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Costa Rica

CR • SPANISH • CRC (₡)

Costa Rica offers a sanctuary for liberty-minded entrepreneurs, anchored by its rare territorial tax system and enduring political stability. While bureaucracy persists, the absence of a standing army reflects a deep-seated commitment to peace and property rights. Its Free Trade Zones provide a haven for capital, while the "Pura Vida" lifestyle ensures unparalleled personal freedom. For those seeking a predictable, low-corruption environment in the tropics, it remains a premier destination for sovereign individuals to build and thrive.

Upsides
  • Territorial tax system with exemption of foreign-sourced income for residents and corporations.
  • Long-standing democratic stability and high levels of personal freedom without a standing military.
  • Significant tax incentives within Free Trade Zones for export-oriented businesses and technology services.
Downsides
  • High social security burdens and complex labor regulations resulting in increased formal employment costs.
  • Rising homicide rates and organized crime activity causing higher security and operational costs.
  • Suboptimal road infrastructure and high electricity prices compared to regional competitors.

Taxation

Corporate Tax 0.05–0.3%
Income Tax 0–25%
VAT 13%
Tax Treaties 5
IP Box ? Intellectual Property Box. A tax incentive offering reduced rates on income derived from patents, copyrights, and other intellectual property. No
Exit Tax ? A tax on unrealized capital gains triggered when a taxpayer moves their tax residence to another country. No

Compliance

BEPS ? Base Erosion and Profit Shifting. An OECD framework to combat tax avoidance strategies used by multinationals to shift profits to low-tax jurisdictions. Member
FATF ? Financial Action Task Force. An intergovernmental body that sets standards to prevent money laundering and terrorist financing worldwide. Non-member
FATCA ? Foreign Account Tax Compliance Act. A US law requiring foreign banks to report accounts held by US citizens to the IRS. Signatory
CRS ? Common Reporting Standard. An OECD standard for automatic exchange of financial account information between tax authorities globally. Signatory

Blacklists

FATF Blacklist ? Countries identified by FATF as having serious deficiencies in anti-money laundering and counter-terrorist financing measures. Clear
EU Blacklist ? The EU list of non-cooperative tax jurisdictions. Countries that fail to meet transparency and fair taxation standards. Clear

Payment Platforms

Stripe Unavailable
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