For US citizens and green card holders in Costa Rica
US Taxes for Americans Living in Costa Rica
US citizens and green card holders who live in Costa Rica still file a US return every year, report Costa Rican accounts, and choose how to avoid double tax. This guide covers the treaty, social security, FBAR and catching up on missed years.
Quick answer
Do US citizens living in Costa Rica have to file US taxes?
Yes. The US taxes citizens and green card holders on worldwide income wherever they live. Living in Costa Rica gives an automatic extension to June 15, accounts there above US$10,000 in total need an FBAR, and the foreign tax credit or the foreign earned income exclusion (US$132,900 for 2026) usually prevents double tax. The US does not have an income tax treaty with Costa Rica, and there is no social security agreement.
At a glance
- Yearly US return
- Yes, on worldwide income; due June 15 automatically when living abroad
- US tax treaty with Costa Rica
- No, per the IRS list
- Social security agreement
- No, per the SSA list
- Accounts in Costa Rica
- FBAR above US$10,000 in total; Form 8938 above higher limits
- Behind on filing
- Streamlined: 3 years of returns, 6 years of FBARs
Do Americans living in Costa Rica have to file US taxes?
Yes. The United States taxes its citizens and green card holders on worldwide income wherever they live, so moving to Costa Rica does not end the yearly US return (IRS Pub 54). Salary, self-employment income, interest and pensions from Costa Rica all go on it, converted from Costa Rican colones to US dollars.
The return is due April 15. If you live and work outside the US on that date, you get an automatic 2-month extension to June 15, and you can extend further to October 15. Interest still runs on tax paid after April 15.
Your accounts in Costa Rica: FBAR and Form 8938
Bank, pension and investment accounts in Costa Rica are foreign accounts for US purposes.
- FBAR: required when your foreign accounts total more than US$10,000 at any time in the year. Due April 15, with an automatic extension to October 15 (IRS).
- Form 8938: filed with the return when foreign financial assets pass higher thresholds; for a single person living abroad, more than US$200,000 at year end or US$300,000 at any time (US$400,000 and US$600,000 for a joint return). Not filing can cost US$10,000 (IRS).
Is there a US tax treaty with Costa Rica?
There is no US income tax treaty with Costa Rica (IRS treaty list), so relief from double tax comes only from US domestic rules: the foreign earned income exclusion and the foreign tax credit.
| Tool | What it does | Watch for |
|---|---|---|
| Foreign earned income exclusion | Excludes up to US$130,000 (2025) or US$132,900 (2026) of foreign earned income | Only earned income; does not reduce self-employment tax (Pub 54) |
| Foreign tax credit | Credits income tax paid in Costa Rica against US tax on the same income | Works best where the local tax is at least as high as the US tax |
We run the figures both ways before choosing. More in FEIE vs foreign tax credit.
If you never filed
Many Americans in Costa Rica only learn about US filing years after moving. If the failure was not willful, the IRS Streamlined Foreign Offshore Procedures let you catch up with 3 years of returns and 6 years of FBARs. For eligible people living abroad, the IRS waives the failure-to-file, accuracy, information return and FBAR penalties (IRS). See Streamlined filing.
Working with your adviser in Costa Rica
Americans in Costa Rica are often retirees, remote workers and owners of small tourism or property businesses.
We do not advise on the tax law of Costa Rica. A local adviser handles your return there; we prepare the US return and filings and use the tax you paid in Costa Rica for the credit.
How we help
Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares and signs US returns for Americans living in Costa Rica: the yearly return with the exclusion or credit, FBAR and Form 8938, and Streamlined catch-up. Every engagement starts with a fixed written quote after we review the file. See the yearly filing package.
Sources: treaty articles and US law
Treaty and social security
- There is no US income tax treaty with Costa Rica (not on the IRS A to Z list). Relief from double tax comes from the foreign tax credit under Code section 901 and the exclusion under section 911.
- Social security: no US agreement with Costa Rica appears on the SSA list.
US law
- Foreign tax credit: Code section 901 (IRS Pub 54).
- Form 8938: Code section 6038D and Treas. Reg. section 1.6038D (IRS Form 8938 instructions).
- FBAR: 31 USC 5314 and 31 CFR 1010.350 (IRS Internal Revenue Manual 4.26.16).
- Green card holders and residency: Code section 7701(b) (IRS Pub 519).
- Foreign earned income exclusion: Code section 911 (IRS Form 2555 instructions).
The tax rules of Costa Rica also apply to you there; a local adviser covers that side.
Americans in other countries
All country pages: US tax for Americans by country.
- Germany
- The Netherlands
- France
- The United Kingdom
- Spain
- Italy
- Portugal
- Ireland
- Switzerland
- Sweden
- Austria
- Belgium
- Denmark
- Norway
- Greece
- Poland
- Australia
- New Zealand
- Japan
- South Korea
- Israel
- Singapore
- Thailand
- The Philippines
- Panama
- Chile
- The Czech Republic
- Finland
- Iceland
- Estonia
- Latvia
- Lithuania
- Slovakia
- Slovenia
- Turkey
- Romania
- China
- South Africa
- Brazil
- Uruguay
- Argentina
- Vietnam
- Hong Kong
- Malaysia
Common questions
Do Americans in Costa Rica pay US tax?
Yes. US citizens and green card holders file a US return on worldwide income wherever they live. Living in Costa Rica on April 15 gives an automatic extension to June 15, and tax paid in Costa Rica or the foreign earned income exclusion often reduces the US tax to little or nothing.
Is there a tax treaty between the US and Costa Rica?
No. The US does not have an income tax treaty with Costa Rica. Relief comes from the foreign tax credit and the foreign earned income exclusion.
Do I pay social security in both the US and Costa Rica?
It can happen. There is no US social security agreement with Costa Rica, and self-employed Americans owe US self-employment tax even when they use the foreign earned income exclusion.
What if I never filed US taxes while living in Costa Rica?
If it was not willful, the Streamlined Foreign Offshore Procedures let you file 3 years of returns and 6 years of FBARs, and eligible people living abroad do not pay the usual failure-to-file, information return or FBAR penalties.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- IRS: Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
- IRS: United States income tax treaties, A to Z
- SSA: U.S. International Social Security Agreements
- IRS: Foreign earned income exclusion
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Comparison of Form 8938 and FBAR requirements
- IRS: U.S. taxpayers residing outside the United States (Streamlined)
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: Yearly filing package, FEIE vs foreign tax credit, Streamlined filing.
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Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify
Social security: the US and Costa Rica
The US has no social security (totalization) agreement with Costa Rica; it is not on the SSA list (SSA). For a self-employed American there, US self-employment tax still applies to net earnings, and the foreign earned income exclusion does not reduce it (IRS Pub 54). Contributions you make in Costa Rica may then sit on top. Employees of local employers are generally outside US social security, but the details depend on who employs you.