Does Costa Rica tax foreign income?

No. Only Costa Rican-source income is taxable, which is the core of the jurisdiction's appeal for internationally mobile individuals.

What does investor residency require?

USD 150,000 in qualifying investment — real estate, a business or registered shares — with a minimum of one day per year of presence to maintain status.

Can I get citizenship?

After seven years of legal residency, subject to language and civics testing. There is no citizenship-by-investment route.

Jurisdiction · Americas

Costa Rica

Territorial taxation, stable democracy and an accessible residency route.

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Overview

Costa Rica taxes only Costa Rican-source income, which makes it one of the more comfortable places in the Americas for someone living off foreign investments or a foreign business. It is a stable democracy with no standing army, good healthcare and a large established expatriate community.

The rentista and investor residency categories are accessible — USD 150,000 of qualifying investment, or USD 2,500 per month of guaranteed income — and lead to permanent residency after three years.

Typical use-cases

Where Costa Rica fits

Personal relocation
Territorial income planning
Regional operations

Banking

Banking landscape

Banco Nacional, BAC Credomatic and Scotiabank Costa Rica serve residents and companies. Account opening requires residency status or a local corporate structure with documented activity, and takes several weeks. USD accounts are standard.

Tax

Tax & reporting

Territorial taxation: only Costa Rican-source income is taxed, at up to 30% for companies and up to 25% for individuals. Foreign investment income, foreign pensions and foreign business profits are outside the charge. VAT is 13%. Property tax is 0.25% of registered value annually.

Substance

Substance & register visibility

Corporations must file an annual shareholder and beneficial-ownership declaration with the central bank register, which is not public. Residency requires physical presence of at least one day per year for investor status, with longer presence expected for the permanent-residency application after three years.

Decision

When to pick this jurisdiction

Pick Costa Rica for a family relocating to the Americas with foreign-source income, for territorial tax treatment without a Gulf or Asian move, or as a base for Central American operations.

The director's view

Written up as a comparative shortlist.

Every Costa Rica recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Costa Rica? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

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Frequently asked

Questions we hear on every Costa Rica intake.

Does Costa Rica tax foreign income?: No. Only Costa Rican-source income is taxable, which is the core of the jurisdiction's appeal for internationally mobile individuals.
What does investor residency require?: USD 150,000 in qualifying investment — real estate, a business or registered shares — with a minimum of one day per year of presence to maintain status.
Can I get citizenship?: After seven years of legal residency, subject to language and civics testing. There is no citizenship-by-investment route.

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