🇨🇷 Taxes · Costa Rica
Taxes in Costa Rica
Costa Rica taxes only income earned on its territory. Here are the rates for individuals and companies.
Costa Rica applies the territorial principle of taxation: only income earned in the country or from local sources is taxed.
The main taxes
Personal income tax is paid on income from activities and sources in Costa Rica, at rates from 0% to 25%.
Corporate income tax
The standard rate is 30% and the territorial principle applies: only profit earned in Costa Rica and from local sources is taxed. Businesses with gross income of up to 112,170,000 CRC use a progressive scale:
- income up to 5,286,000 CRC - 5%
- income from 5,286,000 to 7,930,000 CRC - 10%
- income from 7,930,000 to 10,573,000 CRC - 15%
- income above 10,573,000 CRC - 20%
Other taxes
VAT is 13%. Capital gains tax is 15%. Social contributions for employees are 10.5%. Property tax is 0.25% and property transfer tax is 1.5%.
We will go through how these rates apply to your income structure in a free consultation.
Features of the Costa Rican tax system
Territorial principle
Only income earned in Costa Rica or from local sources is taxed - this applies to both individuals and companies.
A progressive scale for small business
Companies with gross income of up to 112,170,000 CRC pay corporate income tax at rates from 5% to 20% depending on the amount of income.
Moderate VAT
The VAT rate is 13%, lower than in many countries in Latin America and Europe.
Predictable social contributions
Social contributions for employees are fixed at 10.5%.
FAQ
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