Relocation intelligence

🇨🇷 Moving to Costa Rica: tax, residency and cost of living

Territorial: foreign income 0%, no inheritance or wealth tax

Thinking of moving to Costa Rica? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
25%
Corporate tax
30%
Capital gains
15%
Wealth tax
No
Inheritance tax
No
Cost of living index
55
Safety
5/10
Internet quality
6/10
Visa-free destinations
148
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Costa Rica only taxes income from Costa Rican sources (territorial system, article 1 of the law): foreign dividends, interest, rent or pensions stay untaxed. Local salary income falls into monthly brackets from 0% to 25% (0% up to ₡918,000 per month, ± € 1,770, per Decree 45333-H for 2026); employees also pay 10.83% social contributions with no cap. Local capital gains and dividends are taxed at 15%, your primary home is exempt. There is no inheritance, gift or wealth tax; VAT 13%.

Residency and visas

Costa Rica has low entry thresholds: pensionado status from USD 1,000 of pension per month, rentista from USD 2,500 of income per month (or USD 60,000 in a Costa Rican account), investor status from USD 150,000 and a digital nomad visa from USD 3,000 per month. Note: the reduced investor threshold and the tax-free import of household goods and two vehicles (Law 9996) only apply to applications until 14 July 2026; after that USD 200,000 applies again. After 3 years of temporary residence, permanent residence is possible.

Property ownership

Foreigners buy property on the same terms as Costa Ricans: full freehold in your own name, free use, rental, sale and inheritance, with no special permit. Costs are low: 0.25% annual property tax, 1.5% transfer tax and a luxury home surcharge of 0.25-0.55% above ± € 276,000 in construction value. The exception is the first 200 metres of coastline (zona marítimo-terrestre): there ownership gives way to concession, and residents of less than 5 years may hold at most 49% of a concession.

Cost of living and quality of life

Costa Rica has been Latin America's most stable democracy for decades, abolished its army in 1948 and, with the Nicoya peninsula, counts one of the world's five Blue Zones: life expectancy (± 81 years) exceeds that of the US. Healthcare is solid (public CCSS system plus private clinics), the nature is world-famous, and direct flights serve Amsterdam, Frankfurt, Paris, London and Madrid. The flip side: it is Central America's most expensive country (Numbeo San José ± 56), bureaucracy is slow and crime has risen noticeably in recent years, especially in the coastal provinces.

Passport and mobility

The Costa Rican passport ranks 26th on the Henley index 2026 with 148 visa-free destinations, including Schengen, the UK and Japan; the US still requires a visa. Naturalisation is possible after 7 years of official residence (5 years for Ibero-Americans and Spaniards by birth), with a Spanish language and civics exam. Costa Rica accepts dual nationality: you do not have to give up your original passport, which makes the passport a realistic end goal here.

Residency and visas

  • Pensionado (USD 1.000/mnd levenslang pensioen van erkende instelling; tijdelijk verblijf 2 jaar, verlengbaar; na 3 jaar permanent verblijf mogelijk) · €11,000/j · Residency in 3 years
  • Rentista (USD 2.500/mnd gegarandeerd inkomen voor 24 maanden, of USD 60.000 deposito op Costa Ricaanse rekening; na 3 jaar permanent verblijf) · €27,600/j · Residency in 3 years
  • Inversionista (USD 150.000 in vastgoed, aandelen of productieve projecten per Ley 9996; LET OP: verlaagde drempel en importvrijstellingen alleen voor aanvragen tot 14-7-2026, daarna USD 200.000) · €138,000 · Residency in 3 years
  • Digital nomad (Ley 10008: USD 3.000/mnd buitenlands inkomen, USD 4.000 met gezin; 1 jaar plus 1 jaar verlenging; expliciete IB-vrijstelling op buitenlands inkomen) · €33,100/j

Why people move to Costa Rica

  • Foreign income stays untaxed

    Costa Rica has run a territorial system since 1988, written into article 1 of the tax law itself, not into a temporary expat scheme: dividends, interest, rent and pensions from abroad are simply not taxable. The digital nomad visa even confirms the exemption explicitly. A reform towards worldwide income has been debated for years without ever finding a majority; do keep an eye on that file if you move.

  • Residence from USD 1,000 a month, passport within reach

    The pensionado route asks USD 1,000 of pension a month, the rentista USD 2,500 a month, and after 3 years of temporary residence permanent residence opens up. Those who stay the course can naturalise after 7 years WHILE keeping their original nationality: one of the few tax-friendly countries where the passport is truly within reach. Do move quickly though: the favourable investor terms of Law 9996 lapse for applications after 14 July 2026.

  • Pura vida with rule of law and full ownership

    Costa Rica pairs tropical nature with Latin America's most stable democracy: no army since 1948, independent courts and a life expectancy above that of the US. You buy property in your own name on the same terms as locals, with 0.25% annual property tax. In return you pay Central America's highest price level and factor in the rise in crime in the coastal provinces.

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Sources

Other destinations

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