Costa Rica: Deductibility of Donations

All income tax payers may declare as deductible expenses the donations they make during the tax period, provided that the following conditions are met:


  1. The amount of the donation does not exceed 10% of the donor’s net income regardless of the donation.
  2. Each donation must be properly documented with the following details:
  • Company name, legal identity card and address of the donor
  • Name and ID of the person receiving the donation
  • Company name, legal status and address of the donor
  • Detailed description of the donation, indicating the goods received, the unit value and the total amount received Donations in kind will be valued at their market value.
  • Date of the donation

3. The recipient must be an entity authorized by the Tax Administration. In the following link you can consult the current authorized entities:


This authorization is not required for donations made in favour of the State, its autonomous and semi-autonomous institutions, Municipal Corporations, State Universities, the Social Protection Board, the boards of education and the administrative boards of the public educational institutions of the Ministry of Public Education, the State educational institutions, to the Costa Rican Red Cross and other institutions, such as associations or foundations for social, scientific or cultural works, as well as donations made in favour of civil and sports associations declared to be of public utility or committees officially appointed by the Costa Rican Institute of Sport and Recreation and the Museum of Clean Energy in Bagaces.


Before declaring your donations as a deductible expense for this fiscal period, it is essential to verify compliance with the above requirements. Additionally, the application of VAT must be reviewed, depending on who receives the donation.

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