Tax Crime in Costa Rica (2025 Guide): Legal Thresholds, Penalties, Procedure, and Risk Mitigation
Quick take: In Costa Rica, tax fraud becomes a criminal offense—not just an administrative infraction—when the amount defrauded reaches at least 500 base salaries.
In 2025, the base salary is ₡462,200, so the criminal threshold is roughly ₡231,100,000. Criminal cases can carry prison terms, while lower amounts are generally handled with administrative fines and surcharges.
In 2025, the base salary is ₡462,200, so the criminal threshold is roughly ₡231,100,000. Criminal cases can carry prison terms, while lower amounts are generally handled with administrative fines and surcharges.
This guide explains the legal framework, the elements and thresholds that turn a tax issue into a criminal case,
common risk scenarios, the procedure authorities follow, penalties, and a practical response plan if your company is notified.
Table of Contents
- Legal framework
- Elements & criminal threshold
- Common criminal-risk scenarios
- Administrative vs. criminal: key differences
- How investigations progress
- Penalties & collateral impacts
- Compliance program: preventing exposure
- What to do if you’re notified (step by step)
- Frequently asked questions
- Talk to a lawyer
Author: AG Legal Costa Rica • Reviewed by: Tax & White-Collar Team • Updated: Sep 19, 2025
Legal framework
Tax crimes in Costa Rica are primarily regulated by the Tax Code (Código de Normas y Procedimientos Tributarios, Law N.º 4755, as amended, including by Law N.º 9069).
Anti-evasion measures and transparency duties—such as beneficial ownership filing—fall under Law N.º 9416 and its 2024 regulation.
Lower-gravity behaviors are sanctioned as administrative infringements by the Tax Administration.
Elements & criminal threshold
- Intent (dolo): deliberate conduct to obtain an undue patrimonial benefit by evading taxes, withholding/collecting but not remitting, or obtaining undue refunds/benefits.
- Monetary threshold: the defrauded amount must reach at least 500 base salaries. For 2025, base salary is ₡462,200 → threshold ≈ ₡231,100,000.
- Aggravation: fraud above that threshold is treated as a serious criminal offense, with imprisonment as the principal penalty under the Tax Code.
Note: “Base salary” is an official reference set annually and used across penal and tax rules in Costa Rica.
Common criminal-risk scenarios
- Underreporting income or inflating deductions in a way that reaches the criminal threshold.
- Withholding VAT or income tax and failing to remit (e.g., payroll withholdings or third-party retentions).
- False refund claims or improper tax benefits obtained deliberately.
- Use of sham invoices/entities to generate artificial costs or hide beneficial ownership.
- Obstructing oversight (destroying or falsifying records) in connection with fraudulent schemes.
Administrative vs. criminal: key differences
- Administrative infractions: sub-criminal behavior handled by the Tax Administration with fines, surcharges, and interest. Amounts below the criminal threshold—even when serious—are generally resolved administratively.
- Criminal fraud: requires intent and meeting the 500 base-salary threshold; it is prosecuted by the Public Prosecutor’s Office following a referral.
How investigations progress
- Audit & findings: The Tax Administration conducts an audit. If indicators suggest criminal fraud, it prepares a referral.
- Referral to prosecutors: Case materials go to the Public Prosecutor’s Office (Ministerio Público).
- Criminal investigation: Prosecutors and judicial police gather evidence; precautionary measures may be requested.
- Charging & trial: If charges are filed, the case proceeds through the criminal courts. Parallel tax collection and administrative procedures can continue.
Penalties & collateral impacts
- Imprisonment for serious tax fraud cases meeting the legal threshold (punishment defined by the Tax Code).
- Fines, surcharges, and interest in administrative pathways; these may also accrue in parallel to the criminal case.
- Reputational and banking risk: KYC reviews, credit restrictions, and contract complications.
- Management exposure: directors, accountants, and advisors may face liability where participation is proven.
Compliance program: preventing exposure
- Governance & UBO: keep beneficial ownership filings current (Law 9416), align bylaws/mandates, and maintain corporate records.
- Accounting & e-invoicing: complete ledgers, authorized e-invoices, reconciliations, and documented transfer pricing where applicable.
- Tax positions: written memos for significant deductions/exemptions and consistent treatment across returns.
- Internal controls: segregation of duties for withholdings, payment calendars, and management certifications.
- Response playbook: audit-response SOPs, document preservation, and escalation protocols to counsel.
What to do if you’re notified of a potential tax crime (step by step)
- Preserve evidence: freeze deletions; secure accounting, bank, and e-invoicing data.
- Engage counsel immediately: coordinate communications with the Tax Administration and prosecutors.
- Fact check & quantify: compute exposure vs. the 500 base-salary threshold; assess intent indicators.
- Prepare your defense file: ledgers, invoices, contracts, expert reports, and governance evidence (UBO filings, board minutes).
- Define strategy: administrative remedies, payment arrangements (where appropriate), and litigation roadmap.
Frequently asked questions
- What is the 2025 criminal threshold?
- 500 base salaries. With a base salary of ₡462,200 in 2025, that equals about ₡231.1 million.
- Does paying the tax eliminate criminal liability?
- Payment can reduce financial exposure and may influence prosecutorial criteria, but it does not automatically erase criminal liability. Get case-specific advice.
- Are accountants or directors personally liable?
- They can be, if evidence shows participation or facilitation. Strong governance and documentation help mitigate risk.
- What if my case is below the threshold?
- It is generally handled administratively (fines, surcharges, interest). Robust technical defense still matters.
- What is “base salary”?
- An official reference amount used to set fines/penalties nationwide. Authorities publish it each year; for 2025 it is ₡462,200.
Related resources:
Talk to a lawyer
Facing an audit or a potential criminal referral? Our team handles strategy, defense files, and representation before the Tax Administration and prosecutors.