty ActiveThe treaty between Costa Rica and Spain aims to prevent double taxation and fiscal evasion with respect to taxes on income.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United States of America
Agreement ActiveThe agreement between Costa Rica and the USA prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for US–Costa Rica workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
30% standard rate with potential reductions for small businesses
VAT Registration
Mandatory for businesses with annual turnover exceeding CRC 50 million.
Freelancer Rules
Freelancers must register with the tax authorities and are subject to the same income tax rates as individuals.
Crypto Policy
Cryptocurrency transactions are not specifically regulated but are subject to general tax principles.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No tax on foreign income for residents
- Competitive corporate tax rate
Filing Roadmap
Register with Tax Authorities
All residents and businesses must register with the Costa Rican tax authorities to obtain a tax identification number.
Gather Income Documentation
Collect all relevant income documentation, including employment income, rental income, and any other Costa Rican-source income.
File Tax Return Online
Submit your tax return through the online tax portal by the March 15 deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the filing deadline to avoid penalties.