Arenal Volcano by Rhododendrites, CC BY-SA 4.0
Costa Rica
Capital San José
What it actually costs to live here
Directional monthly estimates by city and lifestyle (USD). Not gospel — your numbers will vary.
| Category | San José |
|---|---|
| Rent (1BR) | $747.16 |
| Groceries | $578.61 |
| Transport | $85.78 |
| Total | $1,411.55 |
What the indicators say
Normalized cost-of-living, tax burden, property rights, and economic freedom (0–100, higher is better).
- Crypto Currency Status
- Implicit ban
- Currency
- Costa Rican Colón (CRC)
- Economy
- Tourism, agriculture, electronics
What you owe, and to whom
US tax-treaty status, residency triggers, and state-exit considerations.
Costa Rica has neither an income tax treaty nor a Social Security totalization agreement with the US, so Americans lean entirely on the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) to avoid double taxation. Costa Rica's system is territorial — only locally-sourced income is taxed — so foreign remote-work and US-investment income is generally untaxed locally, though tax residency triggers at 183 days. US filing (including FBAR/FATCA) never stops.
No Income Tax Treaty
No Treaty ProtectionCosta Rica has no income tax treaty with the US. Americans rely on the FEIE and FTC to prevent double taxation, with no treaty-rate relief on dividends or interest.
No Totalization Agreement
Double SS Tax RiskWith no totalization agreement, self-employed Americans can owe the full 15.3% US self-employment tax on top of any local social insurance — the FEIE does not offset SE tax.
Territorial Tax System
Only Local Income TaxedCosta Rica taxes only locally-sourced income. Remote work for US clients and US investment income are generally outside the local tax net.
US Filing Never Stops
FBAR / FATCAUS citizens file annually regardless of residence. Costa Rican accounts over $10K trigger FBAR; FATCA applies. The FEIE (~$126,500 for 2024) and FTC are the primary relief mechanisms.
Americans should know
- You file US taxes regardless — Costa Rican residency doesn't change that
- No US tax treaty and no totalization agreement: self-employed Americans can face the full 15.3% US SE tax with no offset
- Costa Rica's territorial system generally leaves foreign-sourced income untaxed locally
- Costa Rican accounts over $10K trigger FBAR reporting; FATCA applies
Could Costa Rica be your next move?
Open your personalized country view to review a city estimate and compare it with your saved monthly spending.
Build your mobility plan