Countries › Costa Rica › Guide › 5. FX and capital controls › Paying dividends and profits out of Costa Rica: no FX approval, 5% legal reserve, 15% withholding

Paying dividends and profits out of Costa Rica: no FX approval, 5% legal reserve, 15% withholding

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-29 · Status: Stable

A Costa Rican company can declare dividends and wire them abroad without any central bank approval, registration or waiting period. Before distributing, an S.A. must set aside 5% of yearly net profit until the legal reserve reaches 20% of capital, and must pay declared dividends within three months of the shareholders' meeting. The payer withholds a final 15% on dividends or branch remittances to non residents (5% to 15% under the Spain, Germany, Mexico and UAE treaties); Argentine shareholders have no tax treaty but do have investment treaty transfer protection.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar (buying rate ₡449.44) published for 29 October 2026 (indicators 318 and 317 on bccr.fi.cr), rounded to the cent.

Key facts

Access to FX to pay dividends abroad	Free, no central bank approval textLey 7558 art. 85, as of 2026-10-29 · in force
Withholding on dividends to non residents	15 %Ley 7092 art. 59(g), as of 2026-10-29 · in force
Legal reserve allocation for an S.A.	5% of net profit until 20% of capital textCódigo de Comercio art. 143, as of 2026-10-29 · in force
Deadline to pay a declared dividend	3 monthsCódigo de Comercio art. 143, as of 2026-10-29 · in force
Registration of dividend remittances	None required textLey 7558 art. 85, as of 2026-10-29 · in force

The rule

1. Any exchange regime must guarantee free conversion of the colón and may not restrict the sale of foreign currency beyond what Ley 7558 allows, so buying dollars to pay a dividend needs no permit.Ley 7558, art. 85, 1995-11-03 official text · verified 2026-10-29

2. Each year 5% of net profit goes to a legal reserve until it reaches 20% of share capital. After that reserve and any reserves in the articles, if the meeting resolves to distribute, shareholders acquire an enforceable right to the dividend; a cash dividend must be paid within three months after the meeting closes, and a certified copy of the resolution is an enforceable title.
Example: Net profit ₡100,000,000: reserve ₡5,000,000, distributable ₡95,000,000. / Net profit about US$219,867.20: reserve about US$10,993.36.Código de Comercio (Ley 3284), as amended by Ley 7201, art. 143, 1990-10-10 official text · verified 2026-10-29

3. Dividends and profit distributions to non residents bear a final withholding tax under art. 59(g); branches and other permanent establishments withhold on 100% of the profit credited or remitted to the head office. The tax is paid within the first fifteen calendar days of the month after payment or credit, and the payer is jointly liable.
Example: Dividend of ₡45,482,000: ₡6,822,300 withheld, ₡38,659,700 net. / Dividend of US$100,000.00: US$15,000.00 withheld, US$85,000.00 net.Ley 7092, art. 23(c) and (d), 56, 57, 59(g) and 60, 2018-12-03 official text · verified 2026-10-29

4. Treaty residents can claim lower dividend withholding: 5% for companies holding at least 20% directly under the treaties with Spain (Ley 8888), Germany (Ley 9345), Mexico (Ley 9644) and the UAE (Ley 9963); otherwise 12% for Spain and Mexico and 15% for Germany and the UAE.Ley 8888; Ley 9345; Ley 9644; Ley 9963, art. 10 of each treaty, 2021-03-24 official text · verified 2026-10-29

5. Argentina: there is no income tax treaty, so the domestic 15% applies to dividends paid to Argentine shareholders; a tax information exchange agreement was approved by Ley 9007. The investment agreement approved by Ley 8068 obliges each country to allow unrestricted transfer of investments and returns, including dividends, loan repayments and sale or liquidation proceeds, without delay (normally within two months of a complete request) in freely convertible currency.Ley 8068 (Costa Rica Argentina investment agreement); Ley 9007, Ley 8068 art. 7, 2001-02-14 official text · verified 2026-10-29

Shareholder	Rate	Withheld	Net received
No treaty (for example United States or Argentina)	15%	US$15,000	US$85,000
Spain or Mexico company, 20% or more	5%	US$5,000	US$95,000
Germany or UAE company, 20% or more	5%	US$5,000	US$95,000
Spain or Mexico, other holders	12%	US$12,000	US$88,000

US$100,000 dividend from a Costa Rican S.A. by shareholder residence (Ley 7092 art. 59(g) and treaty art. 10).

Worked example

Full chain: net profit of ₡100,000,000 (about US$219,867.20). Reserve 5%: ₡5,000,000. Dividend declared: ₡95,000,000. Withholding 15%: ₡14,250,000, paid by the 15th of next month. Net ₡80,750,000 converted at ₡454.82 gives about US$177,542.76 wired to the foreign parent.
Branch: a branch that credits ₡45,482,000 (US$100,000) of profit to its head office withholds ₡6,822,300 (US$15,000) on the remittance.

Step by step

Close the year and approve financial statements at the annual meeting.
Allocate 5% to legal reserve unless it already equals 20% of capital.
Adopt the dividend resolution and record it in the minutes book.
Obtain a tax residence certificate if a treaty rate is claimed.
Buy dollars at your bank, withhold the tax and wire the net within three months of the meeting.
File and pay the remittance withholding by the 15th of the following month.

Common traps

Art. 59(g) still reads 15% or 5% and cross refers to articles 18 and 19, which Ley 9635 repealed; plan on 15% for non treaty shareholders and get advice before applying 5%.
Paying before allocating the legal reserve exposes directors under the Código de Comercio; check the reserve every year.
The bank, not the central bank, is the real gatekeeper: transfers of US$10,000 or more are registered and source of funds questions are normal.
Missing the 15th deadline makes the Costa Rican payer jointly liable plus interest and penalties.

Sources

Related: Costa Rica country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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