Of course, this doesn’t prevent Costa Rican Fintech’s from enjoying good health, which is partly due to two important aspects: the existing levels of talent in the country and the export capacity of Costa Rican Fintech. According to a report from PROCOMER, ‘Mapping the Fintech industry in Costa Rica’, Fintechs stand out for their export potential, and 60% already export.
In addition, Costa Rica has an innovation hub which supports this sector, known as the Financial Innovation Center (CIF).
So, what does the country offer in terms of taxation in the Fintech sector?
There’s no dedicated regulatory entity or specific law governing financial technology companies in Costa Rica. They’re regulated by a diverse set of laws, like Data Protection Law n°8968, the Law on Money Laundering and Activities for the Transfer of Narcotics n°8204, and the Law on the Regulation of Non-Banking Financial Companies n°5044.
Corporate income tax
The corporate tax rate is set at a maximum of 30% and there are withholding tax requirements on dividends, interest and fees.
Companies in Costa Rica can make tax payments through banking connectivity, both in private and state banks, all available online.
Banking platforms allow users to make programmable rebases so that tax payments are made automatically, either monthly or weekly, allowing individuals and taxpayers to avoid interest or other types of penalty for late payments.
VAT in Costa Rica is 13%, but there are different rates for specific services and goods. Companies in Costa Rica can make the payment of VAT through banking connectivity, available both in private and state banks.
Auxadi can help with every aspect of your Costa Rican operations. Get in touch with our San Jose office to see exactly how we can make your life easier.