Income tax on rent, worked example, in Costa Rica
Taxation Researcher | July 16, 2019
| Non-resident couple´s rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less: Expenses3 | 25% | 4,500 | 18,000 | 36,000 |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax4 | ||||
| Up to 3,517,000 | 0% | - | - | - |
| 3,517,000 - 5,251,000 | 10% | 313 | 313 | 313 |
| 5,251,000 - 8,760,000 | 15% | 606 | 948 | 948 |
| 8,760,000 - 17,556,000 | 20% | - | 3,170 | 3,170 |
| Over 17,556,000 | 25% | - | 5,591 | 19,091 |
| Annual Income Tax Due | 918 | 10,022 | 23,522 | |
| Tax Due as % of Gross Income | 5.10% | 13.92% | 16.33% | |
DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on December 7, 2015.
Notes
1 The residential property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 560.00 CRC
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4Rental income earned by nonresident individuals is taxed at progressive rates.
INCOMTE TAX |
|
| TAXABLE INCOME, CRC (US$) | RATE |
| Up to 3,549,000 (US$ 6,338 ) | 0% |
| 3,549,000 - 5,299,000 (US$ 9,463 ) | 10% |
| 5,229,000 - 8,840,000 (US$ 15,786 ) | 15% |
| 8,840,000 - 17,716,000 (US$ 31,636 ) | 20% |
| Over 17,716,000 (US$ 31,636 ) | 25% |