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