Costa Rica Investment Income Tax Guide 2026

Investment income in Costa Rica is subject to withholding tax: dividends at 15%, interest at 15%, and capital gains at 15%. Royalties are withheld at 25% (30% for technical services). Costa Rica has over 10 double tax treaties (DTTs) that may reduce these rates for treaty-eligible residents.

Withholding Tax Rates on Investment Income

Costa Rica imposes withholding taxes (WHT) on various types of investment income paid to both residents and non-residents. The rates are generally flat and are applied at source by the paying entity.

Dividends: 15% WHT on dividend distributions to shareholders
Interest: 15% WHT on interest payments (bank deposits, bonds, loans)
Royalties: 25% WHT on royalty payments for intellectual property
Technical services: 30% WHT on fees for technical assistance and consulting
Capital gains: 15% CGT on sale of shares, securities, and other assets

Double Tax Treaty Relief

Costa Rica has over 10 double tax treaties in force, including with Spain, Mexico, Germany, UAE, South Korea, and others. These treaties may reduce WHT rates on dividends, interest, and royalties for residents of treaty countries. To claim treaty benefits, the recipient must provide a certificate of tax residence (formulario de certificación de residencia fiscal) to the payer.

Foreign Investment Income

Costa Rican residents are taxed on their worldwide income, including foreign investment income. Foreign dividends, interest, and capital gains must be reported on the D-101 annual return. Foreign tax credits are available for taxes paid in other countries, subject to DTT provisions and domestic law limitations.

Tax-Exempt Investment Vehicles

Certain investment vehicles and accounts may offer tax advantages in Costa Rica. Government bonds (títulos de deuda pública) may have specific tax treatments. Pension fund investments within the complementary pension system (Régimen Obligatorio de Pensiones Complementarias — ROPC) benefit from tax deferral on investment returns.