Law 9996 Expiration: What It Means for Costa Rica Residency Applicants

The expiration of Law 9996 is important for anyone applying for Costa Rica residency as an investor, rentista, or pensionado. This law created valuable incentives for qualifying applicants, including tax and import benefits that can make a major difference when moving to Costa Rica.

Law 9996 was published on July 14, 2021. Under Article 12, investors, rentistas, and pensionados may request the benefits only during the first five years from the law’s entry into force. That makes July 2026 a critical deadline for applicants who want to rely on these incentives.

This does not mean Costa Rica is ending investor, rentista, or pensionado residency. It means the special benefits connected to Law 9996 may no longer be available for new requests after the five-year window, unless the government extends or changes the rules.

Overview of Law 9996 and Its Expiration

Law 9996 was created to attract investors, rentistas, and pensionados to Costa Rica. It works alongside Costa Rica’s immigration law and gives qualifying applicants certain benefits when they obtain the correct immigration status.

The law is especially relevant for:

• Investor residency applicants
• Rentista residency applicants
• Pensionado residency applicants
• Families relocating with dependents under one of these categories
• Applicants planning to import household goods or vehicles
• Applicants buying real estate in Costa Rica

For investor residency, Law 9996 also reduced the qualifying investment amount to US$150,000 for approved forms of investment. These may include real estate, registered movable property, shares, securities, productive projects, projects of national interest, venture capital funds, and sustainable tourism infrastructure projects.

Law 9996 Expiration Consequences for Costa Rica Residency

The key issue is the five-year benefit window. Law 9996 says that investors, rentistas, and pensionados who want the benefits in Article 5 may request them only during the first five years from the law’s entry into force.

Because the law was published on July 14, 2021, applicants should treat July 2026 as the critical deadline. After that point, a new applicant may still be able to apply for residency, but should not assume the Law 9996 tax and import benefits will still be available unless Migración, Hacienda, or a later legal update confirms it.

This is why timing matters. If you are applying now, or if your application is pending, you should confirm whether you can still qualify for the incentives before making large financial decisions such as shipping household goods, importing a vehicle, or buying property based on expected tax savings.

Key Changes in Residency Application Planning

The expiration of the Law 9996 benefit window should not be confused with the end of residency itself. The residency category and the tax benefits are related, but they are not the same thing.

Applicants should understand these points:

• The special Law 9996 benefits are time-sensitive.
• Investor, rentista, and pensionado residency categories may still exist even if the benefit window closes.
• The benefits are not automatic after residency approval.
• Tax and import benefits may require separate handling with Hacienda.
• Applicants should confirm eligibility before importing goods, importing vehicles, or buying property based on expected exemptions.
• Old advice may no longer be accurate because the July 2026 deadline changes the planning timeline.

Benefits That May Be Affected

The benefits under Law 9996 include several incentives that can be valuable for qualifying residents. These may include:

• A one-time import tax exemption for household goods
• The ability to import up to two vehicles for personal or family use, free of certain import taxes
• Exemption from income tax on the income declared to qualify for the benefits
• A 20% reduction of the real estate transfer tax for qualifying real estate purchases made during the law’s valid period
• Import tax exemption for professional or scientific instruments and materials, when properly justified

These benefits require the correct immigration status, proper documentation, and coordination with the correct government offices. Some benefits are handled through EXONET, the tax exemption system used by Costa Rica’s Ministry of Hacienda.

What the Expiration Does Not Mean

The expiration of the Law 9996 benefit window does not mean every residency path disappears.

It does not automatically mean:

• Pensionado residency is ending
• Rentista residency is ending
• Investor residency is ending
• Existing approved residents lose their residency
• Everyone must leave Costa Rica
• Every pending application is automatically rejected

The main concern is the availability of the special incentives. Anyone applying near the July 2026 deadline should verify the current status before relying on those benefits.

What Happens If You Already Received Benefits?

Law 9996 says that investors, rentistas, and pensionados who requested and received the benefits during the first five years may keep those benefits for 10 years from the date they were granted.

However, beneficiaries must follow the rules. If a person gives up the qualifying immigration status, loses that status, or transfers exempted goods during the restricted period, taxes may become payable. This is especially important for vehicles, household goods, and real estate where an exemption or reduction was applied.

Clarifications on Tax Exemptions and Investment Requirements

Applicants should not assume that every benefit applies automatically. Residency approval and tax exemption approval are separate issues.

Before relying on Law 9996 benefits, you should confirm:

• Whether your residency category qualifies
• Whether your application timing still allows you to request the benefits
• Whether your residency has already been approved or is still pending
• Whether Hacienda will accept the exemption request
• Whether your vehicle, household goods, property, or professional equipment qualifies
• Whether any new regulation, extension, or government notice has changed the process

For investor residency, the US$150,000 investment must be properly documented and must meet the requirements accepted by Costa Rican immigration authorities. Applicants should be especially careful with property held through corporations, trusts, or other structures. The correct strategy depends on the details of the investment, the applicant, and the current interpretation of the rules.

Pensionado and Rentista Applicants

Pensionado and rentista applicants may also be affected because Law 9996 benefits are not only for investors. The law also covers qualifying pensionados and rentistas.

For pensionado applicants, the main residency requirement is usually proof of a qualifying lifetime pension. For rentista applicants, the requirement is usually proof of stable income or a qualifying financial arrangement. Law 9996 may add benefits for those who qualify, but it does not replace the basic immigration requirements for each category.

What You Should Do Before Shipping Goods or Importing a Vehicle

Do not ship household goods or import a vehicle based only on the assumption that the exemption will apply. The exemption process must be handled correctly and may require approval through Hacienda’s systems.

Before shipping or importing, confirm:

• That your residency status is approved and current
• That you qualify under the correct category
• That the benefit request is still within the legal window
• That the goods or vehicle meet the personal or family use requirement
• That the quantities and values are reasonable and properly documented
• That all forms and exemption requests are filed correctly

Common Mistakes

The most common mistake is thinking Law 9996 is only an immigration law. It is not. It involves immigration, tax treatment, import exemptions, and coordination between Migración and Hacienda.

Other mistakes include:

• Assuming the benefits are automatic
• Confusing residency approval with tax exemption approval
• Waiting too long to ask about the July 2026 deadline
• Buying or shipping assets before confirming eligibility
• Assuming old advice still applies
• Using the wrong ownership structure for an investment
• Not checking whether a later regulation or government notice changed the process

CRIE’s Role in Supporting Your Residency Journey

For over two decades, CRIE has guided individuals and families through the residency process in Costa Rica. We help applicants understand which category fits their situation and whether Law 9996 benefits may still apply.

This is especially important for people applying close to the July 2026 deadline. If you are planning to import household goods, bring a vehicle, buy property, or apply as an investor, pensionado, or rentista, the details matter.

You can contact CRIE for guidance before making large financial decisions based on Law 9996 benefits.

Final Thoughts and How to Get Started

Law 9996 created important benefits for qualifying investors, rentistas, and pensionados, but those benefits are tied to a limited legal window. July 2026 is the key deadline applicants should understand.

If you are applying for Costa Rica residency now, do not rely on assumptions. Confirm your eligibility, timing, documentation, and tax exemption options before moving forward.

Please reach out to CRIE via WhatsApp at +506 8706 3888 or visit crie.cr to get started with your residency application.

Official Sources

• Dirección General de Migración y Extranjería
• Law 9996 official legal text
• Regulation to Law 9996

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

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