Author: Mauro Esquivel

The new income tax brackets are effective from January 1 to December 31, 2021. An adjustment must be made each year, as provided in Law 7092, and in accordance with the Consumer Price Index.

This update responds to the variation in the Consumer Price Index (CPI) which measures how the prices of products change. It is assumed that, with that, people’s incomes also change. The indicator is measured by the National Institute of Statistics and Censuses (INEC).

Law 9635 “Law for the Strengthening of Public Finances”, modified the ordinary fiscal period of income tax, so that now the closing of the period is December 31 of each year, and the deadline to file and pay, without fines, was moved to March 15 of the following year.


The tax that must be paid for the salary increased by 0.28% as of January 1, 2021.

The new tranches will affect all wage earners whose income is higher than ₡ 842,000.00 per month. Before that amount they are exempt.

With adjustment, these are the new legs:

-Salary up to ₡ 842,000.00: exempt.

-Between ₡ 842,000.00 and up to ₡ 1,236,000.00 per month: 10%.

-Between ₡ 1,236,000.00 and up to ₡ 2,169,000.00 per month: 15%.

-Between ₡ 2,169,000.00 and up to ₡ 4,337,000.00 per month: 20%.

-Over the excess of ₡ 4,337,000.00 per month: 25%.

Additionally, wage earners are entitled to a tax credit, which is a reduction that is applied to the tax for being married or having children, which is also adjusted each year.

The monthly tax credit per child remained at ₡ 1,570, as confirmed by Taxation, and the tax credit per spouse went from ₡ 2,360 to ₡ 2,370.


-Annual net income (profit) up to ₡ 3,742,000.00: Exempt.

-Over the excess of ₡ 3,742,000.00 and up to ₡ 5,589,000.00 of annual net income: 10%.

-Over the excess of ₡ 5,589,000.00 and up to ₡ 9,322,000.00 of annual net income: 15%.

-Over the excess of ₡ 9,322,000.00 and up to ₡ 18,683,000.00 of annual net income: 20%.

-Over the excess of ₡ 18,683,000.00 of annual net income: 25%

The exception to the deduction is in salaried persons who also carry out a lucrative activity. If as a salaried employee you already enjoy an exempt section, then you do not have it as a natural person with lucrative activity.

The modification affects LEGAL PERSONS (COMPANIES), for whom the new sections apply as detailed below:

Applies for gross income (total income) that does not exceed ₡ 109,337,000.00 during the fiscal period:

-On the first ₡ 5,157,000.00 of annual net income (income less expenses = utility): 5%.

-Between ₡ 5,157,000.00 and up to ₡ 7,737,000.00 of annual net income: 10%.

-Between ₡ 7,737,000.00 and up to ₡ 10,315,000.00 of annual net income: 15%.

-Over the excess of ₡ 10,315,000.00 of annual net income: 20%.

If the gross income during the fiscal period exceeds ₡ 109,337,000.00, the previous parameters do not apply and you must pay 30% of the annual net income.

The Magic at Scala Restaurant in Dominical 1

The Magic at Scala Restaurant in Dominical

Scala Restaurant & Sibú Café are located at the Escaleras Village. On the Coastal Highway, just a few kilometers South of Dominical or North of Uvita, follow the sign to Escaleras. It offers a gorgeous contour between the jungle and the sea. Village Escaleras is an all-open location with three environments with a cool breeze that blows across the terraces.

It has a hip atmosphere and soothing environment; you feel like relaxing in the midst of the jungle with the ocean showing through the tall trees. The place is so well-liked that most customers come regularly to have an early breakfast or enjoy a delicious lunch or dinner with their family, friends, or business partners. 

Continue reading
The Magic Of Love Romantic Dinner at Retro Restaurant

A romantic dinner at Retro Restaurant

Retro Restaurant offered a romantic dinner to celebrate the ocassion. That night we can say that the magic of love floated in the place. To complement the decoration, the fine attention, and the special menu that Chef Jordany prepared, we had the opportunity to enjoy the songs performed by Armando Román and incredible magic acts performed by two distinguished magicians,

Continue reading
Feng Shui

Feng Shui

FENG SHUI, the Chinese art of interior design, brings us success, health, and an “even” better life. Feng-Shui, literally translated as “wind-water,” is the art of living in harmony with the environment. Happiness, prosperity, and health increase. Feng-Shui teaches life in harmony with the five natural elements: earth, metal, water, wood, and fire.

Continue reading
La nueva condición humana - new human condition

The New Human Condition?

A great paradox encloses the new human condition, even though so many essayists have presented us with such eloquent and diverse points of view. It only amplified this dilemma since probably the best we can comprehend is that this great paradox would be logical, and therefore, its comprehension inaccessible.  

Continue reading
COVIRENAS – Protecting Biodiversity 3

COVIRENAS – Protecting Biodiversity

Osa is home to 2.5% of the world’s biodiversity. Unfortunately, it has one of the lowest human development indices in the country.
The Osa Peninsula has historically had socioeconomic conflicts that inevitably trigger environmental crimes.

Continue reading

MANASSAH, the need for a change in life

Manassah is from Chicago (Illinois) and has lived in Uvita for five years. She left behind her job as a court reporter, well paid, and no less stressed in the metropolis of Chicago with a population of nearly 3 million people. The need for a change in her life was prevalent. After volunteering at the Hostel Cascada Verde in Uvita in 2009, she decided to focus on moving to Uvita permanently.

Continue reading

Dare to Discover and Enjoy…

Check out…

Need help planning your next trip? Let us help you with your Costa Rica vacations!

Email: [email protected]
Phone: +(506) 8946 7134 or +(506) 8914 1568
Skype: ballenatalestravel

Posted in finances and tagged .