Costa Rica

An individual is a Costa Rican tax resident if present in the country, continuously or not, for more than 183 days during the same fiscal period, counting arrival and departure days; sporadic absences count toward presence unless the taxpayer shows a tax residency certificate from another country. There is no joint filing for married couples — each spouse is assessed independently for tax residence.

The fiscal period generally matches the calendar year, though a different fiscal period may be requested in special cases. Salaried employees have income tax withheld monthly by their employer and do not file an annual return for that income; self-employed individuals and those with local interest or rental income must file, paying estimated quarterly instalments based on the prior three fiscal years' average plus a final payment two and a half months after the fiscal year ends. Joint filing is not available.

Costa Rica taxes on a territorial basis: any income derived from assets used, goods located, or services rendered within Costa Rican territory is taxable regardless of nationality or residence. Non-residents are liable only for withholding taxes on the relevant category of local-source income, such as 15% on dividends and interest, 25% on technical service fees, royalties, and personal services from a Costa Rican source, 8.5% on transportation and communication services, and 30% on other payments; no single rate applies generally.

An individual whose only income is salary from personal services cannot deduct business expenses. Self-employed individuals earning professional-service, insurance-brokerage, commission, or fee income may instead deduct a flat 25% of gross income without itemising, or itemise their actual expenses; personal allowances in Costa Rica take the form of tax credits rather than deductions from taxable income.

Costa Rica's Simplified Tax Regime lets qualifying small businesses in specified activities — such as retail commerce, bars, and bakeries — file both VAT and income tax returns quarterly instead of the standard cadence, provided they keep annual purchases below 186 base salaries, employ five or fewer people, operate a single establishment open to the public, and hold fixed assets below 350 base salaries.