Opening a Bank Account & Managing Your Taxes in Costa Rica

Jump right in:

• How to Open a Bank Account in Costa Rica?
• Can a Foreigner Open a Bank Account in Costa Rica?
• Bank Fees and Minimum Deposits
• Tops Banks in Costa Rica
• What is the Tax System in Costa Rica?

How to open a bank account in Costa Rica?

Knowing how to open a bank account in Costa Rica is important for expats. Not only will you avoid currency exchange rates, it will also be easier to set up automatic withdrawals for things like utilities, rent, and other regular bills.

Likewise, if you’re moving here to open a business or as an investor, it’s often easier to manage your finances with a local bank that you can visit in person.

The difference between private and state-run banks

You’ll find both private and state-run banks in Costa Rica. Each has pros and cons, and the choice comes down to your own personal preference.

For example, state-run banks have a larger presence in the country. Branches and ATMs can be found even in remote towns. Unfortunately, this presence and their popularity also means that simple in-person transactions often include lengthy wait times. If you don’t speak Spanish, it may be difficult to find a teller who speaks your language.

On the other hand, private banks offer more personalized attention and faster transactions. You’re also more likely to find agents who speak English if you need. If you’re not yet a Costa Rican resident, you may also be able to work out a solution with a private bank sot that you can still open a regular account.

A preference for state-run banks

Most expats and residents choose state-run banks purely for the protection they offer. For example, because state-run banks are owned and operated by the government, they don’t generate a profit. Account holders can therefore rest assured they won’t face price gouging or hidden fees.

The money you keep in a state-run bank account is also insured. In some countries, such as the US, bank accounts are only insured up to a certain amount. In Costa Rica, there’s no set limit.

Can a foreigner open a bank account in Costa Rica?

Yes, foreigners can open bank accounts in Costa Rica, but it’s not as easy as you may think. For starters, some banks allow non-residents to open an account, but with limitations. Other banks may not allow this until you can show proof of residency.

If you choose a bank that does not permit non-residents to open an account, you can ask about opening a savings or basic account. These accounts typically do not come with an ATM or debit card. Therefore, account holders are required to visit the bank every time they need to make a transaction. You can upgrade to a regular account once you receive your residency status.

If you’re concerned about having access to a local account right away, you can look into the various private and state-run institutions and see if any offer the option to open an account online. Keep in mind that if they do, the services available to you may be limited until you visit the bank in person.

Things to know

When setting up a Costa Rican bank account, ask about the option of dual currency. Because many expats choose to settle in Costa Rica, banks will accommodate foreign account holders by offering the option of banking in dual currencies. This makes it easier to transfer money between your home country and Costa Rica, or, if you are self-employed or living on a retirement pension, it will help you receive money.

Requirements to open a bank account as non-resident

Most Costa Rican banks require people to come in person to open an account. This varies from bank to bank, and some even allow a designated person to open an account on your behalf. However, this typically requires a notarized power of attorney legalized in Costa Rica.

Whether you open an account in person or not, you will need to provide the following documents in order to open a regular bank account:

• your original passport plus a copy of the ID page
• bank statements detailing the last three months
• utility bill or lease statement
• statement of funds so that the bank has an idea of where your money is coming from and how much it is (if you’re working in Costa Rica, this can be your work contract with stated salary)

Other requirements will vary from bank to bank. For example, a bank may ask for a letter of reference from your previous bank. As stated before, some may even require legal residency to open an account. If this is the case, you’ll need to provide a copy of your residency permit in addition to the ID page of your passport.

Bank fees and minimum deposits

Banks in Costa Rica will typically not require a fee to open an account. Instead, they will just require a minimum deposit.

Minimum deposits are common among most banks here. Depending on the bank that you choose and the account type, required deposits typically range from 5,000 – 250,000 CRC (10 – 500 USD).

Even if you open a local account, you may find yourself paying a fee every time you use an ATM for a transaction. Because of this, many Costa Rican residents visit their bank branch in person for deposits, transfers, and withdrawals. If you do incur a fee, it is usually no more than 1,500 – 4,600 (3 – 9 USD).

Tops banks in Costa Rica

• Banco Nacional de Costa Rica
• Banco de Costa Rica
• BAC Credomatic
• Banco Popular
• Davivienda

Top international banks in Costa Rica

• BAC Credomatic
• Scotiabank
• Davivienda
• Citibank
• HSBC

Best online banks Costa Rica

The quality of online banking differs from bank to bank. In general, you’ll find decent online banking options when using an international bank in the country or one of the state-run institutions. A popular option is BAC Credomatic, which allows account holders to set up an online username and password without visiting the bank in person. Other banks with a strong online presence in Costa Rica include Banco Nacional, Banco de Costa Rica (BCR), Banco Popular, and Banco Promerica, all of which offer reliable digital platforms for everyday banking.

What is the tax system in Costa Rica?

Many people think about Costa Rica as a tax haven, but this isn’t entirely true. Individuals do not pay taxes on foreign revenue. They’re only subject to income tax if they earn money from Costa Rican sources. Because it’s so difficult for foreigners to work in this country, many expats are either freelancers or retirees. Likewise, companies incorporated in the country are also exempt from paying local tax on any revenue generated from abroad (although following a change in 2023, large multinational corporations are taxed on foreign-earned interest and dividends).

The tax system in Costa Rica

Costa Rica is often referred to as the “Switzerland of Central America” because of its generous tax system. This is no longer true as the country has signed treaties with other countries, such as the US, to prevent the ease of money laundering within its borders. In fact, Costa Rica has cracked down on foreign finances so much that the European Union removed the Latin American country, along with the UAE, from its official list of tax havens in 2018.

Unlike so many other countries, any money not earned from a local source in Costa Rica is not taxed. Thus, companies and individual expats who earn their money from abroad are exempt from paying income tax

Does Costa Rica have a double taxation treaty?

No, Costa Rica does not participate in the global taxation treaty, which protects expats from having to pay the same taxes in their new country and their home country. Why? Because the country does not tax residents on income made abroad.

What does this mean for you as an expat? It means that although you may be exempt from paying taxes on your foreign income in Costa Rica, you will still need to look into paying taxes in your home country.

The tax year in Costa Rica

The tax year in Costa Rica runs from January 1 to December 31. Tax returns must be filed by March 15.

Types of taxes in Costa Rica

While it may sound like most expats can live in Costa Rica without paying taxes, this is not the case. The main taxes you will come across as a foreigner are property, sales, import, corporate, and income.

Property tax

If you’re investing in real estate in Costa Rica, you should be aware of the property tax involved. Rates are low: generally, 0.25% but can reach up to 0.5% for luxury homes. You’ll need to pay this tax quarterly to the local municipality.

Sales tax

This is also called Value Added Tax (VAT) in other countries. This tax is added onto most products and services that you will purchase. It tacks on an extra 13% and is levied at the point of sale.

Import tax

Whenever you ship something to Costa Rica, including your own personal goods, you’ll need to pay import tax. The tax you pay will vary based on the item you are importing. The rate typically starts around 1%, but it can increase significantly depending on the category of goods. Some items may be taxed at 15% or higher. Additional customs handling or administrative fees may also apply.

Corporate tax

If you move to Costa Rica to start your own company, you may need to pay a corporate tax — depending on the size of the business. Companies that make over 119,629,000 CRC (234,566 USD) in a year are taxed 30%. Companies that make less than this amount will receive a slightly lower tax rate. If your revenue comes from outside the country, local taxes will not be imposed.

What is the income tax in Costa Rica?

If you land a job with a Costa Rican company, you’ll need to pay income tax. This tax is levied on both employment and non-employment sourced income, meaning that even the income you may make on a vacation rental will count.

Income tax bracket for monthly incomes

Taxes for self-employed people in Costa Rica

If your income from self-employment is earned outside of Costa Rica, you will not have to pay taxes on it. If your income is made in the country, you’ll pay between 0% and 25%, depending on your annual net income.