COVID-19 has caused Costa Rica to seek new ways to attract more investors and thus accelerate the economy. Because of the interest of many people to come to live in Costa Rica, 7 new tax incentives and reduction of requirements were created for 3 categories of residents and thus promote foreign investment.
Two new laws were recently approved that promote a series of incentives to live in Costa Rica and modify the pre-existing migration law.
With the approval of Law 9996, 6 new incentives were created, which grant exceptional advantages never seen before, and we have called the “6 new reasons to be a resident in Costa Rica”.
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 recently approved by the Legislative Assembly and signed by the President of the Republic on July 14, 2021, give 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 3) Resident Retired.
The advantages granted by this new Law are:
- For the Resident Investor category, the investment in the country is reduced to US $150,000 US dollars. It is worth mentioning that for the Resident Investor category, the previous investment amount was the US $200,000, resulting in a reduction of US $50,000.
- 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 income enters the country 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 resides in Costa Rica 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, 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.
At AG LEGAL, we are more than eager for you to ask us for any details you want to know.