Costa Rica is a small Central American country known for its beautiful beaches, biodiversity, and friendly locals. It is also a popular destination for tourists and expats alike, thanks to its low cost of living and high quality of life. With the approval of Law 9996, new incentives were created, which grant exceptional Costa Rica advantages never seen before. This article gives you an idea of how to get a Costa Rica residency and provides “6 new reasons to be a resident in Costa Rica“.
As general aspects first, the cost of living is much lower compared to many other countries, especially in terms of housing, food, and transportation. This means that you’ll be able to stretch your budget further and enjoy a more affordable lifestyle. Second, it has a strong healthcare system with private and public options. The country also has one of the highest living standards, clean water, reliable electricity, and a robust infrastructure. Third, it is known for its beautiful natural landscapes and eco-tourism opportunities. There is always something new to explore and appreciate, from the stunning beaches to the lush rainforests. Finally, becoming a resident allows you to immerse yourself in the culture and way of life fully. The locals are friendly and welcoming, and many ex-pat communities can help you transition.
Two new laws were recently approved to promote incentives to obtain your residency in Costa Rica, modify the pre-existing immigration law, and get a Costa Rica residency under particular conditions. Because of the interest of many people to come to live in Costa Rica, 6 new tax incentives and reduction of requirements were created for 3 categories of residents and thus promote foreign investment.
It is good to clarify that apart from this new Law and the advantages that we will comment on, a new law called the Law to Attract Remote Workers and Providers of International Services was also enacted, which promotes the entry of digital nomads into Costa Rica, that is, people who work remotely for companies that are located outside the country.
The tax advantages of Law 9996, which was created to ease the requirements to become Costa Rica, was recently approved by the Legislative Assembly and signed by the President of the Republic on July 14, 2021, giving a series of tax advantages for 10 years for those who want to be residents. In this beautiful country. This new Law, called the Law for the Attraction of Investors, Rentiers, and Pensioners, implements changes in 3 immigration categories: 1) Investor Resident, 2) Resident Rentier or Rentista 3) Resident Retired or Pensionado.
The advantages of new law 9996 are:
- For the Resident Investor category, the investment in the country is reduced to US $150,000 US dollars
- Exoneration of all import taxes one time on household items.
- Exemption of all import taxes for a single time of two vehicles, land, sea, or air. The residents in these categories can import vehicles of any brand, yachts, boats, helicopters, airplanes, or any other means of transport, totally exempt from taxes.
- Exemption from income tax on revenues in any of these migratory categories.
- Exoneration of 20% of the property transfer tax you acquire while the Law is in force and under any of the above immigration categories.
- Exemption from import taxes for instruments or materials for professional or scientific practice carried out by the person with the migratory category of investor, retired resident, or rentier resident.
On the other hand, it is good to clarify that these new benefits also extend to people who are dependents of the person applying for residency. Another important aspect is that the person who is residents a and wants to upgrade to an investor, rentier, or pensioner can do so without any problem and apply for the benefits of this Law.
To apply for the benefits of this new Law or get this special status for foreigners, you must apply within the first 5 years of the Law. The benefits of this unique opportunity will be up to 10 years from the moment the tax benefits are granted.
If you want to know the Law in detail, click on this link so that you can read it comprehensively.
Residency Requirements.
For any category, the Costa Rica residency requirements are:
- Passport-size photograph.
- Birth Certificate.
- Criminal History or Lack thereof.
- Fingerprints obtained at the police department in Costa Rica.
- Register with the Embassy or Consular department of your country in Costa Rica.
- Photocopy of your passport that shows the last entry.
- Payment of government fees.
- If you and your couple are applying for residency, you must provide the marriage certificate and proof of income.
- If you are applying for the Costa Rica residency by investment, you must provide proof of your investment of USD$150,000.
- If you are applying as a Rentista or Rentier on a fixed income, you will need to prove your monthly revenue of USD$2,500 per month or make a deposit of USD$60,000 in a Costa Rican Bank that will cover two years of revenue. This new category of rentista has recently been improved by the new Law 9996.
- If you are applying as a retired or pensionado resident, you must prove an income of USD$1,000 per month.
- To apply for any Costa Rican residency, all the documents shall be apostilled or duly authenticated by your country’s consulate.
All applications should take place once the foreigner becomes legal in the country; in other words, that visa has not expired.
Temporary Residency and Permanent Residency
Several types of residency status for foreigners are available in Costa Rica, including temporary and permanent residency. Temporary residency allows individuals to live in the country for a specific period, while permanent residence will enable individuals to live in Costa Rica indefinitely.
Visa Requisites
- Nationals from the United States, UK, or Canada citizens, among many others countries, do not require an entry visa to Costa Rica. However, you must have a valid passport and a return ticket to exit Costa Rica within 90 days. The passport must be valid for one day before you enter Costa Rica.
- To verify all entry requirements according to your nationality, please click on this link.
- If your nationality is not enlisted and you cannot enter without a visa, you will need to hire immigration lawyers to help you.
- In some cases, the visa must be applied before the Costa Rican consulate of the country where you live.
The Pura Vida Life
Are you considering a move to a tropical paradise? Look no further than Costa Rica, a small country in Central America known for its lush forests, stunning beaches, and laid-back way of life. Here, you’ll find a culture centered around the phrase “Pura Vida,” which means “pure life” in Spanish and expresses appreciation for the simple things in life.
But the Pura Vida lifestyle isn’t just about the great outdoors. Locals or Ticos are known for their laid-back attitude and appreciation for the simple things in life. Here, you’ll find a strong sense of community and a focus on family and friends. This country is also safe and stable, with a strong democracy and a low crime rate.
Becoming a resident is an excellent opportunity to enjoy a high quality of life at an affordable price; you’ll find a range of options for housing, from apartments in the city to sprawling mansions on the beach. As was said before, the cost of living is relatively low compared to other countries in the region, and the country’s healthcare system is top-notch. Living in paradise means embracing the Pura Vida way of life. It’s about enjoying the simple things in life, spending time with loved ones, and immersing yourself in the beauty of nature. Costa Rica is the perfect place to call home with its stunning natural beauty, warm climate, and laid-back culture.
If you’re considering moving, don’t hesitate to contact AG LEGAL, as reputable immigration lawyers compound many other specialties.
At AG LEGAL, we are more than eager for you to ask us for any details you want.