Foreign investors in Costa Rica will now have the same percentage as the revenue tax for local people. The Attorney General’s office in Costa Rica confirmed that the withholding tax rate of 8% laid down in Article 23 of the Costa Rican Income Tax Law constitutes a single tax on investments in securities. It is set by the Costa Rican Finance Office with Opinion C-213-2017 after the General Prosecutor’s Office replied that the client’s address is not relevant in determining the percentage of taxes.
Therefore, the investor’s domicile is not a significant issue as to whether the 8% WHT is applicable. The 8% WHT rate applies to investors regardless of their domicile. As a result, the 8% WHT rate for investment in securities should be applied to foreign investors, rather than 15% WHT applied by the tax authorities.
