For freelancers, entrepreneurs, investors, and online sellers in Costa Rica earning U.S.-linked income, an ITIN (Individual Taxpayer Identification Number) is often required for IRS compliance. This includes earnings from digital services, online platforms, investments, and U.S. sales.

Since Costa Rica lacks a comprehensive tax treaty with the U.S., payers and platforms rely on an ITIN to confirm foreign status, apply correct withholding, and avoid payout delays or account issues. Services like Stripe, Payoneer, Amazon, Google AdSense, Fiverr, and Upwork usually require a valid ITIN.

House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), provides a fully remote ITIN application service for Costa Rica-based applicants. You can apply for ITIN from Costa Rica without sending your passport overseas, while we manage identity verification, document preparation, and direct submission to the IRS from start to finish

 

What Is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a U.S. tax ID issued by the IRS for individuals who have U.S. tax reporting or withholding obligations but do not qualify for a Social Security Number. It consists of nine digits in the format 9XX-XX-XXXX and is used solely for tax and compliance purposes.

🔍 What an ITIN Does Not Do:

  • It does not grant authorization to work in the United States
  • It does not provide immigration, visa, or residency status
  • It is not a replacement for a Social Security Number
  • It does not permit employment within the U.S.

Despite these limits, an ITIN is often essential for individuals in Costa Rica who receive income from U.S. platforms such as Stripe, Upwork, Fiverr, Amazon Seller Central, Amazon KDP, Google AdSense, Etsy, Payoneer, and similar services that require IRS-recognized tax identification.

 

Why Freelancers and Business Owners in Costa Rica Need an ITIN

For freelancers, entrepreneurs, investors, and online sellers in Costa Rica earning U.S.-sourced income, an ITIN ensures compliance and uninterrupted operations. With an ITIN, you can:

  • Submit Form W-8BEN to declare non-U.S. tax status
  • Avoid automatic 30% U.S. withholding where exceptions apply
  • Reduce account reviews, payment holds, or payout delays
  • Receive faster, uninterrupted payments from Stripe, Payoneer, and Amazon
  • File Form 1040-NR when U.S. tax reporting is required
  • Meet IRS and platform compliance requirements efficiently

 

Who in Costa Rica Commonly Requires an ITIN

Freelancers and Digital Professionals

Designers, developers, consultants, writers, and remote professionals in Costa Rica earning via Upwork, Fiverr, AdSense, Amazon KDP, or Payoneer often need an ITIN to:

  • Submit Form W-8BEN correctly
  • Prevent payout interruptions or compliance flags
  • File Form 1040-NR to claim refunds or meet IRS obligations

 

Amazon and E-Commerce Sellers

Costa Rica-based sellers on Amazon FBA, Shopify, or Stripe typically require an ITIN to:

  • Provide accurate W-8BEN details to U.S. platforms
  • Avoid default 30% withholding
  • Handle U.S. marketplace or U.S. LLC tax reporting

 

U.S. Property Investors

When renting or selling U.S. real estate, FIRPTA applies a 15% withholding. An ITIN allows you to:

  • File Form 1040-NR
  • Recover excess tax withheld

 

Joint Filing with a U.S. Spouse

Costa Rican residents married to U.S. citizens or green card holders need an ITIN to:

  • File a joint U.S. tax return
  • Access applicable family-related tax benefits

 

LLC Owners and Entrepreneurs

Individuals in Costa Rica who own or operate a U.S. LLC usually require an ITIN for IRS and business compliance. Common supporting documents include:

  • Articles of Organization
  • IRS EIN Confirmation Letter (CP575)
  • Operating Agreement for multi-member LLCs

 

Advantages of Having an ITIN from Costa Rica

  • File U.S. tax returns accurately and legally
  • Reduce or eliminate unnecessary U.S. withholding
  • Claim refunds on overpaid U.S. taxes
  • Recover FIRPTA deductions on U.S. property sales
  • Maintain access to U.S. payment processors and banking
  • Build long-term credibility for U.S.-linked business activities

 

U.S. Costa Rica Tax Considerations

Costa Rica does not have a comprehensive income tax treaty with the United States. As a result, U.S. withholding on certain types of U.S.-source income generally applies at standard rates. Even without a treaty, an ITIN is still required for:

  • Platform withholding and reporting through Stripe, Payoneer, and Amazon
  • U.S. LLC ownership or U.S. business tax filings
  • Banking, KYC, and FATCA compliance

Submitting Form W-8BEN with a valid ITIN ensures your foreign tax status is properly recognized, prevents unnecessary withholding, allows uninterrupted payouts, and supports accurate reporting of U.S.-sourced income.

To Remain Compliant, You Typically Need:

  • A valid ITIN
  • A properly completed Form W-8BEN
  • Form 8233 only for certain academic, scholarship, or research-related income, if applicable

 

How to Apply for an ITIN from Costa Rica (2026)

Step 1: Confirm Your Eligibility

Residents of Costa Rica may qualify for an ITIN (Individual Taxpayer Identification Number) for the following U.S. tax and compliance purposes:

  • Filing a U.S. tax return (Form 1040-NR)
  • Platform compliance via Form W-8BEN
  • Selling or renting U.S. real estate (FIRPTA)
  • Filing jointly with a U.S. citizen or lawful permanent resident spouse
  • Owning or operating a U.S. LLC
  • Receiving U.S.-sourced scholarships, fellowships, or research funding
  • Banking or financial compliance (KYC / FATCA)

💡 If your ITIN is needed only for W-8BEN platform compliance, you may qualify under an IRS exception and may not need to attach a U.S. tax return.

 

ITIN Eligibility Scenarios for Costa Rican Applicants

Reason for Applying Description W-7 Box to Check Tax Return Required?
Filing a U.S. tax return Reporting freelance, investment, or property income b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)
Platform compliance via W-8BEN Providing ITIN to meet compliance and avoid account holds on Stripe, Amazon, Payoneer, AdSense h – Exception 1(d): Third-party withholding ❌ No (exception category)
U.S. rental or sale (FIRPTA) Reporting U.S. real estate rental or sale income b (if filing) or h (if exception applies) ⚙️ Depends
Filing jointly with U.S. spouse Costa Rican residents married to U.S. citizens or green card holders e – Spouse of U.S. citizen/resident ✅ Yes (joint return)
Owning or managing a U.S. LLC Required for foreign reporting or EIN activation b (if filing) or h – Exception 1(d) ⚙️ Depends (usually yes for multi-member LLCs)
Receiving U.S. scholarships or grants Nonresident student or researcher receiving U.S. taxable funds f – Nonresident alien student/professor/researcher ⚙️ Depends on institution
Bank or financial compliance U.S. banks, brokers, or processors require a U.S. tax ID for KYC/FATCA h – Exception 1(d) ❌ No (exception category)
Refund claim for excess withholding Requesting refund on U.S. income (e.g., 1042-S or 1099) b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)

Note: Exception 1(d) applies to platform withholding, U.S. banking compliance, and LLC filings.

 

Step 2: Complete IRS Form W-7

Form W-7 is the official IRS application for an ITIN and must be filled out carefully to avoid delays or rejection.

 

Step 3: Prepare the Required Documents

You will typically need:

  • A valid passport verified locally through a Certified Acceptance Agent (CAA)
  • A U.S. tax return, if required
  • Supporting documents such as Form W-8BEN, contracts, income records, or bank letters

 

Step 4: Apply Through a Certified Acceptance Agent (CAA)

Costa Rica residents can apply fully remotely with House of Bookkeepers:

  • Your passport remains safely in Costa Rica
  • Identity is verified locally
  • A Certificate of Accuracy (COA) is issued
  • Your ITIN application is submitted directly to the IRS

 

ITIN Processing Timeline

  • Standard processing: 8 to 13 weeks
  • Peak season: 13 to 16 weeks

In most cases, your ITIN can be confirmed in approximately 2.5 months even if the official IRS Letter CP565 arrives later by mail.

 

Quick FAQs for ITIN from Costa Rica

Q1. Can I apply for an ITIN from Costa Rica?

Yes. With House of Bookkeepers as your IRS-Certified Acceptance Agent, you can apply directly from Costa Rica without traveling to the U.S.

Q2. Does Costa Rica have a U.S. tax treaty?

No. Costa Rica does not have a comprehensive tax treaty with the United States. U.S.-source income is generally subject to standard withholding unless a statutory exemption applies.

Q3. How will I know my ITIN is approved?

The IRS issues Letter CP565 once approval is granted. House of Bookkeepers will notify you as soon as confirmation is received.

Q4. Do I need a U.S. address?

No. The IRS can mail your approval letter directly to your address in Costa Rica.

Q5. How is my identity verified?

Identity is verified through passport validation and a compliance selfie, following IRS CAA standards. No original documents are sent to the United States.

 

Apply with Confidence

House of Bookkeepers provides secure, accurate, and fully IRS-compliant ITIN services for Costa Rica-based freelancers, entrepreneurs, and investors.

📍 IRS-Certified Acceptance Agent (CAA) – Costa Rica Service

🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today to ensure smooth payouts, reliable platform compliance, and stress-free U.S. tax reporting.