Going from “I’m buying a house” to “I’m building an income portfolio” changes everything: legal structure, corporate tax, annual costs, sometimes employees. Here are the costs and obligations a real estate investor should anticipate in Costa Rica in order to calculate a net yield, and not just a gross one.
Owning through a company: when it becomes worthwhile
For one or two properties, personal ownership is often enough. But for a rental portfolio, a structured business or commercial real estate, a company (S.A. or S.R.L.) makes full sense: management, limited liability, succession. A useful reminder: a foreigner can own 100% of a Costa Rican company.
Corporate income tax
A company’s profits are taxed at 30%, with progressive reduced rates (5, 10, 15 then 20%) for small companies whose annual turnover stays below a threshold (≈ 119 million colones). As with individuals, territoriality applies: the company is taxed only on its Costa Rican-source income. For real estate activity, the usual regimes apply — around 12.75% of gross rent if the letting falls under capital income, or profit tax (up to 30%) if it is carried on as a genuine business activity, and 15% on the capital gain.
The recurring costs of a company (often underestimated)
- Annual legal-entity tax: a fixed tax due every year, even for an inactive company.
- Accounting and filings: a contador‘s fees, monthly VAT (IVA) returns if the activity is taxable, annual income tax.
- Register of beneficial owners (Registro de Transparencia y Beneficiarios Finales): a mandatory annual filing; missing it leads to fines.
- Resident agent and registered address: a company owned by non-residents must appoint a lawyer as resident agent.
If you employ staff
Caretaker, cleaning, maintenance, on-site management: as soon as you hire, you become an employer, with specific obligations.
- Employer contributions: around 26 to 27% of salary (contributions to the CCSS and social funds).
- Aguinaldo: a mandatory 13th-month payment, made before 20 December, exempt from contributions and tax.
- Minimum wage set by category (more than 30 categories); for an unskilled worker, it is around 373,000 colones per month (~730 USD) in 2026.
The “cost of doing business” to budget for
| Item | Order of magnitude (2026) |
|---|---|
| Corporate income tax | 30% (reduced for small companies) |
| Rental income (net) | ≈ 12.75% of gross |
| Capital gains | 15% |
| Employer contributions (if staff) | ≈ 26–27% of salary + aguinaldo |
| Accounting + annual company tax | recurring fixed costs |
Our advice
- Model the net yield after all these items, never gross yield alone.
- Settle the personal name vs company question early: it weighs on both taxation and recurring costs.
- Favor outsourcing of management and payroll, except at high volume.
- Surround yourself with a local contador and lawyer from the outset.
Disclaimer: this article is for information only and does not constitute tax, legal or accounting advice. Rates, thresholds and obligations change every year. Have your structure and projections drawn up by a contador and a lawyer in Costa Rica. Tendance Immo Latina — contact our team.
