Company formationAmericasCosta Rica companies for regional operations
Costa Rica's two common company forms are the sociedad anónima (S.A.) and the sociedad de responsabilidad limitada (S.R.L.). Both can be 100% foreign-owned and are taxed on Costa Rican-source profits at 30%, with lower bands for small companies. Foreign-source business income is generally outside Costa Rican tax.
Updated
Dividends paid to non-resident shareholders carry 15% withholding. Dividends between active Costa Rican companies are generally exempt, which matters when a local holding sits above an operating company.
A Costa Rican company suits a business that operates, hires or invoices in the region. We plan the structure above it with your advisers before incorporation.
Who it suits
Operating businesses in Central America
You hire, invoice or hold assets in Costa Rica.
Residents with a local business
You live in Costa Rica and want the company in the same place.
Service exporters
Your clients sit abroad and income may be foreign-source; confirm with a local adviser.
Requirements
- Required
Registered address and resident agent
In Costa Rica.
- Required
Registration with the National Registry
Company and beneficial owner registration.
- Required
Annual corporate tax
Paid to the National Registry each year.
- Required
Tax filings
With the Ministry of Finance, including where income is foreign-source.
Banking fit
- Costa Rican banks usually open personal accounts once residence is in process or granted; each applies its own review.
Questions
Which company forms are common in Costa Rica?
The sociedad anónima (S.A.) and the sociedad de responsabilidad limitada (S.R.L.). Both can be 100% foreign-owned.
What is the corporate tax rate in Costa Rica?
30% on Costa Rican-source profits, with bands of 5%, 10%, 15% and 20% for small companies. Foreign-source business income is generally outside Costa Rican tax.
Do dividends from a Costa Rican company carry withholding tax?
Dividends paid to non-resident shareholders carry 15% withholding. Dividends between active Costa Rican companies are generally exempt.
Who is a Costa Rican company for?
A business that operates, hires or invoices in the region, or a resident who wants the company in the same place. Service exporters should confirm with a local adviser whether their income is foreign-source.
More in Costa Rica
- Everything about Costa RicaView
- ResidencyCosta Rica residence for founders, retirees and investorsCosta Rica's main temporary residence categories are rentista (steady foreign income), pensionado (lifetime pension) and inversionista (investment). Each grants two years of temporary residence, renewable, and leads to permanent residence after three years. Applications go to the Dirección General de Migración y Extranjería (DGME).View
Company formation elsewhere
- US LLC formation for international foundersA US limited liability company (LLC) is a state-registered company that non-US founders use to invoice clients, hold assets and access US payment rails. A single foreign owner's LLC is disregarded for federal income tax by default, but as of October 2026 it must still file Form 5472 every year.View
United States - Panama company formation and the employment routeA Panamanian sociedad anónima (S.A.) or sociedad de responsabilidad limitada (S. de R.L.) can be wholly foreign-owned and is taxed on a territorial basis: 25% on Panamanian-source profits, while genuinely foreign-source income is generally outside Panamanian tax. Every company pays a USD 300 annual franchise tax (tasa única) and keeps a resident agent.View
Panama - Cyprus company formation for EU-focused businessesA Cyprus limited company is an EU-resident company used by founders who need dependable European banking and payment access for activities that banks review closely. As of 2026 it pays 15% corporate tax on profits, and dividends paid to non-resident shareholders generally carry no Cyprus withholding tax.View
Cyprus - UK limited company formation for international foundersA UK private limited company (Ltd) is a separate legal entity, owned by shareholders and run by directors, that non-residents can register online with Companies House. As of October 2026 registration usually takes 24 hours, and directors and people with significant control must first verify their identity.View
United Kingdom - Georgia company formation: entrepreneur, LLC or Virtual ZoneGeorgia offers founders a choice between registering as an individual entrepreneur, often with 1% small business status, and forming a limited liability company taxed only when it distributes profits. As of October 2026, distributed profits are taxed at 15% and IT companies with Virtual Zone status are exempt on exported IT services.View
Georgia - Bulgarian EOOD company formationA Bulgarian EOOD is a single-member limited liability company registered in the Commercial Register of the Registry Agency, which foreign individuals and companies can own outright. As of October 2026 the minimum capital is €1 and profits are taxed at a flat 10%.View
Bulgaria
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Sources
- Rio Times: Costa Rica residency requirements 2026, retrieved 2026-10-27
- Taxopilot: pensionado, rentista and inversionista 2026, retrieved 2026-10-27
- Farmstead Collection: investor threshold back to USD 200,000, retrieved 2026-10-27
- KPMG: bill on foreign-source passive income (30 September 2026), retrieved 2026-10-27
- Tico Times: proposed 15% tax on foreign income, retrieved 2026-10-27
- Deloitte: Costa Rica Highlights 2026, retrieved 2026-10-27
- Moore Global: Costa Rica tax guide, retrieved 2026-10-27
Reviewed by the Redomiciled team on .
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