Americas

Costa Rica Territorial Tax System

Costa Rica's territorial system generally taxes only Costa Rican-source income, which can be compelling for HNWI whose earnings and investment income are generated offshore.

Territorial Tax System flag

Panoramica del regime

Stato
Active
Tipo
Default favorable
Istituito
1988
Durata
Indefinito
Highlight
Foreign-source income not taxable
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Situazione fiscale

Territorial Tax System

Eligibility
Residency
Duration
Indefinite
Income Tax
0-25%
Foreign Income
Exempt
Capital Gains
15%
Dividends
15%
Wealth Tax
None
Inheritance Tax
None

Vantaggi chiave

Foreign-source income generally not taxable, attractive for offshore income streams
No inheritance tax and no net wealth tax
Flat 15% final tax on dividends and capital gains

Requisiti e considerazioni

Minimum presence: 183 days/year

Migration pathways

Dettagli del programma

Costa Rica's core "tax regime" is not an elective program but the baseline territoriality principle in its income tax system. The general rule is that only Costa Rican-source income is subject to tax, and foreign income is typically outside the taxable base.

For individuals, this means salaries and business income sourced in Costa Rica are taxed at progressive rates up to 25%. Investment income categories commonly face flat final taxes, such as 15% on dividends and a 15% capital gains tax (with a 2.25% option under certain transitional conditions for qualifying assets).

As a practical matter, foreign income can still become complicated in edge cases. PwC notes that foreign income earned abroad while tax resident is not taxable if it is not related to the economic structure of Costa Rica, and that certain foreign-source passive income can be brought into tax under exceptional conditions for some "non-qualified" entities following 2023 reforms.

For planning, the key steps are defining tax residency (often more than 183 days), documenting source, and avoiding structures that accidentally create a Costa Rican-source nexus. Local compliance is usually straightforward, but the territorial outcome depends on facts, not labels.

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Territorial taxation principle

PwC Worldwide Tax Summaries - Costa Rica (Corporate)·Last checked: 13/01/26

Individual tax residency test (183 days)

PwC Worldwide Tax Summaries - Costa Rica (Individual - Residence)·Last checked: 13/01/26

Headline PIT rate, capital gains, no inheritance tax, no net wealth tax

PwC Worldwide Tax Summaries - Costa Rica (Overview)·Last checked: 13/01/26

Immigration authority

DGME - Dirección General de Migración y Extranjería·Last checked: 13/01/26

Consulenza esperta

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