Costa Rica: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Residents pay tax in their worldwide income. Married couples are taxed separately.
INCOME TAX
Income is taxed at progressive rates. Employment income is taxed separately from other income.
Tax on Employment Income
Employment income is subject to withholding taxes, levied at progressive rates.
TAX ON EMPLOYMENT INCOME |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 586,000 (US$1,028) | nil |
| 586,000 – 879,000 (US$1,543) | 10% on band over US$1,028 |
| Over 879,000 (US$1,543) | 15% on all income over US$1,543 |
| Source: Global Property Guide | |
Tax on All Income Other than Employment Income
Income from all other sources are aggregated and taxed at progressive rates. Self-employed individuals with business activities are allowed to deduct all costs and expenses necessary to produce taxable income, as well as to protect their investments.
INCOME TAX |
|
| TAXABLE INCOME, CRC (US$) | TAX RATE |
| Up to 2,599,000 (US$4,561) | nil |
| 2,599,000 - 3,880,000 (US$6,809) | 10% on band over US$4,561 |
| 3,880,000 - 6,473,000 (US$11,359) | 15% on band over US$6,809 |
| 6,473,000 - 12,972,000 (US$22,763) | 20% on band over US$11,359 |
| Over 12,972,000 (US$22,763) | 25% on all income over US$22,763 |
| Source: Global Property Guide | |
Residents can deduct a few family-related allowances from non-employment income:
- A monthly tax credit of CRC19,680 or US$35 (CRC236,160 or US$414 annually) in respect of a spouse
- A monthly tax credit of CRC13,320 or US$23 (CRC159,840 or US$280 annually) in respect of a dependant under 25 years of age
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.
Costa Rica - more data and information
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