Staying in Costa Rica - Rentals, Properties, Tourist info

Favorable Tax system

Besides bad weather most of us complain about our home country tax system. There is income tax at multiple levels of government, property tax, capital gains tax, goods and services tax and the list goes on. One way to improve your economic standing is to earn more money… but what if one was to pay less tax? You would keep more in your pocket to spend on yourself than dishing it out to the government.

There are many tax advantages to living in Costa Rica at multiple levels. Foreign buyers of real estate in Costa Rica have the same rights as the locals. Property taxes are substantially lower then the ones in US and Canada. Property taxes are calculated at a rate of 0.25% of the property value. However, the reality is that most real estate is under valued here for tax purposes. This may change in the future as the government is starting a multi-year project to put a system in place, to asses the values of properties in systematic fashion.

Another great benefit of owning property in Costa Rica is that there are no capital gains on real estate. Since your property appreciates in value over the years, at times at double digits, it is comforting to know that you don’t have to worry about capital gains. Also high interest bank account income is tax free.

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You can still buy a beachside property in Costa Rica for less then $100,000. Own your own piece of paradise.
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