Can You Collect U.S. Social Security and Live in Costa Rica?

Yes — you can collect U.S. Social Security while living full-time in Costa Rica with no penalties. The U.S. government allows payments to retirees living abroad in nearly every country, and Costa Rica is fully eligible.

1. How Payments Are Sent

Most Americans abroad receive payments through:

• Direct deposit into a U.S. bank

• ATM withdrawals in Costa Rica

• Online transfers when needed

International direct deposit may be available depending on your bank.

2. Costa Rica Doesn’t Tax U.S. Social Security

Costa Rica operates on a territorial tax system, meaning:

• Only income earned inside Costa Rica is taxed

• Foreign income, including Social Security, is tax-free

3. The U.S. Still Taxes Based on Income

Your U.S. tax responsibility doesn’t change:

• You file yearly returns

• Social Security is taxed based on income thresholds

• Many retirees owe little or nothing

4. You Can Use Social Security to Qualify for Residency

Your Social Security payments fully qualify you for:

Pensionado Residency

• Requirement: $1,000/month guaranteed income

• Social Security counts as guaranteed for life

This is one of the easiest residency options for U.S. retirees.

Bottom Line

Yes — you can collect Social Security in Costa Rica with no restrictions. It’s fully legal and extremely common among American expats.

Use CitizenCR to streamline your application.

Download the CitizenCR app for Pensionado residency tools and expert support.