Consequences of the Expiration of the Benefits Contemplated in Law No. 9996: What You Need to Know Before July 14, 2026

Time is running out. If you’re considering Costa Rican residency under the favorable terms of Law No. 9996, you have until July 14, 2026 to submit your application and secure significant tax benefits and investment incentives. After this date, these advantages will no longer be available, and the requirements for investor residency may become more stringent.

One of the most effective strategies for attracting foreign investment to any country is the creation of compelling tax incentives that encourage individuals to invest their capital within that jurisdiction. This becomes even more critical when the decision also involves relocating one’s family residence to another country. In such cases, the fiscal and immigration conditions—along with other internal and external factors—must be favorable enough to motivate a person to emigrate.

Such was precisely the case when Costa Rica enacted the Ley para la Atracción de Inversionistas, Rentistas y Pensionados (Law for the Attraction of Investors, Rentiers, and Retirees), also known as Law No. 9996, on July 14, 2021. The purpose of this legislation, as stated in Article 1, was to serve as an instrument for the country’s economic reactivation in light of the consequences of the COVID-19 pandemic. As a result, the benefits outlined in the law have encouraged many individuals seeking to relocate abroad to choose Costa Rica as their preferred destination.

What Is Law No. 9996 and Why Was It Created?

Law No. 9996 was enacted as a direct response to the economic challenges posed by the COVID-19 pandemic. The Costa Rican government recognized that attracting foreign investment and high-net-worth individuals could provide a significant boost to the national economy during a period of unprecedented uncertainty.

The law specifically targets three categories of foreign residents:

• Investors: Individuals who invest a minimum amount in Costa Rican real estate, businesses, or other qualifying assets
• Rentiers: Individuals who can demonstrate a stable monthly income from foreign sources
• Retirees (Pensionados): Individuals receiving pension income from foreign sources

By offering substantial tax incentives and simplified import procedures, Law No. 9996 made Costa Rica one of the most attractive destinations in Latin America for foreign residents and investors. However, these benefits were always intended to be temporary—a strategic tool for economic recovery rather than a permanent fixture of Costa Rican immigration policy.

What Are the Main Benefits of Law No. 9996?

The incentives established by Law No. 9996 are substantial and have made Costa Rica an exceptionally attractive destination for foreign investors and retirees. Understanding these benefits is crucial for anyone considering Costa Rican residency before the July 2026 deadline.

1. Full Exemption from Import Duties on Household Goods

Beneficiaries of Law No. 9996 receive a one-time, complete exemption from import duties and tariffs for household goods belonging to the beneficiary and their dependents. This benefit can result in savings of thousands of dollars when relocating to Costa Rica, as import duties on household items can otherwise be substantial.

2. Tax-Free Vehicle Importation

Perhaps one of the most valuable benefits is the ability to import up to two vehicles for personal or family use without paying import taxes. Given that Costa Rica’s vehicle import taxes can reach 50% or more of a vehicle’s value, this exemption represents significant savings—potentially tens of thousands of dollars depending on the vehicles imported.

3. Income Tax Exemption on Qualifying Amounts

Law No. 9996 provides an income tax exemption for amounts declared as income to qualify for the benefits of the law. This means that the income you demonstrate to meet residency requirements is not subject to Costa Rican income tax, providing substantial tax relief for qualifying individuals.

4. Real Estate Transfer Tax Exemption

Beneficiaries receive a 20% exemption from the real estate transfer tax applicable to properties acquired during the law’s validity period, provided that the beneficiary is the registered owner. Since Costa Rica’s standard transfer tax is 1.5% of the property value, this benefit effectively reduces it to 1.2%, resulting in meaningful savings on real estate transactions.

5. Professional Equipment Import Exemption

The law also provides an exemption from import taxes on instruments or materials necessary for the professional or scientific practice of the beneficiary and their dependents. This is particularly valuable for professionals relocating to Costa Rica who need specialized equipment for their work.

What Happens After July 14, 2026?

Under Article 12 of Law No. 9996, the benefits outlined above are of limited duration, and that term is rapidly approaching its expiration. The provision stipulates that such benefits may only be granted to those who apply under the corresponding category (Investor, Rentier, or Retiree) within five years following the law’s entry into force. Therefore, individuals seeking to access these fiscal incentives after July 15, 2026, will no longer be eligible.

It is thus timely to analyze some of the main legal consequences arising from the expiration of this term.

Changes to Minimum Investment Requirements

One of the most significant aspects concerns the minimum investment amount required to qualify for residency under the Investor category. Article 8 of Law No. 9996 temporarily reduced that amount to USD $150,000, which could be satisfied through the acquisition of real estate, registrable assets, shares, securities, productive projects, or projects of national interest. Moreover, the law broadened the definition of “investment” to include venture capital funds and sustainable tourism infrastructure projects.

Once the term of validity of the law’s benefits expires, this financial threshold could revert to the previous minimum of USD $200,000, as established in Article 87 of Executive Decree No. 37112-GOB, published in La Gaceta No. 170 on September 1, 2009. Nonetheless, it is also possible that the Executive Branch may adjust this amount, since it falls within its discretionary authority.

Furthermore, the inclusion of investments in venture capital funds or sustainable tourism infrastructure projects would cease to be an eligible option, as that prerogative was exclusive to the period covered by Law No. 9996.

Loss of Tax Benefits for New Applicants

Once the benefits’ validity period expires, it would still be possible to obtain residency by demonstrating the minimum investment amount determined by the Executive Branch. However, applicants would no longer be entitled to the tax incentives established by Law No. 9996.

In tax matters, the creation of taxes—as well as the establishment of exemptions, benefits, and penalties—must derive exclusively from a law. Therefore, it would be legally impermissible for the Administration to extend, modify, or repeal fiscal provisions on its own. This means that unless new legislation is enacted, the tax benefits will definitely end for applications submitted after July 14, 2026.

Protection for Applications Submitted Before the Deadline

It is important to clarify that all individuals who submit their residency application within the term of validity of the benefits—up to July 14, 2026—shall retain the right to claim recognition of such exemptions, even if, by the time the resolution granting their immigration status is issued, the term has already expired.

This interpretation follows directly from Article 12 of Law No. 9996, which distinguishes between those who “opt for the benefits during the first five years of validity” and those who, having obtained them, retain them for a ten-year period from the date on which the right was granted. Accordingly, eligibility for the benefits is determined by the date on which the right to opt is exercised (the application submission date), not the date on which the Administration concludes the proceeding.

How Can You Secure These Benefits Before the Deadline?

If you’re considering Costa Rican residency and want to take advantage of the substantial benefits offered by Law No. 9996, it’s crucial to act now. The application process can take several months, and you’ll want to ensure that your application is properly prepared and submitted well before the July 14, 2026, deadline.

Step 1: Determine Your Eligibility Category

First, determine which category best fits your situation:

• Investor: You plan to invest at least $150,000 in qualifying Costa Rican assets
• Rentier: You can demonstrate a stable monthly income of at least $2,500 from foreign sources
• Retiree: You receive pension income of at least $1,000 per month from a foreign source

Step 2: Gather Required Documentation

The documentation requirements are extensive and vary by category, but generally include:

• Valid passport
• Birth certificate (apostilled)
• Marriage certificate, if applicable (apostilled)
• Police background check from your country of residence (apostilled)
• Proof of income or investment
• Bank statements
• Medical examination results

All foreign documents must be properly apostilled and translated into Spanish by an official translator in Costa Rica.

Step 3: Work with Experienced Immigration Professionals

Given the complexity of Costa Rican immigration law and the importance of meeting the July 2026 deadline, working with experienced immigration professionals is essential. A qualified immigration expert can help ensure that your application is complete, properly prepared, and submitted in a timely manner.

What If You Miss the Deadline?

If you’re unable to submit your application before July 14, 2026, you will still be able to apply for Costa Rican residency, but you will not receive the tax benefits and import exemptions offered by Law No. 9996. Additionally, the minimum investment requirement for investor residency may increase from $150,000 to $200,000 or potentially higher, depending on decisions made by the Executive Branch.

However, Costa Rica will remain an attractive destination for foreign residents and investors even after the expiration of Law No. 9996, offering:

• Political and economic stability
• High quality of life
• Excellent healthcare system
• Beautiful natural environment
• Welcoming culture
• Strategic location in Central America

Why Costa Rica Remains an Attractive Destination

Even beyond the specific benefits of Law No. 9996, Costa Rica continues to be one of the most stable and attractive countries in Central America for foreign investment and residency. The country boasts:

Economic and Political Stability

Costa Rica is widely recognized as having the most stable economy and political system in Central America. The country has maintained a democratic government for over 70 years and has no standing army, having abolished its military in 1948. This stability provides a secure environment for long-term investment and residency.

Strong Property Rights

Costa Rica has well-established property rights and a functioning legal system that protects foreign investment. The country’s property registry system is considered one of the most reliable in Latin America, providing security for real estate investments.

Growing Tourism and Expatriate Demand

The country’s tourism industry continues to grow, driven by its stunning natural beauty, biodiversity, and reputation as a safe and welcoming destination. This growth supports property values and creates investment opportunities in hospitality and related sectors.

Quality Healthcare and Education

Costa Rica’s healthcare system is ranked among the best in Latin America, with both public and private options available. The country also offers quality educational opportunities, including international schools in major urban areas.

Take Action Now to Secure Your Benefits

The clock is ticking on one of the most generous immigration and tax incentive programs Costa Rica has ever offered. If you’ve been considering Costa Rican residency, now is the time to act. The benefits offered by Law No. 9996—including substantial tax exemptions, duty-free vehicle imports, and reduced investment requirements—represent significant financial value that will no longer be available after July 14, 2026.

Don’t wait until the last minute. The residency application process takes time, and you’ll want to ensure that your application is properly prepared and submitted well before the deadline. Working with experienced immigration professionals like Costa Rica Immigration Experts (CRIE) can help streamline the process and give you peace of mind that your application will be completed correctly and on time.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)

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