Taxes in Costa Rica

tax

Costa Rica Offers Tax Advantages

In Costa Rica, the taxation of individuals is based on the principle of territoriality,meaning that all personal income, which has a foreign source, is tax exempt. Only revenue earned by an individual within Costa Rica is subject to an assessment by the tax authorities.

Income tax

Income tax (Impuesto de Renta) is levied on both employment source income and non-employment source income.Every individual employed in Costa Rica must pay a monthly withholding tax that is based on his/her salary. Employment income (on a monthly basis) of individuals is subject to a progressive tax of 15%.

For the self-employed, the rates range from 10% to 25%.

Property transfer tax in Costa Rica

A property transfer tax of 1.5% is payable by the purchaser on the value of real estate purchased. This tax is triggered with the transfer of the property.

Sales tax in Costa Rica

Sales tax (the equivalent to VAT) stands at 13% and is levied both at the point of importation and at the point of sale (unless the sale is by way of export). It is levied on all goods with the exception of foodstuffs, medicinal products, and certain other items.

*Prices as of 2013

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