Costa Rica offers an immediate tax advantage over North America, and it's wise to calculate that saving when you compare property prices in Costa Rica and at home.
Private residences are taxed at an annual rate of 0.25% of the assessed valuation. The valuation, however, will almost always be far less than you actually paid for the property.
Taxes on a $150,000 house are typically only a few hundred dollars a year. Owners are also spared high taxes when they sell, because there are no capital gains taxes in Costa Rica.
Other taxes are also low:
Income tax: Only income derived in Costa Rica is subject to taxation. The highest rate is 15%, which is levied on monthly income above 324,100 colones, or $613. In some cases, you may be able to lower local taxes by forming a corporation in Costa Rica.
Corporations pay a higher income tax rate--20% or 30%, depending on its size. But corporations can deduct some expenses from their earnings.
Sales tax: 13%. Transfer taxes also apply to the sales of property and vehicles. In the case of property, these taxes are very low. The transfer tax on cars is 1.5%.
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