One of the first practical questions retirees ask is how to handle money in Costa Rica. The system is modern and stable, but opening a local account works differently than back home. Here is what expats need to know in 2026.
Do You Even Need a Local Account?
Many expats live comfortably for months using their home-country cards and ATMs. But a Costa Rican account makes paying utilities, property taxes, HOA fees, and local services far easier — and it is usually required to set up automatic bill payment.
Public vs. Private Banks
Costa Rica has state banks (Banco Nacional, Banco de Costa Rica) and private banks (BAC Credomatic, Scotiabank, Davivienda). State banks are very secure and government-backed; private banks tend to offer smoother service and better English-language support. Many expats keep accounts at both.
Opening an Account
To open a full account you generally need legal residency (a DIMEX card), your passport, proof of address, and proof of income or funds. Before residency comes through, some private banks offer limited accounts, and your real estate attorney can often help facilitate the process.
Currency: Colón and Dollar
The local currency is the colón, but US dollars are widely used — especially in real estate, where most listings are priced in dollars. Most banks let you hold both colón and dollar accounts, which is convenient when your income arrives in dollars but daily expenses are in colones.
Moving Money Internationally
International wires work but can carry fees and slower timelines. Many expats use specialized transfer services for better exchange rates on large transfers, such as funding a property purchase. Always coordinate big real estate transfers with your attorney and escrow agent.
Taxes in Brief
Costa Rica does not tax foreign-sourced income, so US pensions and Social Security are generally not taxed locally. However, US citizens still file with the IRS and may have FBAR/FATCA reporting obligations on foreign accounts. Consult a cross-border tax professional.
Buying property? Our team coordinates with trusted attorneys and escrow services. Browse listings or contact us to get started.