Countries › Costa Rica › Guide › 6. Taxes › Tax losses in Costa Rica: three year carryforward, five years for agricultural, new industrial and audiovisual companies, no carryback

Tax losses in Costa Rica: three year carryforward, five years for agricultural, new industrial and audiovisual companies, no carryback

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

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

Business losses can be deducted in the three following tax years; agricultural companies, new industrial companies and qualifying film and audiovisual companies have five years. Losses must be booked as deferred losses and are accepted at the tax administration's judgment, unused balances give no refund or credit, and companies mixing activities must keep separate accounts. Capital losses on the capital income chapter are a separate pool, usable against capital gains of the following three years.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent. The salario base for 2026 is ₡462,200 (Circular 246-2025 of the Consejo Superior del Poder Judicial, under Ley 7337 art. 2).

Key facts

Business loss carryforward (general)	3 yearsLey 7092 art. 8(g), as of 2026-10-29 · in force
Loss carryforward, agricultural and new industrial companies, qualifying audiovisual	5 yearsLey 7092 art. 8(g), as of 2026-10-29 · in force
Loss carryback	Not available Ley 7092 art. 8(g), as of 2026-10-29 · in force
Capital loss carryforward against capital gains	3 yearsLey 7092 art. 31 bis(5), as of 2026-10-29 · in force

The rule

1. A loss in a tax period is deductible in the following three periods; agricultural companies may deduct it over the following five periods, as may film and audiovisual companies whose activity is defined in the regulation by the Ministerio de Hacienda and the Centro Costarricense de Cine y Audiovisual (art. 8(g)).Ley 7092, art. 8(g) as amended by Ley 10657, art. 8(g), 2025-03-10 official text · verified 2026-10-29 · changed: Ley 10657 of 10 March 2025 (Ley de Cinematografía y Audiovisual) extended the five year period to qualifying film and audiovisual companies.

2. Industrial companies that began activities after the law took effect may also deduct losses over five periods, after which the three year rule applies. Losses are determined at the tax administration's judgment and accepted if properly booked as deferred losses; mixed agricultural or industrial and commercial companies must keep separate accounts; any balance not offset gives no right to a refund or credit (art. 8(g)).Ley 7092, art. 8(g), 1988-04-21 official text · verified 2026-10-29

3. Capital losses under the capital income chapter can be offset against gains of the previous twelve months through a refund return, and otherwise carried forward against capital gains of the three following consecutive years (art. 31 bis(4) and (5)). Losses on transfers of movable or immovable property are generally not deductible against business income except under art. 8(f) (art. 9(i)).Ley 7092, art. 31 bis added by Ley 9635, art. 31 bis and art. 9(i), 2018-12-03 official text · verified 2026-10-29

Worked example

A trading company loses ₡80,000,000 (US$175,893.76) in 2026. It can offset that loss against profits of 2027, 2028 and 2029 only; whatever is left after 2029 is lost, with no refund.

Step by step

Book the loss as a deferred loss in the accounts.
Plan profit timing so losses are absorbed within the three or five year window.
Keep separate accounts for agricultural, industrial and commercial lines if the company mixes them.

Common traps

There is no indefinite carryforward and no carryback, so start up losses can expire.
Losses are accepted at the administration's judgment and need full support.
Capital losses cannot be used against business profits, and business losses cannot be used against capital gains taxed under chapter XI.

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

← Interest deduction limits in Costa Rica: 20% of EBITDA for net non bank interest, indefinite carryforward and no deduction without withholdingCosta Rica's tax treaties: four income tax treaties in force (Spain, Germany, Mexico, UAE), the BEPS multilateral instrument and treaty rates →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.