Costa Rica · Taxes
Costa Rica taxes for US citizens
Source-checked20 sources, 19 officialHow we checkIn brief
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.
In short: what you'd pay in Costa Rica
Retiree on US income
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
Ballpark: $0 a year today, however long you stay
Remote worker paid from the US
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
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%
Checked against the lawThe territorial rule, the remote-worker exemption and the 2026 salary rates.
Pending changeBill 25.796 would tax residents' foreign interest, dividends, rents and gains at 15%. It's in committee, not law.
How Costa Rican tax 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.
Not yet verifiedThe 183-day test in later rule changes, and the treaty and Social Security lists.
Sources (7)
Links
- Ley 7092, Ley del Impuesto sobre la Renta (SCIJ)
- Decreto 41818-H, reforma Reglamento de la Ley del Impuesto sobre la Renta (SCIJ)
- Ley 9996, investors, rentistas and pensionados (SCIJ)
- IRS: US income tax treaties A to Z
- SSA: international Social Security agreements
- IRS: US citizens and resident aliens abroad
- IRS: foreign tax credit, how to figure the credit
Nine worked examples, 2026
The retiree has $30,000 of Social Security, a $40,000 private pension and $20,000 of interest. The remote employee holds remote-worker status for the stay.
| Who | Days in Costa Rica | Costa Rica income tax | US income tax, before credits |
|---|---|---|---|
| Remote employee, $60,000 | 90 | $0 | $5,020 |
| Remote employee, $60,000 | 182 | $0 | $5,020 |
| Remote employee, $60,000 | 365 | $0 | $5,020 |
| Remote employee, $150,000 | 90 | $0 | $24,734 |
| Remote employee, $150,000 | 182 | $0 | $24,734 |
| Remote employee, $150,000 | 365 | $0 | $24,734 |
| Retiree, $90,000 | 90 | $0 | $8,348 |
| Retiree, $90,000 | 182 | $0 | $8,348 |
| Retiree, $90,000 | 365 | $0 | $8,348 |
Don't add the two columns: credits and the foreign earned income exclusion can cut the US part.
Needs reviewA remote employee without remote-worker status, and the health-system contributions.
Pending changeIf bill 25.796 passes, the full-year retiree's US interest would be taxed.
Sources (15)
Legal basis and exact figures
- Territorial rule: only income 'generados exclusivamente en el territorio nacional' is taxed (Ley 7092 art 1). Domicile after more than 183 days in the fiscal year, entry and exit days included (Reglamento ISR art 5, 2019 text; later reforms not checked). Pensionado or rentista status doesn't by itself create tax residence (Ley 9996 art 6).
- Remote employees: $0 only with Ley 10008 status: total exemption from the Title I profits tax, never a habitual tax resident, foreign pay not Costa Rican-source (Ley 10008 art 16; Reg 43619 art 13). Without it, work done in Costa Rica is Costa Rican-source; the collection route for pay from a foreign employer with no local withholding agent isn't established, so no figure. Illustration only, not a result: the 2026 monthly salary scale (Decreto 45333) on $5,000 a month gives about $4,686 a year; on $12,500 a month, about $23,577 (BCCR buying 442.74).
- Salary scale 2026 (monthly): 0% to ¢918,000; 10% to ¢1,347,000; 15% to ¢2,364,000; 20% to ¢4,727,000; 25% above (Decreto 45333, from 1 Jan 2026).
- Retiree: US Social Security, a US pension for past US work and US interest aren't generated in Costa Rica, so $0 at every day count. Qualification: Title II art 32(ch) taxes 'jubilaciones y pensiones de cualquier régimen' of domiciled persons; its reach to foreign-paid pensions was read against art 1 only, without DGT guidance.
- Pending change: Expediente 25.796 (Executive bill, 22 Sep 2026, Comisión de Asuntos Hacendarios) would reform Ley 7092 arts 1, 27, 27 bis, 27 ter, 28 and 31 ter: residents with foreign assets would pay 15% on foreign interest, dividends, royalties, rents and capital gains, with foreign tax deducted from the base. Foreign pensions and Ley 10008 workers aren't named. Official SIL page unreachable; status to re-check. Related bill 25.734 (Aug 2026) is pending (press only).
- US side: US figures are federal income tax before the exclusion and credits; employee FICA is extra ($4,590 on $60,000; $11,475 on $150,000). No US income tax treaty (IRS list, last reviewed 3 Jan 2026) and no totalization agreement. CCSS contributions for pensionados and rentistas are mandatory but not quantified, and unknown for remote workers, so no totals.
Links
- Ley 7092, Ley del Impuesto sobre la Renta (SCIJ)
- Decreto 41818-H, reforma Reglamento de la Ley del Impuesto sobre la Renta (SCIJ)
- Decreto 45333-H, income tax bands from 1 January 2026 (SCIJ)
- Ley 10008, remote workers and service providers (SCIJ)
- Ley 9996, investors, rentistas and pensionados (SCIJ)
- Bill Exp. 25.796, tax on foreign-source passive income (base text, 22 Sep 2026)
- Banco Central de Costa Rica: reference exchange rate
- IRS: US income tax treaties A to Z
- SSA: international Social Security agreements
- IRS: 2026 inflation adjustments
- IRS: US citizens and resident aliens abroad
- IRS: foreign earned income exclusion
- IRS: foreign tax credit, how to figure the credit
- IRS: FICA tax rates (Topic 751)
- IRS Publication 915: Social Security benefits
Other Costa Rica guides
Every rule with its legal source.
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