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Taxes in Costa Rica

The cost of taxes in Costa Rica

With this in mind, it would be helpful for you to become familiar with other tax payments that you need to settle once you own properties here in Costa Rica.

Costa Rica Individual tax rates: Foreigners only need to settle their taxes on income generated in Costa Rica only. Income generated abroad won’t be included and is subject to terms outside Costa Rica.

Costa Rica Married couple: The taxes are computed separately.

Costa Rica Income Tax: There’s an exemption for income that were sourced from non-employment. The cap has been set at 1.434 million colones ($2,800). This income may come from rental fees. Progressive tax rates between 10 and 25 percent will be levied on the amount going beyond the aforementioned cap.

Costa Rica Capital Gains Tax: These are not taxed in country. However, it can be levied if it is determined to be habitual in nature. The usual income tax rate will be imposed on capital gains that came from habitual transactions.

Costa Rica Property Tax: The property taxes are charged based on the value of the property that were assessed by tax officials. There’s a fixed rate of 0.25 percent levied on property taxes by the municipalities where the properties are located. Meanwhile, the tax on real estate is levied via calendar year basis. This amount must be paid either yearly, semi-annually or by quarterly. This condition is set by the municipality.

Knowing the taxes that you may need to settle is important in order to avoid confusion.
 

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