Costa Rica: San JoséFlamingo Tamarindo Nosara


Costa Rica encourages foreign investment and relocation to the country

August, 2021

On July 5, 2021, the Government of Costa Rica published Law #9996 which is designed to attract foreign investors, retirees and temporary residents (those who fall under Law #8764 – General Law of Migration and Foreigners).  This legislation was passed to promote the economic reactivation of the country in the post-pandemic period of COVID-19.
The incentives in the new Law apply to those that are authorized to enter Costa Rica under the specific categories of investors, temporary residents and retirees/pensioners.

There are several incentives that stand out:
A one-time elimination of import taxes (duty free) on the importation of household items
Beneficiaries may import up to two land, air and/or sea transportation vehicles, for personal or family use, free of all import, customs and value added taxes (VAT). In case of loss of the vehicle due to theft, total destruction by fire, flood, collision or accident during the term of the benefits, you can import another vehicle free of the indicated taxes.

The amounts declared as income to qualify for the benefits of this law will be exempt from income tax. 
Exoneration of 20% of the total transfer tax in any real estate purchase, within the terms of this law.
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 temporary resident. The person must demonstrate, before the Ministry of Finance, that what is imported corresponds to his economic activity and has criteria of proportionality and reasonableness.

Specifically for investors, the new legislation establishes that whomever is opting for a temporary residence as an investor must demonstrate to the Immigration Department a minimum investment of $150,000 USD in real estate, registrable assets, shares, securities and productive projects (or projects of national interest).  This is a reduction from the previous amount of $200,000 USD.
Of note, the regulations that establish the way in which the law will be applied are still pending to be issued by the Government.  To answer any questions you may have as the details are finalized, we are at your service at

GM Attorneys is a premium boutique Law Firm with offices in Flamingo Beach, Tamarindo, Nosara and San Jose.

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