Compare taxes and see how much you save moving from Costa Rica to Mexico
Costa Rica and Mexico are Latin America's two most popular digital nomad destinations with fundamentally different tax approaches. Costa Rica uses territorial taxation—foreign-source income (your remote work for US/EU companies) is 100% tax-free. Mexico taxes worldwide income for residents at progressive rates up to 35%. This creates a massive gap. At $80,000 foreign income: Costa Rica charges $0, Mexico charges ~$20,000+. Costa Rica also has an explicit digital nomad visa (2 years, renewable). Mexico has no DN visa but offers easy temporary residency. Costa Rica wins on tax, Mexico wins on cost of living (30-40% cheaper), infrastructure variety, and ease of travel to US. Choose Costa Rica if: you want zero tax on foreign income and explicit legal DN status. Choose Mexico if: you prefer lower costs, proximity to US, larger expat communities, or plan to work with Mexican clients (territorial wouldn't help anyway).
Territorial
0% on foreign income, digital nomad visa available
Worldwide
Progressive 1.92-35% on worldwide income for residents
At $80,000 foreign income:
That is $1,650+/month back in your pocket!
| Income | CR Tax | MX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 (foreign) | $0 (0%) | ~$11,500 (23%) | Costa Rica saves $11,500 | $115,000 |
| $80,000 (foreign) | $0 (0%) | ~$20,500 (25.6%) | Costa Rica saves $20,500 | $205,000 |
| $100,000 (foreign) | $0 (0%) | ~$27,000 (27%) | Costa Rica saves $27,000 | $270,000 |
| $150,000 (foreign) | $0 (0%) | ~$45,000 (30%) | Costa Rica saves $45,000 | $450,000 |
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Hold USD, CRC (colones), and MXN. Transfer at real exchange rates—essential for getting paid in Latin America.
Open Wise Account →Receive payments as a contractor in either country. Deel handles local compliance while you focus on work.
Get Paid Compliantly →Costa Rica: $0 (territorial taxation, foreign income exempt). Mexico: ~$20,500 if you're a tax resident (worldwide income taxed at progressive rates up to 35%). Costa Rica saves over $20,000 annually. This is the fundamental difference between territorial and worldwide tax systems.
Difficult in practice. Mexico's 183-day rule means spending more than half the year makes you a resident. But even staying less, if your 'center of vital interests' (home, family, primary income) is in Mexico, you may be considered resident. Many nomads do border runs but this is legally risky. Costa Rica's DN visa provides clearer legal status.
Mexico City: $1,200-2,000/month, $500-900 rent. San José: $1,800-2,800/month, $700-1,100 rent. Beach areas vary widely. Playa del Carmen (Mexico) is cheaper than Tamarindo (Costa Rica). Overall, Mexico is 30-40% cheaper for similar lifestyle.
Mexico has more variety—CDMX is a world-class city with endless coworking spaces, Oaxaca for culture, beaches everywhere. Costa Rica has fewer locations but dedicated DN visa and explicit legal framework. Mexico has quantity, Costa Rica has legal clarity.
Costa Rica is generally safer—low crime, no cartel presence, stable government. Mexico varies enormously by region. CDMX, Oaxaca, Puerto Vallarta are generally safe for tourists/expats. Some areas (Sinaloa, Tamaulipas, parts of Guerrero) should be avoided. Research specific locations in Mexico.