The Legal Side of Costa Rica
Featuring Articles Written by Oscar Hernandez, Attorney
Oscar Hernandez is an Immigration Attorney
Located in San Jose, Costa Rica. He & His Team at
Expat Legal Advisors understand the needs
of the Expat who has begun a NEW LIFE in Costa Rica.
They know that the best way to enjoy the Pura Vida Lifestyle is to
have complete knowledge of the Laws of the Land. .
Understanding the Law & Living the Dream. .
Living the Pura Vida lifestyle in Costa Rica means more than enjoying its beaches, jungles and peaceful rhythm.
It means embracing a new way of life built on respect, knowledge and connection.
At Expat Legal Advisors, we believe that the more you understand the laws of the land,
the more fully and confidently you can enjoy the beauty of your new home.
These insightful articles, written by Attorney Oscar Hernández, who practices law in San José,
are designed to guide you through the legal landscape of Costa Rica with clarity and purpose.
From legal residency & real estate to healthcare & daily living, Oscar’s experience and dedication help demystify complex legal topics, empowering expats to make informed decisions
and live freely within the framework of Costa Rican law.
Knowledge is Peace of Mind. . and Peace of Mind is Pura Vida. .
Here, you’ll find practical wisdom, trusted guidance and the tools to help you thrive
as a well-informed member of Costa Rica’s expat community.
Enjoy this Article
Written Especially
for You. .
One of the questions we most frequently encounter on social media, in online forums,
and in meetings with clients concerns the minimum amount that must be invested in
Costa Rica in order to qualify for temporary residency under the Investor subcategory.
The issue has taken on added importance in recent weeks, following the expiration of
the tax benefits granted under Law No. 9996. We have seen opinions and articles
asserting that, with the expiration of that statute, the required investment reverts to the
threshold in place before Law No. 9996 took effect — that is, US $200,000 — a position
with which we respectfully disagree. Accordingly, and in order to bring clarity to this
important question, we have prepared this article for the community of foreign nationals
who choose our country as their second home.
A plain-language reading of the statute. Article 12 of Law No. 9996 provides that
“investors, rentistas [persons of independent means], or pensioners who elect the
benefits granted under Article 5 of this Law may do so only during the first five years
following its entry into force.” Turning to Article 5, we find that it establishes several
forms of tax incentives for those who elect them during the statute’s first five years in
force — a period that lapsed on July 14, 2026.
Those benefits included: (a) a customs duty exemption permitting the principal applicant
and his or her dependents to import household goods free of tax; (b) the ability to import
up to two vehicles free of tax; and (c) an exemption equal to twenty percent (20%) of the
total amount of the real property transfer tax, among others.
It should be noted that neither this provision nor any other provision of Law No. 9996
makes any reference to the expiration of the investment threshold. On a plain reading of
the statute, therefore, we may state that, after July 14, 2026, the only substantive matter
affected is the availability of the tax benefits arising from the grant of the residency
category sought. Every other matter governed by the statute — including the investment
amount and the qualifying forms of investment — remains undisturbed and, accordingly,
fully in force.
It bears mentioning that, before Law No. 9996 took effect, the minimum investment
amount was set by regulation issued by the Executive Branch. Upon the entry into force
of the statute under review, that authority was implicitly repealed, because the new
amount was fixed in unalterable terms in an act of the National Congress and therefore
placed beyond the competence of the administration then in office. As a result, the only
way to change that amount is through a new act of the Congress, enacted in
accordance with the constitutional process for the formation of laws.
In conclusion, we may state that, after July 14, 2026, the only change in immigration law
concerns the lapse of the opportunity for new applicants to obtain the tax benefits set
forth in Article 5 of the statute. In all other respects the law remains fully in force,
including the investment amount of US $150,000.
Oscar Andrés López Hernández –
Attorney, Specialist in Immigration Law
Expat Legal Advisors
When You're in Need of Legal Residency in Costa Rica,
contact
William "Skip" Licht at
WhatsApp:
1-754-423-8823
Email:
skip@expatlegaladvisors.com
Determining the Minimum Investment Threshold for Temporary Residency as an Investor in Costa Rica
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