The bill processed under file number 22156, which aims to encourage the attraction of foreign investors, rentiers and pensioners to contribute to the Costa Rican economic reactivation in the post-pandemic period caused by Covid-19, was voted and approved in first debate on June 8th, with 35 votes in favor and 10 against. The legal initiative seeks to reduce the amounts required by Law 8764, General Law of Migration and Foreigners, for temporary residences under the immigration category of investors, as well as incentives for rentiers and pensioners.
Article 87 of Law 8764 establishes as a requirement for the investor category to demonstrate that a minimum capital of USD $ 200,000.00 (two hundred thousand dollars) was invested, either in real estate, registrable personal property, shares, securities, productive projects, projects of national interest or in forest plantations, the bill seeks to reduce the amount to USD $ 150,000.00.
Likewise, the project seeks for investors, rentiers and pensioner enjoy the following incentives:
- Exemption from tariffs and all import taxes on household goods for a single time.
- They may import up to two transportation vehicles (land, air and / or sea) for personal or family use free of all import, customs and value added taxes.
- The amounts declared as income to qualify for the benefits of this law will be exempt from income tax. However, the income obtained in the territory resulting from the investments will be subject to income tax.
- Exoneration of 20% of the total transfer tax for real estate acquired within the term of the law.
- Exemption from import taxes for instruments or materials for professional or scientific practice due to their economic activity.
Once the bill is approved in the second debate and published in the official newspaper, it will be valid for 5 years.
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Adolfo Jimenez
CENTRA LAW en Costa Rica
