Costa Rica · Tax on foreign income
Does Costa Rica tax foreign income? A guide for Americans
Short answer
Costa Rica taxes only income earned in Costa Rica, so US pensions, interest and remote-worker pay aren't taxed here today. A bill would tax residents' foreign interest and dividends.
What you'd pay, by situation
| Retiree on US income $0 a year today, however long you stay | US Social Security, pensions and interest aren't earned in Costa Rica, so they aren't taxed here. A bill would tax foreign interest. Pending change |
|---|---|
| Remote worker paid from the US $0 with remote-worker status | With remote-worker status, your US pay is tax-free here. Working on a tourist stamp isn't allowed, and how it would be taxed isn't settled. Needs review |
| Working for a local employer 0% up to about $2,070 a month, then 10–25% | Pay for work in Costa Rica is taxed monthly, and you'll need a status that allows the work. |
Checked against the law The territorial rule, the remote-worker exemption and the 2026 salary rates.
Pending change Bill 25.796 would tax residents' foreign interest, dividends, rents and gains at 15%. It's in committee, not law.
How it works
- Tax residence: more than 183 days in the tax year, counting arrival and departure days. A residence permit alone doesn't make you resident.
- What's taxed: only income earned in Costa Rica, even for residents. Foreign income isn't taxed today.
- No US tax treaty: the US and Costa Rica have no income tax treaty.
- Your US return: you still file every year. With no Costa Rican tax, there's usually nothing to credit; see a tax adviser.
- No Social Security agreement: US payroll tax continues. Retiree and income residents must also pay into the public health system.
Taxes in Costa Rica, with worked examples → The full Costa Rica guide →
Questions people ask
Does Costa Rica tax US Social Security and pensions?
US Social Security, pensions and interest aren't earned in Costa Rica, so they aren't taxed here. A bill would tax foreign interest. (Pending change)
Remote worker paid from the US in Costa Rica: what would I pay?
With remote-worker status, your US pay is tax-free here. Working on a tourist stamp isn't allowed, and how it would be taxed isn't settled. (Needs review) Ballpark: $0 with remote-worker status.
Working for a local employer in Costa Rica: what would I pay?
Pay for work in Costa Rica is taxed monthly, and you'll need a status that allows the work. Ballpark: 0% up to about $2,070 a month, then 10–25%.