The legislative assembly of Costa Rica approved an income tax treaty between Costa Rica and Germany. The next step in the treaty ratification process is for the president to approve the treaty, and if approved, Costa Rica would be ready for the exchange of instruments of ratification.
The Costa Rica-Germany income tax treaty includes the following withholding tax rates:
It also contains a clause concerning interest in connection with the sale of commercial or scientific equipment on credit that would be incorporated in to the Costa Rica-Spain income tax treaty under that agreement’s “most favored nation” provision.
Ratification of the treaty in Germany is still pending (the signature of the president and publication of the treaty in the official gazette are needed).
Read a January 2016 report [PDF 137 KB] prepared by the KPMG member firm in Costa Rica: Tax & Legal news flash
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