Costa Rica is a Central American country known for its rich biodiversity, stable political environment, and commitment to sustainability. It has a growing economy primarily driven by tourism, agriculture, and technology sectors. The country offers an attractive business climate with a competitive tax structure, including a 30% corporate income tax, 25% personal income tax, and a 13% VAT. Costa Rica is a regional leader in environmental conservation and renewable energy, with over 98% of its electricity coming from renewable sources. It is also recognized for its high standard of living and strong focus on education and healthcare, making it an attractive destination for investors and expatriates alike.
Costa Rica Tax Brief
Time of Update 4/06/2026
Costa Rica Corporate Income Tax (CIT)
Costa Rica Withholding Tax (WHT)
Costa Rica Value-Added Tax (VAT)
Costa Rica Capital Gain Tax (CGT)
Costa Rica Effective Tax Rate (ETR)
Composite Effective Marginal Tax Rate:
26.12%
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TKEG Expat™ (Test) Costa Rica Corporate Tax Guide
1.
Costa Rica Corporate Income Tax (CIT)
The corporate income tax rate in Costa Rica is set at 30%. The CIT return is generally due by 15 March, and final payment should also be made by this date. Estimated CIT payments must be made quarterly, with 75% of the amount split equally among June, September, and December. This helps businesses stay on track with their tax obligations throughout the fiscal year.
2.
Costa Rica Personal Income Tax (PIT)
Both self-employed and employed individuals are subject to a PIT rate of 25%. There is no formal PIT return requirement for employees, as their taxes are managed by their employers on a monthly basis. Self-employed individuals, however, need to comply with quarterly payments and file their returns by 15 March each year.
3.
Costa Rica Value-added Tax (VAT)
Costa Rica has replaced its general sales tax with a VAT rate of 13%. The VAT covers a wide range of transactions, including the sale of goods, transfer of intangible assets, and the provision of services. The VAT system allows businesses to deduct input tax from what they owe on their output tax, contributing to a transparent tax chain throughout the production process.
4.
Costa Rica Property Tax
In Costa Rica, property tax is overseen by local municipal governments. This tax is set at 0.25% of the appraised value of the property, which is reviewed by the respective municipality. It applies to all real estate throughout the country and is typically collected annually.
5.
Costa Rica Real Estate Transfer Tax
When real estate is sold or transferred in Costa Rica, a 1.5% transfer tax is applied to the selling price or the property’s appraised value, whichever is higher. This tax also applies to indirect transfers of real estate when there is a change in the control of the entity holding the property.
