Foreigners that invest in securities or bonds in Costa Rica but live abroad used to be subject to a 15% tax over the over the interests or revenue generated; however, as of September 25 this tax will now be only 8%, the same percentage which nationals are charged.

This was determined by the Costa Rican Treasury (Ministerio de Hacienda) after a response by the Attorney General Office ruled that a client’s address is irrelevant at the moment of establishing a tax percentage.

The Superintendent of Securities, Carlos Arias, and the Costa Rica Treasury had presented the inquiry to the Attorney General Office since in 2015 the Taxation Office had set the tax at 8% for Costa Rican investors and 15% for foreigners; in response, the Attorney General concluded that charging 15% to foreigners was incorrect.

Being that the criteria of the Attorney General is binding to the Costa Rica Treasury this September 25 they confirmed that the amount applicable to foreigners is 8%.

This tax should bring in more liquidity to the Costa Rica Treasury.