Tax on property income in Costa Rica
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 5.10% | 13.92% | 16.33% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresident individuals are liable to tax only on their Costa Rican-sourced income. Married couples are taxed separately.
The tax year runs from 01 October of the current year to 30 September of the succeeding year. The tax year 2018-2019 is from 01 October 2018 up to 30 September 2019. The tax year 2019-2020 is from 01 October 2019 up to 30 September 2020.
INCOME TAX (Impuesto sobre las remesas al exterior)
Income is taxed at progressive rates. Income earned by nonresidents is subject to withholding taxes.
Tax on All Income Other than Employment Income
Income from non-employment sources are taxed separately from employment income. Income-generating expenses are deductible when calculating the taxable income from business activities. Income tax is levied at progressive rates.
INCOME TAX 2018-2019 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 3,628,000 (US$6,479) | 0% |
| 3,628,000 - 5,418,000 (US$9,675) | 10% on band over US$6,479 |
| 5,418,000 - 9,038,000 (US$16,139) | 15% on band over US$9,675 |
| 9,038,000 – 18,113,000 (US$32,345) | 20% on band over US$16,139 |
| Over 18,113,000 (US$32,345) | 25% on all income over US$32,345 |
| Source: Global Property Guide | |
INCOME TAX 2017-2018 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 3,549,000 (US$6,338) | 0% |
| 3,549,000 - 5,299,000 (US$9,463) | 10% on band over US$6,338 |
| 5,299,000 - 8,840,000 (US$15,786) | 15% on band over US$9,463 |
| 8,840,000 – 17,716,000 (US$31,636) | 20% on band over US$15,786 |
| Over 17,716,000 (US$31,636) | 25% on all income over US$31,636 |
| Source: Global Property Guide | |
INCOME TAX 2016-2017 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 3,517,000 (US$6,280) | 0% |
| 3,517,000 - 5,251,000 (US$9,377) | 10% on band over US$6,280 |
| 5,251,000 - 8,760,000 (US$15,643) | 15% on band over US$9,377 |
| 8,760,000 - 17,556,000 (US$31,350) | 20% on band over US$15,643 |
| Over 17,556,000 (US$31,350) | 25% on all income over US$31,350 |
| Source: Global Property Guide | |
CAPITAL GAINS TAX
Capital gains are not taxed in Costa Rica unless they are derived from habitual transactions.
Capital gains derived from habitual transactions are taxed at a flat rate of 30%.
PROPERTY TAX
Real Estate/Habitation Tax (Impuesto sobre bienes inmuebles)
Property taxes are levied on the cadastral value of the property as assessed by the tax authorities. Property taxes are levied by the municipalities at the flat rate of 0.25%. The real estate tax is calculated on a calendar year basis and must be paid annually, semiannually or quarterly, depending on the municipality.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are generally subject to corporate income tax at a flat rate of 30%. Income-generating expenses are deductible when calculating taxable income.
Small companies whose gross income does not exceed a particular limit may be subject to corporate income tax at progressive rates.
CORPORATE TAX 2018-2019 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 54,303,000 (US$96,970) | 10% |
| 54,303,000 – 109,228,000 (US$195,050) | 20% on band over US$96,970 |
| Over 109,228,000 (US$195,050) | 30% on all income over US$195,050 |
| Source: Global Property Guide | |
CORPORATE TAX 2017-2018 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 53,113,000 (US$94,845) | 10% |
| 53,113,000 – 106,835,000 (US$190,057) | 20% on band over US$94,845 |
| Over 106,835,000 (US$190,777) | 30% on all income over US$190,777 |
| Source: Global Property Guide | |
CORPORATE TAX 2016-2017 |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 52,634,000 (US$93,989) | 10% |
| 52,634,000 – 105,872,000 (US$189,057) | 20% on band over US$93,989 |
| Over 105,872,000 (US$198,057) | 30% on all income over US$198,057 |
| Source: Global Property Guide | |