The Costa Rican 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 and hence the application of this portion of the law come into effect upon publication.
What Does This Mean For New Residency Applicants?
If you are applying for the residency categories of Investor, Rentista or Pensionado you are now able to request the application of this regulation to your application.
When Do the Regulations Come into Effect?
These regulations are in effect as of February 23, 2023
What is in the Regulations?
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.
The full text of the Regulations translated into English are provided for you below. The following is a summary of the most relevant provisions:
How about Tax Exemptions?
The tax exemptions and incentives that were granted under Article 5 of the law (Law 9996) were as follows
a) One-time exemption from all import duties and taxes for the importation of household goods. Household goods include all new or used items that are reasonable and proportionate to the needs of the beneficiary and their immediate family members, including but not limited to household furniture, appliances, home decor items, kitchen and bathroom utensils, and bedding.
b) Beneficiaries may import up to two automobiles, air, and/or sea transport vehicles for personal or family use, free of all import, tariff, and value-added taxes.
c) Income declared to qualify for the benefits of this law will be exempt from income tax. However, income obtained in the national territory resulting from investments made in the country will be subject to income tax, as provided for by Law 7092, Income Tax Law, of April 21, 1988.
d) Exemption of twenty percent (20%) of the total transfer tax for real estate acquired during the validity period of this law, provided that the beneficiary is the registered owner of the property. If the beneficiary transfers these properties during the validity period of this law, they must pay the taxes from which they were exempted.
e) Exemption from import duties for instruments or materials used for professional or scientific purposes by persons with the migratory status of investor, retired resident or rentista resident. The person must demonstrate to the Ministry of Finance that the imported goods correspond to their economic activity and meet criteria of proportionality and reasonableness.
How do You Apply for the Tax Exemptions
According to the Regulations, once your residency is approved the Department of Immigration shall provide the Department of Revenue and the Ministry of the Treasury with a copy of your approval so that the tax exemptions can be processed.
In practice, you are going to need the services of a Costa Rican customs broker with experience in processing tax exemptions to handle this for you. It requires using the Department of Revenue Tax Exemption platform called EXONET. Here is the lnk to the official site: https://exenciones.hacienda.go.cr/exenciones/exinicio.aspx
My recommendation for this part of the process is to engage a Customs Broker before you ship anything to Costa Rica to coordinate any of the applicable tax exemptions under this law.
For How Long Will these Tax Incentives be Granted?
The tax incentives and benefits provided under this law are granted for a period of FIVE (5) years from the date the law was passed. Any vehicles, boats or aircraft brought into the country with the tax exemptions must be held by the beneficiary for a minimum of TEN YEARS (10) before it can be sold to third parties.
Changes to the Investor Category
The Law to Attract Investors, Rentistas and Pensionados has reduced the required investment to qualify for Investor Residency to US$150,000. The Regulations specify that the investment can be made in the following ways:
A. Investment in Real Estate of Titled Assets
Those of you that want to apply under this category by investing in Real Estate or other type titled assets must hold the title in the PERSONAL name of the applicant. The applicant will need to provide a title certification issued by the National Recording office of Costa Rica. They will no longer accept real estate or assets that are titled in the name of Costa Rican companies. Nor will they accept Notary certifications or CPA certifications to prove the investment. This is a significant change from prior procedures. In the past it was common to use a Costa Rican LLC to title all the assets and then certify that the residency applicant was the sole shareholder of that company. It appears that with the new regulations this form will no longer be accepted. Instead, the applicant will need to provide a certificate of title along with a property tax certificate issued by the local municipal government. Both of these will need to be in the personal name of the applicant.
B. Shares of Companies
The regulations allow an applicant to invest in the purchase of shares of a Costa Rican company. The caveat is that the company must be a company with economic activity and active with the Costa Rican Department of Revenue. With this change they are not allowing investment in inactive holding companies.
D. Negotiable Instruments
The Investor can invest in negotiable instruments through a licensed and regulated Costa Rican brokerage company authorized by the Costa Rican Securities Regulator (SUGEVAL)
D. Projects which are in the National Interest or Productive Project.
This requires investment in projects that are tied to governmental investment incentives. The applicant will require letters from the respective governmental agency to prove that the investment that is being made fits into either the national interest or productive project category.
E. Investment Fund Risk Capital
The applicant can invest in companies that require investment capital which is regulated and registered as Investment Fund Managers with the Costa Rican Securities Regulator (SUGEVAL)
F. Tourism Infrastructure Capital
This type of investment requires prior approval of the investment by the Costa Rica Tourism Institute to certify technical criteria that the investment that is being made qualifies.
Full English version of the Regulations to the Law to Attract Investors, Rentistas and Retirees
The President of the Republic, the Minister of Governance and Police, the Minister of Finance, and the Minister of Tourism, exercising the powers and attributions conferred in articles 21, 50, l 40 sections 3) and 18), and 146 of the Political Constitution; articles 25 section 1), 27 section 1), 28 section 2) sub-section b) of the General Law of Public Administration, Law number 6227 of May 2, 1978; articles 2, 66, 67, 79 sections 4), 9), and 10) of the General Law of Migration and Foreigners, Law number 8764 of August 19, 2009, published in the Official Gazette La Gaceta No. 170 of September 1, 2009; article 99 of the Code of Standards and Tax Procedures, Law No.4755 of May 3, 1971, and its reforms, “Law for the attraction of investors, rentiers and pensioners,” Law No.9996 of July 5, 2021, published in the Official Gazette La Gaceta No. 135 of July 14, 2021; and,
CONSIDERING:
I. That article one of the General Law of Migration and Foreigners No. 8764, of August 19, 2009, establishes – in what is relevant – that the entry and stay of foreigners in national territory must be analyzed in light of the Political Constitution and international treaties and agreements on human rights.
II. That the Comprehensive Migration Policy (2013-2023), approved by Executive Decree No. 38099-G, indicates that it will be oriented towards “Promoting, regulating, guiding, and ordering the dynamics of immigration and emigration, in such a way that they contribute to national development through the social, cultural, and economic enrichment of Costa Rican society. With this purpose, the regularization and integration of immigrant communities in Costa Rican society will be promoted (…)” (p. 11).
III. That according to article 12 of the General Law of Migration and Foreigners, the General Directorate of Migration and Foreigners is the organ of the Ministry of Governance and Police competent to carry out the functions indicated in said law and the migration policy dictated by the Executive Power. In that same sense, article 13 of that Law establishes as one of the functions of that organ to authorize, deny, and supervise the stay of foreign persons in national territory.
IV. That, in compliance with the Constitutive Law of the Costa Rican Social Security Fund, No. 17 of October 22, 1943, and in Article 74 section 5), it establishes the enjoyment of any regime of exemption and tax incentives, indicating that failure to comply with social security obligations will be cause for loss of the agreed exemptions and tax incentives, which will be determined within a due process followed for that purpose.
V. That in tax matters, article 99 of the Code of Standards and Tax Procedures, Law No. 4755 of May 3, 1971, and its reforms (hereinafter Tax Code), authorizes the Tax Administration to issue general rules for the correct application of tax laws, within the limits established by the relevant legal and regulatory provisions.
VI. That in compliance with Article 103 of the Tax Code, the Tax Administration is empowered to verify the correct compliance of tax obligations by all legal means and procedures. Therefore, taxpayers, declarants or informants are not only obliged to contribute to public expenses but also to provide the Tax Administration with all the information it requires for the proper audit and collection of taxes. Articles 104 and 105 of the Tax Code also empower the Tax Administration to request information that is foreseeable relevant for tax purposes, either from the taxpayer or from any person, whether natural or legal, public or private, deduced from their economic, financial and professional relationships with others.
VII. That Article 128 of the Tax Code states that taxpayers and responsible parties are obliged to facilitate the tasks of determination, audit, and investigation carried out by the Tax Administration, and in particular, they must, when required by law or regulations or demanded by the Tax Administration, submit the corresponding tax declarations, as well as documentation and information of tax relevance. This information, in addition to facilitating control and verification tasks through massive data matching to detect non-compliance with tax obligations, becomes a tool that allows statistical analyses to be elaborated that will support technical decisions of tax authorities.
VIII. That Article 6 of Law No. 9996 recognizes that individuals classified as investors, pensioner residents or rentier residents, who invest in Costa Rica, are subject to due diligence processes for the exchange of information with other jurisdictions under an international agreement, in accordance with Article 106 quater of the Code of Tax Standards and Procedures. National financial and non-financial institutions must provide the Tax Administration with timely and accurate information of their clients classified as investors, pensioner residents or rentier residents, as long as such information is foreseeable relevant for tax purposes and is required for the implementation of international instruments that contemplate the exchange of information on tax matters in any of its modalities.
IX. That through Article 18 of Law No. 4755 of May 3, 1971, and its reforms, the Tax Code establishes the obligation of taxpayers to pay taxes and comply with the formal duties established in said Code or by special regulations.
X. That through Article 18 bis of the Tax Code, it is established that any natural or legal person who wishes to obtain or process any tax exemption or incentive scheme must be up to date with the fulfillment of their material and formal tax obligations, as well as the submission of tax declarations to which they were obliged before the dependencies of the Ministry of Finance.
XI. That the fourth paragraph of article 62 of the Tax Code establishes that noncompliance determined within a due process followed for any tax obligation administered by the Ministry of Finance or any obligation with the Costa Rican Social Security Fund, shall cause the loss of any exemption that has been granted.
XII. That in accordance with article 102 of the Tax Code, the Tax Administration is obligated to resolve all requests made by interested parties within a period of up to two months, counted from the date of submission or filing of the request.
XIII. That through Executive Decree No. 3161-H of October 7, 2003, called “Authorizes the Exemption Department of the General Directorate of Finance to carry out the processing of tax exemption requests for incentive beneficiaries through an electronic information system called EXONET,” the use of the EXONET system was authorized for the management and processing of tax exemptions, as well as other related procedures, before the Exemption Management Department of the Tax Incentives Division of the General Directorate of Finance of the Ministry of Finance.
XIV. That through Executive Decree No. 39037-H of May 13, 2015, which corresponds to a reform of Executive Decree No. 3161-H, previously described, the use of the EXONET system is mandatory for all beneficiaries who request procedures for tax exemptions of the laws mentioned in said regulation, as well as for their legal representatives and all those who are determined as users of the system and who are involved in the management and processing of exemption requests.
XV. That the impact of the pandemic has caused a serious economic downturn at the national level, which has led to the issuance and implementation of policies and legislation aimed at a gradual and sustainable recovery.
XVI. That as part of the national economic recovery, the Legislative Assembly approved on June 22, 2021, Law No. 9996 called “Law for the attraction of investors, renters, and retirees,” establishing in article 11 that the Executive Branch must regulate it within a period of sixty days from its entry into force.
XVII. That article 16 of Law No. 5525 of May 2, 1974, called the “National Planning Law, establishes the Efficiency of the Public Administration,” according to which, the ministries and autonomous and semi-autonomous institutions shall carry out a systematic work of modernization of their organization and procedures, in order to increase the efficiency and productivity of their activities and with the purpose of achieving the best compliance with the objectives pursued by the National Planning System.
XVIII. That Law No. 9996, called “Law for the attraction of investors, renters, and retirees,” of July 5, 2021, establishes the regulatory framework to encourage the attraction of investor, renter, and retiree individuals, protected under Law No. 8764.
DECREE:
"REGULATION OF LAW NO. 9996 FOR THE ATTRACTION OF INVESTORS, RENTAL RESIDENTS AND PENSIONER RESIDENTS"
CHAPTER I General provisions
ARTICLE 1 – Purpose and scope. This regulation establishes the conditions for the application of Law No. 9996, by the General Directorate of Migration and Immigration, aimed at foreign persons who intend to obtain legal residence authorization in the country, under the migratory subcategories of investors, rental residents, and pensioner residents. It also establishes the tax treatment that will govern beneficiaries of the exemptions contained in the aforementioned Law, as well as the procedure for managing the exemptions. Additionally, it sets out mechanisms for transmitting the information contained in the records to the Tax Administration for the exercise of its competencies, guaranteeing at all times the protection and safeguarding of users’ confidential information.
ARTICLE 2 – Concepts and acronyms. For the purposes of this Regulation, the following shall be understood as: Shares: Financial assets representing a proportional part of the social capital of a company. For the purposes of this regulation, only non-listed shares or social participation in duly registered mercantile companies in the National Registry will be taken into account. Tax Administration: Is the administrative body responsible for managing and supervising taxes, whether it is the Treasury or other public entities that are active subjects of tax obligations. Concerning the Tax Administration of the Ministry of Finance, when a power or authority is granted to the General Directorate of Taxation, it shall be understood that it is also applicable to the General Directorate of Customs, the General Directorate of Finance, and the General Directorate of Fiscal Control Police, within their areas of competence. Beneficiary: Any foreign natural person who qualifies in the subcategory of stay as “investors, pensioner residents or rental residents” who acquires the tax incentives regulated in Law No. 9996 and in this regulation. Real estate: Those assets considered real estate, for having in common the circumstance of being intimately linked to the soil, physically or legally attached to the land in an inseparable way. Registrable assets: Movable property subject to registration in accordance with the provisions of Article 38 of Executive Decree No. 26883-J, entitled “Regulations for the Organization of the Public Registry of Movable Property.” Tax Code: Code of Tax Norms and Procedures, Law No. 4755 of May 3, 1971, and its reforms. Exemptions Management Department (DGE): It is the administrative office of the General Directorate of Finance of the Ministry of Finance in charge of resolving exemption requests submitted through the EXONET system. Permanent establishment: As provided in subparagraph b) of Article 2 of Income Tax Law No. 7092, it is any fixed site or place of business where the essential activity of the non-domiciled person is carried out, either in whole or in part.
EXONET: Computer system managed by the General Directorate of Finance, used for exemption processes, application of reduced rates, and related procedures, regulated in Executive Decree No. 31611-H of October 7, 2003, entitled “Authorizing the Exemptions Department of the General Directorate of Finance to carry out, through an Electronic Information System called Exonet, the process of tax exemption requests for incentive beneficiaries and its reforms.”
Venture Capital Fund: It is carried out in a venture capital investment fund authorized by SUGEVAL, which consists of an independent patrimony managed by a fund administrator, under the figure of a specialized manager, on behalf and at the risk of investors, whose primary objective is to invest in values, assets, or financial instruments of promoted companies.
Investment: The use of resources in the productive or capital sector with the objective of achieving benefits or profits. For the purposes of this regulation, only those investments made within the national territory will serve as probative evidence, and not those generated abroad.
Law: Unless otherwise indicated, when this Regulation refers to the Law, it shall be understood to mean the Law for the attraction of investors, retirees, and pensioners, Law No. 9996 of July 5, 2021, published in Official Gazette No. 135 of July 14, 2021.
Tax Settlement: It is the authorization issued by the Exemptions Management Department in the EXONET system, at the request of the beneficiary, for the payment of exempted taxes on any of the imported exempted goods.
Tax Release: It is the authorization issued by the Exemptions Management Department in the EXONET system, at the request of the beneficiary, canceling the obligation to pay exempted taxes on any of the imported exempted vehicles.
Household Goods: In accordance with article 115 of the CAUCA, household goods shall be understood to mean new or used household items and articles in quantities and characteristics that allow it to be determined that they will be used for domestic use, of a nature and quantity that is reasonable and proportionally sufficient for the needs of the beneficiary and the members of their immediate family unit, including, among others, household furniture, appliances, home decor items, kitchen and bathroom utensils, and bedding.
Person with Disabilities: a person with physical, mental, intellectual, or sensory disabilities that impede their full and effective participation in society in the long term.
Sustainable Tourism Infrastructure Project: For the purposes of this regulation, those related to tourism companies and activities included in the Regulation of Tourism Companies and Activities, Executive Decree No. 41370-MEJC-TUR of July 19, 2018 and its reforms, that involve the provision of services and construction work shall be understood.
National Interest Projects: Projects of special relevance for the country, which are declared to be of public interest by the Executive Power via decree.
Productive Projects: Projects that seek to generate economic profitability and obtain monetary gains, whose importance for a certain economic sector is supported by a specific government entity.
Securities: All patrimonial rights that can be traded in the securities market, which aim or have the effect of obtaining resources from the public in a brokerage firm authorized by SUGEVAL, in accordance with the definition in Article 2 of the Securities Market Regulation Law, No. 7732 of December 17, 1997 and its reforms.
Likewise, for the purposes of this Regulation, the following acronyms will be used:
BCCR: Central Bank of Costa Rica.
CAUCA: Central American Uniform Customs Code. CCSS: Costa Rican Social Security Fund.
DGT: General Taxation Directorate.
DGME: General Directorate of Migration and Foreigners.
ICT: Costa Rican Tourism Board.
SETENA: National Technical Environmental Secretariat. SUGEVAL: General Superintendency of Securities.
Chapter II On The Procedures to Authorize the Status for Investors, Resident Pensionados, and Resident Rentistas before the Department of Immigration
ARTICLE 3 – Special attention procedures. Requests for legal residence under the migratory subcategories indicated in article one of this regulation will be processed preferentially through the digital platforms enabled by the General Directorate of Migration and Foreigners for this purpose. However, the foreign person may also carry out their procedures physically at this General Directorate; however, preferential treatment cannot be provided to these requests through this route. The competence for the procedure and granting of legal residence under the migratory subcategories of investors, rentiers, and pensioners will be held by the Foreigners Management, the Regional Coordination, and their dependencies, all of them under the General Directorate of Migration and Foreigners.
ARTICLE 4 – Investors. A foreign person who invests in Costa Rica for an amount not less than one hundred and fifty thousand US dollars (US$150,000.00) according to the official exchange rate established by the Central Bank of Costa Rica may opt for legal residence in the country under the Investor migratory subcategory. The investment can be made in real estate or movable property, inscribed shares, values, productive projects, national interest projects, risk capital funds, or sustainable tourist infrastructure projects. This subcategory will be granted for two years, renewable for equal periods. Before renewal, the foreign person must demonstrate that they have maintained their investment continuously and uninterruptedly since they were granted their regular residence in the country. In the case of an investment made through a trust, only the trustor can opt for this migratory subcategory, as they are the person who makes the investment.
ARTICLE 5 – Requirements for investors. Foreign persons and their dependents who meet the following requirements may remain legally in the country under the Investor subcategory:
Request for legal residence signed by the foreign person over 18 years of age, indicating their qualifications, intentions, type of investment, current address, and means for receiving notifications. The foreign person’s signature must be authenticated by a lawyer or notary, the latter complying with the respective guidelines issued by the National Directorate of Notaries for this purpose. In case the application is submitted physically, the signature can be affixed in the presence of a public official who receives the request, who will record this.
Payment receipt in favor of the Government for fifty US dollars (US$50.00) or its equivalent in colones at the selling exchange rate established by the Central Bank of Costa Rica, according to article 255 of the General Law of Migration and Foreigners.
Payment receipt in favor of the Government for two hundred US dollars (US$200.00) or its equivalent in colones at the selling exchange rate established by the Central Bank of Costa Rica, according to article 89 of the General Law of Migration and Foreigners.
Birth certificate of the foreign person issued in their country of origin duly legalized and authenticated or apostilled.
Recent passport-sized photograph.
Certificate of criminal records of the foreign person from their country of origin or from the country where they have legally resided in the last three years, duly legalized and authenticated or apostilled. For this purpose, the foreign person must additionally demonstrate the legality of their stay in that country by submitting a certified copy of the migration document obtained within the indicated period.
Certified photocopy of the foreign person’s current passport page, showing their photograph and information. This document must be certified by a public notary. In the case of procedures submitted physically, the public servant who receives the request may verify it with the original, replacing
Document that demonstrates the investment, as established by Article 7 of this regulation.
In case the person is registered as an employer with CCSS, they must be up to date with the payment of their labor and employer obligations, according to the terms of Article 74 of the Constitutive Law of the Costa Rican Social Security Fund No. 17, of October 22, 1943, and its reforms.
In case the person is registered with DGT, they must be up to date with the payment of national taxes and the Solidarity Tax for the Strengthening of Housing Programs, when applicable. In the cases of the last two paragraphs, the office of the General Directorate where the process is being carried out will verify the information on its own initiative.
ARTICLE 6. Dependent Requirements. The person who is a spouse, minor child, or adult child with duly declared disability or unmarried child under 25 years of age with economic dependence relationship of a person who is applying for or has been authorized to stay legally under the Investor subcategory must present the requirements indicated in the paragraphs between 1) and 7) of the previous article. In the case of a spouse, they must demonstrate their relationship through a duly legalized and authenticated or apostilled marriage certificate. In the case of minor or adult children with disabilities, a duly legalized and authenticated or apostilled birth certificate must be provided. The request for minor or adult children with disabilities must be signed by the parent who is applying for or has previously been authorized the Investor subcategory. In the case of adult children with disabilities, a medical report demonstrating their special condition and dependence on third parties must also be provided. In the case of unmarried children under 25 years of age, they must provide a sworn statement of singleness issued before the official receiving the application or before a Notary Public; proof that they are studying to obtain a profession or trade, and demonstrating economic dependence, for which they may provide any of the documents mentioned in Article 22 of Executive Decree 37112-GOB
ARTICLE 7. Requirements for donation verification. In addition to the requirements indicated, the foreign person who intends to be authorized to remain legally under the subcategory of Investor must demonstrate their investment with documentary evidence with a capital not less than one hundred and fifty thousand United States dollars (US$150,000.00), legal tender at the selling exchange rate determined by the Central Bank of Costa Rica, or its equivalent in colones. For this purpose, the following requirements must be met, depending on the type of investment or investments made:
A. Real estate or registered assets:
The applicant must be the registered owner of real or movable property duly registered with the National Registry, for which the official must verify the information by accessing the National Registry’s public database. Properties registered under legal entities will not be accepted for these purposes. Notarial or certified public accountant certifications will not be accepted to demonstrate the investment through real estate assets. The General Directorate may verify the registry information provided before the National Registry to check the successive tract of the property.
In the case of real estate investment through a mortgage loan, the foreign person must demonstrate that an initial payment of no less than one hundred and fifty thousand United States dollars (US$150,000.00) was made or that this amount is reached in combination with other investments listed in the sections of this article.
For real estate, a certification or proof of payment of municipal taxes must be provided, dated no later than three months from the date of application, showing the value of the property on which the taxes to be paid are estimated and that the property is up to date in the payment of municipal taxes.
In the case of titled and registered movable property, a copy of the stamps or document demonstrating the payment of any other tax burden that corresponds according to the nature of the property, indicating the corresponding real fiscal value must be provided.
B. Shares
Certification of legal status and stock capital issued by a Notary Public with a view to the legal books of the company, showing a real participation by the foreign person, for an amount not less than one hundred and fifty thousand United States dollars (US$150,000.00), legal tender at the exchange rate established by the Central Bank of Costa Rica, or its equivalent in colones at the selling exchange rate determined by the BCCR, or that this amount is reached in combination with other investments listed in the sections of this article, and with a date of issuance no later than one month at the time of the presentation of the application for temporary residence for the foreign person. If the investment is made in more than one company, the required amount may be distributed, and the respective certifications must be provided. This type of investment will only be allowed in companies with economic activities in the country, not in inactive legal entities.
Certification by an authorized Public Accountant demonstrating the investment for an amount not less than one hundred and fifty thousand United States dollars (US$150,000.00), legal tender at the exchange rate established by the Central Bank of Costa Rica, or its equivalent in colones at the selling exchange rate determined by the BCCR, or that this amount is reached in combination with other investments listed in the sections of this article, which must be issued in accordance with the guidelines issued by the College of Authorized Public Accountants.
C. Securities
The brokerage firm where the investment is made must be registered with SUGEVAL, which will be verified by the unit processing the procedure through the technological means available to that entity.
Certification by an authorized Public Accountant demonstrating the investment for an amount not less than one hundred and fifty thousand United States dollars (US$150,000.00), legal tender at the selling exchange rate established by the Central Bank
In the case that the investment has been made through a company, a certification of legal personality must be provided, with a date of issue no more than one month before its submission, and it must prove the quality of the foreign person as a partner, as well as their real contribution for an amount not less than one hundred fifty thousand dollars (US$150,000.00) of the United States of America’s currency or its equivalent in colones at the selling exchange rate established by the Central Bank of Costa Rica, or that this amount is reached in combination with other investments listed in the sections of this article. In any case, the General Directorate may verify, before the National Registry, the registry information provided in order to consult the data of the legal person.
D. Projects of National Interest or Productive Projects
In the case that the investment corresponds to a project of public interest, the number of the Executive Decree through which the declaration of public interest of the respective project was made must be expressly indicated, as well as its citations of publication in the Official Gazette La Gaceta. Said decree must contain the period of validity. In the case that the investment is a Productive Project, a document duly signed by the governmental institution directly related to the economic sector in which the project will be developed must be provided, in which it is expressly certified that the foreign person has made an investment equal to or greater than the amount established by Law No. 9996 “Law for the attraction of investors, renters, and pensioners,” in one or more projects that are qualified as productive.
If the investment is made in forest plantations, in accordance with Article 70 of Forest Law No. 7575, the certification must be issued by the Ministry of Environment, Energy and Mines, which accredits the investment of one hundred fifty thousand dollars in sustainable and public interest reforestation projects.
Certified copy, or in its absence an original and copy to be confronted by a public official, of the municipal permits.
Certification by an Authorized Public Accountant demonstrating an investment of no less than one hundred fifty thousand dollars (US$150,000.00), currency of the United States of America or its equivalent in colones at the selling rate established by the BCCR, or that this amount is reached in combination with the other investments listed in the sections of this article, which must be issued in accordance with the guidelines issued by the College of Authorized Public Accountants.
In the case that the investment has been made through a company, a certification of legal status must be provided, with a date of issuance no more than one month prior to its presentation, and it must be demonstrated that the foreign person is a member of the company, as well as their real contribution in an amount not less than one hundred fifty thousand dollars (US$150,000.00), currency of the United States of America or its equivalent in colones at the selling rate established by the BCCR, or that this amount is reached in combination with the other investments listed in the sections of this article. In any case, the General Directorate may verify before the National Registry the registered information provided in order to consult the data of the legal entity.
E. Venture capital funds:
The Investment Fund Management Company where the investment is made must be registered with the National Registry of Securities and Intermediaries of SUGEVAL, which will be verified by the unit processing the transaction through the technological means available to that entity.
Certified Public Accountant Certification demonstrating the investment of no less than one hundred and fifty thousand dollars (US$150,000.00), United States currency, or its equivalent in colones at the selling rate established by the BCCR, or that this amount is reached in conjunction with the other investments listed in the subparagraphs of this article, which must be issued in accordance with the guidelines issued by the Certified Public Accountants Association.
In the case of the investment being made through a corporation, a certification of legal capacity of the corporation must be provided, dated no more than one month before its presentation, and the foreign person’s quality as a shareholder, as well as their actual contribution of no less than one hundred and fifty thousand dollars (US$150,000.00) United States currency or its equivalent in colones at the selling rate established by the BCCR, must be demonstrated. In any case, the General Directorate may verify, through the National Registry, the registered information provided for the purpose of consulting the data of the legal entity.
F) Sustainable tourism infrastructure projects:
Technical criterion issued by ICT that the project through which the investment is made is sustainable tourism infrastructure, which will be verified by the unit processing the transaction through the means available for that purpose, according to the process contained in the Single Annex to this decree.
Certified Public Accountant Certification demonstrating the investment of no less than one hundred and fifty thousand dollars (US$150,000.00), United States currency, or its equivalent in colones at the selling rate established by the BCCR, or that this amount is reached in conjunction with the other investments listed in the subparagraphs of this article, which must be issued in accordance with the guidelines issued by the Certified Public Accountants Association.
In the case of the investment being made through a corporation, a certification of legal capacity must be provided, dated no more than one month before its presentation, and the foreign person’s quality as a shareholder, as well as their actual contribution of no less than one hundred and fifty thousand dollars (US$150,000.00), United States currency, or its equivalent in colones at the selling rate established by the BCCR, must be demonstrated. In any case, the General Directorate may verify, through the National Registry, the registered information provided for the purpose of consulting the data of the legal entity.
Article 08: Procedure. The procedure for resolving applications filed under this decree shall be regulated by Title XI of the General Law of Migration and Immigration, and articles 27 and 28 of the Immigration and Day of the Costa Rican Abroad Regulation, whose commemoration date shall be April 11th of each year, Executive Decree No. 3 7112 of March 21, 2012.
Article 09: Documentation. Once notified of the resolution granting temporary residence authorization as an investor and their dependents, the foreign person or their dependent, with a prior appointment, must submit the following documents to the Department of Immigration documentation office or another office authorized for that purpose:
Proof of payment in favor of the Government for the amount indicated in the approval resolution, corresponding to article 251 of the General Law of Migration and Immigration.
Proof of payment in favor of the Government for thirty dollars (US$30.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, corresponding to the request for the permanence document, as provided in article 252 of the General Law of Migration and Immigration.
Proof of payment in favor of the Government for thirty dollars (US$30.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, for the issuance of the document accrediting legal permanence, as provided in article 253 of the General Law of Migration and Immigration.
Annual proof of payment in favor of the Government for twenty-five dollars (US$25.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, which will be allocated to the Migration Social Fund, as provided in article 33, section 4) of the General Law of Migration and Immigration.
Single proof of payment for the security deposit according to the amount established in the resolution.
Demonstrate affiliation with the CCSS health insurance system and that the corresponding payment is up to date. The office of the General Directorate where the procedure is carried out will verify this requirement ex officio through the means available to said entity.
In case the person is registered with the DGT, they must be up to date on the payment of national taxes and the Solidarity Tax for the Strengthening of Housing Programs, when applicable. The office of the General Directorate where the procedure is carried out will verify this requirement ex officio through the means available to said entity.
The presentation of a valid or expired passport or any other identification document with a photograph.
Article 10: Renewal. The foreign person who was granted temporary residence as an investor and their dependents may renew this status biennially, for which they must provide the following:
Proof of payment in favor of the Government corresponding to article 251 of the General Law of Migration and Immigration.
Proof of payment in favor of the Government for thirty dollars (US$30.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, corresponding to the request for the permanence document, as provided in article 252 of the General Law of Migration and Immigration.
Proof of payment in favor of the Government for thirty dollars (US$30.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, for the issuance of the document accrediting legal permanence, as provided in article 253 of the General Law of Migration and Immigration.
Annual proof of payment in favor of the Government for twenty-five dollars (US$25.00) or its equivalent in colones at the selling exchange rate established by the Central Bank, which will be allocated to the Migration Social Fund, as provided in article 33, section
Demonstrate affiliation to the CCSS insurance system and be up to date with corresponding payments.
In the case that the person is registered as an employer with the CCSS, they must demonstrate that they are up to date with their employer obligations, according to the terms of Article 74 of the Constitution of the Costa Rican Social Security Fund.
In the case of being registered with the DGT, be up to date with the payment of national taxes and the Solidarity Tax for the Strengthening of Housing Programs, when applicable, for which the unit processing the application will verify the condition through the means available to that entity.
The specific requirement, as indicated in section 7 of this Regulation, that demonstrates the investment, which must have been maintained continuously and uninterrupted since the approval of legal permanence in the country. The office of the General Directorate for which the procedure is carried out must verify on its own the information required in sections 5, 6, and 7, using the corresponding technological means of each entity.
ARTICLE 11 – Supplementary Regulation. Migration aspects not expressly regulated in this Regulation will be governed according to the regulations contained in the “Regulation of Foreigners and Creation of the Costa Rican Day Abroad,” whose commemoration date will be April 11 of each year, Executive Decree No. 37112 of March 21, 2012.
ARTICLE 12 – Falsification of documents. In case legal residency is granted based on false or altered documents, it will be sanctioned in accordance with article 129 of the General Law of Migration and Foreigners and its corresponding regulations, without prejudice to any legal actions that may be taken in criminal matters.
ARTICLE 13 – Restricted condition. The foreign person who is granted temporary residence as an investor and their dependents cannot perform any paid manual or intellectual labor.
ARTICLE 14 – Obligation to communicate. The General Directorate of Migration and Foreigners, through the Foreigner Management, will inform the Ministry of Finance of any variation in the migration status of the foreign person who obtains the investor, rentier, or pensioner residency category, whether voluntarily deciding to change their migration category or renouncing it, or due to a cancellation process of their migratory status, in order to proceed with the collection of taxes that were exempted, according to the terms indicated in article 7 of Law 9996.
ARTICLE 15 – Rentistas and Retirees. The requirements and procedures for the processing of the migratory subcategories of Rentista and Pensioners/Retirees and their renewals will be those established by the Regulation of Foreigners and Creation of the Costa Rican Day Abroad, whose commemoration date will be April 11 of each year, Executive Decree No. 37112 of March 21, 2012.
Chapter III On the Authorization of Tax Exemptions and Benefits in favor of Investors, Resident Pensionado, and Resident Rentistas.
ARTICLE 16. On the enjoyment of tax incentives in favor of investors, pensioned residents, or rented residents. Foreign individuals classified as investors, pensioned residents, or rented residents may enjoy the tax incentives established in Article 5 of the Law.
For these purposes, the General Directorate of Migration and Immigration (DGME) will send a copy of the resolution authorizing or disauthorizing one or more of the classifications indicated in the preceding paragraph to the General Directorate of Taxation and the General Directorate of Finance, according to the interinstitutional coordination agreement signed for this purpose.
ARTICLE 17. Exemption from import taxes. Beneficiaries of Law No. 9996 may import the following items exempt from taxes:
Household goods: The import taxes for household goods, instruments or materials for the professional or scientific exercise of the applicants will be exempt from import taxes, once only, after the beneficiary’s management in the EXONET system and authorization issued by the DGME.
For this purpose, the interested party must itemize and justify in their exemption request the amount of goods to be exempted and demonstrate that they are consistent with their economic, family, and professional situation. Based on the information provided, the DGME will perform the analysis based on the definition pointed out in relation to quantities and proportionality issues, according to each specific case.
Vehicles: Beneficiaries may import up to two land, air, and/or sea transportation vehicles for personal or family use, free of all import taxes, tariffs, and value-added taxes.
In these cases, prior authorization from the DGME of the General Directorate of Finance will be required for the application of the tax benefit, using the procedure established by Executive Decree No. 3161-H of October 7, 2003, and its reforms.
ARTICLE 18.- Requirements for exemption from import taxes. a) Request for exemption made through the EXONET system. b) Being up-to-date in compliance with its material and formal tax obligations, as well as in the filing of tax declarations that it was obliged to file before the dependencies of the Ministry of Finance, in accordance with the provisions of article 18 bis of the Tax Code, which will be defined through a general resolution. c) Being up-to-date in its social security obligations with the Costa Rican Social Security Fund (CCSS), in accordance with the provisions of article 18 bis of the Tax Code and article 74 of the CCSS Constitutive Law. d) Having the authorized and valid immigration status of “Investor, Pensioner Resident or Rentier Resident.” e) Presenting the list of goods and household items to be exempted. At this point, the interested party must justify the proportionality in the quantity of the goods and that they are appropriate to their economic, family and professional situation.
ARTICLE 19.- Procedure for requesting Exemption in EXONET. To carry out the procedures related to the enjoyment of the exemptions listed in article 5 of the Law, beneficiaries must register in the Electronic Information System called EXONET of the General Directorate of Finance.
The beneficiary must log in via the Internet to the tab called “Exemptions” that is found on the official website of the Ministry of Finance or at the URL https://www.hacienda.go.cr/.
In accordance with the provisions of article 102 of the Tax Code, the DGE has a maximum period of two months to address and resolve the management raised.
ARTICLE 20.- Registration of activities in the Single Tax Registry. Persons duly authorized by the DOME as investors, pensioner residents or rentier residents, who carry out economic activities in the national territory, must register with the General Taxation Directorate, in accordance with the current procedures established for registration, modification of data and deregistration in the Single Tax Registry.
ARTICLE 21.- Exemption in the Real Estate Transfer Tax. In cases where the beneficiary acquires real estate within the term of validity of this law, he may apply a reduction of up to twenty percent (20%) of the total transfer tax that corresponds.
For this purpose, the beneficiary may apply the tax reduction in the transfer form established by the General Taxation Directorate, in accordance with the procedure established through a general resolution.
In cases where the beneficiary person transfers these properties acquired under this article within the term of validity of the Law, the acquirer must liquidate and cancel the originally exempted taxes.
ARTICLE 22.- Term of validity of incentives. According to the provisions of the first paragraph of Article 12 of the Law, investors, retirees or pensioners may opt for the benefits granted in Article 5 of Law No. 9996 only during the first five years of its validity.
In the case of investors, retirees or pensioners who opted for these benefits during the first five years of the Law’s validity, in accordance with the provisions of the second paragraph of Article 12 of the Law, they must keep the assets in their possession for at least 10 years.
In the case of vehicles, transfer to third parties will proceed 10 years after the grant of the benefit, following the procedure for tax clearance in the EXONET System.
The respective transfer is subject to the payment of the tax established in Article 10 of Law No. 7088, Tax Adjustment and 18th Resolution of the Tariff and Customs Council CA, dated November 30, 1987, and its reforms.
ARTICLE 23.- Replacement of household goods or professional or scientific instruments or materials. Exempt imported goods that suffer destruction or loss due to theft may be replaced by other similar goods exempt from the payment of taxes upon acquisition, during the first five years of the validity of Law No. 9996, subject to compliance with:
1- New exemption request processed by the EXONET System, which provides the requirements established in Article 18 of this Regulation, referred to as “Requirements for the exemption of import taxes.”
2- In case of theft, submit a copy of the corresponding judicial report accurately describing the stolen goods.
3- In case of destruction, submit a sworn statement indicating the reasons and date of the event that caused the destruction of the goods.
ARTICLE 24.- Replacement of a vehicle. Vehicles imported exemptly in accordance with the Law and this Regulation may be replaced by another in case of loss of the vehicle due to theft, total destruction by fire, flood, collision, or accident, occurring during the 5-year period of the benefits granted in accordance with the provisions of the second paragraph of Article 12 of Law No. 9996, in which case the owner may import another vehicle duty-free.
In these cases, the procedure and requirements established in Articles 17 and 18 of this Regulation must be followed.
ARTICLE 25.- Tax settlement in cases of cancellation or revocation of beneficiaries’ migratory status. In cases where the beneficiary renounces their status as an “investor,” “retiree resident,” or “rentier resident,” or if the migratory status is canceled by the DOME, they must pay the taxes on the goods for which they received exemptions, as well as any other benefits, and must also pay the respective taxes in order to nationalize the goods that were imported without paying taxes. They must also pay the corresponding interests and penalties, as established in Title III of the Tax Code.
Chapter IV On the Tax Residence and Inter-governmental Coordination
ARTICLE 26.- Tax Residency. Foreign individuals classified as “investor,” “pensioner resident,” or “rentier resident,” through a resolution issued by the DOME, will not automatically be considered tax residents in the country, but will obtain such status if the provisions of the final paragraph of Article 2 of the Income Tax Law No. 7092 of April 21, 1988 and Article 10 of the Income Tax Regulation, Executive Decree No. 43198-H of July 22, 2021, are met. If the beneficiary person meets the conditions set forth in Article 10 of the Income Tax Regulation to be considered a tax resident and renounces their status as an “investor,” “pensioner resident,” or “rentier resident,” or, in the event that the DOME cancels their immigration status by a final resolution, they must regularize their tax situation by registering as a taxpayer in the Unique Tax Registry and complying with the formal and material duties that correspond.
ARTICLE 27.-Remission of information to the Tax Administration. In order to ensure that the General Directorate of Taxation and the General Directorate of the Treasury exercise the proper supervision and effective control of tax benefits authorized for “investors,” “pensioner residents,” or “rentier residents,” the DGME shall forward to these departments, by using computer systems made available for this purpose, information regarding the authorization or cancellation of the aforementioned subcategories of migration. This is to resolve any management issues of the beneficiaries and the effective tax control of the settlement and payment of taxes due to the General Directorate of Finance. The information shall be transmitted through proper inter-institutional coordination and shall respect the confidentiality of the data of foreign individuals.
ARTICLE 28.- Obligation of Third Parties to Provide Information to the Tax Administration Regarding “Investors,” “Pensioner Residents,” or “Rentier Residents.” In order to ensure that the General Taxation Directorate and the General Directorate of Finance exercise effective supervision and control over the tax benefits authorized for “investors,” “pensioner residents,” or “rentier residents,” they shall have the power to request tax-relevant information regarding these individuals and/or initiate the procedure to revoke benefits, in accordance with the competencies established in Articles 14 and following of Law No. 10286, Law of Exemption Regimes for Payment of Taxes, Their Granting and Control over Use and Destination, of August 18, 2022, and Title IV of the Tax Code. In accordance with the same competencies, any natural or legal, public or private person may be required to provide information that is predictably relevant for tax purposes, derived from their economic, financial, and professional relationships with investors, pensioner residents, or rentier residents. This information shall be requested through individualized requirements, as authorized by the Tax Code. At all times, such departments shall be obliged to maintain the confidentiality of the information received under this article.
ARTICLE 29.- Regarding the Supply of Predictably Relevant Information for Tax Purposes. Individuals authorized under the category of investors, pensioner residents, or rentier residents who invest in Costa Rica shall be considered for the supply of information to the Tax Administration that financial entities and any other entity that, even without being classified as financial, carries out any type of financial activity, must carry out, in accordance with the provisions of Article 106 of the Tax Code, provided that such information is predictably relevant for tax purposes and is required for the implementation of international instruments that contemplate the exchange of information on tax matters in any of its modalities
Chapter V Modifications, Additions and Repeal
Article 30.- Modifications. The following articles of Executive Decree No. 37112 of March 21, 2012, published in Supplement 64 to the Official Gazette La Gaceta No. 95 of May 17, 2012, entitled “Immigration Regulations and Creation of Costa Rican Day Abroad, whose commemoration date will be April 11 of each year”, are hereby modified:
Add a new concept to article 2), which shall read as follows:
“Income: it is the profit or benefit that something yields annually or what is charged from it. A deposit made in a banking entity for the purpose of being returned in monthly installments shall not be considered as income, since it is merely receiving a refund of the money initially deposited for administration by the entity.”
Modify section 1) of article 99, which shall read as follows:
“I) Demonstrate with a document issued by any of the banking institutions belonging to the National Banking System, which accredits that for a period of not less than two years, the applicant will receive a monthly, permanent and stable income of no less than two thousand five hundred US dollars (US$2,500.00), or its equivalent in colones at the selling exchange rate determined by the Central Bank of Costa Rica.
In the case of income originating from abroad, it must be demonstrated by a document issued by a banking institution belonging to the Banking System of the country of origin. The signature on that document must be authenticated by a Notary Public or its equivalent in the country where it is issued, or it must be duly legalized by the Consul of Costa Rica in that country and authenticated by the Ministry of Foreign Affairs and Worship of Costa Rica, with the corresponding consular fees duly paid or apostilled, as appropriate.
However, if the income is not issued by a banking institution in accordance with the above paragraph, a certification from a duly accredited Public Accountant before the respective professional association in Costa Rica may be presented, based on reliable documents from the country where the income is generated.
Documents that have not been issued in Spanish must be accompanied by the corresponding literal translation into this language, which must be prepared by an official translator or a notary who is knowledgeable in the language.
ARTICLE 31.- Repeals. Articles 87, 88, 89, 90, 91, 92, 93, 179, 223, and 228, subparagraph f) of the Immigration Regulations and Creation of Costa Rican Day Abroad, whose commemoration date shall be April 11 of each year, Executive Decree No. 37112 of March 21, 2012, are hereby repealed.
TRANSITIONAL PROVISIONS
Applications for legal status under the investor subcategory, which are pending resolution by the Immigration Management Directorate as of the entry into force of this Decree, and which imply a benefit in the application of the requirements for their migration management resolution, shall be resolved in accordance with this Decree.
ARTICLE 32. Effectiveness. This Decree shall take effect on the date of its publication in the Official Gazette La Gaceta.
Given at the Presidency of the Republic, San Jose, on the fourteenth day of February, two thousand and twenty-three
