Costa Rica expat tax guide
North America · how a foreigner who moves to Costa Rica is taxed · 2026 · Expat-friendly
If you move to Costa Rica, you become a tax resident when tax resident if present over 183 days (continuous or not) in the fiscal period. As a resident you are taxed on a territorial basis — A new resident is taxed only on Costa Rica-source income; foreign-source income (including foreign pensions) is not subject to Costa Rican tax. The top personal income tax rate is 25%. A foreign pension is treated as: Not taxed — foreign pensions are foreign-source (e.g. US Social Security not taxed). Costa Rica also offers the Pensionado / Rentista visas (not a tax regime) regime, which can sharply change this picture. It lacks a US tax treaty and lacks a US totalization agreement. Overall it reads as expat-friendly for an inbound mover. General information, not tax advice — verify with Costa Rica's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Costa Rica expat tax at a glance
| Question | Costa Rica (2026) |
|---|---|
| When you become tax resident | Tax resident if present over 183 days (continuous or not) in the fiscal period |
| Residency day-count trigger | 183 days |
| How residents are taxed | Territorial — A new resident is taxed only on Costa Rica-source income; foreign-source income (including foreign pensions) is not subject to Costa Rican tax. |
| Top personal income tax rate | 25% |
| Foreign pension treatment | Not taxed — foreign pensions are foreign-source (e.g. US Social Security not taxed) |
| Foreign capital gains / dividends | Not taxed — foreign capital gains/dividends fall outside the territorial base |
| Special expat / non-dom / retiree regime | Pensionado / Rentista visas (not a tax regime) |
| US income tax treaty | No |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Costa Rica, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Costa Rica
The first thing that matters is tax residency: tax resident if present over 183 days (continuous or not) in the fiscal period. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Costa Rica largely leaves foreign income alone (territorial basis), which is why it appears on lists of friendly destinations for expats and remote workers. The top 25% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Not taxed — foreign pensions are foreign-source (e.g. US Social Security not taxed). Foreign capital gains and dividends: Not taxed — foreign capital gains/dividends fall outside the territorial base. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Costa Rica taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The Pensionado / Rentista visas (not a tax regime) regime
Pensionado (lifetime pension at least USD 1,000/mo) and Rentista (stable income at least USD 2,500/mo) are residency visas; they grant no special tax treatment — foreign income is untaxed simply because of Costa Rica's standard territorial system.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with Costa Rica's tax authority before relying on it.
US citizens and social security in Costa Rica
| Question | Costa Rica |
|---|---|
| US income tax treaty? | No |
| US social-security totalization agreement? | No |
| Tax basis for residents | Territorial |
| Top personal income tax | 25% |
There is no US tax treaty with Costa Rica, so US citizens rely on the Foreign Tax Credit (and the Foreign Earned Income Exclusion) under US domestic law to soften double taxation. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Costa Rica. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Costa Rica
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Costa Rica (this country) | Territorial | 25% | Pensionado / Rentista visas (not a tax regime) |
| Panama | Territorial | 25% | Pensionado retiree visa (not a tax regime) |
| Belize | Territorial | 25% | QRP (Qualified Retired Persons) |
| Malaysia | Territorial | 30% | Malaysia My Second Home (MM2H) |
| Singapore | Territorial | 24% | None |
| Hong Kong | Territorial | 17% | None |
Frequently asked questions
When do you become a tax resident of Costa Rica?
Tax resident if present over 183 days (continuous or not) in the fiscal period. The headline trigger is 183 days. Once resident, Costa Rica taxes you on local-source income only (foreign income is generally outside scope). This is general information for 2026, not tax advice — verify with the official authority.
How does Costa Rica tax a foreign pension?
Not taxed — foreign pensions are foreign-source (e.g. US Social Security not taxed). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the Pensionado / Rentista visas (not a tax regime) regime in Costa Rica?
Pensionado (lifetime pension at least USD 1,000/mo) and Rentista (stable income at least USD 2,500/mo) are residency visas; they grant no special tax treatment — foreign income is untaxed simply because of Costa Rica's standard territorial system. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with Costa Rica's tax authority.
Is Costa Rica good for US citizens or retirees?
Costa Rica does not have a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Costa Rica compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Two parallel schedules, both topping at 25% for 2026. No US tax treaty; no totalization agreement. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Costa Rica's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21