NOTE! The following updates some of the information in the video so it is current in 2023.

The new law is in place, and I’m sure this information will pique your interest in this tropical paradise!

A Tax Advantage – You Don’t Have to Be a Resident for This Advantage

If you rent out properties in Costa Rica, you are taxed on the rental income generated within their territory. But here’s the silver lining - foreign income is not taxed.

The United States employs a worldwide tax system, meaning income is taxed regardless of where it comes from. If Costa Rica adopted such a system, it would lead to a mass exodus of expatriates. Thankfully, they've been smart about it. So, as it stands today, you don't have to worry about paying double tax on your money.

The Property Transfer Savings — You Don’t Have to Be a Resident to Use These Savings.

Next is the property transfer tax, which applies when you buy real estate in Costa Rica. With the current law, you can save up to 20% on the transfer tax.

The tax itself is only 1.5%, so the savings might not seem massive at first. But think about it, if you’re purchasing a property worth a million, every bit counts!

Importing Household Goods — You Don’t Have to Be a Resident to Take Advantage of These Savings.

This next one is a major — a one-time exemption when you import your household goods. Shipping costs can be painful, but this exemption significantly reduces the hassle.

We've heard horror stories of people who paid fortunes to import their tools, only to find most of them missing upon arrival. With this current law, you can bring your things and save money.

How to Expedite Residency in Costa Rica

Many ex-pats living in Costa Rica want to become residents. A primary reason for this is being able to use the public health system, Caja (Costarricense de Seguro Social).

Four ways are most commonly used to get residency in Costa Rica. While you still have to go through the paperwork and legal process, these four ways to expedite the process are the following:

1. Retiree (Pensionado)
2. Legal Resident (Rentista)
3. Business/Investor (Inversionista)
4. Marriage/Relation (Vinculo)

This new law was implemented in 2022 to make residency easier and attract investors, rentistas, and retirees to Costa Rica. So now you can come to Costa Rica and get residency if you fit into one of these four categories.

The Costa Rican Experience

Living in Costa Rica is about more than just the financial benefits. It's about the constant tropical temperatures, the stunning natural beauty, and the peace of being in such an environment.

These aspects were reason enough for us to settle here, and with the financial benefits introduced by this law, it might be the push you need to make a move.

When moving to a new country, quality and cost of living are significant considerations. You can find quality name brands here in San Ysidro, although the selection might be limited. However, remember that quality items come at a price, mainly since they're imported, making them more expensive.

A Final Thought

The tax advantages and new laws make a compelling case for considering Costa Rica as your next home.

We hope this update helps you make an informed decision. Costa Rica offers a competitive package, whether you're considering Panama, Nicaragua, or any other country for retirement or simply a change of pace.

Thank you for joining us today.

Pura Vida!