Income Tax in Costa Rica

Understand the tax system in Costa Rica. Find out who has to pay and how to go about it...

The Tributación Direct is responsible for collecting taxes in Costa Rica.

Costa Rica’s tax structure depends mainly on consumption-type taxes. Sales tax (VAT) is 13 percent. There is an excise tax (mostly for imported luxury goods) as well as import duties, most of which are steadily decreasing, especially where free trade agreements are in place.

The tax system is based on the principle of territoriality, which means that only income generated within the country or derived from a Costa Rican source can be taxed.

Both personal and corporate income that is generated in Costa Rica are taxable, regardless of the following:

  • Domicile
  • Citizenship
  • Residence
  • Place of incorporation
  • Location of board meetings

Any income generated or obtained from foreign sources (outside of Costa Rica) should not be subject to income tax.