Do i have to pay united states income tax if i retire in costa rica?

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tico times directory

If you retire in CR, (which means you will probably want residency also), you have to show income from an outside source. This is a requirement by CR government, otherwise you may not get residency and every 90 days leave the country for 72 hrs and then return (a hassle, but a lot of people do it).

If that income is from the US, like pension plan, stock market dividends etc you HAVE to file a US tax return EACH YEAR. To determine whether you are required to file a U.S. income tax return you will need to review the income levels for filing purposes which appear in IRS publications, including Publication 17 (Tax Guide for Individuals) and Publication 54 (Tax Guide for U.S. Citizens and Resident Aliens Abroad).

Here is a link that answers the most common questions
http://www.godutchrealty.com/pages/legal-banking-living-in-cr-us-tax.php

Do not ignore your responsibly to the U.S. government. File your income tax returns on time and avoid the possibility of unwanted and unnecessary trouble in the future. Also remember, the IRS has a office in the US embassy in San Jose, whose main job is to monitor outside income and to go after people who try and defraud the US government out of their cut. And like the one answer said, with the new President, it will probably get worse.

Praveen Pradeep

Yes, if you are a US Citizen or Permanent Resident. I think your taxes to the US Government is Federal Income Tax minus Taxes you paid to the Costa Rican government. If the Costa Rican government's tax rate is higher than or equal to the US Federal Income Tax, I don't think you would need to pay the US Government.

Victory27

If your income was made in the United States, you must pay tax in the United States, regardless of your physical location.

Check the IRS website for more details.
http://irs.gov/

Ricardo C

Hi there,

The answer is yes, you have to pay them.....and it doesnÂ´t matter if you are paying taxes here in CR ......so if you come here and dont pay them....you may have some problems when you go back to the US.
For more information please visit this website www.ameuropeservices.com and we will gladly answer all your questions or contact me at ameuropericardo@gmail.com

Good luck !

MW79

With Obama new taxes law, you will have to pay income taxes, doesn't matter where you are.

Read about it in his campaign. That's why I changed my mind about give him my vote. But, didn't work. So, here we are.

EDUARDO M

NO U HAVE TAX FREE

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