New regulations in Costa Rica simplify immigration procedures for foreigners who want to invest in the country

The Regulation to Law 9996, published in the Official Gazette on February 23, 2023, is part of the Costa Rican government’s efforts to attract foreign investment to the country.

This regulation simplifies immigration procedures for foreigners who want to invest their capital and expand their businesses to Costa Rica, and it regularizes the immigration status of foreign income earners (“Rentistas”), retired residents, and investors.

This regulation aims to organize immigration dynamics to improve national development, through economic, social, and cultural enrichment, as well as to control the monetary flows that come into the country.

Four important aspects that the regulation establishes:

• The creation of a preferential section within Immigration´s digital platforms for the processing of these applications.
• Investor subcategory: Applicants must make investments in Costa Rica of no less than US$150,000. This condition will be granted for two years, renewable for equal periods. For this, the applicant must demonstrate that they maintained their investments continuously. The foreigner who is granted temporary residency as an investor and their dependents may not work in the country.
• Foreign Income Earners (“Rentistas”) Subcategory: The applicant must demonstrate with a document issued by any banking institution (either in Costa Rica or its country of origin) that, for no less than two years, they will receive an income for a monthly, permanent, and stable amount of no less than US$2,500.
• Pensioners Subcategory: The applicant must demonstrate with a document issued by the competent authority that they receive a pension for life in an amount of no less than US$1,000 per month.

All of the above subcategories may be granted to the applicant's spouse, children under twenty-five years of age and older children with disabilities.
In addition, those who qualify in any of these subcategories will be eligible for tax incentives such as:

• Duty-free and all import taxes, for the importation of household items.
• Import up to two land, air and/or sea transport vehicles, for personal or family use, free of all import, tariff, and value-added taxes.
• The income declared will be exempt from income tax.
• Exemption of twenty percent (20%) of the total property transfer tax.
• Exemption from import taxes for instruments or materials to perform their economic activity.

Furthermore, they will not automatically be considered tax residents in the country; however, they may opt for this status.

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