Tax Benefits in Costa Rica

Costa Rica, with its stable economy and pro-business policies, offers an array of enticing tax benefits for businesses. This blog post serves as a comprehensive guide, shedding light on the key advantages that companies can leverage in this Central American paradise.

Tax Exemption for Certain Activities

1. Free Trade Zone (FTZ) Incentives: Companies approved under the free zone regime (Ley 7210) receive income tax and other exemptions for set periods, subject to investment and employment commitments.
2. Export Services Exemption: Service exporters can access income tax exemptions mainly through the free zone regime, if they meet its requirements.

Income Tax Benefits

1. Progressive Income Tax Rates: The general corporate rate is 30%. In 2026, companies with gross income up to ₡119,174,000 pay 5%, 10%, 15% and 20% on net-income brackets instead (Decreto 45333-H).
2. Dividend Exemptions: Certain dividends received by resident companies from other local entities can be exempt from income tax. This exemption adds a layer of financial flexibility for businesses engaging in inter-company transactions.

Incentives for Strategic Industries

1. Technology and Innovation: Costa Rica encourages investment in technology and innovation. Companies involved in research and development activities may benefit from specific tax incentives, fostering growth in these strategic sectors.
2. Renewable Energy: Businesses contributing to Costa Rica’s sustainability goals by investing in renewable energy projects may qualify for tax benefits. Explore the possibilities for your company to align with the nation’s commitment to environmental stewardship.

Compliance and Considerations

1. Stay Informed on Regulatory Changes: Costa Rica’s tax landscape evolves, and staying informed about regulatory changes is essential. Regularly review updates from the tax authorities to ensure compliance and capitalize on new opportunities.
2. Territorial taxation: Costa Rica taxes Costa Rica-source income. Since October 2023 (Ley 10381), foreign passive income such as dividends, interest and royalties is taxed only for entities in multinational groups that lack economic substance in Costa Rica. Bills filed in 2026 would widen this, but none has been approved.

Costa Rica’s business-friendly tax policies make it an attractive destination for companies seeking fiscal advantages. By strategically utilizing tax exemptions, understanding income tax benefits, and aligning with key industries, businesses can thrive in this tropical haven while contributing to the nation’s economic growth.

Get Assistance from Easyco Experts!

Costa Rica is the perfect country for your company formation! To make sure you register your company in the right way, you can get in touch with us. Our team of experts will ensure your business registration process complies with all Costa Rican laws.

At Easyco, we make company formation in Costa Rica easy. Our corporate experts have vast experience helping companies and individuals register their businesses in Costa Rica. We have a proven track record of success across all our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing an easy online company registration experience. Start your company in Costa Rica today!

Furthermore, Easyco also provides additional services to guarantee your company’s compliance. In summary, they include:

• Appointment of legal representation,
• Providing a registered office address
• Handling tax and accounting
• Hassle-free Payroll Services
• Manage your company bank account opening
• Manage your Trademark Registration
• Recruiting and Hiring Talent

Want these benefits from day one? Read how to form a company in Costa Rica or contact us for a quote.