COSTA RICA - TAX HAVEN
Posted by Roy
This is part of a series of articles on Tax Havens. I thought we would start with Costa Rica as a tax haven as we have already had enquiries about it. This is the most recent information I could find but as with all information on the site I will update it if and when new information is available.
Entry and Residency
Visas
Passports and confirmation of a return ticket or proof of funds to purchase one are sufficient for a stay of 90 days for most country nationals.
Residency
There are several options if one is considering living in Costa Rica.
Pensionado Requires proof of a minimum of US$600 (or equivalent) income per month from a confirmed retirement plan or pension.
Rentista Requires proof of an investment such as an annuity that will generate a minimum of US$ 1000 per month This has to be guaranteed by an approved financial institution in the foreign country, that sufficient funds are available to provide $US1000 per month for 5 years. Alternatively, a deposit of US$60,000 in an approved Costa Rican bank will satisfy requirements for this type of visa.
Income from both types of residency must be changed into local currency at an approved bank in Costa Rica, as follows:
Pensionado US$7,200 per year
Rentista US$12,000 per year
Inversionista. Invest at least US$50,000 in tourism or export businesses, US$100,000 in a re-forestation project or US$200,000 in any other business.
Pensionados and Rentistas are allowed to own and operate a business but are not allowed to work for wages for someone else.
After holding any of the above permits for 2 years, one can apply for permanent residence and working is permitted.
Taxes
There are many tax advantages in Costa Rica. Investors pay no capital gains taxes on property investment. Interest gained from bank accounts is also tax free.
For foreign residents there is no income tax on money earned outside Costa Rica (eg Pensions) Any money earned in the country will be subject to income tax. These taxes are not high and many personal expenses are deductible.
Personal effects and artwork imported by residents are tax free. Motor cars and boats incur tax the same as locals. Electronic equipment and appliances will be valued and the appropriate duty charged.
All in all this sounds like a very good deal and I am sure it will help in your choice of location if you are relocating to find a tax haven.
COSTA RICA - PARADISE
This small state of around 50,000 square Km, about the size of Switzerland sits in Central America between the Atlantic and Pacific Oceans. It is unique in having no military, no nuclear plants, lots of culture no winter and almost no illiteracy. As someone once said “It has more teachers than Cops.” Costa Rica is considered one of the most politically and economically stable countries in Latin America.
Although Costa Rica is a small country, there are an endless number of places to see. You can laze in the sun at any one of the more than 50 beaches, visit some of the more than 160 parks, reserves and conservation areas, or visit one of the most active volcanoes in the world.
One can choose the hot, Pacific coastal lowlands where rainfall varies with the season or the wet Caribbean coast or the cool, 13,000 foot high mountains which have no snow. The Central Valley around the capital, San Jose, has an altitude of 3,800 feet and enjoys 20 degrees C the whole year round. December to April is the dry season, while the wet season lasts from May to November. The climate is considered one of the healthiest in the World.
San Jose and Cartago, among other cities, house some of the country’s most interesting museums, including the Gold Museum and the National Theater, butterfly gardens and other natural history museums like serpentariums and ranarios (snake and frog museums).
You can get a unique perspective of the forest and breathtaking views from the aerial trams and suspension Bridge. After all Costa Rica is an Eco Hot spot, you don’t want to miss the forest, the wildlife and insect life it contains.
Every month of the year there are festivals and events which give a glimpse of Costa Rica’s culture and beliefs.”Ticos” are renowned for their friendly nature which is quite apparent during the numerous fiestas, topes (horse parades) and carnivals that are celebrated throughout the country.
The rivers, rain forests, beaches, coral reefs and volcanoes provide a wide array of activities including whitewater rafting, canoeing, fishing, diving,bird & wildlife watching, snorkeling, surfing. This place is a true paradise with something for everyone and I do mean everyone. Whether you are a retiree looking for a tax haven and relaxing walks on the beach, a family wanting a fun holiday for the kids or an adventurous soul who wants thrills on a holiday, you are going to find it in the beautiful paradise that is Costa Rica.
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