# Tax domicile and Costa Rican-source income Personal taxation is principally source-based rather than citizenship-based. Tax domicile includes a presence test, while foreign-source passive-income rules for certain multinational entities must not be misapplied as a general worldwide rule for individuals. Scope: Ordinary individual income-tax domicile, source rules and treaty interaction; excludes company structures, special immigration tax incentives and rates. Jurisdiction: Costa Rica — national income tax. Sources reviewed 2026-09-22; review due 2026-12-21. General information, not personal tax advice. Nationality, tax residence and source of income are different questions. Consult the tax authority or a qualified adviser for your circumstances. ## Domicile includes more than 183 days Individuals are domiciled for income tax when present for more than 183 days, continuously or not, in the relevant fiscal period, including entry and exit days. Sporadic absences up to 30 consecutive days count unless foreign tax residence is certified; longer absences do not. Evidence: conditional. [Procuraduría General de la República — SINALEVI: Income Tax Regulation 43198-H — version 5 of 5, 15 November 2023](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=95992¶m2=139872¶m3=1). Source location: Income Tax Regulation Article 10(1)(a), first five paragraphs.. ## The period and official-service rules matter For income taxes other than the profits tax with nonannual assessment periods, the presence window is the twelve months before assessment. Individuals holding official posts or representations abroad paid by Costa Rica's state, public bodies or municipalities are also treated as domiciled. Evidence: conditional. [Procuraduría General de la República — SINALEVI: Income Tax Regulation 43198-H — version 5 of 5, 15 November 2023](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=95992¶m2=139872¶m3=1). Source location: Income Tax Regulation Article 10(1)(a), final paragraph, and Article 10(1)(b).. ## Source, not nationality, is central The profits-tax baseline covers domestic-source activity. The law defines Costa Rican source by services performed, assets situated, capital invested and rights used in national territory, independently of nationality or domicile. Capital-income and realised-gain taxation also follows the statutory territorial definition. Evidence: conditional. [Procuraduría General de la República — SINALEVI: Income Tax Law 7092 — version 83 of 83, 13 November 2025](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=10969¶m2=148972¶m3=1). Source location: Income Tax Law Articles 1 and 27–27-bis, version 83 of 83.. ## Foreign passive-income reform is limited The exception for listed foreign passive income applies to nonqualified entities belonging to multinational groups. Article 27 otherwise excludes the relevant capital income generated abroad, even with Costa Rican-source capital. This is not a general worldwide-income rule for resident individuals. Evidence: conditional. [Procuraduría General de la República — SINALEVI: Income Tax Law 7092 — version 83 of 83, 13 November 2025](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=10969¶m2=148972¶m3=1). Source location: Income Tax Law Article 1, foreign passive-income paragraphs, and Article 27, third paragraph, incorporating Law 10381.. ## Nonresidents can still owe source tax Costa Rican-source income paid, credited or made available to foreign-domiciled recipients can trigger outward-remittance tax and payer obligations. Capital gains of non-domiciled owners instead follow the capital-gains chapter, with applicable withholding, rather than automatically the remittance-tax rules. Evidence: conditional. [Procuraduría General de la República — SINALEVI: Income Tax Law 7092 — version 83 of 83, 13 November 2025](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=10969¶m2=148972¶m3=1); [Procuraduría General de la República — SINALEVI: Income Tax Regulation 43198-H — version 5 of 5, 15 November 2023](https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=95992¶m2=139872¶m3=1). Source location: Income Tax Law Articles 52–53 and 56–57; Income Tax Regulation Article 52.. ## Treaty relief is not automatic Hacienda's treaty guide requires an effective applicable convention, the appropriate income article and evidence of tax residence for the relevant period. A treaty does not mean total exemption; the taxpayer must establish entitlement and retain supporting evidence. Evidence: conditional. [Ministerio de Hacienda — Dirección General de Tributación: Guide to applying double-taxation conventions — April 2022, version 01](https://www.hacienda.go.cr/docs/DGT-357-2022AnexoGuiaMH-DGT-PRO05-GUI-002.pdf). Source location: Guide sections 5.2.2–5.2.6, printed pp.5–7.. ## Scope and limitations - Tax domicile is not determined solely by citizenship or immigration residence status. - An overseas payer or bank account does not itself establish foreign source; income classification and special source provisions must be examined. - This summary does not model investment, corporate-substance, digital-nomad or other special regimes, nor promise a foreign-tax credit on untaxed income. - The treaty guide is explicitly the April 2022 edition; it is used for general application principles, not as a complete current treaty inventory. ## Explore this passport - [Passport rank and travel access](https://multipassrank.com/passport/costa-rica) - [Citizenship requirements](https://multipassrank.com/passport/costa-rica/citizenship) - [Country-profile JSON, including sources and scoped requirements](https://multipassrank.com/api/v1/country-profiles/CR) - [Multiple-citizenship policy guide](https://multipassrank.com/dual-citizenship-countries) [Canonical page](https://multipassrank.com/passport/costa-rica/taxes)