Costa Rica Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Costa Rica.
How Costa Rica Taxes Work
Costa Rica's tax system: Territorial — only Costa Rican-sourced income is taxed.
FEIE vs Foreign Tax Credit
FEIE eliminates US tax. Costa Rica's territorial system means zero local tax on foreign income. Ideal for remote workers.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Costa Rica does not have a totalization agreement. Self-employed US expats will owe US SE tax (15.3%) regardless of local contributions.
Banking for US Expats
BAC Credomatic and Banco Nacional accept foreign residents.
Visa Options
Rentista visa (proof of $2,500/month income), Pensionado visa, or Digital Nomad visa.
Cost of Living
Moderate — $1,800–$3,000/month in San José area, less in rural areas.
Frequently Asked Questions
Do US expats in Costa Rica need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FEIE eliminates US tax. Costa Rica's territorial system means zero local tax on foreign income. Ideal for remote workers.
What is the cost of living?
Moderate — $1,800–$3,000/month in San José area, less in rural areas.
Compare FEIE vs FTC vs Combined strategies for Costa Rica.
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