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Dear Friends,
If you're thinking about relocating to Costa Rica, one big question likely on your mind is:
“How will my taxes work once I move?”
Good news: Costa Rica offers major advantages for expats when it comes to taxation. Here’s a quick breakdown:
✅ No Tax on Foreign Income
That’s right—pensions, Social Security, rental income from abroad, and investment income are not taxed by Costa Rica. If your income is generated outside the country, it’s yours to keep.
💰 You only pay taxes on income earned inside Costa Rica.
🏡 Low Property Taxes
Annual property tax is just 0.25% of the registered value of your home. Compared to North America or Europe, that’s extremely affordable.
📑 Tip: When buying property, be sure the valuation is updated and accurate—it can affect your future tax bills.
🚗 Vehicle and Luxury Goods Taxes
Importing a car? Be prepared—import duties can range from 45–85% depending on age and value. The same applies to luxury items shipped from abroad.
💡 Many expats find it cheaper to buy locally.
🧾 Do You Need to File Taxes in Costa Rica?
If you're earning local income (e.g., running a business, renting property), yes—you'll need to file. But if you’re just receiving retirement income from abroad? You may not need to file at all.
A trusted local accountant (we can refer you!) can help you stay compliant without confusion.
Want to understand how taxes work before making the move?
On our relocation tours, we cover all this in detail—with input from local legal and financial experts. You’ll also hear real-life insights from expats who’ve already navigated the system.
🗓️ Next tour in August — secure your spot today!
🔗 Click here to reserve or request details |
