Special Regimes and Investment Incentives To encourage development in key sectors, Costa Rica offers several special regimes that can reduce or defer corporate taxes. Similarly, the Promerita program provides substantial tax benefits for businesses investing in infrastructure, renewable energy, or high-value manufacturing.
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You may also benefit from reductions based on family dependents, mortgage interest under specific conditions, and contributions to approved private pension funds. For the most recent period, individuals pay 0% on income up to a specific exempt amount, 10% on the next segment, 15% on the following segment, and 25% on any income above those thresholds.
These brackets are adjusted periodically, so it is wise to verify the current numbers with a local expert or the tax authority. Companies are generally considered residents if they are incorporated in Costa Rica or manage the majority of their operations from within the country.
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The tax system here is designed to be straightforward for residents while offering specific incentives to attract foreign investment and foster economic development. An individual is typically treated as a tax resident if they meet one of two conditions: spending more than 183 days in the country within a 12-month period or establishing their primary home or economic center here.
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