Exploring Migration Options to Costa Rica: From Digital Nomads to Investors
Costa Rica is widely recognized for its political stability, natural beauty, and quality of life (Nicoya in Guanacaste is a globally recognized blue zone, for example). Over the years, it has attracted a growing number of expatriates seeking a life change where they simplify the complex and reconnect with their essence thanks to nature and the wide range of wellness activities that Costa Rica offers. As the founder of Simple Legal Consulting, I have guided many through the various migration categories available in Costa Rica, facilitating their transition to this peaceful paradise. Here, we will explore some of these categories, with a particular focus on digital nomads and investors.
Immigration Categories in Costa Rica
The options for migrating to Costa Rica are varied and tailored to different needs and circumstances:
Investor: Individuals who invest at least USD$150,000 in real estate, company shares, vehicles, or securities can opt for residency. Reasons for investing in real estate vary from having a primary home, creating a vacation space, or simply generating passive income from short and long-term rentals. In any case, a real estate purchase in Costa Rica ensures cash flows due to the country's success as a premier tourist destination in Latin America.
Rentista: This category is ideal for those with a fixed income of USD$2,500 per month or by opening a bank account in Costa Rica and depositing USD$60,000 (which can be used during the two years the residency lasts).
Pensionado: Holders of a lifelong pension of at least USD$1,000 per month are also eligible for residency.
Company Manager: Ideal for entrepreneurs who do not have USD$150,000 to invest but can establish a corporation and apply for residency as its manager (this is how I moved in 2012).
Worker with Specialized Knowledge: Requires special skills and an assessment by the Ministry of Labor regarding the impact on local employment, to ensure that it does not displace local labor.
Family Link Residency: Parents of Costa Ricans, or those married to Costa Ricans or legal residents can apply for residency.
Digital Nomad Visa: For individuals earning at least USD$3,000 per month or USD$36,000 annually for singles, or USD$48,000 for families.
Digital Nomads: A Rising Category
The digital nomad visa is a relatively new and very attractive addition. Costa Rica offers ideal conditions for those wishing to work remotely while enjoying a tropical environment. Benefits include exemption from paying income tax and social security contributions, the ability to open bank accounts, and the validity of the foreign driver’s license in the country for the period of the special visa, which generally lasts one year. This application process is efficient, usually taking about 3 months.
Investors, Rentistas, and Pensionados: Open Doors to Significant Benefits
The investor category, under the Law for the Attraction of Investors, Rentistas, and Pensionados No. 9996, is especially favorable. Coming into effect in July 2021, this law allows applicants, along with their family nucleus (spouse, children, and dependent parents), to opt for a temporary residency that is renewable every two years and can become permanent after three years. Once temporary residency is obtained, these three categories can opt for the following benefits:
The right to legally reside in Costa Rica.
Tax-free importation of up to two vehicles (boats, planes, helicopters, cars).
Tax-free importation of household goods and professional equipment.
A 20% discount on the property transfer tax (1.5% of the property value).
Conclusion
If you are considering Costa Rica as your next home or workplace, the options are robust and accommodating. From digital nomads seeking flexibility and freedom, to serious investors looking to leverage tax and migration incentives, Costa Rica offers a friendly and advantageous legal framework for all. Moving here 12 years ago was one of the best decisions of my life, and I would be delighted to help you make yours.
About the Author
Herman Duarte, founder of Simple Legal Consulting, is an immigrant from El Salvador who, after living in Costa Rica for 13 years, is now a proud Costa Rican. He holds master's degrees from Stockholm University and the London School of Economics and Political Science. Passionate about writing and research, Herman is widely recognized as one of the top lawyers in the region and a leading expert in investment and immigration law in Costa Rica. Drawing from his personal experience as an immigrant, Herman uniquely understands the challenges of navigating the immigration system and is dedicated to helping others successfully transition to life in Costa Rica.