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Moving from Costa Rica Tax Guide 2026: DGT Exit, CCSS Pension & Territorial Tax System

Quick Answer: Costa Rica uses a territorial tax system — residents pay income tax only on Costa Rican-source income (rentas de fuente costarricense). Foreign income is exempt from Costa Rican tax. There is no exit tax. CCSS (social security) contributions create future pension rights — no lump-sum withdrawal is available for most departing individuals, though foreign nationals may have options under specific conditions. Costa Rica is a highly popular destination for US and Canadian retirees, and DGT deregistration is straightforward for departing residents.

By Daniel, founder of CountryTaxCalc.com

Last Updated: April 2026

Key Facts

Costa Rica Territorial Income Tax: DGT Rules and Final Return

Costa Rica's income tax (Impuesto sobre la Renta — Ley 7092, as amended by Ley 9635 of 2018) applies to income from a Costa Rican source (fuente costarricense). 2026 individual employment income rates: 0% (up to CRC 932,000/month), 10% (CRC 932,001–1,380,000), 15% (CRC 1,380,001–2,420,000), 20% (CRC 2,420,001–4,840,000), 25% (above CRC 4,840,000/month). Note: brackets are inflation-adjusted periodically — verify at hacienda.go.cr. Self-employed and professional activity: 15% flat tax on net income (Impuesto sobre Utilidades — for individuals conducting a business activity). Capital gains tax (Impuesto sobre las Ganancias de Capital — Ley 9635, effective July 2019): 15% on capital gains from assets acquired after July 1, 2019. Assets acquired before that date: transitional 0% for inherited/pre-existing assets (verify current treatment). Interest and dividends from Costa Rican sources: 15% final withholding. Non-resident taxation: income from a Costa Rican source earned by non-residents is subject to withholding: employment income 15%, rentals 15%, dividends 15%, royalties 25%. Tax residency: DGT does not maintain a formal tax residency register in the same way as European countries. Practically: if you have a Costa Rican business or employment generating CR-source income, you file returns regardless of physical residency. Final return: if you have CR-source income in the year of departure, file the annual return (April 15 of the following year for fiscal year March 31; or calendar year — verify your fiscal year). DGT (Dirección General de Tributación — hacienda.go.cr): deregister as a taxpayer (baja en el Registro Único Tributario — RUT) if you cease all CR-source activities.

CCSS (Caja Costarricense de Seguro Social): Pension and Health Insurance

CCSS (Caja Costarricense de Seguro Social — ccss.sa.cr) administers Costa Rica's social security, health insurance, and pension system. Contributions: employees 10.67% (4% IVM pension + 5.5% SEM health + 1% ASFA/FODESAF); employers 26.33% (5.08% IVM + 9.25% SEM + others). IVM (Invalidez, Vejez y Muerte — disability, old age, and death pension): pension eligibility requires 300 monthly quotas (25 years) for the full vejez pension at age 65. Reduced pension: 240 quotas (20 years) at age 62M/60F for a partial pension. Lump-sum withdrawal: CCSS IVM generally does not permit lump-sum withdrawal of IVM contributions for departing individuals. Bilateral social security agreements: Costa Rica has bilateral social security totalisation agreements with: USA (in negotiation as of 2026 — verify final status), Spain, Chile, Ecuador, Peru, Panama, Mexico. If your destination country has a bilateral agreement, IVM contribution periods may be totalised to meet each country's pension qualification threshold. Foreign workers with fewer than 240 IVM quotas: practically, contributions below the threshold may be credited toward a future reduced pension payable from Costa Rica — contact CCSS Pensiones (ccss.sa.cr/pensiones) for your individual quotas statement. SEM (Seguro de Enfermedad y Maternidad — Health Insurance): your CCSS health coverage terminates upon cessation of CCSS contributions (end of employment or last monthly payment if self-employed). Arrange private international health insurance before departure — the health coverage gap begins immediately.

Real Estate: Transfer Tax, Property Tax, and Non-Resident Ownership

Costa Rica is a popular property market for foreign nationals — non-residents can own property freehold with the same rights as citizens. Transfer tax (Impuesto de Traspaso de Bienes Inmuebles): 1.5% of the Registro Nacional registered value or the transaction value (whichever is higher) on every real estate transfer. Paid by the buyer (by custom and legal default — though negotiable). Notary public stamp duties: an additional 0.5–0.85% of transaction value in notarial fees. Capital gains tax on real estate: 15% on gains from properties acquired after July 1, 2019. For pre-2019 properties: the transitional exemption (ganancia de capital exento) may apply — verify current DGT position as this has been subject to ongoing administrative guidance. CGT non-resident: 15% ganancia de capital applies equally to non-residents on Costa Rican real estate gains. DGT withholds via the notary on transfer — similar to other territorial systems. Property tax (Impuesto sobre Bienes Inmuebles): 0.25% of registered cadastral value annually, paid to the municipality (municipalidad). Costa Rican property values have been subject to municipal reassessment — verify your current declared value at the municipalidad. Non-resident rental income: 15% withholding at source by DGT if paid by a Costa Rican entity; if paid by an individual tenant, the landlord self-declares on a quarterly return. Condominium fees (cuotas de mantenimiento): continue as normal expenses — can be paid by a local manager. Useful resource: BCCR (Banco Central de Costa Rica) for current CRC exchange rate information.

CRC Currency and International Transfers

Costa Rica's colón (CRC) is a fully convertible currency managed by the Banco Central de Costa Rica (BCCR). No capital controls restrict international transfers of legally obtained funds. Exchange rate: the BCCR maintains a managed floating exchange rate. Current approximate: 500–530 CRC per USD (verify at bccr.fi.cr). International transfers: Costa Rican banks (Banco Nacional, Banco de Costa Rica, BAC, Scotiabank Costa Rica) offer international wire transfers. Requirements: documentation of lawful origin of funds (origen lícito de fondos) is required under CONASSIF Anti-Money Laundering Regulation. For amounts above USD 10,000: additional documentation typically requested. BCCR reporting: transfers above USD 10,000 equivalent are reported to the BCCR and SUGEF (financial regulator) under AML obligations. Colón accounts: if you hold CRC-denominated accounts, they can be converted to USD at the bank's buy rate. The spread between buy and sell rates is typically 1–2% at major banks. Wise: supports CRC international transfers — useful for regular smaller amounts (rental income, pension distributions). For large lump sums (property sale proceeds): coordinate with your Costa Rican bank's foreign currency desk (mesa de cambio). Foreign currency accounts in Costa Rica: Costa Rican banks permit USD-denominated accounts — many foreigners hold USD accounts, avoiding CRC conversion costs for regular expenses.

Costa Rica's territorial tax system makes it an attractive base for internationally mobile individuals — foreign income is completely exempt from Costa Rican tax regardless of whether it is remitted. The country's stable democracy, reasonable cost of living, and Pensionado/Rentista visa programmes have attracted a large US and Canadian retiree community. When those residents eventually depart — whether returning home or moving to a third country — they face questions about CCSS health coverage gaps, DGT final returns, and the fate of colón-denominated savings. The absence of a Costa Rica-USA income tax treaty creates specific planning needs for US citizens.

Moving from Costa Rica: USA, Canada, and European Destinations

USA: No Costa Rica-USA income tax treaty. US citizens residing in Costa Rica remain worldwide-taxed by the IRS throughout. FBAR: Costa Rican bank accounts above USD 10,000 aggregate must be reported annually on FinCEN 114. On returning to the USA: Costa Rican-source income (rent, dividends) remains subject to 15% CCSS withholding; claim Foreign Tax Credit on Form 1116. Social Security totalisation: as of 2026, the USA-Costa Rica bilateral social security agreement was in negotiation — verify final status with SSA.gov as it may allow totalisation of CCSS IVM quotas with US Social Security credits.

Canada: No Canada-Costa Rica income tax treaty. Canadian residents returning from Costa Rica: Costa Rican rental income taxed in Costa Rica (15% withholding); credit on Canadian return under unilateral FTC provisions. CRA reporting: foreign income and foreign assets (Form T1135 for assets above CAD 100,000) must be disclosed. RRSP contributions: time spent in Costa Rica does not generate RRSP contribution room.

Spain: Spain-Costa Rica DTA (2010): covers income tax. Employment income, pensions, dividends, and real estate income provisions apply. Spanish residents with Costa Rican rental income: taxable in Costa Rica (15% withholding) and Spain; DTA credit available. Spain's Beckham Law may apply for employment-based moves to Spain — flat 24% for 6 years.

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Frequently Asked Questions

Q: Do I owe Costa Rican taxes after I move away permanently?

After permanently departing Costa Rica: only Costa Rican-source income remains subject to Costa Rican tax. Since Costa Rica uses a territorial system, your foreign-source income was never taxed in Costa Rica and continues to be exempt. If you have ongoing Costa Rican income — rental income from property (15% withholding), dividends from a Costa Rican company (15% withholding), or income from a Costa Rican business activity — these remain taxable in Costa Rica at non-resident withholding rates. File annual DGT returns if you have Costa Rican business income not subject to final withholding. If you cease all CR-source activity: deregister with DGT (baja en el RUT) to avoid future filing obligations.

Q: What happens to my CCSS health insurance when I leave Costa Rica?

Your CCSS Seguro de Enfermedad y Maternidad (health insurance) coverage terminates when your CCSS contributions stop — which occurs when employment ends or when you stop paying as a self-employed individual. There is no grace period or continuation option for departing residents. Gap coverage: immediately arrange international health insurance before your last CCSS contribution date. SafetyWing, Cigna Global, and Allianz Care are popular options for expats. CCSS contributions paid: these fund the general health system and do not create a refundable savings account. Pensionado visa holders: those who qualified for the Pensionado visa must maintain their qualifying pension and comply with CCSS affiliation rules while resident in Costa Rica — departure ends these obligations.

Q: Is Costa Rica a good base for avoiding tax as a digital nomad?

Costa Rica's territorial tax system is genuinely attractive: foreign-source income (freelance income, foreign employment, foreign investments) is completely exempt from Costa Rican income tax for tax residents. The Digital Nomad Visa (Law 9996 of 2022) provides legal residency for remote workers earning at least USD 3,000/month from foreign employers or clients, with 0% Costa Rican income tax on that foreign-sourced income. CCSS: digital nomad visa holders are required to maintain private health insurance (proving CCSS-equivalent coverage) — CCSS contributions may not be mandatory under this specific visa category (verify with CCSS as the administrative rules were being finalised in 2023–2024). Capital gains on foreign assets: also exempt from Costa Rican CGT. Caution: your home country's tax rules still apply. US citizens remain worldwide-taxed; German residents may have residence in Costa Rica challenged; Canadian residents: NR73 test applies. Costa Rica is not a zero-tax jurisdiction — it just doesn't tax foreign income.

Q: How do I sell my Costa Rican property as a non-resident?

Selling Costa Rican real estate as a non-resident is straightforward: (1) Engage a Costa Rican real estate lawyer (abogado de bienes raíces) — all transfers must be executed before a Costa Rican notary public. (2) Capital gains (if property acquired after July 1, 2019): 15% on the net gain. The notary withholds via DGT at transfer. If property acquired before July 1, 2019: transitional exemption may apply — verify with a local tax accountant. (3) Transfer tax: 1.5% of the Registro Nacional value or sale price — paid by the buyer. (4) Notary fees: approximately 1–1.5% of transaction value. (5) Proceeds remittance: proceeds in CRC or USD (USD transactions are common for foreign-owned property). Transfer internationally via your Costa Rican bank. (6) Registro Nacional: the lawyer handles the change of title registration at the Registro Nacional de Costa Rica. Allow 2–4 weeks for full registration. (7) Property tax clearance: obtain a paz y salvo (clearance certificate) from the municipalidad confirming all property taxes are paid before transfer.

Disclaimer: This guide provides general tax information for educational purposes only. Costa Rican DGT rulings, CCSS regulations, and capital gains tax transitional provisions (Ley 9635) are subject to ongoing administrative and legislative changes. Nothing in this guide constitutes tax or legal advice. Consult a Costa Rican contador público autorizado (CPA) or tax lawyer before departing Costa Rica.