Tax Guide for US Expats Living in Costa Rica
Wherever you live in the world, you are obligated to file a US tax return with the IRS reporting your worldwide income. Along with the regular US expat income tax return, many individuals are also required to submit a report disclosing assets in foreign banks and financial accounts, or FBAR by using FinCEN Form 114 (FBAR). But what about US expat tax returns for Americans who reside in Costa Rica? As a US expatriate in Costa Rica, you may need to file a Costa Rican tax return, and perhaps pay taxes on your income to the Costa Rican government. Here are some simple guidelines on dealing with your US expat taxes and the obligations for filing Costa Rican taxes.
The Costa Rican Tax System
Since many US expatriates are living in Costa Rica, it is necessary for Americans to know both Costa Rican and US expat tax laws. This tax guide is meant to add to your understanding of the Costa Rican income tax system by giving practical knowledge.
The article highlights important rules that US expats should keep in mind about residency, income, and tax withholding. The importance of tax planning and treaty provisions available to American citizens and residents living in Costa Rica are discussed.