Helping U.S. Citizens Living in Costa Rica
Tax Services For Expats
Are you a U.S. citizen living abroad? If YES, you are REQUIRED to file a US tax return reporting your worldwide income by June 15th.
This woman owned business started twenty years ago.. one client at a time…and has grown to help thousands.
Tax Services For Americans Living In Costa Rica
Tax planning and preparation services for small businesses and individuals. Let our experienced CPAs and EAs take care of all your tax needs, from individual filings to comprehensive business returns. We provide a seamless, stress-free tax experience.
Individual Tax Returns
U.S. citizens living abroad have the same tax filing requirements as those residing in the US. Federal. State and City rules apply…we are there to guide you through the process, as it applies to your unique situation.
Business Tax Returns
Over the years, we have helped hundreds of small business clients. Whether located domestically or abroad, tax filings are mandatory. Calculating taxable business income is not an easy chore and requires understanding US and foreign tax rules…you can depend upon us to calculate the correct US bottom line and the tax that applies.
FBARS & Form 8938
Have you accumulated more than $10,000 in foreign banks or financial institutions? If so, we want to make you aware of the FBAR guidelines to ensure you file a complete return…on time, every time.
Expatriates in Costa Rica
Working in Costa Rica as an American Citizen
Expats move to Costa Rica for its world-class biodiversity, stunning Atlantic and Caribbean coastlines, and the welcoming “Pura Vida” lifestyle. Whether you are settling in the bustling Central Valley near San José, the surf towns of Guanacaste, or the lush rainforests of Arenal, Costa Rica offers a peaceful and life-affirming environment. Furthermore, the combination of high-quality healthcare, a tropical climate, and friendly Ticos makes it a premier destination for Americans seeking a sustainable and fulfilling life abroad.
Key Challenges for Expats in Costa Rica
Navigating the Territorial Tax System
Costa Rica primarily follows a territorial tax system, which means it generally only taxes income earned within its borders. However, for Americans, this creates a specific set of complexities regarding what constitutes “local” versus “foreign” income. Consequently, you must carefully structure your filings to comply with the Ministerio de Hacienda while ensuring your global income is correctly reported to the IRS.
Avoiding Double Taxation
While Costa Rica and the U.S. do not currently have a comprehensive bilateral income tax treaty, you can still protect yourself from paying double. By strategically using the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC), you can offset U.S. tax liabilities with taxes paid in Costa Rica. In addition, our experts ensure you claim every available benefit to keep your money in your pocket.
Staying Compliant with Reporting Requirements
Living in Costa Rica requires diligent reporting of foreign financial assets to the U.S. Treasury. Specifically, you must adhere to FBAR and FATCA regulations if your local bank accounts or assets exceed specific thresholds. Because there is increasing financial transparency between Costa Rican banks and the U.S. government, accurate and timely disclosure is essential to avoid heavy penalties.
Social Security and CAJA Contributions
As a resident in Costa Rica, you are required to contribute to the Caja Costarricense de Seguro Social (CAJA). However, because there is no Totalization Agreement between the U.S. and Costa Rica, you may find yourself contributing to both systems simultaneously. To address this, we help you navigate these overlapping obligations so that you maintain your benefit eligibility in the U.S. without overpaying abroad.
Managing Unique Tax Deadlines
Costa Rica’s fiscal year traditionally runs through December 31st, with tax filings due by March 15th. Notably, these dates do not align with the standard U.S. tax season, making year-round tax planning vital. Therefore, we coordinate your dual filing requirements to ensure you never miss a deadline in either hemisphere.
Our Services
At Expatriate Tax Returns, we provide comprehensive services to help expatriates manage their tax obligations effectively:
- Tax Preparation and Filing: We handle U.S. tax returns, ensuring full compliance.
- Double Taxation Relief: Assistance with applying tax treaties and credits to avoid paying taxes twice.
- Foreign Bank Account Reporting: Guidance on FBAR and FATCA requirements to prevent penalties.
- Social Security Coordination: Advising on social security contributions to avoid benefit gaps.
- Deadline Management: Ensuring all tax deadlines are met to prevent fines.
Our team of experienced tax professionals is dedicated to making the tax filing process as smooth and stress-free as possible for expatriates. For more detailed information, please visit our services page.
Living as an Expat in Costa Rica
Even if you live in a tropical paradise, the U.S. requires you to report your worldwide income. You will likely owe Costa Rican tax on income sourced within the country, while the U.S. will tax your global earnings, subject to available exclusions and credits.
In the absence of a formal treaty, we rely on internal U.S. tax code provisions like the Foreign Tax Credit. This allows you to subtract the taxes you pay to the Costa Rican government directly from what you owe the IRS.
If you hold $10,000 or more in Costa Rican bank accounts (or any non-U.S. accounts) at any time during the year, you must file an FBAR. This is a mandatory report to the U.S. Treasury and is separate from your standard income tax return.
EASY AS 1, 2, 3
You have questions? We have the answers! Contact us and complete our client census. You will get a response within 24 hours. Our team is never intimidated by a challenge. We provide answers, while others ask questions.
Click on Start Now
Expatriate Tax Returns understands the importance of filing your taxes quickly and correctly. You complete our organizer, so we know what questions to ask.
Submit Your Info
Collect “What We Need” from the template you will receive from the Expatriate Tax Return advisor.
Begin Filing Process
We will assign a preparer to begin your tax return filing process. Help you file the right returns, using the right forms, and providing all of the right information.
Individual & Business Expatriate Tax Returns
We can quickly walk you through the expat tax return preparation process, ensuring you get filed on time, in no time. As friendly professionals with over a decade of experience, we make expat tax return preparation easy. Furthermore, no matter your needs, we have the answers to your tax questions from expatriate tax return planning to preparation. Contact us today.
Need to file your Expat taxes?
Expatriate income tax planning and preparation, offering tailored solutions for late filers, small businesses, and partnerships.
Expert CPAs and EAs
Why Choose Us
U.S. PROFESSIONALS HELPING U.S. CITIZENS ABROAD
We are available 24/7 to answer your tax filing questions.
EASY TAX RETURN FILING
Easy as 1, 2, 3! File your taxes in 3 simple steps.
ARE YOU A U.S. CITIZEN LIVING ABROAD?
If YES, you are REQUIRED to file a tax return reporting your worldwide income by June 15th.
Get Free Copy of Expat Tax Guide “A” to “Z”
Get the essential American Expat Tax “A” to “Z” guide that covers all the details of expatriate taxes. Understand everything you need to know about navigating the complexities of expat tax obligations with this comprehensive resource.
