Costa Rica Income Tax (2026): Territorial Rule and Rates

The territorial rule

Article 1 of the Income Tax Law taxes profits of individuals, companies and unincorporated bodies that are domiciled in the country and carry out profit-making activities of Costa Rican source. Costa Rican-source income is income generated exclusively in the national territory, from services provided, goods located, capital invested and rights used. The law applies this regardless of the nationality, domicile or residence of the people involved. An exception: certain passive foreign-source income (dividends, interest, royalties, capital gains and capital income) is taxed only when an entity of a multinational group obtains it and the entity is classed as non-qualified under article 2 bis.

pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092)

Who counts as domiciled

For individuals, the law sets domicile status at the close of each fiscal period, except for special cases set in the regulation. The fiscal period runs from the first of January to the thirty-first of December. The regulation says an individual is domiciled if they stay in the country, continuously or not, for more than 183 days in the fiscal period, including entry and exit days. For income taxes other than the profits tax whose period is not annual, such as the monthly salary tax, the regulation counts the 183 days over the twelve months before the tax is settled.

pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092) pgrweb.go.cr: Reglamento de la Ley del Impuesto sobre la Renta (Decreto Ejecutivo 43198-H)

Counting days and short trips abroad

When counting the days, the tax administration counts short trips abroad (absences of no more than 30 continuous calendar days, with regular returns to Costa Rica) as days in the country, unless the person proves with a tax-residence certificate that they are tax resident in another country. Absences longer than 30 continuous calendar days are not counted toward the 183 days. The reference is the movement record of the Dirección General de Migración y Extranjería.

pgrweb.go.cr: Reglamento de la Ley del Impuesto sobre la Renta (Decreto Ejecutivo 43198-H)

Salary tax scale for 2026

Executive Decree 45333-H, published in La Gaceta No. 229 of 5 December 2025, updates article 33 of the Income Tax Law (Law 7092) for the monthly salary tax from 1 January 2026. Monthly income up to ¢918.000,00 is not subject to the tax. The excess over ¢918.000,00 and up to ¢1.347.000,00 pays 10%. The excess over ¢1.347.000,00 and up to ¢2.364.000,00 pays 15%. The excess over ¢2.364.000,00 and up to ¢4.727.000,00 pays 20%. The excess over ¢4.727.000,00 pays 25%. The decree describes the change as an adjustment of -0,38% and repeals Decree 44772-H. The consolidated text of Law 7092 on the legislation portal may still show the 2025 amounts in its default view. The law requires the Executive branch to update the exempt amount and the brackets every year.

imprentanacional.go.cr: La Gaceta N° 229 of 5 December 2025 (Decreto Ejecutivo 45333-H) pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092)

Salary-tax credits under Decree 45333-H

For 2026 (from 1 January 2026), the decree sets a monthly salary-tax credit of ¢1.710,00 for each child and ¢2.590,00 for a spouse. The law allows the child credit only for a child who is a minor, who cannot support themselves because of a physical or mental incapacity, or who is in higher studies and not older than 25. If both spouses are taxpayers, each child can be deducted by only one of them. If both spouses are taxpayers, the spouse credit can be deducted in full by only one of them. The law requires the Executive branch to readjust these credits in each fiscal period.

imprentanacional.go.cr: La Gaceta N° 229 of 5 December 2025 (Decreto Ejecutivo 45333-H) pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092)

Withholding and non-domiciled workers

The regulation says the salary tax applies to individuals domiciled in the country, for dependent work or pensions. The employer withholds it on the worker's total monthly income, and the regulation calls it single and definitive. Article 26 of the law, headed 'Foreigners who provide services in the country', says non-domiciled people with Costa Rican-source income from personal services of any kind pay 15% of gross income without deductions, and the payer must withhold it.

pgrweb.go.cr: Reglamento de la Ley del Impuesto sobre la Renta (Decreto Ejecutivo 43198-H) pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092)

Self-employed income scale for 2026

For the 2026 fiscal period (from 1 January 2026), article 4 of Decree 45333-H, applying Law 10667 of 17 March 2025, sets this annual scale of taxable income for individuals with profit-making activities. Taxable income up to ¢6.244.000,00 a year is not subject to tax. The excess over ¢6.244.000,00 and up to ¢8.329.000,00 pays 10%. The excess over ¢8.329.000,00 and up to ¢10.414.000,00 pays 15%. The excess over ¢10.414.000,00 and up to ¢20.872.000,00 pays 20%. The excess over ¢20.872.000,00 pays 25%. For 2026, annual credits are ¢20.520,00 per child and ¢31.080,00 for a spouse.

imprentanacional.go.cr: La Gaceta N° 229 of 5 December 2025 (Decreto Ejecutivo 45333-H)

The annual return

The law sets two months and fifteen calendar days after the fiscal period ends for the sworn return and payment. People with only dependent-work or pension income under the single salary tax are not required to file it.

pgrweb.go.cr: Ley del Impuesto sobre la Renta (Ley 7092) pgrweb.go.cr: Reglamento de la Ley del Impuesto sobre la Renta (Decreto Ejecutivo 43198-H)

Registering with the tax administration

The regulation says individuals with profit-making activities must register when the activity starts, with the Taxpayer Registry of the Tax Administration. Someone who stops those activities has ten business days to deregister. The Ministry of Hacienda's question-and-answer document says an individual, Costa Rican or foreign, can file the registration declaration through its Virtual Office, with a valid document such as an identity card, a DIMEX or a NITE, and must meet the Tax Administration's requirements. For foreigners it adds: older than 18, an "active" civil-registry status, and a tax status of not registered, deregistered or deregistered ex officio by the tax administration. The same document says that, for security reasons, access to the Ministry's systems, including the Virtual Office, is restricted to Costa Rican territory. Someone who needs to log in to these systems from abroad must complete form MH-DOM-PRO01-FOR-013 (request for access to systems outside the country).

pgrweb.go.cr: Reglamento de la Ley del Impuesto sobre la Renta (Decreto Ejecutivo 43198-H) hacienda.go.cr: Preguntas y respuestas TRIBU-CR y la OVi

What this page does not cover

This page does not cover the separate tax on Costa Rican-source capital income and capital gains, the tax on payments sent to people domiciled abroad, the company income tax scale, how self-employed people calculate their taxable income (deductible expenses, or the optional flat deduction for independent personal services), CCSS health-insurance and other payroll contributions, value-added tax, double-taxation agreements, property taxes, immigration residence categories, or how the rules apply to a specific remote-work or business set-up. Check the official pages for them.