Nonresident individuals are liable to tax only on their Costa Rican-sourced income. Married couples are taxed separately.

Income is taxed at progressive rates. Income earned by nonresidents is subject to withholding taxes. A Permanent Establishment (PE) is required to rent out residential property in Costa Rica, which means the landlord must show rental income in their annual tax declaration. Rental income qualifies as real estate capital income, which is taxed at a flat rate of 15% with a set deduction rate of 15% of the annual gross income.

Income Tax

Income of nonresidents is subject to a flat rate of 15%.

Capital Gains Tax

Capital gains are not taxed in Costa Rica unless they are derived from habitual transactions. Capital gains derived from habitual transactions are taxed at a flat rate of 15%.

Corporate Taxation

Income Tax

Income and capital gains earned by companies are generally subject to corporate income tax at a flat rate of 30%. Income-generating expenses are deductible when calculating taxable income.

Small companies whose gross income does not exceed a particular limit may be subject to corporate income tax at progressive rates.

Corporate Tax 2023

Taxable Income (CRC)	Tax Rate
Up to 5,286,000	5%
5,286,000 to 7,930,000	10%
7,930,000 – 10,573,000	15%
Over 10,573,000	20%

Roundtrip Transaction Costs in Costa Rica (Percentage of Property Value)

Cost Type	Percentage
Property Transfer Tax	1.5%
Agent Fee Buyer	2.50% - 5.00%
Agent Fee Seller	2.50% - 5.00%
Legal Fees	1.25%
Notary Fees	1%
Roundtrip Transaction Cost	6.25% - 8.75%
Property Tax (Owning)	0.25%
Corporate Tax	30%
Rental Income Tax	15%
Source: Global Property Guide, PWC

Property Holding Tax

Real Estate/Habitation Tax (Impuesto sobre bienes inmuebles)

Property taxes are levied on the cadastral value of the property as assessed by the tax authorities. Property taxes are levied by the municipalities at a flat rate of 0.25%. The real estate tax is calculated on a calendar year basis and must be paid annually, semiannually, or quarterly, depending on the municipality.