Moving to Costa Rica from the US: Tax Checklist for Americans

Moving to Costa Rica is exciting, but the tax implications start before you leave. Costa Rica's territorial tax system (foreign income not taxed) creates unique US filing advantages. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

Visa Planning

• Research visa options: pensionado ($1,000/month pension), rentista ($2,500/month stable income), investor ($150,000 investment)
• None determine your US tax treatment

Banking

• Plan for Costa Rican bank account opening (requires DIMEX)
• Keep at least one US bank account open
• Understand FBAR reporting requirements

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

Costa Rica Tax Residency

Costa Rica taxes only Costa Rica-source income. Foreign income is not taxed. You become a Costa Rica tax resident if you spend more than 183 days there.

FBAR

File FBAR for all foreign accounts, including Costa Rican accounts, if the aggregate value exceeds $10,000.

Establishing Costa Rica Tax Residency

• Obtain DIMEX (Documento de Identidad Migratorio para Extranjeros)
• Open a Costa Rican bank account
• Register with CCSS (if self-employed)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not reporting Costa Rican bank accounts on FBAR — All foreign accounts are reportable.
4. Assuming Costa Rica's territorial system eliminates all US tax — You still owe US tax on worldwide income; FEIE is your tool.

Timeline Checklist

3 months before:

• Research visa options
• Plan state tax exit strategy
• Set up travel tracking system

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move

First month in Costa Rica:

• Obtain DIMEX
• Open Costa Rican bank account
• Register with CCSS (if self-employed)

First tax season:

• File US tax return with FEIE
• File FBAR
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are unsure about visa implications.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner