| Most people who take up residency, do | | | | own levels that to go towards the services |
| business or even visit frequently are | | | | that municipality provides. Depending on the |
| surprised to learn that the tax system in | | | | price of your home, you will also be required |
| Costa Rica is much less complicated than many | | | | to pay a government property tax. |
| European or North American countries. It is | | | | |
| much different than that of United States, | | | | Property Tax |
| mainly because anyone relocating to the | | | | |
| country can quickly understand the system. | | | | The government of Costa Rica has established |
| | | | a Costa Rica property tax equivalent to 0.5 |
| Overall, the basic principle for paying taxes | | | | to1.5 percent of the purchase price of a home |
| in Costa Rica is based upon level of | | | | in Costa Rica. If you are planning to |
| earnings. If you earn over a certain amount | | | | purchase a home in Costa Rica, expect to pay |
| of income, you are liable to pay income tax | | | | property tax for Costa Rica real estate, at |
| to the government. There are four main types | | | | the price similar to that of many states |
| of taxes that a foreigner moving to Costa | | | | within the United States. With one large |
| Rica will have to pay - income, government, | | | | exception,...The cost of the home will be |
| property, and sales tax. | | | | considerably less! |
| | | | |
| Income Tax | | | | Sales Tax |
| | | | |
| Everyone regardless of his or her citizenship | | | | If you are relocating from the United States, |
| pays income tax in Costa Rica. However, the | | | | then paying a tax on items purchased will not |
| only way in which you would not have to pay | | | | be a new concept to you. Costa Rica has a |
| income tax coming from abroad, would be if | | | | sales tax of 13 percent above the cost of |
| your income was less than eight hundred | | | | each item. However, unlike in the United |
| dollars a month. Any earned income below this | | | | States in which certain items are exempt from |
| amount will not levied income tax. Above this | | | | sales tax, Costa Ricans pay sales tax on all |
| salary however, the income tax you are | | | | goods sold to them. This sales tax can also |
| required to pay will range from 10 to 15 | | | | be levied against certain services in the |
| percent, dependant on the amount you earn. In | | | | country. Again, remember though the cost of |
| Costa Rica, the tax year ends in September. | | | | most goods and all services are drastically |
| | | | lower than what you are used to. |
| Government Tax | | | | |
| | | | When it come to taxes, everyone will have a |
| Each area of Costa Rica land is divided into | | | | different situation, and it is therefore |
| branches of local governments (or | | | | important to consult your tax advisor when |
| municipalities) who oversee the collection of | | | | considering the tax implications in any |
| government tax. Just as in the United States, | | | | relocation or that of any foreign country. |
| this government tax is used to provide | | | | One thing the Costa Rica government does well |
| services to the residents such as electricity | | | | is that it goes easy on its own citizens, and |
| for streetlights, or garbage removal etc... | | | | relocating residents when it involves prying |
| Each area has its own government tax, at its | | | | the tax dollars from them. |