Corporate Tax

 

Starting a corporation is a common way for foreigners to buy property in Costa Rica and in doing so, they are responsible for paying taxes on that corporation. It's a yearly payment due by January 31st. If you don't pay, interest and penalties are applied.

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The "Impuesto a las Personas Juridicas" or Corporate Tax applies to corporations even if they are inactive, meaning, they do not generate income. In this case, it's around $120 a year. 

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For active corporations, tax liability is based on their revenue. The Costa Rican government calculates it based on a percentage of the monthly base salary of a government employee, known in Costa Rica as a “Base Salary.” That amount is currently 450,200 colones, or about $790 (monthly).

Please note that it makes no difference how many employees your company may have, if any at all. Many corporations are set up with just three representatives and no employees. So the base salary of a government employee is nothing but a benchmark used to measure the revenue of a company (or lack thereof).

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The calculation is:

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1) Inactive corporations pay 15% per year of that monthly Base Salary: 67,530 colones, or about $120.

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2) Gross revenue of less than 120 times the Base Salary (less than 54,024,000 colones, or about $94,400) pay an annual corporate tax of 25% of the Base Salary per year: 112,550 colones, or about $200.

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3) Gross revenue of 120 to 280 times the Base Salary (54,024,000 to 126,056,000 colones) pay an annual corporate tax of 30% of the Base Salary: 135,060 colones, or about $235.

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4) Gross revenue of more than 280 times the Base Salary pay an annual corporate tax of 50% of the Base Salary: 225,100 colones, or about $390.