Law 9996 Costa Rica: Attraction of Investors, Rentiers and Retirees

Law for the Attraction of Investors, Rentiers and Retirees: Costa Rica’s Law 9996 Explained

The Law for the Attraction of Investors, Rentiers and Retirees — Costa Rica’s Law No. 9996 — is the statute behind the country’s reduced $150,000 investor threshold and its package of tax and import incentives for qualifying investors, pensionados and rentistas. Passed in 2021 to support economic recovery after the pandemic, it is still frequently misread in 2026: some of its benefits had a built-in expiration date, but the law itself, and the lower investment threshold it created, did not expire. This guide walks through what the law actually says, article by article, and what is still available to applicants today.

What the Law for the Attraction of Investors, Rentiers and Retirees is, and why it exists

Law 9996 was published on July 14, 2021, as a direct response to the economic impact of the Covid-19 pandemic. Article 1 frames its purpose plainly: to build a regulatory framework that encourages investors, rentiers and retirees to come to Costa Rica — operating alongside the General Law of Migration and Foreigners (Law 8764) — in order to contribute to the country’s post-pandemic economic reactivation. Article 3 goes further and declares the attraction of this population a matter of public interest, which is why public institutions were authorized to direct ordinary and extraordinary budget resources toward supporting the law’s goals.

Article 4 splits oversight of the law in two: the General Directorate of Migration and Foreigners (DGME), under the Ministry of the Interior and Police, governs the immigration side, while the Ministry of Finance (Hacienda) governs the tax side. That split matters in practice — an applicant’s immigration filing and their tax exemptions are reviewed by two different authorities, and problems in one track do not automatically resolve in the other.

Who Law 9996 covers

Article 2 defines the law’s scope in a single sentence: it applies to anyone authorized to enter Costa Rica under the investor, pensionado (retired resident), or rentista (rentier resident) immigration categories. In other words, Law 9996 is not a separate residency category on its own — it layers additional incentives and, for Investors, a reduced investment threshold, on top of categories that already exist under the General Law of Migration and Foreigners.

The incentives under Article 5

Article 5 is the part of the law most people have in mind when they talk about “Law 9996 benefits.” It grants qualifying investors, pensionados and rentistas:

• A one-time, duty-free import of household goods — furniture, appliances, home décor, kitchen and bathroom items, and bedding — in a quantity reasonable for the beneficiary and their immediate family. If those goods are transferred to someone else while the benefit’s validity period is still running, the previously exempted taxes become payable. In qualified cases of theft, fire or other loss, the beneficiary may import replacement goods under the same exemption.
• Duty-free import of up to two vehicles (land, air or sea) for personal or family use, free of import, tariff and value-added taxes. A vehicle lost to theft, fire, flood, collision or accident during the benefit period can be replaced tax-free as well. A vehicle imported this way can later be sold or transferred to a third party under the terms of Article 10 of Law 7088.
• Income tax exemption on the amounts declared to qualify for the law’s benefits — though income actually generated inside Costa Rica from in-country investments is still taxed under the ordinary Income Tax Law (Law 7092).
• A 20% exemption on the real estate transfer tax for property acquired within the law’s term, provided the beneficiary is the property’s registered owner. Transferring that property during the benefit period triggers repayment of the exempted taxes.
• An import tax exemption for professional or scientific instruments and materials used in the beneficiary’s economic activity, subject to showing the Ministry of Finance that the import is proportional and reasonable to that activity.

Article 6 adds an important tax clarification: qualifying as an investor, pensionado or rentista under this law does not automatically make someone a Costa Rican tax resident. Tax residence is a separate legal status, governed by Law 7092 and its regulations, and is only triggered once the specific conditions in that law are met.

The $150,000 investor threshold (Article 8)

Article 8 is where Law 9996 sets the figure most applicants actually search for: a reduced investment range of at least USD $150,000, valued at the Central Bank of Costa Rica’s official exchange rate, for the Investor category. That investment can take the form of real estate, registrable assets, shares, securities, productive projects, or projects declared of national interest; filings under a special law that separately regulates the investment type are reviewed individually. Article 8 also opens the Investor category to people investing in venture capital funds or sustainable tourism infrastructure projects — categories that did not exist under the general Article 87 threshold of Law 8764 before this law was passed.

Article 9 requires the DGME to maintain a dedicated, simplified-procedure service window for Investor, Pensionado and Rentista filings under Law 8220 (the law protecting citizens from excessive administrative requirements) — and allows additional windows to be opened at other DGME locations.

Giving up or losing the status (Article 7)

If a beneficiary voluntarily gives up their investor, pensionado or rentista status, or if the DGME cancels it for one of the grounds listed in Article 129 of Law 8764, Article 7 requires repayment of the taxes that had been exempted — as long as this happens within the law’s term. This is one of the reasons AG Legal reviews a client’s long-term plans before filing: the tax benefits are conditional, not unconditional, and giving up the status early has a cost.

Falsifying documents: penalties under Article 10

Article 10 penalizes anyone who alters or falsifies documents to obtain the law’s benefits with a fine equal to 10% of the taxes that were exempted, plus immediate repayment of the full exempted amount — without prejudice to separate administrative or criminal penalties. The DGME handles the immigration side of enforcement under Article 189 of Law 8764, while the Ministry of Finance supervises and sanctions the tax side.

Is Law 9996 still in force in 2026? What Article 12 actually says

This is the single most misunderstood part of the law, and it comes down to two sentences in Article 12:

Read carefully, Article 12 limits only one thing: the window to request the Article 5 fiscal benefits. Since the law took effect on July 14, 2021, that five-year window closed on July 14, 2026. Two consequences follow directly from the text:

• Applications filed on or after July 15, 2026 can no longer request the Article 5 benefits (the household-goods exemption, vehicle import benefits, income tax exemption on declared amounts, and the transfer-tax reduction).
• Applicants who did request and receive those benefits during the five-year window keep them for ten years from the date they were granted — that part of Article 12 is a retention guarantee, not an expiration.

Nothing in Article 12, or anywhere else in the law, sets an expiration date for the law itself, for the Investor, Pensionado or Rentista categories it covers, or for the $150,000 threshold set in Article 8. The law’s closing line — “governs from its publication” — confirms that Law 9996 took effect on publication and has no built-in sunset clause of its own. For official verification, the full statute is published by the Procuraduría General de la República on SINALEVI, and current filing procedures are published by the Dirección General de Migración y Extranjería.

Who should still be using this law today

In practice, Law 9996 remains directly relevant to three groups in 2026:

• New Investor-category applicants, who still file at the $150,000 threshold under Article 8 rather than the general Article 87 threshold under Law 8764 — though they can no longer request the Article 5 fiscal incentives.
• Investors, pensionados and rentistas who obtained Article 5 benefits before July 14, 2026, who need to track their 10-year retention period and understand what happens if they transfer an exempted asset or give up their status early.
• Applicants investing in venture capital funds or sustainable tourism infrastructure, categories Article 8 specifically opened up for Investor filings.

For the practical, step-by-step side of filing as an Investor at the current $150,000 threshold, see our dedicated guide to residency by investment in Costa Rica. Pensionado and rentista applicants should review our Retire in Costa Rica guide and our main Costa Rica Residency guide for how these categories fit into the wider immigration framework.

Common misreadings of Law 9996

• Assuming the whole law expired in July 2026. Only the window to request Article 5 benefits closed; the law, the categories it covers, and the $150,000 threshold did not.
• Assuming the investor threshold reverted to the pre-2021 amount. Article 8’s $150,000 figure is not itself time-limited by Article 12 — it continues to apply to new Investor filings.
• Treating Article 5 benefits as automatic. They had to be actively requested within the five-year window; simply holding Investor, Pensionado or Rentista status did not grant them automatically.
• Overlooking the clawback rules. Transferring an exempted vehicle, home good, or property, or giving up the underlying immigration status early, can trigger repayment of the taxes that were exempted under Articles 5 and 7.
• Confusing immigration status with tax residence. Article 6 makes clear these are separate legal questions decided under separate rules.

Frequently asked questions — Law 9996

Is the Law for the Attraction of Investors, Rentiers and Retirees still in force in 2026?

Yes. Law 9996 remains in force. What ended on July 14, 2026 was only the five-year window, set by Article 12, for new applicants to request the additional fiscal benefits in Article 5.

Did the $150,000 investor threshold expire along with the Article 5 benefits window?

No. The $150,000 threshold is set by Article 8, a separate provision from Article 12’s benefits window, and continues to apply to new Investor-category filings.

What happens if I already received the Article 5 benefits?

Under Article 12, beneficiaries who requested and received the Article 5 benefits during the first five years of the law keep them for ten years from the date they were granted.

Can I still request the Article 5 benefits if I file today?

No. New applications filed after July 14, 2026 can no longer request the Article 5 fiscal incentives, even though they can still file as Investor, Pensionado or Rentista and, for Investors, still use the $150,000 threshold.

Does Law 9996 create a new residency category?

No. Per Article 2, it applies to people already entering under the existing Investor, Pensionado (retired resident) or Rentista (rentier resident) categories under the General Law of Migration and Foreigners — it adds a reduced threshold and incentives on top of those categories, rather than creating a new one.

Does qualifying under Law 9996 make me a Costa Rican tax resident?

Not automatically. Article 6 keeps immigration status and tax residence as separate questions; tax residence is governed by Law 7092 and its regulations.

What happens if I sell an exempted vehicle or property, or give up my status early?

Articles 5 and 7 both require repayment of the taxes that were exempted if the asset is transferred, or the underlying status is given up or cancelled, while the benefit’s validity period is still running.

Related guides

• Residency by Investment in Costa Rica — the current $150,000 Investor-category process
• Retire in Costa Rica — Pensionado residency, healthcare and legal planning
• Costa Rica Residency 2026 — all categories compared
• Costa Rica Visa Requirements 2026 — entry rules by nationality
• Immigration Legal Services — AG Legal

This article explains Law 9996 for general informational purposes and is not legal advice for a specific case. Always confirm current requirements with AG Legal or the DGME before filing. Source: Law No. 9996, Law for the Attraction of Investors, Rentiers and Retirees; DGME Costa Rica.