Costa Rica approves regulations granting tax exemptions to investors and retirees

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Жыл бұрын

The Costa Rica government has passed the long-awaited regulations to the Law to Attract Investors, Rentistas and Pensionados (Law No. 9996). The regulations have been officially published in the National Gazette on February 23, 2023. This means that the regulations our now in effect.
The Regulations are divided into five chapters as follows:
Chapter I General Dispositions and definition of terms.
Chapter II On The Procedures to Authorize the Status for Investors, Resident Pensionados, and Resident Rentistas before the Department of Immigration
Chapter III On the Authorization of Tax Exemptions and Benefits in favor of Investors, Resident Pensionado, and Resident Rentistas.
Chapter IV On the Tax Residence and Inter-governmental Coordination
Chapter V On the modifications, additions and repeal of existing regulations.
Check out my detailed articles here: costaricalaw.com/costa-rica-l...
For more information about living, investing, retiring or doing business in Costa Rica visit costaricalaw.com
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Пікірлер: 51

@leoruocco9128 Жыл бұрын

Nothing comes quick or easy in Costa Rica. Thanks much for the update.

@CostaRicaLaw Жыл бұрын

That is true. Patience is the key in Costa Rica. Thank you for watching.

@MrJustliketht 8 ай бұрын

My buddy just built a beautiful ocean front home... They worked hard and long but in the delays.

@darenoeschler7048 4 ай бұрын

Lol - I'm moving back to CR soon and l can relate to your insightful comments ! The way l look at it, if it was easy and trouble free to live in CR, then everyone would be down there and you couldn't afford it ! Hope you make it to Drake Bay some wonderful day 👍

@febsign6110 Ай бұрын

I’m gathering my paper work for you now Roger and hope to see you soon in person to hand them to you.

@elizabethdugger2265 Жыл бұрын

Thank you Roger for this valuable and timely information. We appreciate all you do!

@CostaRicaLaw Жыл бұрын

Hi Elizabeth. Thank you for watching and your feedback

@lino629 Жыл бұрын

Thanks for the update.

@CostaRicaLaw Жыл бұрын

You welcome and thanks for watching

@johnway9853 Жыл бұрын

Thanks again Roger, great info, clearly presented. So helpful, as always.

@CostaRicaLaw Жыл бұрын

Hi John. As always thank you for your time in watching and commenting.

@ledamora7964 Жыл бұрын

Thank you for the information

@CostaRicaLaw Жыл бұрын

You welcome and thank you for watching

@billwlod Жыл бұрын

thanks for the vid

@CostaRicaLaw Жыл бұрын

Thank you for watching and commenting.

@move2costarica Жыл бұрын

Excellent presentation- so difficult to get here in CR

@CostaRicaLaw Жыл бұрын

Thank you for watching

@Time2Live.online 3 ай бұрын

I'm looking at the investment side and I found a decent house or $250k, but I have a friend that tells me that any home or business valued at $250k or more would make me vulnerable to a 50% luxury tax. Owww. Is that true?

@CostaRicaLaw 3 ай бұрын

Hi John and thank you for watching and commenting. Not necessarily. The Luxury Home Tax first calculates only the value of construction -i.e. brick and mortar and that would have to exceed 290k (2024 threshold) to then get into the land valuation. Also the luxury tax is not 50%. It is based on sliding scale. I am attaching a link to an article I wrote in 2023 but the concepts are the same. costaricalaw.com/costa-rica-legal-topics/taxes-in-costa-rica/what-is-the-costa-rica-luxury-home-tax/

@Caveman007freelancer Жыл бұрын

Hello friends. What happened to the new 19% tax for expats that are permanent residents, to pay the caja ? Thank you

@CostaRicaLaw Жыл бұрын

Yes, The CCSS rules imposed on residency holders continues to be a major factor increasing the cost of residency. There is talk of changes and a bill introduced in the legislature to modify it but nothing concrete to date. An option is to come in under the Nomad or Estancia visas which don't require CCSS and then switch later down the line once the amount has been sorted out.

@profitabundance70707 9 ай бұрын

Question: How does Costa Rica look if you are a active online crypto, forex, stock trader ? I know there is no income tax there but how does Costa Rica look for a crypto, forex, stock trader and investor ? The registration as a Costa Rica investor confuses me.

@rayray8339 Жыл бұрын

Once residency is granted, you are required to pay into the CAJA. Do you know if CAJA payments would be higher for residencies through Pensionadeo (receiving approx. $1,500/mo) or through residencies from investing $150,000 on a property?

@CostaRicaLaw Жыл бұрын

From past experience in investor residency they would use $2,500 as the income basis which is what they applied to rentista status. What they should do is apply your pension amount $1,500 regardless if it is pensionado or rentista since that is your proof of income. CAJA is based on your income not on investment amount. However we find that each regional CAJA office seems to apply their own internal criteria rather than having a national uniform policy and procedure.

@rayray8339 Жыл бұрын

@@CostaRicaLaw Thank you

@Garcia061 11 ай бұрын

Thanks Roger. Can the pensionado be a combination- for example I receive SSDI from the USA and a government pension from the UK as I’ve worked in both countries. The total would be over the required amount. Also, can it be from a private company or it has to be a federal pension?

@CostaRicaLaw 11 ай бұрын

Hi. Thanks for watching the video. YES. So long as both of the pensions are lifetime pensions then you can combine them to come up with the requirement. So long as it is a lifetime pension then it can be from a private company or government pension.

@MarcRRamsay Жыл бұрын

Thanks for the video. I received my temp residency (Investor) last year, so I assume that I cannot take advantage of any of these new regulations now? Also, my investments are held in corporations. Will I need to move them into my personal name when it comes time to renew? Gracias.

@CostaRicaLaw Жыл бұрын

Hi Marc. Since those are case specific questions I would suggest it best that you consult them directly with the Immigration specialist that handled you immigration processing directly. If you were approved last year then law was in place when you applied although the regulations were not. So an argument could be made. However the regulations do have a new requirement that the investment has to be made in personal capacity so there would need to be a work around to that.

@CostaRicaLaw Жыл бұрын

Marc. There is new information available that addresses your question. I did a summary of a panel discussion held by the Department of Immigration, Department of Treasury and the Costa Rica Bar Association regarding the new regulations. In that discussion the panel indicated that they would honor the exemptions for those that applied in the law was passed but the regulations had not been approved. They would also accept investment in inactive holding companies for residency that was approved after the law was passed and before the regulations implemented. Anybody else applying after the regulations were approved would have to do so with those regulations. Here is the link to the panel discussion summary. costaricalaw.com/costa-rica-legal-topics/immigration-and-residency/panel-discussion-on-the-implementation-of-the-new-regulations-to-the-law-to-attract-investors-rentistas-and-retirees-to-costa-rica/

@MarcRRamsay Жыл бұрын

@@CostaRicaLaw thank you. That is an interesting read. It would be interesting to find out if I could get a refund on the import duties I had to pay for my personal goods.

@freedom_-vn2dc 11 ай бұрын

What if I sell the cars I import? Is there really a way for the government to know I sold them and collect the import taxes?

@CostaRicaLaw 11 ай бұрын

To buy/sell a car in Costa Rica you need to hire a Costa Rica Notary Public to run title searches and to draft and record the transfer deed. They generally will flush out any liens, encumbrances or limitations imposed on the transfer of a vehicle.

@sharynbaker1266 Жыл бұрын

Even my lawyers not able to find this online residency forms!

@CostaRicaLaw Жыл бұрын

Here is the link to the official publication: www.imprentanacional.go.cr/pub/2023/02/23/ALCA28_23_02_2023.pdf

@J.M.S.Simoes-Pereira 5 ай бұрын

I was going to buy a property in Costa Rica and I gave up on the purchase because the real estate agency said I should transfer the money to a company that is not a bank? Why would the money go to a company and not directly to the owner? I was told that Costa Rica has a law that requires that money coming from another country must go to a company. This company is not a bank. I would like you to answer me on this subject or if there is a video explaining why a real estate company tells us that we must make a deposit in a company and not in an account in our name and that is not a bank?

@CostaRicaLaw 4 ай бұрын

Hi and thank you for watching and commenting. They were probably recommending an Escrow Company to hold the funds. The problem with giving the deposit to the Seller is that if for any reason the transaction falls apart and the Seller refuses to give you the funds back you would end up in a very long local legal battle. There is no "law" that requires that. If you want to give the money to the owner directly you can do so. The bank where the seller has his account will request detailed information to justify the source of funds so in that sense the Escrow handles that additional paperwork as well.

@J.M.S.Simoes-Pereira 5 ай бұрын

The tradition now is to transfer everything to the digital platform, but there are elderly people who don't work with the Internet. So they have additional expenses to always hire someone who knows how to use the Internet.

@CostaRicaLaw 5 ай бұрын

Hi and thank you for watching and your comments. Yes, that is a great point that you make. Many of the applicants for residency are retired boomers and not all are comfortable with the online filing systems. Immigration will still take physical paper filings but that requires an appointment at Immigration to present the documentation and once you file in paper format you must continue that way until approval which could may longer processing times.

@marytica123 Жыл бұрын

THANK GOD ! However, we have a problem. Myself and my 2 adult sons already hold DUAL citizenship (USA / Costa Rica). Does this program apply to us ? I meet the income qualification via my pension, as does my older son. My husband had a resident cedula, but it expired in 2014 after we returned to the USA to live. Does he need to re-apply under this program ?

@CostaRicaLaw Жыл бұрын

Hi. It does not apply to Costa Rican citizens only to foreigners apply for a residency category as investor, rentista or pensionado. It is not retroactive to those that had a status before the law was approved. As to your husband he would have to close out his old file and then reapply under this program if he wants to get the exemptions.

@marytica123 Жыл бұрын

@@CostaRicaLaw Wow - I'm confused ! It would appear that my husband - who holds USA citizenship only - would be the sole member of my family who could apply under this law ! That seems to be DISCRIMINATION against myself and my sons, who hold DUAL citizenship ! When will the online portal be activated, so my husband can apply ?

@CostaRicaLaw Жыл бұрын

If you have citizenship you don't need a residency status since.yiu are.legally a citizen.

@user-wm5qs8qp4t Ай бұрын

I am planning to move permanently to Costa Rica with my 31 year old son. I could qualify either under the Pensionado/ Investor category but my son would qualify only as an Investor - we are purchasing a home there together for in excess of $300,000 US and he will contribute just over $150,000 US. My question is, knowing I need to make a monthly CAJA contribution based on my declared pension income from Canada, would my son be required to contribute to CAJA? Under a temporary residency status, he cannot be employed and of course has no pension or other income. He does plan to start a small "odd job" business to make services available for primarily retirees or anyone that needs work done around their properties or assistance with IT. He would file Costa Rica taxes and my thinking is, based on whatever his business income is, would then start making CAJA contributions! Any thoughts?

@CostaRicaLaw Ай бұрын

Hi and thank you for watching. If you apply for Pensionado or Investor then you would have to contribute to Caja CCSS - Since your son is 31 and past the age of dependency then he would need to apply as investor on his own and that would also require him to pay into CCSS under his own name and account. The category that does not require Caja CSSS is Digital Nomad but that one is an extended visa category and not residency per se.

@JS-jh4cy Жыл бұрын

Where is your office? I am looking to consider moving to costa Rica and starting an real estate investment or a farming business

@JS-jh4cy Жыл бұрын

I rather pay the damn duty up front so I can sell or buy later on the item. How much is duty on personal items, car, tools

@CostaRicaLaw Жыл бұрын

Hi. I am located in San Jose. Here is my contact form if you have specific questions about relocating to Costa Rica costaricalaw.com/contact/

@CostaRicaLaw Жыл бұрын

@@JS-jh4cy Duties vary depending on the item. I would suggest contacting a Customs Broker first since you will need one to import anything into Costa Rica. They know all the import procedures and the duties as well. some courier companies have import duty calculators on their site where you can get estimates. Here is one for you: courier.aeropost.com/SCL/en/calculator

@billwlod Жыл бұрын

I have a corperation with my wife and a investor friend building and selling house's, now would the $15000 investment be $45000

@CostaRicaLaw Жыл бұрын

If the company is active and registered with the tax department as conducting business activity then you could use that to apply. You would need to prove that the applicant (one person) has purchased or capitalized at least US$150,000 into the capital stock of the company. Now your wife can become a dependent on your application so you would be able to get both of you in with one single US$150,000 investment.