Costa Rica Tax Landscape 2026: Everything You Need to Know, in One Page

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

You are considering Costa Rica as a home base, a place to invest or a company location, and you want the whole tax picture on one page. This hub explains how the 2026 system works, the main taxes, the regimes for newcomers, moving in and out, and running a business. Each section links to a detailed guide.

Costa Rica taxes in 2026: the key figures

Is this guide for you?

Read on if you…

• plan to live in Costa Rica for more than six months a year;
• earn from foreign clients, an employer or investments and want to know what stays untaxed;
• want one map of every Costa Rican tax topic before diving into details.

Probably not your case if you…

• only visit for short holidays with no local income or assets;
• need the detail of a single topic. Jump to the guides list at the end.

How does the Costa Rican tax system work?

Territorial, not worldwide

Costa Rica taxes income that arises in Costa Rica. Income from work done for foreign clients, foreign dividends, foreign pensions and gains on foreign assets are, in principle, outside its scope. That makes it one of the few territorial systems in the Americas, alongside Panama and Paraguay.

Here's the catch. "Source" is not always obvious. The tax administration has argued that services physically performed in Costa Rica can be local-source, even when the client is abroad. Digital nomads under Law 10008 are explicitly protected. Others should check their facts. A bill to move to worldwide taxation (renta global) has been debated for years without passing.

Who is resident?

You are tax resident if you spend more than 183 days in Costa Rica during the calendar year, which has been the tax year since 2020. Details and edge cases are in tax residency in Costa Rica.

Who runs it?

The Ministerio de Hacienda and its tax directorate (Dirección General de Tributación). Since 2025, filings and payments go through TRIBU-CR, which replaced the old ATV platform. Annual income tax returns are due by 15 March for the previous calendar year.

What are the main taxes?

Personal income tax

Employees pay monthly on salary. Indicative 2026 monthly brackets:

Self-employed people file yearly with annual brackets, also from 0% to 25%. Tax credits apply for children and a spouse. See personal tax deductions and benefits in Costa Rica.

Capital income and gains

Local rent, interest, dividends and gains are taxed at 15%. Your main home is exempt on sale. Read capital gains tax in Costa Rica and cryptocurrency taxes in Costa Rica.

Corporate income tax

Companies pay 30% on net profit. Small companies with gross income below about ₡120 million a year use progressive rates of 5%, 10%, 15% and 20%. Dividends to individuals carry 15% withholding.

VAT and other taxes

VAT is 13%, with reduced rates for health, education, medicines and basic food. Property owners pay 0.25% a year, and expensive homes a luxury tax. Every company pays an annual entity tax. All of these are covered in specific taxes in Costa Rica.

Which special regimes exist for newcomers?

• Digital nomad stay (Law 10008): up to two years, foreign remote income exempt, USD 3,000 a month income required.
• Pensionado, rentista, inversionista residencies: import duty perks under Law 9996.
• Free Zone regime: corporate tax holidays for qualifying exporters with real investment.

All are compared in tax incentives for expats and digital nomads in Costa Rica.

What happens when you move in, or out?

Moving in

1. Choose an immigration status that fits your income.
2. Register with the tax administration if you earn local income.
3. Join the CCSS if you become a resident.
4. Track your days: 183 is the line.

The full move plan is in the practical guide to obtaining your tax residency in Costa Rica.

Moving out

There is no exit tax. You file a final return for local income, close or keep registrations, and sell or keep local assets. Your new country decides how you are taxed next. See the practical guide to ceasing your tax residency in Costa Rica.

Costa Rica has very few double tax treaties, which matters if your old country still claims you. See international tax treaties of Costa Rica.

How is running a business taxed?

You can work as a sole trader (persona física con actividad lucrativa) or through a company, usually an S.R.L. or S.A. Sole traders pay up to 25%, companies 30%. Every sale requires an electronic invoice, and only invoiced expenses are deductible.

• Structures: legal forms of business in Costa Rica
• Deductions: business expenses in Costa Rica
• Compliance and penalties: tax fraud regulations of Costa Rica

Common mistakes (and what they cost)

• Assuming "territorial" means zero tax on everything → local rent, local clients and local shares are taxed at up to 25%, with 50% penalties if ignored.
• Not leaving your old country properly → you may stay taxable there on worldwide income, with no treaty to settle the conflict.
• Skipping CCSS as a resident → arrears and blocked residency renewals.
• Running a company without electronic invoices → disallowed expenses, fines and possible business closure.
• Forgetting the annual entity tax → arrears and dissolution after three years.

Frequently asked questions

Does Costa Rica tax worldwide income?

No. Costa Rica taxes Costa Rican-source income only. Foreign salaries for foreign clients, foreign pensions, foreign dividends and gains on foreign assets are generally untaxed for individuals. Watch the source of services performed while physically in Costa Rica, and track the renta global bill, which would change this if passed.

What is the income tax rate in Costa Rica in 2026?

Salaries and business income are taxed progressively from 0% to 25%. Capital income such as rent, interest, dividends and local capital gains is taxed at a flat 15%, with rent effectively at 12.75%. Companies pay 30%, or 5% to 20% if they qualify as small businesses.

How do I become a tax resident of Costa Rica?

Spend more than 183 days in Costa Rica during the calendar year. Immigration status is separate: you also need a legal right to stay, such as a residency or the digital nomad stay. A tax residency certificate can be requested from the tax administration once you meet the day count.

What is the VAT rate in Costa Rica?

The standard VAT rate is 13%. Reduced rates of 4%, 2% and 1% apply to private health services and air tickets, medicines and private education, and the basic food basket. Residential rent below a monthly ceiling is exempt. Foreign digital services also carry 13% VAT.

Does Costa Rica have a wealth or inheritance tax?

No. There is no wealth, inheritance, gift or exit tax. Property owners pay a municipal property tax of 0.25% a year, and owners of high-value homes pay a progressive luxury home tax of 0.25% to 0.55%. Property transfers carry a 1.5% transfer tax.

How does Costa Rica compare with Panama, Mexico or Paraguay?

Panama and Paraguay are also territorial, with lower rates in Paraguay (10%). Mexico taxes residents on worldwide income at up to 35%. Costa Rica sits in between: territorial, but with 25% to 30% top rates on local income. Compare the Panama, Mexico and Paraguay hubs.

Costa Rica tax guides

• Practical guide to obtaining your tax residency in Costa Rica – your step-by-step move plan
• Tax residency in Costa Rica – the 183-day test and certificates
• Practical guide to ceasing your tax residency in Costa Rica – leaving cleanly
• Cryptocurrency taxes in Costa Rica – how crypto gains and income are treated
• Personal tax deductions and benefits of Costa Rica – credits and allowances
• Legal forms of business in Costa Rica – S.A., S.R.L. and sole trader compared
• Specific taxes in Costa Rica – VAT, property and company taxes
• Capital gains tax in Costa Rica – the 15% regime and exemptions
• Tax incentives for expats and digital nomads in Costa Rica – nomad visa and residency perks
• Tax fraud regulations of Costa Rica – penalties and voluntary correction
• Business expenses in Costa Rica – what you can deduct
• International tax treaties of Costa Rica – treaties and information exchange

Related guides

• Tax landscape overview of Panama – the other Central American territorial system
• Tax landscape overview of Mexico – worldwide taxation next door
• Tax landscape overview of Paraguay – territorial with 10% rates
• Tax residency in Costa Rica – start here if you are moving
• Legal forms of business in Costa Rica – pick your structure
• All country tax guides

Sources

• Ministerio de Hacienda – tax administration
• SCIJ – Income Tax Law 7092, Law 9635 and Law 10008
• Caja Costarricense de Seguro Social
• Dirección General de Migración y Extranjería
• OECD – Costa Rica
• PwC Worldwide Tax Summaries – Costa Rica

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