ARTICLE 1- Object of the law
The purpose of this law is to create the regulatory framework to encourage the attraction of investors, rentiers, and retirees, thus protected by Law 8764, General Law of Migration and Foreigners, of August 19, 2009, to contribute to the Costa Rican economic reactivation in a post-Covid-19 pandemic period.
ARTICLE 2- Scope
This law will apply to all those people who are authorized to enter our country under the immigration categories of investors, retired residents, or rentier residents.
ARTICLE 3- Declaration of public interest
This law is of public interest for the development of the attraction of investors, rentiers, and retierres to the national territory. For its fulfillment, the institutions of the Public Administration may include economic contributions to support the fulfillment of its purposes through the ordinary and extraordinary budgets of the Republic.
ARTICLE 4- Rectory
The governing body of what is protected in this law in the matter of migration will be the General Directorate of Migration and Foreigners, a body attached to the Ministry of the Interior and Police. Concerning tax matters will be the Ministry of Finance.
ARTICLE 5- Incentives
The people covered by this law will enjoy the following incentives:
- a) Duty-free and all import taxes present only once, for the importation of household items. In the applications, they will be able to protect their dependents, for immigration purposes. Household goods shall be understood as all new or used items of a reasonable nature and quantity and proportionally sufficient for the needs of the beneficiary of this law and the members of their immediate family nucleus, including, among others, home furnishings, electrical appliances. , home decor items, kitchen and bathroom utensils, bedding.
If the beneficiary person transfers these assets within the validity period of the benefits granted by the provisions of the second paragraph of article 12 of this law, they must pay the taxes from which they were exempted.
In highly qualified situations, where there is destruction or loss due to theft of household items, the beneficiary may acquire other assets for their replacement, also exempt from taxes. The regulation will develop the accreditation mechanisms of the circumstances in which these qualified exceptions proceed.
- b) Beneficiaries may import up to two land, air, and/or sea transportation vehicles, for personal or family use, free of all import, tariff, and value-added taxes. In case of loss of the vehicle due to theft, destruction by fire, flood, collision, or accident, occurred during the term of validity of the benefits granted following the provisions of the second paragraph of article 12 of this law, the owner may import another vehicle free of the indicated taxes.
The beneficiary of this law, who has imported a vehicle under the conditions indicated in the previous paragraph, may sell or transfer it to third parties, in which case the provisions of article 10 of Law 7088, Tax Adjustment and Resolution will be applied. 18th CA Tariff and Customs Council, of November 30, 1987.
- c) The amounts declared as income to qualify for the benefits of this law will be exempt from income tax.
However, the income obtained in the national territory, resulting from the investments made in the country, will be taxed by income tax, according to what is provided in Law 7092, Income Tax Law, of April 21 from 1988.
- d) Exoneration of twenty percent (20%) of the total transfer tax, in the real estate that they acquire within the term of this law, provided that the beneficiary is the registered owner of the asset.
If the beneficiary person transfers these assets within the term of this law, they must pay the taxes from which they were exempted.
- e) 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. The person must demonstrate to the Ministry of Finance that what is imported corresponds to his economic activity and has criteria of proportionality and reasonableness.
ARTICLE 6- Tax residence
Foreign persons classified as investors, retired residents, or rentier residents, according to this law and who invest in Costa Rica, will not be automatically considered tax residents, under Law 7092, Income Tax Law, of April 21, 1988, and its regulations, being subject to due diligence processes for the exchange of information with other jurisdictions under an international agreement, following article 106 quarter of the Code of Tax Standards and Procedures. The status of tax resident will be obtained only when the requirements of the final paragraph of article 2 of Law 7092, Income Tax Law, of April 21, 1988, and article 5 of the Income Tax Regulations are met.
ARTICLE 7- On the resignation or cancellation of the condition of investor, rentier resident, or retired resident
If the beneficiary person renounces his condition of “investor”, “pensioner resident” or “rentier resident”, or, if the immigration status is canceled by the General Directorate of Migration and Foreigners, for having incurred In any of the cases contemplated in the article 129 of Law 8764, General Law of Migration and Foreigners, of August 19, 2009, within the term of this law, you must pay the taxes from which it was exempted.
ARTICLE 8 Investors
For the category of investors, for the term established by this law, a new investment range is established, with a capital of not less than one hundred and fifty thousand US dollars (US $ 150,000.00), according to the official sale exchange rate. determined by the Central Bank of Costa Rica, whether in real estate, registrable assets, shares, securities, and productive projects or projects of national interest. In those cases where the investment is regulated by special laws, it will be analyzed individually.
In addition, beneficiary investors for this law may be considered those who invest in venture capital funds or sustainable tourism infrastructure projects.
ARTICLE 9- Processing
The Ministry of the Interior and Police, through the General Directorate of Migration and Immigration, in attention to the criteria for simplifying procedures, will have a specialized service window for the categories provided in the second article of this law, regulated in Law 8220, Protection of Citizens from Excess Requirements and Administrative Procedures, of March 4, 2002.
In addition to the requests dealt with directly at the window in question, the Ministry of appointment may open a window under the same conditions of service at its different locations or dependencies.
ARTICLE 10- Falsification of documents
Whoever alters or falsifies documents, to obtain any of the benefits provided in this law, will be sanctioned with a fine equivalent to ten percent (10%) of the taxes that were exonerated. Additionally, you must proceed with the immediate payment of the full amount of the taxes that were exonerated. The foregoing is without prejudice to other administrative and criminal penalties that may apply.
The respective sanctioning procedure will be carried out by the General Directorate of Migration and Immigration, by the provisions of article 189 of Law 8764, General Law of Immigration and Immigration, of August 19, 2009. For its part, according to the provisions of this law, the Ministry of Finance will supervise and sanction following the corresponding legal framework.
ARTICLE 11- Regulations
The Executive Power will regulate this law within the sixty days following the date of its entry into force.
ARTICLE 12- Validity of the law
Investors, rentiers, or pensioners who opt for the benefits granted in article 5 of this law may do so only during the first five years from its entry into force.
The investors, rentiers, or beneficiary pensioners who opted for said benefits during the first five years of validity of the law, will keep them for a period of ten years from the date they were granted.
Governs from its publication.