Yes, US citizens can live in Costa Rica, and there are several legal ways to do it. You can stay as a tourist for up to 180 days with just a US passport, or apply for residency through programs designed for retirees, people with passive income, investors, spouses of Costa Ricans, and remote workers. Income thresholds start at $1,000 per month for retirees. Costa Rica uses a territorial tax system that generally leaves US-sourced income alone, but you’ll still owe US taxes to the IRS wherever you live.
Living There as a Tourist
The simplest option is a tourist stay. US citizens don’t need a visa and may be granted up to 180 days at the border, though the exact length is at the immigration officer’s discretion.1U.S. Department of State. Costa Rica Travel Advisory You’ll need a valid passport and proof of a return or onward ticket. Overstaying triggers fines and can lead to deportation or a future entry ban.
Tourist status is limited. You can’t legally work, you don’t qualify for public healthcare, and you can’t get a Costa Rican driver’s license. Some people try to stretch tourism indefinitely by leaving and re-entering the country to reset the clock, but immigration authorities recognize the pattern and may refuse entry to someone they believe is living in Costa Rica without residency.
Residency Programs for Long-Term Stays
Costa Rica has three main temporary residency categories plus a marriage-based track. Each temporary status is valid for two years and renewable. None of them let you work as someone else’s employee in Costa Rica, though you can own and run your own business.
Pensionado for Retirees
The Pensionado program requires proof of a guaranteed lifetime pension of at least $1,000 per month from a government, military, or private retirement plan. A spouse and dependent children under 25 can be included on the same application. This is the lowest income threshold Costa Rica offers, and it’s the most common path for American retirees.
Rentista for People With Passive Income
Rentista is aimed at people who aren’t retired but have stable non-employment income. You need to show at least $2,500 per month from investments, rental income, or similar sources, guaranteed for at least two years. As an alternative, you can deposit $60,000 in a Costa Rican bank that agrees to disburse $2,500 per month over two years. Spouses and dependent children under 25 qualify as dependents.
Inversionista for Investors
The Inversionista category requires a minimum investment of $150,000 in an approved project. That can include real estate, an active business, or certain government-designated sectors. Spouses and dependents under 25 are covered.
Marriage to a Costa Rican Citizen
Marrying a Costa Rican citizen opens a residency path, but it starts as temporary rather than permanent. The marriage must be registered with the Civil Registry, and both spouses have to appear for an in-person interview with immigration authorities to verify the relationship.2Dirección General de Migración y Extranjería. Regularización Migratoria That interview is required for every marriage-based application, regardless of how long the couple has been together.3International Organization for Migration Costa Rica. Requisitos Residencia Temporal por Vínculo Matrimonial con Costarricense
The Digital Nomad Visa
Costa Rica also runs a digital nomad program, the Estancia para Trabajadores Remotos, for remote workers with employers or clients based outside the country. The visa extends a standard tourist stay to a full year and can be renewed for one additional year.4Visit Costa Rica. Digital Nomads: Live and Work
Individuals need to show at least $3,000 per month in stable income; families need $5,000 per month.4Visit Costa Rica. Digital Nomads: Live and Work All of it has to come from outside Costa Rica. You’ll submit bank statements from the previous 12 months and a notarized or certified affidavit confirming your income. The digital nomad visa doesn’t lead to residency, but it gives remote workers up to two legal years in the country while they decide on something more permanent.
Moving From Temporary to Permanent Residency
After three consecutive years in any temporary residency status, you become eligible to apply for permanent residency. Permanent residents get full work authorization and can take a job with any Costa Rican employer without a separate permit. To keep the status, you only need to visit Costa Rica at least once a year.
What the Application Requires
Every residency application requires an FBI fingerprint-based background check, formally called an Identity History Summary. State or local police clearances aren’t accepted. The FBI report needs to be apostilled by the US Department of State before Costa Rican authorities will accept it, and it generally has to have been issued within 90 days of your submission. It also needs to be translated into Spanish by a certified translator.
Beyond the background check, the standard package includes a birth certificate (also apostilled and translated), a Costa Rican consular registration, passport photos, and proof of income or investment for your specific category. Processing routinely takes several months. Most applicants work with a Costa Rican immigration attorney, since documents must be filed in Spanish and coordinated across multiple agencies.
US Taxes While Living in Costa Rica
Moving abroad does not end your relationship with the IRS. US citizens owe federal income tax on worldwide income no matter where they live, and failing to file can bring serious penalties even when nothing is owed.
The Foreign Earned Income Exclusion
The foreign earned income exclusion lets qualifying expats exclude up to $132,900 of foreign earned income from US taxes for the 2026 tax year.5Internal Revenue Service. Figuring the Foreign Earned Income Exclusion To qualify, your tax home must be in Costa Rica and you must either be a bona fide resident of a foreign country for an entire tax year, or physically present outside the US for at least 330 full days in any 12-month period.6Internal Revenue Service. Foreign Earned Income Exclusion The exclusion applies only to earned income like wages or self-employment. It doesn’t cover pensions, Social Security, investment returns, or rental income.
FBAR and FATCA Reporting
If your Costa Rican bank and financial accounts exceed $10,000 in combined value at any point during the year, you have to file a Report of Foreign Bank and Financial Accounts (FBAR) with FinCEN by April 15.7FinCEN.gov. Report Foreign Bank and Financial Accounts Under FATCA, single filers living abroad must also report foreign financial assets on Form 8938 if the total exceeds $200,000 on the last day of the tax year or $300,000 at any point during it. For married couples filing jointly, the thresholds are $400,000 and $600,000.8Internal Revenue Service. Summary of FATCA Reporting for U.S. Taxpayers FBAR and FATCA are separate requirements, filed on separate forms with separate agencies. Many expats need both.
Costa Rica’s Territorial System
On the Costa Rican side, the country taxes income territorially. Income earned abroad while you’re a tax resident of Costa Rica is generally not taxable there, as long as it isn’t tied to the Costa Rican economy. US pensions, Social Security, and investment income typically stay outside the Costa Rican tax net. Income from a local business or a Costa Rican rental property does not.
Healthcare for Residents
All legal residents are required to enroll in Costa Rica’s public healthcare system, the Caja Costarricense de Seguro Social, known simply as the Caja. Enrollment covers doctor visits, hospital stays, prescriptions, and specialist care through the public network.
Contributions are based on your declared income and run higher than most newcomers expect. Pensionados typically pay 12% to 14% of their declared $1,000 monthly pension, roughly $120 to $140 per month. Rentistas pay a similar percentage of their $2,500 declared income, roughly $300 to $350 per month.9U.S. Embassy in Costa Rica. Applying for Residency in Costa Rica The contribution covers your dependents too.
Caja enrollment often takes several months after residency approval, so most new residents carry private insurance during the gap. Many keep private coverage even after enrollment for shorter wait times and English-speaking staff. Private hospitals in San José such as CIMA, Clínica Bíblica, and Clínica Católica offer specialist care at prices well below US equivalents.
Working and Running a Business
Work restrictions are the biggest practical limitation of temporary residency. Pensionado, Rentista, and Inversionista holders cannot work as employees for a Costa Rican company. They can own a business, serve as a director or shareholder, and take income from that business, so long as they don’t fill a salaried employee role inside it. You can own a restaurant and collect the profits; you can’t tend the bar.
Traditional employment before permanent residency requires the employer to sponsor a work permit and demonstrate that no Costa Rican citizen is available for the position. Costa Rica prioritizes local hiring, so work permits are hard to get. Permanent residents face none of these restrictions.
The two most common business structures for foreign entrepreneurs are the Sociedad Anónima (S.A.) and the Sociedad de Responsabilidad Limitada (S.R.L.). The S.R.L. is simpler and is often preferred by US citizens because it can be treated as a pass-through entity for US tax purposes, which helps avoid double taxation. Both can be wholly foreign-owned.
Cost of Living
A single person can live comfortably in Costa Rica on roughly $1,600 to $2,000 per month. Couples typically spend $2,500 to $3,000 covering housing, utilities, food, transportation, and healthcare contributions. Those numbers assume you’re not living in the priciest expat enclaves. Beach towns like Tamarindo run high; smaller Central Valley towns run much lower.
Housing offers the biggest savings compared to the US. Rent in the San José metro area is a fraction of a comparable US city. Groceries are reasonable if you buy local produce and shop at ferias (farmers’ markets), though imported American brands carry heavy markups. Internet service is reliable in urban areas and popular expat destinations, one reason the country appeals to remote workers.
Buying Property
Foreign nationals have the same residential property rights as Costa Rican citizens. You don’t need residency or a visa to buy, though owning property alone doesn’t grant residency unless it qualifies under the $150,000 Inversionista threshold.
Closing costs run roughly 3.5% to 4.5% of the purchase price, with a 1.5% property transfer tax as the largest piece. Annual property taxes are low, at 0.25% of appraised value. All transactions go through a Costa Rican notary public, and hiring an independent attorney to verify clear title is strongly recommended, especially in rural and coastal areas where the registry can be unreliable.
Cars, Pets, and Driving
Bringing a vehicle from the US is expensive. Combined import taxes start at roughly 52% of assessed value for cars three years old or newer, climb to about 64% for four-year-old vehicles, and reach around 79% for cars six or more years old. Hybrid and electric vehicles are currently exempt. Most long-term residents buy locally instead.
Personal belongings and household goods can come in duty-free if the total declared value stays under $500. Above that, import duties typically range from 1% to 15% depending on the category.10International Trade Administration. Costa Rica – Import Tariffs
Bringing a dog or cat requires a health certificate from a USDA-accredited veterinarian, endorsed by APHIS after issuance. Pets traveling as unaccompanied cargo need a separate import permit.11Animal and Plant Health Inspection Service. Pet Travel From the United States to Costa Rica Start the paperwork at least a month before you fly.
Tourists can drive on a US license for up to 90 days. Once you have residency, you’re required to get a Costa Rican license. The process kicks in 90 days after residency approval, when you visit a COSEVI branch with your residency card, passport, foreign license, and a medical certification from an authorized physician. There’s no written or driving exam for US license holders, but the medical clearance is mandatory. Between residency approval and license issuance, your US license may not be legally valid for driving, so plan the timing accordingly.