Costa Rica

Immigration & residency

Americans use several residency categories; requirements change and should be confirmed before you commit.

• Pensionado (qualifying lifetime pension income) and Rentista (qualifying stable income or other permitted financial evidence) residency.
• Inversionista residency based on qualifying investment — confirm current thresholds before investing in reliance on eligibility.
• A separate Digital Nomad category for qualifying remote workers, with its own income, family, and renewal rules.

Tax considerations

U.S. citizens keep U.S. filing obligations and may take on Costa Rican ones for local-source income.

• Costa Rica generally applies a territorial system; foreign-source income has generally been outside the local tax base, subject to exceptions and current rules.
• There is no U.S.–Costa Rica income tax treaty or totalization agreement, so double-tax relief runs through U.S. rules — the foreign tax credit and the FEIE.
• Rental income can bring Costa Rican taxpayer registration, electronic invoicing, and filing requirements.
• U.S. reporting (FBAR, FATCA) continues, and Costa Rican corporations or trusts can add Forms 5471, 8858, or 3520.

U.S. tax topics are informed by James M. Cassidy, CPA, with Costa Rica-side perspective from Gustavo Morales of Accounting Services Costa Rica. This section is general information only — not tax advice; always consult a qualified tax professional in the relevant jurisdiction.

Financial planning

Keeping U.S. accounts working while you build a life in Costa Rica takes coordination.

• Confirm whether your U.S. brokerage and retirement custodians keep non-resident accounts open.
• Plan income across currencies, and consider currency movement in your cash-flow planning.
• Coordinate U.S. and Costa Rica-side professionals so nothing falls between the two systems.

Cross-border financial planning at US Expat is led by Adrian Flambard and Bennett Linsky.

Insurance & protection

Coverage that worked at home often needs review once you are resident in Costa Rica.

• Health coverage in Costa Rica — enrollment in the public CCSS system is generally part of residency, and private plans are widely used alongside it.
• Whether existing U.S. life and protection policies travel with you.
• Transitional and travel coverage for the move itself.

Insurance topics are informed by our contributing specialists, Ron Sussman and Anthony Giannone.

Banking & currency

Setting up locally and moving money sensibly are early practical steps.

• Opening a Costa Rican bank account and handling day-to-day payments.
• How FATCA shapes what Costa Rican banks ask U.S. citizens for.
• Managing transfers, currency, and cash flow across two countries.

Banking and U.S.-account topics at US Expat are covered by Adrian Flambard and Bennett Linsky.

Real estate & ownership structures

How you hold Costa Rican property shapes your U.S. filings for years.

• Property may be held directly or through a Costa Rican corporation (S.A. or S.R.L.), which the IRS usually treats as a foreign corporation.
• A corporation that only holds your home can still require an annual Form 5471.
• Local tax, legal, liability, and succession considerations should be reviewed with Costa Rican advisors before you choose a structure.

The U.S. tax treatment of Costa Rican property is a question for James M. Cassidy, CPA, with Costa Rica-side accounting perspective from Gustavo Morales of Accounting Services Costa Rica. This section is general information only — not tax advice; always consult a qualified tax professional in the relevant jurisdiction.