Costa Rica doesn't tax you on where you live. It taxes income produced in Costa Rica. Your foreign pension, the dividends from your portfolio abroad and the gains on assets you hold overseas are all outside Costa Rican income tax, even once you're resident.
This guide covers Costa Rican personal tax for people moving to or living in Costa Rica in the 2026 tax year, which is the calendar year.
The key question is simple. Is your income produced in Costa Rica, or outside it? That decides almost everything.
What's changed: the Ministerio de Hacienda published new income tax bands for 2026. Salaries up to ₡918,000 a month are tax free. The self-employed still pay nothing on their first ₡6,244,000 of annual net income, the band set by Law 10667 in March 2025. From 1 January 2026 the employee pension (IVM) contribution rose from 4.17% to 4.33%, taking total employee social security to 10.83%. Returns are now filed on Hacienda's TRIBU-CR platform. Moving Costa Rica to worldwide taxation ("renta global") has been discussed for years, but it is Proposed, not law: the law in force is territorial.
📋 Costa Rica tax at a glance for 2026
Topic | Details |
|---|---|
Tax year | The calendar year |
Tax system | Territorial: only Costa Rican-source income is taxed, for residents and non-residents alike |
Top income tax rate | 25% on salaries above ₡4,727,000 a month and on self-employed profit above ₡20,872,000 a year |
All-in on a US$100k salary | About 23% (₡45 million, including 10.83% employee social security) |
Foreign income | Not taxed, including foreign pensions, dividends, interest and gains |
Local dividends, rent and gains | Generally 15%. Interest on savings and current accounts is exempt |
Inheritance and wealth tax | None. Inheritances and gifts are exempt from income tax |
Residence at a glance | Getting in: more than 183 days in the calendar year. Leaving: tested each year, and we found no exit tax |
Double tax treaties | Four in force: Spain, Germany, Mexico and the UAE |
US dollar figures use ₡450 to US$1. The Central Bank of Costa Rica's average MONEX rate was ₡451.29 on 15 October 2026.
👉 Banco Central de Costa Rica: average MONEX exchange rate (in Spanish)
The territorial tax system
Image 1 — Costa Rica only taxes income produced in Costa Rica
Article 1 of the Income Tax Law (Law 7092) taxes income "of Costa Rican source". That means income generated only inside the national territory, from services provided, property located, capital invested and rights used in Costa Rica. The law says this applies whatever the nationality, domicile or residence of the people involved.
Not taxed: a foreign pension, dividends and interest from a portfolio held abroad, rent from a property abroad, and gains on foreign assets.
Taxed: a salary for a job done in Costa Rica, fees for services you perform in Costa Rica, and income from Costa Rican property and investments.
A 2023 change (Law 10381) taxes some foreign passive income, but only when it's received by a company that belongs to a multinational group. It doesn't apply to individuals.
The grey area is remote work. If you work from Costa Rica for a foreign employer or foreign clients, the service is physically provided in Costa Rica, so it can be treated as Costa Rican-source. The digital nomad stay (below) removes that doubt for people who qualify.
👉 Law 7092, Income Tax Law, article 1: Costa Rican-source income (in Spanish)
When you become tax resident in Costa Rica
You're treated as domiciled (tax resident) in Costa Rica if you spend more than 183 days in the country in the tax year, continuously or not. Days of arrival and departure both count. Hacienda checks your days against the immigration service's records of your entries and exits.
Short trips abroad don't break the count. A trip of up to 30 consecutive days counts as time in Costa Rica, unless you can show a tax residence certificate from another country for that year. A trip of more than 30 consecutive days doesn't count.
Residence matters less here than in most countries, because foreign income isn't taxed either way. It decides how your Costa Rican income is taxed. A non-domiciled person who earns Costa Rican-source income from personal services is taxed by a final withholding on the gross amount instead: 10% on salaries and pensions, and 25% on fees for independent services. Residence also decides whether Hacienda will give you a tax residence certificate for a treaty or for your home country.
How you stop being resident
Residence is tested each calendar year, so you stop being resident in a year where you spend 183 days or fewer in Costa Rica. Remember that short trips of up to 30 days still count as days in the country. We found no exit tax for individuals.
Income tax rates for 2026
Costa Rica has two scales. Salaries and pensions paid in Costa Rica are taxed monthly through payroll. Self-employed profit is taxed on an annual scale.
Costa Rica salary tax rates for 2026 (monthly)
Monthly salary | Rate |
|---|---|
Up to ₡918,000 | 0% |
₡918,001 to ₡1,347,000 | 10% |
₡1,347,001 to ₡2,364,000 | 15% |
₡2,364,001 to ₡4,727,000 | 20% |
Over ₡4,727,000 | 25% |
Costa Rica self-employed income tax rates for 2026 (annual net income)
Annual net income | Rate |
|---|---|
Up to ₡6,244,000 | 0% |
₡6,244,001 to ₡8,329,000 | 10% |
₡8,329,001 to ₡10,414,000 | 15% |
₡10,414,001 to ₡20,872,000 | 20% |
Over ₡20,872,000 | 25% |
Source: Ministerio de Hacienda, income tax bands for the 2026 tax year.
Employees get a tax credit of ₡1,710 a month for each child and ₡2,590 a month for a spouse. The self-employed get ₡20,520 a year for each child and ₡31,080 a year for a spouse.
Worked example
You're single and work for a Costa Rican employer in 2026, earning ₡45 million a year (about US$100k), or ₡3,750,000 a month.
Your salary tax is ₡472,650 a month: nothing on the first ₡918,000, then 10%, 15% and 20% on the slices above it.
Your employee social security at 10.83% is ₡406,125 a month.
Your all-in bill is about ₡878,775 a month, or 23% of your salary, leaving you about ₡34.5 million a year. Your employer pays a further 26.83% in social charges on top of your salary.
👉 Ministerio de Hacienda: income tax bands and credits for 2026 (in Spanish)
Freelancing in Costa Rica
If you work for yourself in Costa Rica, your net profit is taxed on the annual scale above, and you file a return each year. Fees for work you physically do in Costa Rica can be Costa Rican-source even if your clients are abroad.
On ₡45 million of net profit (about US$100k), income tax is ₡8,644,850, or about 19%.
The bigger cost is the CCSS. Every self-employed person who lives in Costa Rica, Costa Rican or foreign, has to join and pay health (SEM) and pension (IVM) contributions on their net income. The percentage is set by a CCSS scale that rises with your income, with the State paying part of it for lower earners. At US$100k we estimate contributions of roughly 18% to 22% of net income, so the all-in cost is roughly 32% to 41%. Check the current scale with the CCSS before you rely on a figure.
Investment income, such as dividends, interest and rent, doesn't count as self-employed income for CCSS contributions.
👉 CCSS: regulations on contributions by self-employed workers (in Spanish)
Crypto, investments and pensions
Investment income from Costa Rica is taxed separately from salaries and profits, mostly at a flat 15%:
Dividends: 15%, usually withheld at source.
Rent: 15%, after a fixed 15% deduction for expenses, so an effective 12.75% of gross rent.
Capital gains: 15%. For assets you acquired before 1 July 2019, you can choose to pay 2.25% of the sale price on the first sale instead.
Exempt: interest on savings and current accounts, gains on your main home, inheritances, legacies and gifts, and occasional sales of personal items that don't have to be registered (securities excluded).
Selling Costa Rican property as a non-resident: the buyer withholds 2.5% of the price on account of your tax.
Foreign investments are a different story. Dividends, interest and gains on a portfolio held outside Costa Rica are foreign-source and aren't taxed.
Is crypto taxed in Costa Rica? There's no crypto tax law and we found no published Hacienda guidance. Gains on crypto held on foreign exchanges or wallets are generally treated as foreign-source and untaxed. A gain that is Costa Rican-source could be taxed at 15%, and if you trade crypto as a business in Costa Rica, the profit could fall under the self-employed scale.
Foreign pensions aren't taxed in Costa Rica, although the country that pays the pension may tax it. Costa Rica has no inheritance tax and no wealth tax.
👉 Ministerio de Hacienda: rates on capital income and capital gains (in Spanish)
Social security
The Caja Costarricense de Seguro Social (CCSS) runs public healthcare (SEM) and the state pension (IVM). In 2026 employees pay 10.83% of their salary, including 4.33% for the IVM pension, and employers pay 26.83% on top.
Not working doesn't get you out of it. Foreign residents who aren't employed or self-employed, such as pensionados and rentistas, must join the CCSS as "migrant insured" members and pay into both health and pension schemes. Their contributions are worked out on an income set by the CCSS, which can't be lower than the CCSS minimum base or the income their residence category requires (for example, US$1,000 a month for a pensionado). The rate rises with that income, on the same scale as the self-employed. If the CCSS charges on a US$40k pension, we estimate about 16% of it, or roughly US$6,400 a year for health and pension together. If you leave Costa Rica for three months or more, you can ask to be taken off.
Nomad visa holders aren't on this list. They need private medical insurance for their whole stay instead.
👉 Dirección de Geología y Minas (MINAE): 2026 CCSS contribution rates (in Spanish)
👉 CCSS: regulations on voluntary and migrant insurance (in Spanish)
Double tax treaties
Does Costa Rica have double tax treaties? Yes, but only four. Hacienda's treaty guide lists Spain (in force 2011), Germany (2016), Mexico (2019) and the United Arab Emirates (2021). There's no treaty with the UK, the United States or Canada.
The short list matters less than usual, because Costa Rica doesn't tax your foreign income in the first place.
The digital nomad visa and other residence routes
Costa Rica's digital nomad stay, created by Law 10008, is for people who work remotely for employers or clients outside Costa Rica and are paid from abroad.
Income: at least US$3,000 a month over the last year, or US$4,000 if your family comes with you.
Insurance: medical cover for you and your family for the whole stay.
Length: up to one year, renewable once for another year if you spent at least 180 days in Costa Rica in the first year.
Fees: a US$100 application fee per applicant, then a US$90 document fee and a guarantee deposit once approved, plus visa requirements for some nationalities.
The tax side is written into the law. Article 16 gives holders a full exemption from income tax, says they're never treated as habitually resident for tax purposes, and says their foreign income isn't Costa Rican-source. The exemption covers the remote worker only, not family members. You can't work for Costa Rican employers or clients, and you can import your work equipment free of duty.
Costa Rica residence routes for 2026
Route | Main requirement | Tax and CCSS position |
|---|---|---|
Digital nomad stay | US$3,000 a month from abroad (US$4,000 with family), medical insurance | Foreign pay exempt by law; private insurance, not CCSS |
Pensionado | A permanent foreign pension of at least US$1,000 a month | Foreign pension not taxed; CCSS membership required |
Rentista | Stable income of at least US$2,500 a month from abroad or Costa Rican banks; covers your spouse and children under 25 | Foreign income not taxed; CCSS membership required |
👉 Dirección General de Migración y Extranjería: digital nomads (in Spanish)
👉 Law 10008: remote workers and service providers, including the income tax exemption (in Spanish)
👉 Law 8764, General Law on Migration, articles 81 and 82: pensionados and rentistas (in Spanish)
Who is Costa Rica good for?
How does Costa Rica compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including compulsory contributions.
☑️ Who is Costa Rica good for? Tax ratings for expats in 2026
Expat profile | Costa Rica rating | Why |
|---|---|---|
Employees | Moderate | About 23% all-in on a US$100k salary for a job done in Costa Rica: salary tax at up to 25% plus 10.83% employee social security. The territorial system doesn't help with a local salary. |
Freelancers (self-employed) | Poor | About 19% income tax on US$100k of Costa Rican-source profit, plus CCSS contributions on your net income. We estimate the all-in cost at roughly 32% to 41%, depending on the CCSS scale and whether contributions are deducted. Truly foreign-source fees aren't taxed, but work you physically do in Costa Rica can count as local. |
Retirees | Good | About 11% on a US$40k foreign pension plus US$20k of foreign investment income. There's no income tax, because neither is Costa Rican-source, and no inheritance or wealth tax. But pensionados and rentistas must pay CCSS health and pension contributions, which we estimate at about US$6,400 a year if the CCSS charges on the pension. That falls to about 2% at the US$1,000 minimum, and rises to about 19% if it uses all your income. |
Crypto gains | Good | No crypto law and no published Hacienda guidance. Gains on crypto held outside Costa Rica are generally foreign-source and untaxed, but the position is untested. A Costa Rican-source gain could be taxed at 15%. |
Investment income | Excellent | Dividends, interest and gains from a portfolio held abroad are foreign-source, so Costa Rica doesn't tax them. Local investments are taxed, mostly at 15%, and interest on ordinary savings and current accounts is exempt. |
Digital nomad visa | Excellent | The remote worker stay needs US$3,000 a month from abroad (US$4,000 with family) and lasts up to a year, renewable once. By law, holders pay no income tax on their foreign pay and aren't treated as tax resident. |
Filing and deadlines
The tax year runs from 1 January to 31 December. If you're self-employed or have other Costa Rican income that wasn't fully taxed at source, you file the annual income tax return (form 101 for individuals) on Hacienda's TRIBU-CR virtual office and pay any tax by 15 March of the following year. The return for 2025 was due on 16 March 2026, because 15 March fell on a Sunday. The 2026 return is due on Monday 15 March 2027.
The self-employed make partial payments on account during the year. Late payments carry interest.
Salary tax is withheld by your employer each month.
Tax withheld on Costa Rican dividends and other capital income is generally final.
👉 Ministerio de Hacienda: annual income tax return deadline reminder, March 2026 (in Spanish)
Frequently asked questions
Does Costa Rica tax foreign income?
No. Costa Rica taxes only income produced in Costa Rica, from services provided, property located, capital invested or rights used there. Foreign pensions, dividends, interest and gains on assets held abroad aren't taxed, even for residents.
Do digital nomads pay tax in Costa Rica?
Not on their foreign pay. Law 10008 gives holders of the remote worker stay a full income tax exemption and says they aren't treated as tax resident. You need at least US$3,000 a month from abroad, or US$4,000 with family.
When do you become tax resident in Costa Rica?
When you spend more than 183 days in Costa Rica in the calendar year, counting arrival and departure days. Trips abroad of up to 30 consecutive days still count as days in Costa Rica, unless you hold a tax residence certificate from another country.
What are the income tax rates in Costa Rica in 2026?
Salaries are tax free up to ₡918,000 a month, then taxed at 10%, 15%, 20% and 25% above ₡4,727,000. Self-employed profit is tax free up to ₡6,244,000 a year, with 25% above ₡20,872,000.
Is a foreign pension taxed in Costa Rica?
No, because it's foreign-source. But if you live in Costa Rica as a pensionado or rentista, you must join the CCSS and pay health and pension contributions on an income of at least what your residence category requires. On a US$40k pension we estimate about 16%, roughly US$6,400 a year.
How many double tax treaties does Costa Rica have?
Four are in force: with Spain, Germany, Mexico and the United Arab Emirates. There's no treaty with the UK, the United States or Canada.
Where to go next
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Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
