Taxes & Law
Territorial tax system, VAT and income tax — overview for an international audience, not tax advice.
Updated: November 2026
Tax system – overview
- Core principle: territorial taxation — Costa Rica–source income is taxed; foreign-source income often is not (details and exceptions in current Hacienda rules)
- IVA (VAT): generally 13%
- Other: corporate taxes, municipal levies, social contributions (CCSS) depending on status
- Authority: Ministry of Finance (Hacienda)
Tax residency follows Costa Rican rules (including presence — roughly 183 days / six months is a common orientation; verify exact criteria). Immigration status is not automatically tax status. Digital nomad program: ICT states foreign remote income can be exempt under program conditions — do not confuse with residency.
Income tax & VAT (orientation)
For wage tax (asalariados), Hacienda’s 2026 progressive monthly bands include an exemption threshold (secondary sources cite exemption up to about ₡918,000/month) and rates up to 25%. Self-employed/annual assessment is also progressive up to 25% — update brackets yearly. VAT is generally 13%. No DIY tax planning; use a contador and primary sources.
Companies (brief)
Common forms (simplified)
| Form | Brief character |
|---|---|
| S.A. / S.R.L. | Common capital/liability vehicles |
| Persona física con actividad | Sole trader / self-employed |
| Other vehicles | Depending on advice and purpose |
Registration, taxes and CCSS duties depend on the legal form. Clarify formation and ongoing compliance with local professionals.
Banks & payments
- State and private banks (e.g. BN, BCR, BAC); strict KYC and documents
- USD and CRC accounts possible; transfers have fees and timelines
- Cards and SINPE Móvil are common day to day
- Without residency/DIMEX, opening an account can be harder — the nomad rules describe options under conditions
Double taxation & home country
Whether and how double taxation is relieved depends on the tax law and any treaties between your home or residence country and Costa Rica. There is no single rule for all nationalities. Check your tax authority and any DTA/information-exchange agreement; professional advice is recommended.
Sources
Disclaimer: This page is for general guidance only and is not legal, tax or immigration advice. Rules and prices change — verify with official sources.