Temporary residence pathway incentivized for investors
13 Jul 21
COSTA RICA
The Costa Rican government recently adopted a new law that lowers investment requirements for obtaining temporary residence.
Key Points:
- The law reduces the minimum investment amount to obtain temporary residence under the investor category from $200,000 to $150,000. Investments must be in any of the following categories to qualify:
- Real estate.
- Registrable assets.
- Shares or securities.
- Productive projects or projects of national interest.
- The law provides tax benefits for foreign nationals who choose to use the investor pathway such as an exemption from income tax on the amount brought into the country and a 20% reduction on transfers of real estate.
- Individuals who choose to utilize the updated temporary residence pathway within five years of the law’s enactment will benefit from the tax exemptions and reductions for 10 years.
- The application process will take three to five months to complete and visas will be valid for two years. The visa can be renewed for another two years. After three years, the foreign national can apply for permanent residence.
BAL Analysis: The law intends to bring more foreign investors to the country to stimulate the economy, create jobs and help the country recover financially from the effects of the COVID-19 pandemic.
This alert has been provided by Berry Appleman & Leiden LLP. For additional information, please contact berryapplemanleiden@bal.com.
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