Costa Rica: Incentives for investors, retirees include tax relief measures

Incentives available to qualifying investors

Incentives available to qualifying investors

A pending bill (no. 22,156) includes incentives for foreign investors, retirees, and others making investments in or relocating to Costa Rica.

In general, the bill would reduce the threshold amount required of persons applying for temporary residence in Costa Rica to a minimum investment of U.S. $150,000 in real estate, registrable assets, shares, securities, and productive projects or “projects of national interest.”

The incentives available to qualifying investors would include:

  • A one-time exemption from tariffs and all import taxes on household goods
  • An allowance to import to vehicles for personal use free from import and customs duties and value added tax (VAT)
  • An exemption from income tax for payments from the person’s country of origin (such as pension payments) whereas income or gains realized on the investments in Costa Rica would be subject to income tax
  • Relief from 20% of the transfer tax on real estate
  • An exemption from import taxes for certain instruments or materials for professional or scientific practice

Read a June 2021 report (Spanish and English) [PDF 587 KB] prepared by the KPMG member firm in Costa Rica

 

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