Costa Rica Tax Residency Guide 2026
An individual is considered a tax resident of Costa Rica if they spend 183 days or more in the country during a calendar year. Alternatively, tax residency may be established if the individual has their permanent home (permanent home) in Costa Rica. Residents are taxed on worldwide income, while non-residents are taxed only on Costa Rica-source income.
Tax Residency Criteria
Costa Rica determines tax residency based on two main tests. If either test is satisfied, the individual is considered a tax resident:
- 183-day rule: Physical presence in Costa Rica for 183 days or more in any calendar year (January 1 to December 31)
- Permanent home: Having a permanent home (vivienda permanente) in Costa Rica, indicating an intention to reside
- Center of vital interests: Having the center of economic and personal interests in Costa Rica
Days of presence are counted in full. Short absences for travel do not reset the count. Partial days are generally counted as full days.
Implications of Residency
Tax residents of Costa Rica are subject to tax on their worldwide income (renta mundial), including employment income, business profits, rental income, investment income, and capital gains from both domestic and foreign sources. Non-residents are taxed only on Costa Rica-source income, typically through withholding taxes at source.
Double Tax Treaties
Costa Rica has over 10 double tax treaties in force. These treaties provide tie-breaker rules when an individual qualifies as a resident of both countries. The tie-breaker typically considers the individual's permanent home, center of vital interests, habitual abode, and nationality. Treaty benefits include reduced WHT rates and foreign tax credits.
Residency Certificate
Tax residents can obtain a Certificate of Tax Residency (Certificado de Residencia Fiscal) from the DGT. This certificate is required to claim treaty benefits abroad. The application is submitted through the ATV online portal and typically takes 10–15 business days to process.