Costa Rica: Income tax treaty with Mexico

Costa Rica’s legislature on 10 December 2018 approved legislation concerning ratification of an income tax treaty for the avoidance of double taxation and to prevent fiscal evasion between Costa Rica and Mexico. 

The income tax treaty defines the terms and conditions as to which country income would be taxed. The treaty applies for income taxes, and addresses the tax treatment for income obtained by the resident of one country in the other, including business benefits, dividends, interests, royalties, capital gains, and salary.

The treaty has been approved by Mexico’s legislative branch, and with the ratification by Costa Rica, the remaining step for the treaty’s entry into force is notification to the Mexican government.

Read a December 2018 report (Spanish and English) [PDF 128 KB] prepared by the KPMG member firm in Costa Rica

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