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Costa Rica: Tax residency based on 183 days; tax-exemption beneficiary audits

Costa Rica: Tax residency based on 183 days

An executive decree reflects changes to the concept of "tax resident." Specifically, if an individual is present in Costa Rica for 183 days (instead of six months) during the tax year, that person will be considered to be a tax resident of Costa Rica.


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The decree clarifies that the 183-day period within the country can be continuous or not. In other words, sporadic absences will be taken into account to determine the period of permanence, unless tax residence in another country can be proved.

The tax authority also issued guidance concerning beneficiaries and merchandise that may be exempt from tax. In particular, the guidance specifies when the tax authority can audit taxpayers that fail to satisfy certain reporting requirements concerning the tax exemption.


Read a November 2018 report (Spanish and English) [PDF 78 KB] prepared by the KPMG member firm in Costa Rica

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