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Loading ...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.
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