Legal Information for Expats in Costa Rica: A Clear Guide

Costa Rica is an attractive destination for people who migrate in search of settling in a country with a high standard of living, security and natural beauty. However, it is important to know the legal procedures necessary to reside and work in the country without inconveniences. The following is a guide to the main processes and requirements that expats must comply with.

1. Residency in Costa Rica

Types of Residency

You can apply for different types of residency depending on your situation:

• Retired Resident: For retirees with a minimum monthly income of $1,000 from a pension.

• Rentista Resident: For people with an income of at least $2,500 per month for two years guaranteed.

• Resident Investor: Requires a minimum investment of $150,000.

• Residencia por vínculo: For those who have Costa Rican relatives (children, parents or spouse).

• Permanent Residency: Can be applied for after three years of temporary residency or immediately if you have a Costa Rican relative.

Read about the benefits of obtaining a retired, rentista or investor residency in the immigration section on our blogs.

Another type of figure widely used by foreigners is to choose to settle as a Digital Nomad, for more information on our blog.

2. Work Permit

Those who wish to work in Costa Rica must have a valid work permit. Only those with temporary or permanent residency can apply for it, except in specific cases where an employer justifies hiring a foreigner.

3. Opening a Bank Account

To open an account in Costa Rica, the following documents must be presented:

- Valid passport.

- Residency document or work permit.

- Proof of income or bank reference letter.

4. Tax Registration and Fiscal Obligations

Those who have economic activities in the country must register with the General Directorate of Taxation and comply with their tax obligations, including the payment of income tax and VAT if they operate a business, for which they must start by obtaining the tax identification number.

5. Medical Insurance and Affiliation to the CCSS

It is mandatory to have state insurance, so the person must register with the CCSS, either as a dependent or independent worker. They can also opt for private insurance as a complement.

6. Driver's License

They can also drive with their foreign license for a maximum of 90 days, however, to obtain a Costa Rican license, they must:

1. Have legal residency.

2.Present the original valid license.

3. Submit to a medical examination and pay the established fees.

7. Purchase of Properties and Businesses

It is possible for foreigners to buy properties in Costa Rica and set up their businesses. It is important to take into account that there are several requirements for this, for more information visit the blog on ABC of Buying and selling properties.

Conclusion

Setting up in Costa Rica can be a simple process if you follow the right steps. Having specialized legal advice will facilitate the processing of residency, work permits and other requirements necessary to live and operate in the country without inconveniences.

If you need help with your legal procedures in Costa Rica, contact us for professional advice!