Countries › Costa Rica › Guide › 6. Taxes › Taxes in Costa Rica: 30% corporate income tax, 15% on dividends and capital gains, 13% VAT, withholding on payments abroad and municipal taxes

Taxes in Costa Rica: 30% corporate income tax, 15% on dividends and capital gains, 13% VAT, withholding on payments abroad and municipal taxes

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

Costa Rica taxes companies on Costa Rican source profits at 30%, with lower progressive brackets for small companies, and taxes dividends, interest and capital gains at a flat 15% under the capital income chapter added by Ley 9635 of 2018. Payments abroad bear a final withholding of 5.5% to 30% depending on the type of income, VAT is 13% with reduced rates of 4%, 2%, 1% and 0.5%, and municipalities levy a 0.25% property tax and a business licence tax. The Dirección General de Tributación administers national taxes under the Código de Normas y Procedimientos Tributarios, with a four year review period.

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

Corporate income tax, general rate	30 %Ley 7092 art. 15(a), as of 2026-10-29 · in force
Withholding on dividends paid to non residents (domestic law)	15 %Ley 7092 art. 59(g), as of 2026-10-29 · in force
Withholding on interest paid to non residents (general)	15 %Ley 7092 art. 59(h), as of 2026-10-29 · in force
Withholding on royalties paid to non residents	25 %Ley 7092 art. 59(j), as of 2026-10-29 · in force
VAT standard rate	13 %Ley 6826 art. 10, as of 2026-10-29 · in force
Capital gains tax rate	15 %Ley 7092 art. 31 ter, as of 2026-10-29 · in force
Municipal property tax rate	0.25 %Ley 7509 art. 23, as of 2026-10-29 · in force
Ordinary review period	4 yearsLey 4755 art. 51, as of 2026-10-29 · in force

The rule

1. Costa Rica taxes profits on a territorial basis: the tax on profits applies to resident individuals, companies and other entities carrying on lucrative activities of Costa Rican source, meaning income generated exclusively in the national territory from services rendered, property located, capital invested and rights used there (art. 1). All legally constituted companies are taxpayers whether or not they trade, and inactive companies file a simplified information return instead (art. 2(a), as amended by Ley 10160 of 2022).Ley 7092, Ley del Impuesto sobre la Renta, art. 1 and art. 2, 1988-04-21 official text · verified 2026-10-29

2. The general corporate rate is 30% of taxable income; companies with gross income up to ₡119,174,000 in the period pay 5%, 10%, 15% and 20% by brackets of annual net income set for 2026 by Decreto 45333-H (art. 15). The tax period is the calendar year (art. 4).Ley 7092; Decreto Ejecutivo 45333-H, art. 4 and art. 15(a) and (b); Decreto 45333-H art. 3, 2025-11-10 official text · verified 2026-10-29 · changed: Decreto 45333-H of 10 November 2025 adjusted the small company brackets by minus 0.38% from 1 January 2026.

3. Capital income (rents, interest, royalties, dividends) and capital gains not linked to a business activity are taxed at 15%, with a one time 2.25% option on the sale price for assets acquired before the chapter took effect (art. 31 ter). Dividends paid to a domestic company that carries on an economic activity and is subject to income tax are exempt (art. 28 bis(3)).Ley 7092, chapter XI added by Ley 9635, art. 27 to 31 quinquies; art. 28 bis(3); art. 31 ter, 2018-12-03 official text · verified 2026-10-29

4. Income of Costa Rican source paid, credited or made available to persons domiciled abroad bears a final withholding tax: 15% on dividends and interest, 25% on royalties, technical and financial advice and independent personal services, 8.5% on transport and communications, 5.5% on reinsurance and insurance premiums, 20% on films and similar media, 10% on salaries and pensions and 30% on any other remittance (art. 59). The tax is due within the first 15 calendar days of the month after payment (art. 60).Ley 7092, Title IV, art. 52 to art. 60, 1988-04-21 official text · verified 2026-10-29

5. VAT is charged at 13% on sales of goods and services carried out in Costa Rica, including imports and digital services consumed in the country (art. 1 and art. 10), with reduced rates of 4%, 2%, 1% and 0.5% for listed goods and services (art. 11). Returns are filed and paid monthly by the 15th calendar day (art. 27).Ley 6826, Ley del Impuesto al Valor Agregado, text restated by Ley 9635, art. 1, art. 10, art. 11 and art. 27, 2018-12-03 official text · verified 2026-10-29

6. Municipalities levy a property tax of 0.25% of the registered value of land and buildings (Ley 7509 art. 23) and a licence tax on every lucrative activity carried on in the canton (Código Municipal art. 88). Every company also pays the yearly impuesto a las personas jurídicas of Ley 9428 in January.Ley 7509; Ley 7794, Código Municipal, Ley 7509 art. 23; Código Municipal art. 88, 1995-05-09 official text · verified 2026-10-29

7. The tax administration's power to assess and collect prescribes in four years, extended to ten years for unregistered taxpayers, fraudulent returns or returns not filed, counted from the first day of the month after the tax was due (art. 51 and art. 52).Ley 4755, Código de Normas y Procedimientos Tributarios, art. 51 and art. 52, 2012-09-10 official text · verified 2026-10-29

Tax	Rate	Who pays	Law
Tax on profits	30% (small companies 5% to 20%)	Companies and branches with Costa Rican source income	Ley 7092 art. 15
Capital income and capital gains	15% (2.25% of price option for assets held before the chapter)	Holders of passive income and gains	Ley 7092 art. 31 ter
Remittances abroad	5.5% to 30%, final	Non residents, withheld by the Costa Rican payer	Ley 7092 art. 59
VAT	13% (reduced 4%, 2%, 1%, 0.5%)	Sellers of goods and services; importers	Ley 6826 art. 10 and 11
Property tax	0.25% of registered value	Owners of real estate	Ley 7509 art. 23
Municipal licence tax	Set by each municipality's law	Anyone carrying on a lucrative activity	Código Municipal art. 88
Tax on legal entities	15% to 50% of a salario base per year	Every company, E.I.R.L. and branch	Ley 9428 art. 3
Import tax	1% of customs value plus the tariff	Importers	Ley 6946 art. 1

Main taxes for a foreign owned company in Costa Rica (2026).

Worked example

A US$100 dividend (₡45,482) paid by a Costa Rican subsidiary to its foreign parent bears 15% withholding, ₡6,822 (US$15.00), and the parent receives US$85.00; a parent resident in Spain, Germany, Mexico or the United Arab Emirates holding at least 20% directly can claim 5% under the treaty.

Step by step

Register the company in the Registro Único Tributario before it starts activity and choose the regimes that apply (income tax, VAT, withholding agent).
Calendar the monthly 15th day deadlines for VAT and for withholding on payments abroad, the quarterly income tax prepayments in March, June and September, and the annual income tax return by 15 March.
Pay the impuesto a las personas jurídicas in January and keep the municipal licence and property tax current.
Review treaty eligibility before paying dividends, interest or royalties to a foreign group company.

Common traps

Territoriality does not mean passive foreign income is always untaxed: since Ley 10381 of 2023, foreign source passive income of entities without adequate economic substance in Costa Rica is taxed (Ley 7092 art. 2 bis and art. 27).
Inactive companies are still taxpayers and must file the summary information return (Ley 7092 art. 2(a)).
Expenses paid to jurisdictions classed as non cooperative are not deductible unless the taxpayer proves the transaction was real (Ley 7092 art. 9(k)).

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

← Cash and transfer reporting in Costa Rica: declare US$10,000 at the border, bank registers of US$10,000 transfersCorporate income tax in Costa Rica: 30% on Costa Rican source profits, small company brackets from 5%, prepayments and the 15 March return →

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