Planning to move back to Costa Rica - US tax implications. - Costa Rica forum

HappyRetirement · 2023-07-03T20:19:45+02:00

Explore tax implications for US citizens moving back to Costa Rica, including resources on real estate, bank accounts, and income taxation.

Planning to move back to Costa Rica - US tax implications.

HappyRetirement New member

Member since 03 July 2023

HappyRetirementNew member03 July 2023 18:19:45

Hello - I am originally from Costa Rica living in the USA. I hold a dual citizenship. After 30+ years living in the USA, I started making plans to move back to Costa Rica (mostly to reside much of the year). I am afraid I don't know that much about the tax implications as a US citizen regarding owning real estate and opening bank accounts in Costa Rica, and maybe working part-time in Costa Rica. Any feedback regarding my concerns below will be greatly appreciated:

1-Is there a resource that I can look up to get more information

2-Any third party recommended in this forum that I can contact for a

consultation

3-Will any income generated in Costa Rica such as rental income,

investment income or salaries be taxed in USA?

Thanks for any feedback!

HappyRetirement

edwinemora Serial expat

Member since 09 May 2021

edwinemoraSerial expat03 July 2023 23:03:51

478

@HappyRetirement ......As long as your cedula hasn't expired you are not going to have any problems with opening a bank account.If it has expired,no problem getting a new one expedited to you.If you have any rentals or business in the U.S. you can write off your trips back and forth, for tax purposes.Taxes on property in Costa Rica are very fair right now but as the 'global capital' pours into the in demand places of Costa Rica,that can change too.Do yourself a favor, if you are going to get involved with rentals get educated on tenants rights, they are not the on landlords favor.As you already know, it is a Tico's dream to have had your opportunity to have worked in U.S. for as long you did ! Nobody in Costa Rica needs to know that, keep it a secret with very few ! Or else you'll get exploited or treated with indifference like they do to North Americans (most won't admit it).Keep the bulk of your money in the U.S.,where the banks have insurance.Money goes missing in banks for some in Costa Rica,you have to pay for the insurance.Frankly,just comeback to enjoy your retirement,with time you can find a deal on a property but to compromise yourself with rentals or any other kind of business or job,you are asking for it---Big Time !

johncrossley1 Member

Member since 31 March 2023

johncrossley1Member03 July 2023 23:13:44

The USA taxes its citizens on worldwide income.聽 So please consider this if earning income in Costa Rica.

daveandmarcia Serial expat

Member since 03 February 2023

daveandmarciaSerial expat04 July 2023 13:59:34

343

Right, johncrossley1. Dealing with U.S. taxes while in Costa Rica looks and feels just like dealing with them while living in the States (What fun!). You should keep the same records and you can use online tax preparation services and efile just as if you were in the States, too.