17/10/2025
Attention All Expats or "Expats-to-be" Who are Considering Acquiring Legal Residency in Costa Rica Soon. .
Consequences of the Expiration of the
Benefits Contemplated in Law No. 9996:
It is well known that one of the most effective means of attracting foreign investment to a country
lies in the creation of tax incentives sufficiently persuasive to encourage individuals to invest
their capital within that jurisdiction. The matter becomes even more significant when such a
decision also entails relocating one’s family residence to another country. In those cases, the
fiscal and immigration conditions -together with a variety of internal and external factors that fall
beyond the scope of this article, must be sufficiently favorable to motivate a person to emigrate.
Such was precisely the case of Costa Rica when, on July 14, 2021, the Ley para la Atracción de
Inversionistas, Rentistas y Pensionados, Ley N.° 9996, was enacted. The purpose of this
legislation, as expressly stated in its Article 1, is to serve as an instrument for the country’s
economic reactivation in light of the consequences derived from the COVID-19 pandemic.
Consequently, the benefits set forth therein encouraged, and continue to encourage, many
individuals seeking to relocate abroad to choose Costa Rica as their preferred destination.
Among the main incentives established by Law No. 9996 are:
1. The full exemption from import duties and tariffs, on a one-time basis, for the importation
of household goods belonging to the beneficiary and their dependents;
2. The tax-free importation of up to two vehicles for personal or family use;
3. The income tax exemption for amounts declared as income to qualify for the benefits of
the law;
4. The 20% exemption from the real estate transfer tax applicable to properties acquired
during the term of validity of the law, provided that the beneficiary is registered as the
owner of record; and
5. The exemption from import taxes applicable to the instruments or materials necessary
for the professional or scientific practice of the beneficiary and their dependents.
However, it is essential to note that, pursuant to Article 12 of the law, these benefits are of
limited duration, and the term is about to expire. The provision stipulates that such benefits may
only be granted to those who apply under the corresponding category (Investor, Rentier, or
Retiree) within five years following the law’s entry into force. Therefore, individuals seeking to
access these fiscal incentives after July 15, 2026, will no longer be eligible. It is thus timely to
analyze some of the main legal consequences arising from the expiration of this term.
The first relevant aspect concerns the minimum investment amount required to qualify for
residency under the Investor category. Article 8 of Law No. 9996 temporarily reduced that
amount to USD 150,000, which may be satisfied through the acquisition of real estate,
registrable assets, shares, securities, productive projects, or projects of national interest.
Moreover, the law broadened the definition of “investment” to include venture capital funds and
sustainable tourism infrastructure projects.
Upon the expiration of the term of validity of the law’s benefits, this financial threshold could
revert to the previous minimum of USD 200,000, as established in Article 87 of Executive
Decree No. 37112-GOB, published in La Gaceta No. 170 on September 1, 2009, which
governed prior to the enactment of Law No. 9996. Nonetheless, it is also possible that the
Executive Branch may adjust this amount, since it is a matter falling within its discretionary
authority. Furthermore, the inclusion of investments in venture capital funds or sustainable
tourism infrastructure projects would cease to be an eligible option, as that prerogative was
exclusive to the term of Law No. 9996.
Likewise, once the validity period of the benefits expires, although it would remain possible to
obtain residency by demonstrating the minimum investment amount determined by the
Executive Branch, applicants would no longer be entitled to the tax incentives established by
Law No. 9996. This is because, in tax matters, the creation of taxes as well as the
establishment of exemptions, benefits, and penalties must derive exclusively from a law, and
therefore it would be legally impermissible for the Administration to extend, modify, or repeal
provisions of a fiscal nature on its own accord.
Finally, it is important to clarify that all individuals who submit their residency application within
the term of validity of the benefits -that is, up to July 14, 2026, shall retain the right to claim
recognition of such exemptions, even if, by the time the resolution granting their immigration
status is issued, the term has already expired. This interpretation follows directly from the
wording of Article 12 of Law No. 9996, which distinguishes between those who “opt for the
benefits during the first five years of validity” and those who, having obtained them, retain them
for a ten-year period counted from the date on which the right was granted. Accordingly, what
determines eligibility for the benefits is the date on which the right to opt is exercised, not the
date on which the Administration concludes the proceeding.
Lic. Oscar Andrés López Hernández
Attorney-at-Law
If you have an interest in getting started with your Costa Rica Legal Residency process, we're here for you. . Contact us today at WhatsApp William Licht: (754) 423-8823 through email at [email protected] or simply click through here at: https://costaricamovingandimmigrationexperts.homestead.com/Index.html
