Wednesday, 12 August 2020

Costa Rica’s Capital Gains Tax Is The Highest In The Region

At 30%, it is even one of the highest in the world

Costa Rica’s capital gains tax is the highest in the region, and one of the highest in the world in terms of the impact on the productive sector.

Except in unusual cases, the rate in this country is 30% of the increase in the value of a good used for a medium or large company, even small and medium-sized enterprises (SME) – pequeñas y medianas empresas (Pymes) in Spanish –  could pay the same rate.

In the region, only Mexico has a 30% rate on capital gains; however, the tax payable is lower in the shareholder dividend, paid as a result of the sale of the good by the company.

- paying the bills -

The capital gain tax that is recorded is the real increase in the value of the good from the date on which it was acquired and would affect, above all, any company that owns an extensive land, as is the case of an auto dealership, a supermarket, a mall and an agricultural farm, among others, since the land tends to appreciate over time.

The capital gains tax went into effect as of July 1.

Comparing capital gains tax in the region:

  • Mexico – 30%
  • Costa Rica – 30%
  • Chile – 25%
  • Colombia – 10%
  • El Salvador – 10%
  • Guatemala – 10%
  • Honduras – 10%
  • Nicaragua -10%
  • Panama – 10%

Higher still, the capital gain tax impact in Costa Rica is even greater when it comes to the final amount that the shareholder receives in the payment of a dividend, product of the sale of the good used in the business of his/her company, (rate refers to the total capital gains tax and dividend tax, according to data from the Minister of Finance and international accountants/consultants firms):

    • Costa Rica – 40.5%
    • Mexico – 37%
    • Chile – 25%
    • Honduras – 19%
    • Colombia – 10%
  • El Salvador – 10%
  • Guatemala – 10%
  • Nicaragua -10%
  • Panama – 10%

Source: La Republica

- paying the bills -

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Costa Rica got more expensive this morning, July 1

(QCOSTARICA) Starting from today, July 1, 2020, articles of the basic...

Minister of the Presidency: ‘No new taxes on Friday’

(QCOSTARICA) "No new taxes will be announced on Friday," said the...


Jair Bolsonaro Is Pushing Brazil’s Democracy To Its Breaking Point

Twenty months into the presidency of Jair Bolsonaro, Brazil is on the brink of a democratic disaster. More than 100,000 Brazilians have died of COVID-19,...

New Sixaola binational bridge works advancing

(QCOSTARICA) Work on the Sixaola binational bridge, that will connect Costa Rica with Panama over the Sixaola River, is advancing with the completion of...

Tourism transport free to circulate without restrictions

(QCOSTARICA) Tourist transport services will be free to circulate every day without vehicular restriction, confirmed the Council of Public Transport (CTP). The decision was due...

Why the number of recovered is so important

Rico's COVID-19 - On Tuesday, the Minister of Health, Daniel Salas, reported a record 1,901 people recovered from Covid-19, ending the unanswered questions of...

Putin says Russia has approved ‘world first’ Covid-19 vaccine

Russian President Vladimir Putin announced the approval of a coronavirus vaccine for use on Tuesday, claiming it as a "world first," amid continued concern...

A challenging 12 days ahead drivewise in Costa Rica

Rico's DIGEST - In a few days, on Monday, August 10, most of the Greater Metropolitan Area (GAM) and the Panama border areas of...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.