Costa Rica vs Mexico taxes (2026): territorial tax and company rates

Costa Rica vs Mexico tax rates at a glance

Tax	🇨🇷 Costa Rica	🇲🇽 Mexico
Income tax	Salary income tax: 0% - 25% Individual business income: 0% - 25% Employee social charges: 10.83% Employer social charges: 26.83% Tax residence indicator: 183+ days	Personal income tax: 1.92% - 35% Highest bracket tax: 35% Foreign income tax: Taxable for residents Salary withholding: Monthly Employee social security: Separate Tax return deadline: 30 April
Corporate tax	Standard corporate income tax: 30% Small-company net-income bands: 5% / 10% / 15% / 20% Small-company gross-income ceiling: ₡119.174 million Legal-entity tax: 15% - 50% of salary base VAT: 13%	Corporate income tax: 30% Dividend withholding: 10% VAT: 16% Border VAT: 8% Annual return deadline: 31 March
Capital gains tax	General capital gains: 15% Pre-1 July 2019 first sale option: 2.25% Non-resident withholding: 2.5% Real-estate transfer tax: 1.5%	Capital gains tax: Up to 35% Listed share gains: 10% Property gains: Up to 35% Nonresident gross method: 25% Nonresident net method: 35%
Dividend tax	Standard dividend tax: 15% Qualifying listed shares: 5% Active Costa Rican corporate shareholder: No withholding Treaty rate: Case-specific	Dividend withholding tax: 10% Domestic dividend tax: 10% Foreign dividend tax: Taxable
Wealth tax	Net wealth tax: 0% Municipal property tax: 0.25% Solidarity tax: 0.25% - 0.55% Financial-asset ownership tax: 0%	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Municipal property tax after inheritance: 0.25%	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% / limited Probate tax: 0%
VAT / GST / sales tax	VAT: 13%	VAT: 16%

Who wins on each tax

Personal income taxCosta Rica

Costa Rica's top rate is 25%, versus Mexico's 35% resident top rate.

Corporate taxTie

Costa Rica's standard rate is 30%, the same as Mexico's general company rate.

Capital gains taxCosta Rica

Costa Rica generally taxes capital gains at 15%, with a 2.25% transitional option on a first sale of certain pre-July 2019 assets; Mexico generally taxes gains under income-tax rules up to 35%, although qualifying listed-share sales can use a 10% final tax.

Dividend taxMexico

Mexico's general dividend withholding is 10%, compared with Costa Rica's usual 15%.

Territorial taxationCosta Rica

Costa Rica generally taxes Costa Rican-source income; where services are physically performed is usually more important than where the payer is located. Mexico taxes residents on worldwide income.

The verdict

Costa Rica is the cleaner residency option for someone whose income is genuinely foreign-source, because it principally taxes Costa Rican-source income.

Mexico taxes residents on worldwide income and generally runs higher rates, but it is the more credible operating base for a Mexico-focused company.

Choose Costa Rica for a territorial lifestyle base; choose Mexico for local commercial scale and accept the wider tax net.

How to read this comparison

Costa Rica and Mexico serve different use cases: one is a territorial lifestyle base, the other a major Latin American operating market.

Frequently asked questions

Does Costa Rica tax foreign income?

Costa Rica generally taxes Costa Rican-source income. The source of service income can be fact-specific, so remote workers should obtain advice before relying on territorial treatment.