Costa Rican flag as a symbol of legalization in Costa Rica for foreign investors
Temporary Residence Costa Rica

Costa Rica has passed a law aimed at increasing the inflow of foreign investment

14 July 2021
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Costa Rica has announced tax incentives and lower investment thresholds to attract foreign investors, capital owners and wealthy retirees to the state. The authorities’ intentions are confirmed by a new law signed July 5 by President Carlos Alvarado. The document was passed in order to use foreign capital as a means to revive Costa Rica’s economy after the pandemic.

Terms and benefits of the new residence program

According to the new bill, a reduction in the investment threshold is the most attractive factor for foreign investors. If previously the minimum investment amount was 200,000 USD, now it is 150,000 USD. Foreigners will be able to invest in real estate, securities, assets, shares, projects that are profitable and meet the national interests of Costa Rica.

By completing the basic requirement, foreign investors, rentiers, wealthy retirees and their families will receive a temporary residence permit in the state for a period of 2 months to 3 years with the possibility of extension. The authorities will also give immigrants a tax benefit for the purchase of imported goods for the home. For example, home furniture, electrical appliances, kitchen appliances and other.

Also, this category of residents will be exempt from paying taxes for the use of any two types of personal vehicles in Costa Rica for travel by land, sea or air. Foreigners will be able to sell their vehicle if they wish. One more advantage offered to investors will be a tax reduction by 20% of the total amount in case of ownership transfer of any property purchased by a foreigner in Costa Rica.

The country’s government does not tax foreign investors’ global income from abroad. However, this rule is not valid, if the immigrant receives funds in Costa Rica. All benefits provided by the new law of the state will be available to residents for 10 years.

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