Living In Costa Rica
Depending on your country of
origin, you can remain in Costa Rica with a tourist visa for up to
three months. With a driver's license from your home country and
your passport, you can legally drive.
Property taxes are generally lower
in Costa Rica than in North America and many other countries. As a
foreign resident, you will not pay income taxes on foreign
pensions or income generated outside of Costa Rica, but you may
have to pay taxes on income generated in Costa Rica. Businesses
income, after expenses, is taxed, and there is a 13% sales tax on
goods and services, including restaurants, hotels, entertainment,
and so on. For
those considering retirement in Costa Rica, it may be unwise to
expect to earn a living, or to supplement your income.
Pensionados and
Rentistas are allowed to own and
operate a business but are not permitted to work for wages for
someone else.
Establishing Residency
It is necessary to qualify for
and establish legal residency if one plans to live in Costa Rica
for an extended period of time. To this end, Costa Rica offers
several alternatives for legal residency: a pensionado (retiree),
rentistas (a foreigner with a guaranteed income) and
inversionistas (large investors).
The pensionados and rentistas
program has historically been the easiest method of establishing
temporary residency in Costa Rica. To quality for the pensionado
status, one must fulfill three basic requirements: (1) prove that
one earns at least $600.00 per month from a qualified pension or
retirement account or from Social Security, (2) change at least
$500.00 per month into colones, and (3) live in Costa Rica for at
least four months out of the year. In order to quality for
rentista status, one must fulfill three similar requirements: (1)
prove that one has outside investments that will guarantee
$1,000.00 income per month for five years, (2) change at least
$1,000.00 a month into colones, and (3) live in Costa Rica for at
lease six months out of the year. Neither pensionados nor
rentistas pay taxes on money earned outside of Costa Rica.
Inversionista status is available
to foreigners who invest either $ 50,000 in strategic sectors of
the economy, such as tourism and exports, $ 100,000 in
reforestation projects or $ 200,000 in any other qualifying
business. They also must reside in Costa Rica at least half the
year.
After two years with pensionado,
rentista or inversionista status, temporary residents may apply
for permanent status. Those who marry Costa Ricans or have a Costa
Rican child may also legally call the country home.
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