How many tax treaties does Costa Rica have?

Costa Rica has 5 double taxation agreements (DTAs) in force. These treaties help prevent the same income from being taxed in both countries and typically reduce withholding tax rates on cross-border payments.

What are Costa Rica's most important treaty partners?

Costa Rica's major treaty partners include Spain, Germany, Mexico, United Arab Emirates, South Korea. These treaties cover provisions for income tax, corporate tax, withholding tax on dividends, interest, and royalties.

How do Costa Rica's tax treaties affect withholding rates?

Tax treaties typically reduce withholding tax rates on cross-border payments. Without a treaty, Costa Rica may apply its standard withholding rates. With a treaty, rates on dividends, interest, and royalties are often reduced to 10-15% or lower. The specific rates depend on the individual treaty.

Costa Rica Tax Treaties

Costa Rica has a limited network of approximately 5 double taxation agreements in force. The country has been working to expand its treaty network and joined the OECD in 2021. Costa Rica participates in the Global Forum on Transparency and Exchange of Information for Tax Purposes and exchanges information under the Common Reporting Standard (CRS). Tax Information Exchange Agreements exist with additional countries including the United States.

TerritorialNorth America

Tax Treaty Network

Double taxation agreements in force

Major Treaty Partners

SpainGermanyMexicoUnited Arab EmiratesSouth Korea

About Costa Rica's Treaty Network

Costa Rica maintains a network of 5 double taxation agreements. These treaties serve to eliminate or reduce double taxation of income earned in one country by a resident of the other, and they provide mechanisms for resolving tax disputes between the two countries. The treaties typically cover income tax, corporate tax, and withholding taxes on dividends, interest, and royalties.

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Costa Rica Tax Treaties

Major Treaty Partners

About Costa Rica's Treaty Network

Costa Rica Tax Treaties FAQ