Banking, pensions and tax in Costa Rica
Costa Rica taxes only income from Costa Rica, so foreign pensions are not taxed, and Social Security can be paid straight into a Costa Rican bank.
How your pension reaches a Costa Rica bank, what Costa Rica taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- 0% Foreign pensions are not taxed. PwC Tax Summaries; Law 9996. Checked Oct 8, 2026.
- Top rate, local income
- 25% Over CRC 20,442,000. PwC Tax Summaries; Law 9996. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Frozen GOV.UK. Checked Oct 8, 2026.
- Canada OAS
- No agreement Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Costa Rica
United States
Social Security
Yes. Costa Rica is on SSA's list of international direct deposit countries, so Social Security can be paid straight into a bank in Costa Rica.
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid to you in Costa Rica, but Costa Rica is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
GOV.UK. Checked Oct 8, 2026.
Canada
Old Age Security
Paid while you live outside Canada if you lived in Canada for at least 20 years after age 18. Canada has no social security agreement with Costa Rica, so time in Costa Rica does not count toward OAS.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Costa Rica.
How Costa Rica taxes you
Costa Rica taxes individuals on Costa Rican-source income, whatever their nationality or residence. Income earned abroad while you are tax resident is not taxed unless it is tied to the country's economic structure, so a foreign pension is not taxed. You become tax resident after more than 183 days in a fiscal year. Interest and rent from Costa Rica are taxed at 15%. Pensionados and rentistas are not tax resident just because of their migration status. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to CRC 4,094,000 a year | 0% |
| CRC 4,094,000 to 6,115,000 | 10% |
| CRC 6,115,000 to 10,200,000 | 15% |
| CRC 10,200,000 to 20,442,000 | 20% |
| Over CRC 20,442,000 | 25% |
PwC Tax Summaries; Law 9996. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; there is no US income tax treaty with Costa Rica. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Costa Rica?
Yes. Costa Rica is on SSA's list of international direct deposit countries, so Social Security can be paid straight into a bank in Costa Rica.
Will my UK State Pension go up each year in Costa Rica?
It can be paid to you in Costa Rica, but Costa Rica is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
Is my pension taxed in Costa Rica?
No. Costa Rica taxes only Costa Rican-source income, and income earned abroad while you are tax resident is not taxed unless it is tied to the country's economic structure. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can I get US Social Security deposited in a Costa Rican bank?
Yes. Costa Rica is on Social Security's list of international direct deposit countries, so payments can go straight into a bank in Costa Rica.
Is my foreign pension taxed in Costa Rica?
No. Costa Rica taxes Costa Rican-source income only; income earned abroad while you are tax resident is not taxed unless it is tied to the country's economic structure.
When do I become tax resident in Costa Rica?
After more than 183 days in Costa Rica, continuous or not, in the same fiscal year. Pensionado or rentista status alone does not make you tax resident.
Does the UK State Pension go up in Costa Rica?
No. Costa Rica is not on GOV.UK's list of countries where the State Pension rises every year, so it stays at the rate you first receive there.
