Short answer. Fees paid to non-resident artists in Costa Rica are subject to a 15% withholding under Article 53 of the Income Tax Law. Because most international artists quote net fees, that withholding is usually added to the organizer's budget. Orientation guide only; confirm with your tax advisor.
How it works
The payer in Costa Rica (company, producer or institution) withholds 15% of the amount paid to the non-resident artist and remits it to the tax authority.
Why it affects your budget
International contracts usually agree a net fee: the artist receives the full agreed amount. The organizer therefore has to gross up the payment to cover the withholding.
| Item | How it is handled |
|---|---|
| Agreed net fee | What the artist receives |
| 15% withholding | Paid by the organizer if the fee is net |
| Flights, hotels, riders | Budgeted separately |
Recommendations
- Ask at offer stage whether the fee is net or gross.
- Include the withholding from the very first quote.
- Check with your accountant whether any treaty or exception applies.
*Orientation guide only; confirm with your tax advisor.*
Keep reading: How much does it cost to book an artist? · Offer models
FAQ
Who pays the withholding?
Legally the payer in Costa Rica applies it. If the fee is net, the organizer bears the cost.
Does it apply to local artists?
Not in the same way: this withholding is for non-residents. Ask your tax advisor about your case.
