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Withholding tax in Costa Rica 2026
Costa Rican payments to non-residents settle at source: 15% on dividends, interest and other financial income, 25% on professional fees and royalties, and 10% on salaries and pensions (with case law sometimes pushing employment to 15%).
The tax attaches to the gross amount remitted, credited or made available abroad — and once properly withheld, nothing is filed.
At a glance
- top rate
- 25% (professional fees, royalties)
- entry band
- 10% on salaries and pensions
- tax year basis
- Withheld per payment
- filing deadline
- None where withholding is final
- residency basis
- Costa Rican-source payments to non-residents
- regime flag
- Capital gains of non-residents follow the general 15% rules
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 10% | Gross | Salaries and pensions (15% argued under some case law) |
| 25% | Gross | Professional services, commissions, management and administrative services |
| 15% | Gross | Dividends, interest and financial income |
| 25% | Gross | Royalties for patents, formulas, trademarks and franchises |
| 5.5% + 4% | Premiums | Insurance premiums, plus the fire-department levy |
Withholding residents meet (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% – 25% | Monthly salary | Employment income — final; remitted within 15 working days of the following month |
| 15% | Gross interest | Withheld by banks and public institutions |
| 15% | Gross dividend | Withheld by the distributing company — final |
Residency
Residency trigger
Non-residents follow the same territorial logic as residents — only Costa Rican-source income is reachable, and the remittance withholding is usually the whole story.
Non-resident treatment
Non-resident capital gains use the general 15% rules rather than the remittance schedule; inheritances passing to non-residents are exempt.
Notes
- Private rulings arrive within 45 days — and silence counts as approval of the taxpayer's interpretation.
- Costa Rica has few tax treaties, so the domestic withholding rates usually stand.
- Employers remit salary withholding within the first 15 working days of the month after payment.
- The dividing line between the 15% capital-income rate and the 25% royalty remittance rate matters for licensing deals — royalties leaving the country pay 25%.
FAQ
What withholding applies to non-residents in Costa Rica?
10% on salaries and pensions, 15% on dividends and interest, and 25% on professional fees and royalties — final taxes on the gross amount.
Do non-residents file Costa Rican returns?
Generally not — the final remittance withholding of 10-25% settles the liability; the same territorial rules as for residents apply to anything else.
Figures: tax year 2026, compiled from public sources. Not tax advice.