Q COSTARICA — Costa Rica maintains a 30% corporate income tax rate, one of the highest in the world, according to the latest data from the Tax Foundation, an independent research center based in Washington, D.C.
The country ranks above the global average (23.5%) and the Organisation for Economic Co-operation and Development (OECD) average (23.8%).
This means that companies operating in the country face a higher tax burden than developed economies such as Sweden, Denmark, Norway, Switzerland, Germany, New Zealand, and France, which apply more moderate taxes to their corporations.
In parallel, the Ministerio de Hacienda (Ministry of Finance) has strengthened tax controls this year by strengthening electronic invoicing, increasing oversight of SINPE Móvil, developing the TRIBU-CR platform, and automatically exchanging financial information with international digital platforms.
For tax attorney Gabriel Zamora Baudrit, the combination of increased oversight and a lack of tax relief creates a structural problem: “This means that Costa Rica is not only viewed as an expensive country to invest in, but also as a tax system that does not encourage business formality.”
The specialist added that the lack of incentives limits competitiveness, encourages evasion, and hinders the reinvestment of profits in job creation and economic growth.
Zamora also warns that if the country continues with a high-tax model, it runs the risk of widening its competitiveness gap and losing attractiveness compared to nations that currently lead in key sectors such as technology, services, and advanced manufacturing.