Costa RicaCompany formation, tax and banking
Tax only on local income, a stable democracy, and an easy residency route.
Costa Rica only taxes income earned in Costa Rica (a 'territorial' system), which makes it one of the more comfortable places in the Americas for someone living off foreign investments or a foreign business. It's a stable democracy with no army, good healthcare and a large, established expat community.
Its residency routes for people with income ('rentista') and investors are easy to reach — USD 150,000 of qualifying investment, or USD 2,500 a month of guaranteed income — and lead to permanent residency after three years.
Why people choose Costa Rica
- Only income earned in Costa Rica is taxed
- Foreign investment income, pensions and business profits aren't taxed there
- Residency from USD 150,000 of qualifying investment or USD 2,500 a month of income
- Permanent residency after three years
- A stable democracy with good healthcare and a large expat community
Where Costa Rica fits
- Personal relocation
- Territorial income planning
- Regional operations
Where Costa Rica fits in a structure
Typical role · Real home base with residence
Costa Rica is where you actually live, not a company you own from somewhere else. It only taxes income earned in Costa Rica, so foreign investment income, foreign pensions and foreign business profits aren't taxed there, while local income is taxed at up to 25% for individuals and 30% for companies. It relies on residency, through USD 150,000 of qualifying investment or a steady USD 2,500 a month of income.
What it depends onIt only helps if Costa Rica is where you actually live: investor residency needs at least one day a year there, more time is expected before permanent residency, and banks want residency or a local company with documented activity.
A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.
Opening a bank account
Banco Nacional, BAC Credomatic and Scotiabank Costa Rica serve residents and companies. You need residency or a local company with documented activity to open an account, and it takes several weeks. US-dollar accounts are standard.
How tax works here
Only income earned in Costa Rica is taxed: up to 30% for companies and up to 25% for individuals. Foreign investment income, foreign pensions and foreign business profits aren't taxed. VAT is 13%. Property tax is 0.25% of the registered value each year.
Real presence, and who can see the owners
Companies must file a yearly declaration of shareholders and real owners with the central bank's register, which isn't public. Investor residency needs at least one day a year in the country, with more time expected when you apply for permanent residency after three years.
When to choose it
Choose Costa Rica for a family moving to the Americas with income from abroad, for tax only on local income without moving to the Gulf or Asia, or as a base for Central American operations.
You get a written comparison, not a sales pitch.
Every Costa Rica recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.
Considering Costa Rica? Get a written comparison first.
Answer six questions and our team will come back with a shortlist, rough costs and where you could bank.
Questions we hear on every Costa Rica intake.
- Does Costa Rica tax foreign income?
- No. Only income earned in Costa Rica is taxed, which is the main attraction for people who move between countries.
- What does investor residency require?
- USD 150,000 in a qualifying investment — property, a business or registered shares — and at least one day a year in the country to keep it.
- Can I get citizenship?
- After seven years of legal residency, if you pass language and civics tests. There's no citizenship-by-investment route.
What we typically deliver in Costa Rica
Residency by Investment
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StructuresReal Estate Structuring
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StructuresCorporate Structuring
Groups of companies across several countries: holding companies, companies that own your IP, joint-venture companies, and moving a company to a new country.
BankingInternational Banking
Personal introductions to 25+ private and business banks that are actively taking clients — UK, EU, Gulf, Asia, Caribbean, US.
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Every engagement begins with a twenty-minute advisory call. The fee is in writing before any work begins. No hourly billing.