Costa Rica

Cryptocurrencies are legal in Costa Rica but are not recognized as legal tender by the Central Bank. For tax purposes, they are generally classified as virtual or intangible assets, guided by a Private Letter Ruling from the tax authority. This means their use is permitted, but specific legislation tailored to crypto is still evolving. Crypto taxation in Costa Rica falls under the general tax framework, overseen by the Dirección General de Tributación (DGT). The country operates on a territorial tax system, which is a key aspect of its tax landscape for investors. Under this territorial system, gains derived from crypto activities sourced within Costa Rica are generally subject to a flat 15% capital gains tax. Crucially, any crypto gains considered foreign-sourced are entirely exempt from taxation. There is no distinction or benefit for holding crypto assets for longer periods, the 15% rate applies regardless of duration. If crypto activities are conducted as a business, the standard corporate tax rate of 30% applies instead. A 13% Value Added Tax (VAT) is levied only on crypto service fees and exchange charges, not on the crypto assets themselves or investment gains. Specific crypto activities like staking, mining, and DeFi yields are typically treated as capital income and are subject to the 15% capital income tax if they are territorial sources. If these activities constitute a business, they are subject to corporate tax rates, with mining allowing for expense deductions. Non-Fungible Tokens (NFTs) are also considered virtual assets, and sales of NFTs are subject to the 15% capital gains tax on appreciation from territorial sources. Both converting crypto to fiat currency and swapping one cryptocurrency for another are considered taxable events, triggering capital gains tax on any appreciation if the source is territorial. While the current tax framework relies on general principles and administrative rulings, legislative changes are being considered. Bills 22.837 and 23.415 have been proposed to regulate virtual asset service providers (VASPs) and establish a comprehensive Cryptoassets Market Law, which could introduce more specific tax policies and potentially alter the current treatment of crypto assets.