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New law seeks to encourage foreign investment

New law seeks to encourage foreign investment

The Law for the attraction of investors, rentiers and pensioners No. 9996 establishes a series of tax exemptions aimed at encouraging investment in construction.

The Government of Costa Rica is handling a bill to attract the investment. This is the Law for the attraction of investors, rentiers and pensioners No. 9996. In this way, it announced a series of incentives with the purpose of reactivating the country’s economy. Foreign pensioners and pensioners with an investment capital of 150 thousand dollars may enjoy certain exemptions for a period of 5 years.

People who wish to invest in personal homes, infrastructure projects or place a minimum amount in a venture capital fund will enjoy incentives such as exemption from all import taxes present for a single time, for household items, in addition to In the event that there is a loss due to theft of the items, the person may acquire other goods for their substitution, also exempt from taxes. Another incentive is the possibility of importing up to two land, air or sea transport vehicles, for personal or family use, free of all import, customs and value added taxes.

They will have an exoneration of 20% of the transfer tax, in those real estate that they acquire within the term of validity of this law. Likewise, the amounts declared as personal income are exempt from income tax, that is, the money they receive as a pension or personal income outside the country.

However, income obtained in national territory as a result of investments made in the country will be subject to income tax. The initiative states that, in order to qualify for temporary residence under these categories, the foreigner must provide a minimum investment capital of $150,000, which includes real estate or registrable property, shares, securities, and productive projects or those of national interest.

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