Taxes in Costa Rica

These are the charges and taxes that will affect you the most if you are on short stay:
Import duties: it is allowed to import, tax free, 500 cigarettes plus three liters of wine or liquor.

Departure tax: around $17, to be paid when leaving the country.

There is a 13% sales tax applied in hotels, restaurants and other services and products, plus a 3% hotel tax on hotel bills. There is also a petrol tax included in its retail price.

Some basic goods such as food and books are exempt from the tax, and others such as electricity pay only 5%.

Restaurant tips are around 10%, compulsory and included in the bill. For all the other services, tips are voluntary and is given depending the service received. No tip is usually given in taxis.

If you are or intend to become a resident, this is a brief description of main taxes applied:
Income tax is 10% to 15%, depending on the income level, only on the income originated in the country, and social security payments are of 9%.

Import duties for vehicles and luxury items are very high. However, there is an exemption of $500 per person every six months for personal items. Industrial machinery and other non-luxury articles, though, enjoy a much better fiscal treatment.

Taxes relative to real estate

Property title transfers are charged a tax of about 2.75%. There is a municipal tax to properties called “territorial tax”, about 1% of the official value (which is much less than the market price). There are additional taxes for municipal services such as waste collection.

There is no such thing as a patrimonial tax. There are no taxes either over successions and donations, or over capital gains in real estate transactions, unless they are done often.

Corporate tax rate: 30%. Dividends are tax exempt for companies but not for individuals.
There is a retention over bank interests of 25%.

The tax year ends September, 30th for individuals, and any date can be chosen for companies. Both individuals and companies must fill their tax return in the two and a half months after the end of the tax year.

There are tax incentives to timber industry, export promotion, manufacturing and consumption.