Real Estate in Santa Teresa and Mal Pais Costa Rica
Properties in Mal Pais, Santa Teresa, Playa Hermosa and Manzanillo
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Costa Rica Real Estate Guide

Income Taxes

Costa Rica is a "source" jurisdiction from an income point of view. Residents, non-residents and corporations generally are subject to tax only on their Costa Rican generated income. For this reason, Costa Rica offers no credit for foreign taxes paid on foreign source income by Costa Rican residents or non-residents. Tax Rates are: 30% on corporations, 30% catch-all rate on non-residents, and a graduated scale of 10-25% for nationals depending on the type of income source. Most Santa Teresa, Mal Pais and Manzanillo real estate is held in corporate form.

There is no capital gains tax in Costa Rican unless the income is derived from "habitual" activities. An individual or corporation can sell 2 properties in one fiscal year without being subject to capital gains. However, if you sell 3 or more properties, you would be subject to income tax on all properties. The absence of a capital gains tax is a significant incentive for buying real estate in Costa Rica’s generally appreciating market.

Please refer to a Costa Rican tax specialist for more information.

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