Nov 10, 2025
Resolution MH-DGT-RES-0051-2025: Use of Form 129 for Capital Gains Withholding in Transactions with Non-Residents
1. Purpose and Scope of the Resolution
Resolution MH-DGT-RES-0051-2025 sets out the requirements for withholding, declaring, and paying the tax on capital gains generated from the transfer of taxable assets owned by non-residents in Costa Rica.
The legal basis is found in Article 28 ter of the Income Tax Law, which provides that when a non-resident transfers real property located in Costa Rica, the purchaser must withhold 2.5 % of the total sales price.
This withholding constitutes the final and definitive tax for the foreign seller, who is not required to file an additional return for that transaction.
Consequently, only transactions involving non-residents remain subject to withholding, while the obligation for resident sellers was eliminated—simplifying the overall compliance framework.
2. Taxable Event and Withholding Agents
The taxable event is the onerous transfer of assets located in Costa Rica, where the transferor is an individual or legal entity not domiciled in the country. In practice, this includes sales of land, buildings, condominiums, or any other registrable real estate.
The obligated party is the buyer or acquirer, who acts as the withholding agent and must both declare and remit the amount withheld to the Tax Authority.
This requirement applies to both individuals and corporations domiciled in Costa Rica that make payments to non-residents.
Failure to withhold or pay on time carries significant consequences:
The National Registry will not record the transfer of the property without proof of tax payment.
The buyer may face penalties under Articles 80, 80 bis, and 150 of the Tax Code in the event of non-compliance.
3. Use of Form 129
The resolution mandates that all declarations and payments of this withholding must be filed exclusively through Form 129 – “Capital Gains Withholding – Non-Resident,” available in the TRIBU-CR system as of October 6, 2025.
The DGT has confirmed that this is the only valid channel for compliance, and any filing through alternative means will be invalid.
Form 129 must be completed online and include:
a) Identification of the non-resident seller.
b) Identification of the transferred asset.
c) Total transaction value.
d) Amount withheld (2.5 % of the sales price).
e) Date of transfer and payment method.
The filing and payment deadline is within the first 15 calendar days of the month following the transaction.Payment is made directly through TRIBU-CR using authorized banking channels.
4. Operational Procedure for Companies
As of the resolution’s effective date, companies and individuals making payments to non-residents for asset sales in Costa Rica must follow this operational flow:
Verify the seller’s tax residency. Confirm that the counterparty qualifies as a non-resident to determine withholding applicability.
Calculate the withholding. Apply 2.5 % of the total sales price in accordance with Article 28 ter.
File Form 129 in TRIBU-CR, declaring the withholding within the statutory deadline.
Execute electronic payment using the authorized banking interface.
Obtain proof of payment, which must be presented to the National Registry to finalize the property transfer.
Maintain supporting documentation: copy of the sales agreement, proof of withholding, submitted form, and payment receipt.
5. Strategic and Operational Implications
For both local and multinational entities that make payments to non-residents—whether for real estate, shareholdings, fixed assets, or other rights in Costa Rica—this resolution entails new operational and control requirements:
Treasury and accounting adjustments: Finance teams must record the 2.5 % withholding as an immediate tax liability whenever a transaction with a non-resident occurs.
Risk management: Missing the payment deadline prevents registration of the transfer and may result in penalties; companies should implement internal controls and alerts to ensure compliance within 15 days.
Contractual alignment: Purchase or asset-transfer agreements should include specific clauses on the obligation to withhold and declare the tax to avoid disputes.
Global tax policy review: Multinationals should verify whether this withholding can be credited in the seller’s jurisdiction under applicable double-tax treaties.
Integration with TRIBU-CR: Adoption of Form 129 reinforces digital tax traceability, making it essential to train staff in the system’s use and ensure accurate electronic filings.
Resolution MH-DGT-RES-0051-2025 represents another step in the modernization of Costa Rica’s tax compliance landscape.
By establishing a digital, transparent, and standardized procedure for capital gains withholding on transactions with non-residents, the measure enhances traceability, simplifies administration, and strengthens revenue assurance.
For businesses, the reform calls for a preventive and structured approach: verifying counterparties’ residency, updating internal systems, and ensuring timely withholding and declaration through TRIBU-CR.
Proactive management will minimize penalties and secure the legal validity of asset-transfer transactions in the country.
References
Dirección General de Tributación, Resolution MH-DGT-RES-0051-2025 (Supplement No. 129 to La Gaceta No. 186, 06/10/2025).
Income Tax Law (Law No. 7092), Article 28 ter.
Tax Code – Articles 80, 80 bis and 150.