Does Costa Rica tax foreign income?

Not taxed (territorial; a 2023 bill to tax foreign passive income did not pass:. In one line: 0% on foreign income · up to 25% on local income · 15% on local dividends.

Can I run an online business from Costa Rica?

Effective tax about 0% with the cheapest legal set-up, which costs about USD 400 a year: nomad visa: foreign income exempt.

What is the catch in Costa Rica?

Watch for a move to worldwide taxation of passive income.

What residence or citizenship programmes does Costa Rica have?

Rentista / Pensionado / Investor: about USD 63k all-in for one person, ~6 months

Moving to Costa Rica: tax, residence and real costs (2026)

Costa Rica: 0% on foreign income · up to 25% on local income · 15% on local dividends. The cheapest route to residence is digital-nomad visa (USD 3k/month) or rentista (USD 2.5k/month for 2 years): about USD 1,500 in fees doing it yourself, with no investment, with about USD 2,500 a month of income shown, in about 6 months. Living costs about USD 1,550 a month for one person in San Jose, USD 870 in Puntarenas, and around USD 830 on a bare-minimum budget.

Key facts

Tax in one line	0% on foreign income · up to 25% on local income · 15% on local dividends
Foreign income	not taxed (territorial; a 2023 bill to tax foreign passive income did not pass:
Gains · dividends	15% on local · 15% on local
Wealth · inheritance tax	none · none
Cheapest residence	digital-nomad visa (USD 3k/month) or rentista (USD 2.5k/month for 2 years)
Money needed	About USD 1,500 in fees doing it yourself, with no investment
Time	about 6 months
Doable yourself?	Mostly; a local fixer for one step helps
Days you must spend there	183 for tax residence
Citizenship	after 7 years of residence
Online business	0% effective, about USD 400 a year to run: nomad visa: foreign income exempt
Living (one person a month)	San Jose ~USD 1,550; bare minimum ~USD 830; family of four ~USD 3,450
Good for	free zones for exporters; medical tourism
Common set-up	rentista or pensionado residence

Pros and cons

Pros	Cons
Territorial, stable democracy Nature, healthcare, US flights Several easy residence routes	Costly imports and cars Bureaucracy slow Rising crime

Programmes

Programme	All-in, one person	Months	Notes
Rentista / Pensionado / Investor	USD 63k	6	Rentista USD 2,500/month for 2 years or a USD 60k deposit; pensionado USD 1,000/month; investor USD 150k.

Questions

How much does residence in Costa Rica cost?: Digital-nomad visa (USD 3k/month) or rentista (USD 2.5k/month for 2 years): about USD 1,500 in fees doing it yourself, with no investment, about 6 months.
Does Costa Rica tax foreign income?: Not taxed (territorial; a 2023 bill to tax foreign passive income did not pass:. In one line: 0% on foreign income · up to 25% on local income · 15% on local dividends.
What does it cost to live in Costa Rica?: Living costs about USD 1,550 a month for one person in San Jose, USD 870 in Puntarenas, and around USD 830 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Costa Rica?: Effective tax about 0% with the cheapest legal set-up, which costs about USD 400 a year: nomad visa: foreign income exempt.
What is the catch in Costa Rica?: Watch for a move to worldwide taxation of passive income.
What residence or citizenship programmes does Costa Rica have?: Rentista / Pensionado / Investor: about USD 63k all-in for one person, ~6 months

Compare

Paraguay: 0% on foreign income · 10% on local income · 8% on local dividends
Uruguay: 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income
Panama: 0% on foreign income · up to 25% on Panamanian income · 10% on local dividends
Belize: 0% on foreign income · up to 25% on local income
El Salvador: 0% on foreign income · up to 30% on local income
Honduras (Próspera ZEDE): ~5% on income in the zone · 0% on foreign income

Compare all 53 places with your own income and budget →

Sources

https://www.migracion.go.cr
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded