On July 14, 2021, Law 9996 came into force. This law grants special incentives to foreigners who are granted a temporary residency as an investor, foreign income earner (“rentista”), or retiree, to contribute to the country´s economic reactivation, post COVID-19.

The following incentives have been approved by this law, for investors, foreign income earners (“rentistas”), and retirees:

• Exemption, for one time only, of all import taxes, to bring their household goods into the country.
• Exemption of all import taxes, duties, and VAT, to import up to two land, air, and/or seagoing vehicles for their personal or family use.
• Income tax exemption for the amounts declared by them as income.
• 20% exemption of the total applicable transfer tax, for all real estate that they acquire during the term of the law, as long as they are the registered owners of these assets.
• Import duties exemption for instruments or materials that are necessary for the professional or scientific work they perform.

Regarding fiscal residency, they will not be automatically considered fiscal residents, per specific local laws applicable to the subject matter.

For the specific category of investor, and only for the 5-year term provided by this law, the minimum investment amount will be US$150,000 (formerly, the amount was a minimum investment of US$200,000) and the investment can be in real estate, recordable assets, shares/stock, securities, productive projects, or national interest projects. Those investing in risk capital funds or sustainable tourist infrastructure will also be considered investors, for purposes of this law.

The regulation to this Law is expected to be published within, approximately, sixty days, which should include pending details regarding the procedure that must be followed to apply for these incentives.

Any individual seeking to receive the benefits of this law must apply within the first five years of the law, and the individual awarded these benefits will enjoy them for a term of ten years, counted as of the date in which they received them.

To obtain legal advice on Costa Rican Employment and Labor, Human Resources, and Immigration Law, please do not hesitate to contact us.