Costa Rica

Income taxes on individuals in Costa Rica are levied on local income irrespective of nationality and resident status.

For individuals domiciled in Costa Rica, any income obtained within the boundaries of Costa Rica is considered as Costa Rican-source income and is taxable. Costa Rican-source income is understood to be any income derived from assets used, goods located, or services rendered within Costa Rican territory.

Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.

Personal income tax rates

Self-employed individuals

Tax rates for self-employed individuals for tax year 2025, based on annual taxable income, are as follows:

* Costa Rican colones

Withholding tax (WHT) rates

^Notes
1. Interest, commissions and other financial expenses paid or credited by natural or legal persons domiciled in Costa Rica to foreign banks that are part of a Costa Rican financial group or conglomerate regulated by the National Council for the Supervision of the Financial System will pay a rate of five point five percent (5.5%) during the first year of effectiveness of this law; during the second year they will pay nine percent (9%); during the third year they will pay thirteen percent (13%) and, starting from the fourth year, they will pay fifteen percent (15%) of the amount paid or credited.

Local income taxes

None of the provinces or municipalities impose any income taxes on individuals within their jurisdiction.