Digital Nomad Visa in Costa Rica

Benefits of being a Digital Nomad in Costa Rica

On the 11th of august 2021, the “LEY PARA ATRAER TRABAJADORES Y PRESTADORES REMOTOS DE SERVICIOS DE CARÁCTER INTERNACIONAL” also known as the “DIGITAL NOMADs Law* was signed by the executive power as a law. This law aims to facilitate the process for digital nomads to relocate to Costa Rica for a shorter stay than residencies, eliminating the participation of several public entities and getting an answer in 15 days. The bylaws were signed on July 4, hence applications are possible now and the process takes around 3 weeks.

The extremely agile process that this special VISA to reside in Costa Rica - targeting the talented digital nomads - grants the following rights:

1. A valid and legal permit to stay within the territory of Costa Rica for a period of 12 months, with the right to extend it up to 24 months.

2. The right to open bank accounts;

3. The right to have their license driver recognised as valid during the period that the VISA is extended. Digital Nomads will also have special tributary benefits such as: the exception to NOT PAY any INCOME TAX during the time of their VISA and that they will not be obliged to pay social security fees, ranging between 12%-36% of the net income.

In order to receive the benefits, Digital Nomads need to prove a monthly income that comes from outside the country of a 12-monthly average of at least $3000 (or $4000 for couples) and medical insurance with a coverage of US$50K.

It is important to highlight that part of the benefits include that they will not have any TAX obligations regarding that income.

• Probatory elements: So the first difference relates to the standard of probatory elements that need to be submitted to the Migration authority, as a residency requires to prove that the foreigner will not displace local workforce, but the contrary, that comes to create jobs for costaricans.

• Opt to become a national: Permanent residents can opt to Costarican citizens as every year you have a residency permit counts and accumulates to apply for citizenship, which is something a special VISA does not grant.

• Legal right to get CR clients: The idea of digital nomads is that their income will come from outside the country, so this is an important aspect to consider, as digital nomads are not allowed to look for clients in Costa Rica. In order to do that, they must register before the tax authority and tribute the income generated.

• Time to get an answer: The time to get an answer gives us an additional difference, as a residency permit could take up to 1-2 years; the digital nomad visa is expected to last 15 days. .