Hi,
I'll be moving to Costa Rica next year and plan to try to get a temporary residence with the rentista route, and working my way toward permanent residency after 3 years.
I'm a UK citizen but work remotely/online as a Software Developer as a self-employed sole trader. I'll be living in CR throughout the year and will become a tax resident there and no longer be a tax resident of the UK (I plan to spend <16 days per year in the UK, own no property there etc).
I understand CR has a territorial tax system, but I think if I'm doing the work actively on CR soil then it's likely to be subject to taxes even if my clients are foreign (US/UK businesses) and the work is online. Please correct me if I'm wrong, but it would seem too good to be true otherwise and my interpretation was that territorial tax meant not tax only on *passive* foreign income.
But how will this work in practice? am I even allowed to register for taxes in CR on a temporary visa? am I even allowed to register as self-employed? I lived in Spain for a while and remember an arduous process to register as an autonomo with the hacienda; will there be something like this?
I'm reluctant to simply fly under the radar and not pay taxes to CR or the UK after moving there incase it comes back to bite me in the future, even if the realistic chance of audit is low.