The General Directorate of Immigration and Foreigners is the entity in charge of fulfilling the functions of executing the migration policy dictated by the State and the General Law of Immigration and Foreigners (Law No. 8764).

Among its functions is the implementation of a series of migration categories or types of residency through which foreigners can legally reside in Costa Rica, once they have carried out the due process before said institution and have been granted the migratory residency for which they have opted and which is applicable to their specific situation. 

It is important to mention that in Costa Rica there are two general types of residency: 

(i) Permanent Residency: which alludes to a migratory condition that allows the person who obtains it to remain in the country indefinitely and with total labor freedom, and; 

(ii) Temporary Residency: which refers to an immigration condition that allows the person who obtains it to remain in the country temporarily and with various restrictions. 

Thus, and according to the provisions of the Law, all foreigners residing in Costa Rican territory must have a regular immigration status, for which they may opt for any of the following categories of immigration residency:

I. Permanent Residences:

(i) By Direct Link with Costa Rican:

For this category of residence qualify all foreigners who have Costa Rican spouses, fathers, mothers, daughters or sons; or who have Costa Rican brothers or sisters under twenty-five years of age. 

To obtain a residence of this type, it is necessary to prove the link with the Costa Rican person by means of a certification issued by the Civil Registry of Costa Rica. 

(ii) Residents for three consecutive years:

For this category of residence qualify all foreigners who for three consecutive years have obtained a temporary residence through any other category, thus opening the possibility of opting for permanent residence free of condition. 

Upon obtaining the permanent residence permit, the foreigner may live in or out of the country and will not need to renew it.

II. Temporary Residences:

(i) Alimony residents:

All foreigners who can prove, by means of a document issued by the competent authority of their country, that they enjoy a pension for life, the amount of which may not be less than the sum of one thousand dollars per month (US$1,000.00), legal tender of the United States, may opt for temporary residence as a pensioner.

Those who obtain this type of residence may require the residence as “dependents” of their spouse, and children who are under twenty-five years of age, or who suffer from a duly certified medical disability. 

(ii) Rentier:

Foreigners who can prove, by means of a document issued by the competent authority, that during a period of not less than two years they will receive a stable and permanent income of not less than the monthly sum of two thousand five hundred dollars (US$2,500.00), legal currency of the United States, may opt for residence as an annuitant. 

This income may come from rental contracts, corporate dividends, inheritances, or any other remuneration received by the foreigner in a personal capacity. 

It is worth mentioning that there is also the possibility of making a term deposit for two years in a national bank for the amount of sixty thousand dollars (US$60,000.00), legal currency of the United States, which allows the foreigner to secure an income equal to two thousand five hundred dollars (US$2,500.00), legal currency of the United States, for a term of twenty-four months.

(iii) Investor:

Foreign persons who can demonstrate an investment in Costa Rican territory may opt for this type of residency, and in addition, take advantage of the tax benefits of Law No. 9996, Law for the Attraction of Rentier and Pensioned Investors, which decreased the amount of investment necessary to opt for this category by up to one hundred fifty thousand dollars (US$150,000.00), legal tender of the United States, and which came into effect last July 14, 2021, for which two types of investment are identified:

a. Investment in Real Estate and Movable & Inscribable Goods.

All foreign persons who have an investment of one hundred and fifty thousand dollars (US$150,000.00), legal currency of the United States, or its equivalent in local currency, may opt for this category of residence. 

For this purpose, a detailed description of the investments in real estate and movable property inscribable before the National Public Registry must be presented, which must be certified by the Property Registry of the Public Registry of Costa Rica. 

This category includes real and personal property of all types: houses, apartments, lots, farms, as well as vehicles, motorcycles, trucks, or ships. 

Likewise, it is important to mention that under this category the Costa Rican State applies a series of tax exemptions to foreigners, such as 1) a one-time exemption of all import taxes on household goods, 2) an exemption of two vehicles, whether land, sea or air, of twenty percent (20%) on the Tax on Transfer of Goods acquired; and, 3) an exemption of all taxes on the importation of instruments or materials for the professional or scientific practice performed by the foreign person. 

These benefits shall also be extended to the dependents of the applicant, and shall apply provided the application is filed within the first five (5) years of effectiveness of the Law, and shall be maintained for ten (10) years from the time they were granted. 

b. Investment in Stocks or Securities.

All foreign persons who can demonstrate that they have investments in stocks or securities for a minimum of one hundred and fifty thousand dollars (US$150,000.00), legal currency of the United States, or its equivalent in local currency, may opt for this category of residence.

For this purpose, a detailed description of the investment in shares or securities must be submitted, which must be issued by a Notary Public, as well as a proof of income from this investment demonstrating the economic solvency of the applicant, which must be issued by a Certified Public Accountant. 

Likewise, it is important to mention that under this category the Costa Rican State applies a series of tax exemptions to the foreigner, such as 1) an exemption of all import taxes abroad for a single time of household goods, 2) an exemption of two vehicles, whether land, sea or air, of twenty percent (20%) on the Tax of Transfer of Goods acquired; and, 3) an exemption of all taxes on the import of instruments or materials for the professional or scientific practice carried out by the foreigner. 

These benefits shall also be extended to the dependents of the applicant, and shall apply provided the application is filed within the first five (5) years of effectiveness of the Law, and shall be maintained for ten (10) years from the time they were granted. 

(iv) Executive, Manager, or Technician of a Recognized National Company:

Foreign persons who are executives or technicians hired by companies that are duly registered or recognized by the General Directorate of Immigration and Foreigners as a multinational company, may opt for a temporary residence under this category.

For this purpose, they must submit a copy of the employment contract duly authenticated by a Notary Public, indicating the monthly salary received, which must be 25% higher than the legal minimum wage for the same position. 

(v) Legal Representative of Non-Recognized Companies:

Foreign persons who are Legal Representatives of one or more Costa Rican companies that are duly registered and in force before the National Public Registry, may opt for Costa Rican residency under this category.

For this they must justify the existence of the business by means of (i) the accreditation of Commercial Patents issued by the Municipality corresponding to the business; (ii) Sanitary Permits of Operation issued by the Ministry of Health of Costa Rica; (iii) the registration and current status of the obligations of the company before the Costa Rican Social Security Fund (CCSS); (iv) the Labor Risks Policy issued by the National Insurance Institute (INS) to the registered workers; (v) the registration record and current account status before the Direct Taxation Office of the Ministry of Finance; and, (vi) the Financial Statements of the Company, which must be issued and certified by an Authorized Public Accountant. 

(vi) Specialized Dependent Employees and their Dependents (Work Permit):

All foreigners who have been hired by national employers to perform specialized work in Costa Rican territory may opt for this category of residence. 

For this purpose, an Affidavit duly authenticated by a Notary Public and signed by the Employer must be submitted, certifying the experience of the worker, and specifying the specialized functions and knowledge for the position. For this reason, duly authenticated academic degrees that demonstrate the training and experience of the professional applicant must also be provided. 

Additionally, the employing company must prove its existence and operation by means of: (i) a valid Commercial License issued by the corresponding Municipality; (ii) a valid Sanitary Operating Permit issued by the Ministry of Health; and, (iii) the registration of the company’s current account statement before the Direct Taxation Office of the Ministry of Finance. 

(vii) Digital Nomads:

The Law to Attract Remote Workers and Service Providers of International Character, commonly known as the “Law of the Digital Nomads”, has as its main objective to promote the attraction to Costa Rican territory of workers and service providers that are carried out remotely, in order to encourage long stay visitation in Costa Rica and increase the expenditure of resources of foreign origin in the country.

The Bill was duly approved by the deputies of the legislative assembly, and ratified by the Executive Branch dated August 11, 2021.

(i) General:

The beneficiaries of the project correspond to the remote worker, and those who obtain this type of residence may also apply for residence as “dependents” to their spouse, and children who are under twenty-five years of age, or who suffer from a duly certified medical disability. 

This new residency category allows those foreigners who work remotely and have a monthly income equal to or greater than three thousand dollars (US$3,000.00), legal currency of the United States, per month, to remain in the country for a period of up to one year, which may be extended for an additional year. In the event that their family members are required to reside as dependents, their monthly income must be equal to or greater than five thousand dollars (US$5,000.00), legal currency of the United States, per month. 

Likewise, the Law amends the existing legislation to exempt persons who opt for this category of residence from import duties on equipment, instruments, tools or computerized telecommunication or analogous means for the performance of their labor functions. 

(ii) Benefits of the Remote Worker or Digital Nomad:

a. The visa granted by the Directorate of Immigration and Alien Affairs will be valid for one year and will be extendable for an additional year (only once), provided that the previous stay in Costa Rica has been a minimum of 180 days.

b. The worker (individual) and his/her dependents (family members) may opt for residency under this category. 

b. The Directorate of Immigration and Foreigners will use a platform or digital window for the expeditious management of the applications of the foreigners who wish to opt for the residency under this category, in such a way that the application process of the residency will be 100% digital.

c. The beneficiaries will have total exemption of income tax, as well as any other profit tax, with respect to their income coming from abroad, as provided in article 17 of the Law. 

d. The beneficiaries may opt for the exemption of tariffs and other charges related to the importation of equipment, instruments, tools or computer, telecommunication or analogous means, necessary to comply with their work or the rendering of their services, as provided in article 18 of the Law. 

Author: Clare Facio Legal Law Firm
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