Costa Rica

Rental Income Tax, Effective Tax Rates (%) - Costa Rica Compared to Continent

Footnote

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Chile	35.00%
Costa Rica	30.00%
Colombia	28.56%
Ecuador	25.00%
Mexico	25.00%
Peru	24.00%
El Salvador	22.36%
Venezuela	22.16%
Argentina	21.00%
Paraguay	17.50%
Brazil	15.00%
Uruguay	10.27%
Honduras	4.44%

 

 

Costa Rica: Rental income taxes (%).

The tax levied on the average annual income on a rental apartment/property in the country.

Assumptions:

• Gross rental income is €/US$1,500/month
• The property is personally directly owned jointly by husband and wife
• Both owners are foreigners and non-residents
• They have no other local income
• There is no mortgage, i.e., no loan is taken for the purchase

In arriving at the pre-tax profit figure, we calculate, and deduct:

• Depreciation / capital allowances – if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.

We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.

Our rental income tax figures are provided by accountants (see list of contributors). For more details see the Data FAQ.

Source: Global Property Guide Research, Contributing Accounting Firms

 

Costa Rica does not publish house price statistics. The Banco Central de Costa Rica has general statistics on production, employment, business confidence, the country’s fiscal position, etc. The Instituto Nacional de Estadística y Censos has rather basic web pages. The Ministerio de Hacienda de la Republica de Costa Rica has quite a creditable-looking set of pages, but some of the actual data is very old.