Costa Rica 15% tax plan would hit long-stay nomads, not visa holders

A proposed expansion, not a tax already in force

Costa Rica would extend taxation of foreign passive income to individual tax residents under a bill introduced Sept. 22, 2026. The current foreign passive income regime applies to nonqualified entities belonging to multinational groups; the proposal would reach residents generally, including individuals, KPMG said.

Bill No. 25.796 proposes a general rate of 15% on overseas interest, dividends, royalties, rental income and capital gains. It remains a proposal, not an enacted tax. The legislative tracker lists it as presented, with a committee pending and no votes recorded, per Delfino.

How the proposed calculation works

Foreign taxes wouldn't become a direct credit against the Costa Rican bill. Instead, analogous tax paid or withheld abroad would be deducted from gross income before Costa Rica calculates its tax, KPMG said.

That distinction matters for expats budgeting investment income: paying tax where an overseas asset sits wouldn't necessarily eliminate the additional Costa Rican charge. A resident receiving $100 in dividends with $30 of foreign tax would face 15% on the remaining $70 or $10.50, under the example reported by El Mundo.

What it means for digital nomads

Foreigners who are ordinary Costa Rican tax residents and hold income-producing assets abroad are the relevant group. The ordinary physical-presence test includes stays of more than 183 days, with rules for counting short absences. An immigration label alone isn't the test for this proposal.

Authorized digital nomad beneficiaries have a different existing framework. They aren't considered habitual residents for tax purposes and their foreign income isn't treated as Costa Rican-source income, EY said. Those benefits don't automatically extend to accompanying family members.

The bill targets passive returns, not a new worldwide tax on every salary or freelance payment. For workers with local or foreign clients, the proposed change concerns their overseas investment income if they are tax residents. Short-stay travelers who aren't tax residents fall outside that residence-based scope. The bill must complete the legislative process before it can take effect.