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.