Costa Rica tax treaties: when you are protected from double tax, and when not

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You live in Costa Rica, or earn Costa Rican income from abroad, and you want to know whether a treaty protects you from double tax. This guide shows which treaties exist in 2026, what happens when none applies, and how information exchange affects you.

Costa Rica international tax treaties in 2026: the key figures

Is this guide for you?

Read on if you…

• move to Costa Rica while your previous country may still treat you as resident;
• receive dividends, interest, fees or royalties from Costa Rica while living abroad;
• run a Costa Rican company that pays foreign suppliers or shareholders.

Probably not your case if you…

• earn only foreign-source income and have fully left your previous country;
• need the basics of Costa Rican taxes first. Start with the Costa Rica tax landscape overview.

Why does Costa Rica have so few tax treaties?

A double tax treaty is an agreement between two countries that decides who taxes what, and caps tax at source. Most countries need many of them because they tax their residents on worldwide income.

Costa Rica works differently. It taxes only Costa Rican-source income. If you live there and earn abroad, Costa Rica does not tax that income, so there is no double tax on its side. That reduced the pressure to sign treaties. Treaty negotiations also stalled for years over transparency concerns, which Costa Rica addressed before joining the OECD in 2021.

Here's the catch. The lack of treaties hurts in two situations: when your old country still claims you, and when Costa Rican income flows abroad.

Which treaties are in force, and what do they give you?

Each treaty includes a tie-breaker rule. If both countries see you as resident, the rule decides: first your permanent home, then your centre of vital interests – basically where your life is: home, partner, kids, main business – then where you habitually live, then nationality.

Other treaties have been negotiated or signed over the years, but check their status before relying on them. Costa Rica also signed the OECD multilateral instrument against treaty abuse (MLI).

What happens if there is no treaty?

Living in Costa Rica, old country still claims you

Without a treaty, there is no tie-breaker. Your old country applies its own rules. If it says you are still resident, it can tax your worldwide income, and Costa Rica will not give you a credit. You must break residence under that country's own law. Our practical guide to obtaining your tax residency in Costa Rica covers the steps, and the Costa Rican tax residency guide explains the certificate.

Living abroad, earning from Costa Rica

Costa Rica withholds tax at source, in full:

Your home country may give a foreign tax credit for this, under its own rules. If it does not, you pay twice.

How does information exchange affect you?

Treaties are few, but transparency is high.

• Bilateral information exchange agreements (TIEAs) cover the United States since 1989 and a range of other countries.
• The OECD Convention on Mutual Administrative Assistance has applied in Costa Rica since 2013. It allows exchange with more than 140 jurisdictions.
• Under the Common Reporting Standard (CRS), Costa Rican banks report accounts of foreign residents to their home countries, and Costa Rica receives data on its residents' foreign accounts.
• Under FATCA, Costa Rican banks report US persons' accounts to the IRS.

In plain words: your Costa Rican bank account is visible to your previous country, and your foreign accounts are visible to Costa Rica. Consistent filings matter. See tax fraud regulations of Costa Rica.

How do you claim treaty benefits?

1. Get a tax residency certificate from your country of residence. In Costa Rica, request it from the tax administration once you meet the 183-day test.
2. Give it to the Costa Rican payer before payment, so it applies the reduced treaty rate.
3. If too much was withheld, file a refund claim with the Costa Rican tax administration.
4. Keep records of the certificate and payments for at least four years.

Common mistakes (and what they cost)

• Assuming a treaty exists → full 15% to 25% withholding with no way to reclaim it in Costa Rica.
• Not leaving your old country properly → worldwide tax there, with no tie-breaker to rescue you.
• Handing over the residency certificate too late → full withholding first, then a slow refund process.
• Ignoring CRS → your old country spots your Costa Rican account and asks about income you did not report.
• Paying foreign suppliers without withholding → your company owes the 25% itself and loses the deduction.

Frequently asked questions

Does Costa Rica have a tax treaty with the United States?

No double tax treaty. Costa Rica and the US have a tax information exchange agreement dating from 1989 and a FATCA agreement. Americans living in Costa Rica therefore rely on US domestic rules, such as the foreign earned income exclusion and foreign tax credits, to avoid double tax on their income.

How many double tax treaties does Costa Rica have?

Very few. In 2026 the treaties in force are with Spain, Germany and Mexico. Costa Rica relies mainly on its territorial system, which leaves foreign income untaxed, and on information exchange agreements. Check the tax administration's list before relying on any treaty, as new ones may enter into force.

Do I need a treaty if Costa Rica does not tax foreign income?

Often not, for income you earn abroad while living in Costa Rica. A treaty becomes important when your previous country still considers you resident, or when you receive Costa Rican-source income while living elsewhere. In those cases, the lack of a treaty can mean full tax in both countries.

What withholding tax applies to dividends paid abroad from Costa Rica?

Without a treaty, Costa Rica withholds 15% on dividends paid to non-residents. Under the treaties with Spain, Germany and Mexico, the rate can drop, often to 5% for substantial shareholdings. You must give the paying company a residency certificate from your country before payment to get the reduced rate.

Does Costa Rica share my bank information with my home country?

Yes, in most cases. Costa Rica applies the OECD Common Reporting Standard, so banks report accounts held by residents of participating countries. US persons are reported to the IRS under FATCA. Costa Rica also receives data on accounts its own residents hold abroad, which it can use to check local-source income.

How do I get a Costa Rican tax residency certificate?

Request it from the tax administration through TRIBU-CR, once you have spent more than 183 days in Costa Rica in the calendar year. You usually need your residency card, tax ID and proof of presence, such as migration records. Foreign authorities and banks may ask for it to apply treaty rates or close your old residency.

Related guides

• Tax residency in Costa Rica – the 183-day test and certificates
• Practical guide to ceasing your tax residency in Costa Rica – leaving without loose ends
• Capital gains tax in Costa Rica – gains on local assets
• Costa Rica tax landscape overview – the full system
• Tax landscape overview of Mexico – one of Costa Rica's treaty partners
• Tax landscape overview of Panama – another territorial system
• All country tax guides

Sources

• Ministerio de Hacienda – tax administration
• SCIJ – Costa Rican treaties and Income Tax Law 7092
• OECD – Automatic exchange of information
• OECD – Costa Rica
• IRS – FATCA
• PwC Worldwide Tax Summaries – Costa Rica

This guide is general information, not personalised tax advice. See how we research and review.