Costa-Rica tax system: audit, reporting and optimization of taxation of Сosta Rican companies and individuals: VAT, income tax and capital gains. Tax treaties of Costa Rica.

Personal income tax is payable on income from the activities performed in Costa Rica and from Costa Rican sources.

The tax scale is progressive. For employment income, the rates are:

• Income below CRC 4 094 000 – 0%;
• from CRC 4 094 000 to 6 115 000 – 10%;
• from CRC 6 115 000 to 10 200 000 – 15%;
• from CRC 10 200 000 to 20 442 000 – 20%;
• over CRC 20 442 000 – 25%.

There is a different tax scale for the income of self-employed individuals.

Gains from the sale of assets, interest and rental income are generally taxed at the rate of 15%.

The territorial principle of taxation applies: tax is charged on profits generated in Costa Rica and from sources in Costa Rica.

Corporate income tax rate is 30%.

However, companies with gross income of up to CRC 119 629 000 are taxed at the following progressive rates:

• Gross income up to CRC 5 642 000 – 5%;
• from CRC 5 642 000 to 8 465 000 – 10%;
• from CRC 8 465 000to 11 286 000 – 15%;
• over CRC 11 286 000 – 20%.

There are also corporate income taxes levied by municipalities.

Dividends, interest and royalties are taxed at the rate of 15%.

Gains from the sale of assets are taxed at the rate of 15%.

None.

Dividend and, in general, interest payments are subject to withholding tax at the rate of 15%, royalties – at the rate of 25%.

Withholding tax may also be levied on other payments.

The standard VAT rate is 13%.

The reduced rates of 4%, 2% and 1% apply to some goods and services.

Social security contributions are paid by the employee at the rate of 10,66% and by the employer at the rate of 26,33% of the employment income.

Property tax is levied at the rate of 0,25% on the appraised value determined by the municipal authorities.

An additional “solidarity” tax is levied on luxury residential properties.

Real estate tax is levied at the rate of 1,5% of the selling price or of the assessed tax value of the property, whichever is higher.

The tax is also levied on the sale of real estate company shares.

Stamp duty can be levied as CRC 5 for every CRC 1 000 of the contract value in relation to various transactions.

Costa Rica has 4 Double Tax Treaties (DTT) and 22 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:

4 DTT: Germany, Mexico, Spain, UAE .

22 TIEAs: Argentina, Australia, Canada, Denmark, Ecuador, El Salvador, Faroe Islands, Finland, France, Greenland, Guatemala, Guernsey, Hollan

Costa Rica has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The MLI entered into force for Costa Rica on January 1, 2021.

On July 3, 2015, Costa Rica signed the Multilateral Competent Authorities Agreement on Automatic Exchange of Financial Account Information under the Common Reporting Standard (CRS MCAA), under which Costa Rica receives information from its financial institutions and automatically exchanges this information with other jurisdictions on an annual basis. The automatic exchange began in September 2018.

In addition, on November 26, 2024, Costa Rica signed the Multilateral Agreement of Competent Authorities for the Automatic Exchange of Information under the Cryptoasset Reporting Framework (CARF-MCAA), which provides for the reporting of tax information on cryptoasset transactions on a standardized basis for the automatic exchange of such information.

There is generally no restriction on foreign exchange transactions.

There are rules for currency exchange and registration of capital imported for investment, to ensure its subsequent unhindered repatriation.