Costa Rica's corporate tax law is national, not Jaco-specific, so these rules apply uniformly across the country.
Good to know
Good to Know
- No local partner or sponsor is legally required — foreigners can own 100% of a Costa Rican S.A. or S.R.L. and there's no residency or citizenship requirement.
- There is no minimum capital requirement to incorporate, but an S.A. still needs a minimum of two shareholders and a three-person board (President, Secretary, Treasurer) at formation, even if you plan to run the business solo — many solo founders pick the simpler S.R.L. instead, which needs only one manager.
- If your appointed directors/managers don't have a registered Costa Rican domicile, you're legally required to appoint a Resident Agent (a Costa Rican lawyer) to receive legal notices — factor this into your setup, it's not optional.
- Since May 2025, new companies are no longer given a chosen business name at incorporation — you're assigned a numeric legal ID (cédula jurídica) as your official name, and you register any brand/trade name separately through the Intellectual Property Office if you want one.
- Cost and timeline quotes online vary widely because sources mix 'bare registration fee' with 'full first-year compliance package' — get an itemized quote from your notary/attorney before assuming a number.
- Company registration itself is separate from the local business operating license (patente municipal) you'll need from the Jaco/Garabito municipality if you're opening a physical storefront or public-facing business.
- Costa Rica's territorial tax system means a foreign-owned company (or freelancer) here generally owes zero Costa Rican tax on income earned from clients or business outside the country — the tax questions mainly bite once you invoice Costa Rican customers or hold local assets.
- Even a completely inactive holding company (e.g. one set up just to hold a condo) still owes the flat annual corporate tax and must file a yearly informative return — 'doing nothing' with your company does not exempt you from these filings.
- Starting in 2026, the annual flat corporate tax can only be paid from a Costa Rican bank account or in person at BCR/BAC — worth sorting out local banking early if you're forming a company as a non-resident.
- Because the company's legal representative needs a Costa Rican Digital Signature (only issuable to citizens/residents), most foreign owners end up granting power of attorney to a local attorney or accountant just to handle routine filings — budget for this ongoing local professional support, not just the one-time incorporation fee.
- We could not confirm a clear, well-documented path for a non-resident foreigner to register as an individual sole proprietor in Costa Rica — most guidance assumes you'll incorporate a company (SA or SRL) instead.
Corporate Income Tax
- Standard Rate Percent
- 30
- Standard Rate Threshold 2026
- CRC 119,174,000
Gross annual income above this figure is taxed at the flat 30% rate.
- Applies Only To
- Companies (and self-employed individuals) with Costa Rican-source gross income; foreign-source income is exempt entirely regardless of bracket.
- Filing Deadline
- Annual corporate income tax return due within 3 months and 15 days of fiscal year-end — March 15 of the following year for companies on the calendar-year fiscal period.
- Advance Payments
- Costa Rica requires three quarterly advance/provisional payments toward the annual income tax liability during the fiscal year, with the balance settled at filing.
- Inactive Companies
- A company with zero Costa Rican-sourced income and no local operations is classified as 'inactive' and is exempt from income tax itself, but must still file an annual informative/asset return (Form D-195/D-140) with the tax authority between January 1 and March 15 each year.
Reduced Rate Brackets For Smaller Companies
- Rate Percent
- 5
- Up To
- CRC 5,761,000
- Rate Percent
- 10
- Up To
- CRC 8,643,000
- Rate Percent
- 15
- Up To
- CRC 11,524,000
- Rate Percent
- 20
- Up To
- CRC 112,170,000
Separate Flat Annual Corporate Tax
- Summary
- Every registered company in Costa Rica — active or inactive, and regardless of whether it earned any income — owes a separate flat annual 'Impuesto a Personas Jurídicas', due within the first 30 days of January each year.
- Legal Basis
- Law No. 9428
- 2026 Payment Change
- Starting in 2026, this tax can only be paid via a Costa Rican bank account held in the company's name or in person at Banco de Costa Rica (BCR) or BAC — a real practical obstacle for foreign owners who don't have local banking set up.
- Consequences Of Non Payment
- Missing this deadline triggers accumulating monthly penalties, and if the tax goes unpaid for three consecutive years the company can be automatically dissolved with its assets subject to seizure.
Estimated Range
- Note
- Exact amount depends on the company's authorized share capital; active/income-generating companies typically fall toward the higher end of comparable published ranges.
Inactive Company
- Amount USD Low
- 100
- Currency Local
- CRC
- Amount USD High
- 500
- Amount Local Low
- 45500
- Amount Local High
- 227500
Structure Comparison For Foreigners
- Incorporation Practicalities
- Both structures can be formed fully remotely via power of attorney to a Costa Rican notary/attorney, without the founder ever visiting the country, and directors/shareholders do not need to be residents or nationals.
Sociedad Anonima SA
- Best For
- Larger operations, businesses seeking outside investment, or where shares need to be easily transferable.
- Key Features
- Capitalized through freely transferable shares; requires a board with at least three officer roles (president, secretary, treasurer), though one person can legally hold all three simultaneously; minimum two shareholders at incorporation (can later consolidate to one owner); no statutory minimum capital.
- Foreign Ownership
- Foreigners may own 100% of an SA, with no residency or citizenship requirement for shareholders or directors.
Typical Setup Costs
- Timeline
- Roughly 1-2 weeks for documents to be drafted and notarized, with registry processing sometimes extending this to 4-6 weeks.
Attorney And Registration Fees
- Amount USD Low
- 800
- Currency Local
- CRC
- Amount USD High
- 1200
- Amount Local Low
- 364000
- Amount Local High
- 546000
- Note
- Mid-range estimate for a basic SA/SRL formation via a local notary; full-service international incorporation firms quote considerably higher (some near $4,500 for setup plus ~$3,600/year in ongoing service fees), largely reflecting bundled registered-agent and compliance services rather than government fees alone.
Freelancer Sole Proprietor Option
- Practical Implication
- In practice, forming a company appears to be the far better-documented and more commonly used vehicle for foreigners doing business connected to Costa Rica, partly because company formation explicitly does not require residency, while individual taxpayer registration is more closely tied to having a resident's ID (cédula).
- No Local Registration Needed Scenario
- A foreigner freelancing purely for clients outside Costa Rica while living in/around Jaco generally has no Costa Rican corporate or sole-proprietor tax exposure at all under the territorial system, since that income is foreign-sourced regardless of business structure — the company-vs-freelancer question mainly matters if you plan to invoice Costa Rican clients, hold local property, or need a formal local entity for banking/contracts.
- Status Note
- The sources we checked focus almost entirely on forming a company (SA/SRL) as the route for foreign-owned business in Costa Rica; we could not confirm the precise legal mechanics of a non-resident foreigner registering as an individual sole proprietor (persona física con actividad lucrativa) here, and did not find this presented as a common practical path for non-residents.
Sociedad De Responsabilidad Limitada SRL
- Best For
- Smaller, owner-managed businesses wanting simpler governance and lower ongoing compliance.
- Key Features
- Ownership divided into quotas rather than shares; requires only one general manager rather than a full board; generally considered to have a lighter compliance burden than an SA.
- Foreign Ownership
- Foreigners may own 100% of an SRL with no residency requirement.
Entity Types
Sociedad Anónima (S.A.)
- Details
- The Sociedad Anónima (S.A.) is a share-based stock corporation requiring a minimum three-person Board of Directors (President, Secretary, Treasurer) and designed for businesses with multiple investors, operational complexity, or capital-raising plans. A minimum of two shareholders is required at incorporation, though ownership may later consolidate under a single shareholder. There is no minimum share capital requirement, except for the issuance of at least two shares at the time of incorporation, and share capital may be denominated in any currency.
- Description
- Costa Rica's traditional share-based corporation.
Sociedad De Responsabilidad Limitada (S.R.L.)
- Details
- The Sociedad de Responsabilidad Limitada (S.R.L.) is a quota-based limited liability company requiring only one Manager, making it simpler, cheaper, and ideal for holding structures, real estate ownership, or family-controlled asset protection vehicles. Shares are called quotas and there is no minimum required capital, though the amount subscribed must be divisible by 100.
- Description
- Quota-based limited liability company, simpler governance.
Branch of a Foreign Company
- Details
- Branches of foreign companies are incorporated with a public deed signed by the Public Notary and the power of attorney of the foreign company, but this route is considered more complex and more expensive than forming a new S.A. or S.R.L. and is generally not recommended for smaller operations.
- Description
- Local presence without a separate legal entity.
Realistic Timeline
- Summary
- Realistically expect 3–6 weeks from engaging a notary to a fully registered, tax-ID'd company if you are a foreign, non-resident founder — faster (1–2 weeks) is possible only in the best case with all documents, apostilles, and translations already in hand.
Supporting Data Points
- Incorporation is typically completed in about 1–2 weeks once documents are ready and the deed is notarized by a Costa Rican Notary Public, then registered at the Costa Rica National Registry.
- The incorporation process in Costa Rica generally takes 4 to 6 weeks, depending on document preparation, translations, and how quickly the National Registry processes the submission.
- Registro Nacional processing of the notarized deed alone usually runs 15-22 business days.
- Unsigned or non-apostilled foreign identity documents are the most common cause of incorporation delays with the Registro Nacional.
Official Registry Links
- Name
- Registro Nacional de Costa Rica (National Registry, operates under the Ministry of Justice and Peace)
Registro De Personas Jurídicas (Corporate Registry Section)
RNP Digital — Online Portal for Company Search, Filings, and Certified Extracts
Tax System Basis
- Regime
- territorial
- Summary
- Costa Rica taxes both resident and non-resident companies only on Costa Rican-source income; income from clients, services, or investments outside Costa Rica is not taxed regardless of where the company is incorporated or who owns it.
- Citation Note
- Under the territorial principle, income generated exclusively in Costa Rica from services rendered, goods located, capital invested, or rights used there is considered Costa Rican-source income; foreign-source income is not subject to taxation whether remitted or not.
Other Recurring Obligations
Other Recurring Obligations
- Companies must register as taxpayers with the Ministerio de Hacienda (tax authority) using Form D-140 when starting economic activity.
- Active companies generally must file monthly VAT declarations in addition to the annual income tax return.
- Annual beneficial-ownership (UBO / RTBF) disclosure must be filed with the Central Bank of Costa Rica for anyone holding 15% or more of share capital, or exercising effective control.
- No audited financial statements are required regardless of company size or revenue, unless a specific sector regulation demands it.
- The company's legal representative (SA president or SRL manager) needs a Costa Rican Digital Signature to file many of these returns — and only Costa Rican citizens or permanent residents can obtain one, so non-resident foreign owners typically must grant power of attorney to a local resident or attorney to handle filings.
Scope Note
This covers Costa Rica's national company-formation law, which applies uniformly to Jaco as to the rest of the country. No Jaco-specific incorporation rules exist; a separate municipal business license (patente municipal) from the Municipalidad de Garabito is a local add-on covered elsewhere, not part of national incorporation.
Typical Costs
- Government Filing Fees Only
- CRC 210,000
Name registration, stamp duty, and basic documentation fees paid to government bodies (excludes attorney/notary professional fees)
- Full First Year All In Estimate
- CRC 1,592,500
Broader all-in estimate including incorporation, legal fees, notarization, tax registration, and initial compliance, as quoted by some incorporation-services firms
- Typical Notary Plus Registration Package
- CRC 455,000
Common local-lawyer package covering notary, drafting, and registration for a straightforward S.A. or S.R.L.
- Note On Variance
- Quoted costs vary substantially by source depending on whether they cover bare notary/registration fees only, or a full first-year package including tax registration and compliance. Treat these as broad ranges, not fixed prices, and get a direct quote from a Costa Rican notary/attorney.
Steps To Incorporate
Steps To Incorporate
- Choose entity type (S.A., S.R.L., or branch) and, for S.A., recruit at least two initial shareholders (can later consolidate to one).
- Engage a Costa Rican notary/attorney — this is not optional; only a notary can draft and execute the incorporation deed.
- Check proposed company/trade name availability with the National Registry (as of a May 2025 legal reform, new companies are no longer required to select a traditional business name — the Registry now assigns a unique legal ID number (cédula jurídica) as the official company identifier, e.g. '1244214, S.A.', though a separate commercial/trade name can still be registered with the Intellectual Property Office).
- Draft and sign the Acta de Constitución (articles of incorporation / constitution deed) before the notary, who records it in their official logbook.
- Notary registers the deed with the Registro Nacional (National Registry) — specifically the Registro de Personas Jurídicas / Mercantil section.
- Register a physical domicilio fiscal (registered office address) in Costa Rica — a verifiable virtual office is acceptable, but a P.O. box or foreign address is not.
- Register with Ministerio de Hacienda (Tax Ministry) via Form D-140 to obtain tax ID and notify start of economic activity.
- If the company will have employees, register as an employer with the Caja Costarricense de Seguro Social (CCSS) and the Instituto Nacional de Seguros for labor-risk insurance.
- Apply for a municipal business license (patente municipal) from the local municipality if operating a physical business open to the public, plus a Ministerio de Salud (health ministry) permit for public-facing businesses.
- Comply with UBO/beneficial-ownership disclosure: since 2020 all entities must register with the Registro de Transparencia y Beneficiarios Finales (RTBF), disclosing any Ultimate Beneficial Owner holding 15% or more, to the Central Bank.
Foreign Ownership And Local Partner Rules
- Details
- Foreigners can start a company in Costa Rica without residency and can own 100% of it. There are no restrictions on foreigners owning businesses in Costa Rica and no residency requirements. Foreign nationals may hold shares in a Costa Rican entity without restriction, and legal entities, including foreign corporations, are permitted to act as shareholders.
- Remote Incorporation
- You can incorporate entirely remotely by granting a power of attorney to a licensed Costa Rican attorney; the power of attorney must be notarized in your home country, authenticated with an Apostille, and translated into Spanish by an official translator.
- Mandatory Local Agent Caveat
- There is one mandatory local-presence requirement that trips up foreign founders: if the company's legal representatives (directors/managers) do not have a registered domicile in Costa Rica, the law mandates the appointment of a Resident Agent — a lawyer with an office in Costa Rica authorized to receive legal notices on the company's behalf. This is not a business 'partner' or equity stake, just a mandatory local legal contact.
- Local Partner Or Sponsor Mandate
- None found — foreigners can own 100% of a Costa Rican company
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
More About Jacó
Data last updated July 2026 · Verify anything important.