# Costa Rica

 Country code: CR · Currency: CRC · Language: Spanish

**Pros**
- Territorial tax system with exemption for foreign-sourced income for residents and international corporations.
- Long-standing democratic stability and high levels of personal and civil liberties for individuals.
- Abundant natural beauty and high-quality lifestyle options for remote entrepreneurs and digital nomads.

**Cons**
- High social security contributions and complex labor regulations with significant costs for employee recruitment.
- Inefficient public bureaucracy and slow administrative processes for permits and business licenses.
- Deteriorated infrastructure and increased security concerns due to regional drug trafficking and petty crime.

Long story short: In San José's nice neighborhoods, you'll find a tax residency scheme that lets foreign entrepreneurs skip income tax entirely on money earned abroad, and the paperwork to set up shop is refreshingly straightforward compared to the rest of the region. Costa Rica actually wants your business here.

The catch: bureaucracy for anything involving permits, construction or property registration crawls at a pace that will test your patience, and mid-level officials aren't above expecting a little something to speed things along. The banking system is solid though conservative, foreign account opening involves real scrutiny, and electricity or internet outages in the capital are rare compared to elsewhere in Central America.

A few more things worth knowing: Escazú and Santa Ana feel almost European in safety and comfort, the food leans fresh and healthy without being exciting, and the surrounding volcanoes, cloud forests and beaches within a few hours' drive are genuinely spectacular. Cost of living in the upscale areas has climbed fast, rivaling parts of the US.

## Will your income be taxed?

Long story short: YES, A LOT.
On paper, **Costa Rica** shears you at up to **25%**. In practice, the *territorial* regime only bites income sourced locally: foreign salary, foreign dividends, foreign gains walk through untouched. The sticker is there to scare; the machinery doesn't reach that far.

Earn your living abroad and the local taxman mostly waves at you from a distance.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 0 → 25% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 9,117 | exempt |
| 9,117 – 13,618 | 10% |
| 13,618 – 22,715 | 15% |
| 22,715 – 45,524 | 20% |
| 45,524 + | 25% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Capital gains get off easy in **Costa Rica** (**15%**); the *annual wealth tax* doesn't (top rate **25%**). It nibbles your pile every year, sold or not, and over a long hold the nibbling out-eats the sale tax entirely.

Watch the stock, not just the flow.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 15% | flat · +2.5% sale of assets owned by non-residents |
| Dividend tax | 15% | flat |
| Interest income | 15% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | 0 → 25% | progressive · threshold 9,117 |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 9,117 | exempt |
| 9,117 – 13,618 | 10% |
| 13,618 – 22,715 | 15% |
| 22,715 – 45,524 | 20% |
| 45,524 + | 25% |

| Metric | Value | Detail |
| --- | --- | --- |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 15% · Costa Rica treats crypto-assets as intangible assets. Under the General Directorate of Taxation (DGT) ruling MH-DGT-OF-0460-2023, gains are subject to a 15% Capital Gains Tax (Law 9635). While the country follows a territorial tax system, the DGT considers gains from residents as taxable if the activity is managed from within the country. Habitual or professional trading is reclassified as business income (Impuesto sobre las Utilidades), which for individuals follows a progressive scale reaching a maximum of 25%. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES, BUT TAXED.
Corporate tax in **Costa Rica** lands at a *moderate* **20%**, but the legal frame is quiet: *no criminal liability* on corporate assets, *non-public* registries.

The rate stings a little; nothing else does.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 5 → 20% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 12,518 | 5% |
| 12,518 – 18,780 | 10% |
| 18,780 – 25,038 | 15% |
| 25,038 + | 20% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 13% | 5 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 1% |
| Food & drink | non-alcoholic | 1% |
| Transport | air | 4% |
| Health | pharma | 2% |
| Agriculture | farm inputs | 0.5% |
| Finance | insurance | 2% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · In Costa Rica, the crime of 'Administración Fraudulenta' (Article 222 of the Penal Code) requires proof of 'patrimonial prejudice' (harm) to a third party or the entity. In a solvent company where the director is the sole shareholder, the 'victim' (the company) is deemed to have consented to the use of funds through its sole owner. Without harm to creditors or minority interests, the act does not meet the criminal threshold of fraud or misappropriation. Instead, it is treated as a civil matter involving the 'piercing of the corporate veil' (levantamiento del velo) under Article 20 of the Commercial Code, or as a tax violation regarding unauthorized distributions. |
| Shareholders privacy | PRIVATE | Registro de Transparencia y Beneficiarios Finales (RTBF) |
| Directors privacy | PUBLIC PAYWALL | Registro de Transparencia y Beneficiarios Finales (RTBF) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Sociedad de Responsabilidad Limitada (S.R.L.) (Limited Liability Company (LLC)). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees, Stamps, and Publication in La Gaceta | USD 334 |  |
| Notary Public and Legal Professional Fees for Incorporation | USD 1,113 |  |
| Total | USD 1,448 |  |

## A good fit for a holding?

Long story short: YES, BUT THIN.
**Costa Rica** runs a *full participation exemption* (**100%** on qualifying dividends and gains), but the treaty network is *skinny* (**5** agreements): in plenty of geographies your dividends get clipped at the source before they ever reach the holding.

Fine for a regional play, undersized for a global one.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | TERRITORIAL | territorial — foreign-source income generally untaxed |
| Territorial · corporates | TERRITORIAL | territorial principle — foreign-source profits generally exempt |
| Participation exemption | 100% | 5% holding · 12 months min |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 15% | non-resident outbound |
| WHT · interest | 15% | non-resident outbound |
| WHT · royalties | 25% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 4 | active |
| Treaties pending | 1 | in negotiation |

## Easy to come and go?

Long story short: LITTLE.
Coming and going from **Costa Rica** costs you nothing worth mentioning. *Territorial* regime (foreign income stays foreign), *no exit tax* at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 7 years | available path to naturalisation |
| Marriage | 2 years | available path to naturalisation |
| Birth | jus soli | available path to naturalisation |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
Yes, your money is watched here. **Costa Rica** signed *every major* automatic-exchange framework: CRS, FATCA, CARF, MLI, MAAC. Open an account and it gets reported straight to your home tax authority (Americans: FATCA applies, no exceptions).

Corporate registries stay *non-public*, which saves a thin slice of ownership discretion. But your financial trail is made of glass.

**Multilateral reporting frameworks — 4/9 active · 4 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2018 |
| CARF | Signed | 2024 |
| FATCA | In force | 2014 |
| MLI | In force | 2020 |
| BEPS | Signed | — |
| MAAC | In force | 2013 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: SOMEWHAT.
**Costa Rica** is *flagged* by a few national tax administrations (drawn from FR/ES/PT/BR) and sits outside the FATF club.

The friction is selective: anti-abuse rules fire on specific corridors, and counterparties ask more questions than usual. Neither the FATF nor the EU has it on their lists, which keeps the damage contained: a nuisance, not a scarlet letter.

**Blacklist exposure — Listed by 1 authority**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Listed | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Costa Rica** sits in the *middle band* of the RSF press-freedom index (rank **\#36**): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 36/180 | score 73 · ↓ 10 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Costa Rica CBDC

Banco Central de Costa Rica

   RESEARCH   —   [announce →](https://www.bccr.fi.cr/publicaciones/Criptomonedas/ESPE-01-2021-Algunas_consideraciones_en_torno_monedas_digitales_y_criptoactivos.pdf "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Costa Rica**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**4/11**), but for an online business this is swimming against the current.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Costa Rica. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Kenya KE  → ](https://stateless.sx/en/country/ke) [   Trinidad & Tobago TT  → ](https://stateless.sx/en/country/tt) [   St. Lucia LC  → ](https://stateless.sx/en/country/lc)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Malta MT  → ](https://stateless.sx/en/country/mt) [   Paraguay PY  → ](https://stateless.sx/en/country/py) [   El Salvador SV  → ](https://stateless.sx/en/country/sv)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Kenya KE  → ](https://stateless.sx/en/country/ke) [   Trinidad & Tobago TT  → ](https://stateless.sx/en/country/tt) [   Guyana GY  → ](https://stateless.sx/en/country/gy)