Income Tax for Foreigners who Invest in Costa Rica

Since September 25, foreigners who acquire securities from the local stock market will have to pay 8% tax on the dividends generated.

Tuesday, September 26, 2017

The differences that had arisen regarding how much and in what form the tax on dividends generated from investments made by foreigners in securities on the local stock market should be collected, have been resolved, and the Ministry of Finance confirmed that the tax will be collected from September 25th.

"...  The Directorate General for Taxation considered that the amendment to article 59 of the Income Tax Law, which was implemented by the Law on Development Banking, implied that foreigners should be pay 15% and nationals 8%. Therefore, Taxation issued a directive, in 2015, establishing a 15% withholding rate for interest or financial gain obtained by foreign investors who do not live in Costa Rica." explains that "... On the other hand, the general superintendent of Securities, Carlos Arias, consulted the Attorney General of the Republic on the rate of the tax that had to be applied to foreigners, to which they responded to him by means of an ruling of the 16 of February of the 2017."

In the end, the Comptroller's Office ruled that the charge should be 8%, the same as that charged to national investors. 

Do you need information about the financial sector?

Request more information:

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

Costa Rica: Taxes on Stock Investments Questioned

February 2017

A 15% tax, charged by the Treasury on income from interest generated on foreign investments in securities in the local market, has been described as incorrect.

A ruling by the Attorney General of the Republic indicates the charge of 15% by the Treasury on  interest earned by foreigners on their investments in securities in the local stock market is incorrect and it should be 8%, as is charged to local investors.

Costa Rica: Single Tax of 15% on Financial Income

March 2015

If the Treasury's proposal succeeds, interest on bank deposits would incur 8% to 15%, while for revenues generated by mutual funds, the tax would rise from 5% to 15%.

This unification is due to the fact that currently there are different taxes for similar types of income, therefore the tax is not neutral, according to the CEO of Taxation.

Costa Rica: Changes in Income Tax

March 2015

The reform under public consultation includes tax on remittances sent abroad, on the payment or crediting of interest, commissions and other financial expenses by natural or legal persons domiciled in Costa Rica.

From the order by the Ministry of Finance published in La Gaceta:

Costa Rica: Details of Anti Tax Evasion Bill

August 2014

Limiting the deduction of interest from income tax and eliminating the exemption from payment of 15% for dividend distribution between companies are part of the changes included in the project.

The Bill to Improve Anti-Tax Fraud, presented by the Ministry of Finance amends various tax issues that must be taken into consideration by companies operating under Costa Rican law.

 close (x)

Receive more news about Capital Markets

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Oct 30)
Brent Crude Oil
Coffee "C"