Costa Rica Real Estate Magazine

The New Pensionado Law 9996 to Attract Foreign Investors and Pensioners The Law to attract foreign investors and pensioners - was proposed by the past Government of Costa Rica and aimed at contributing to the post pandemic reactivation of the Costa Rican economy and would have an effective term of 5 years from the moment the Law was published and has the option to extend up to a decade. It reduces from US$200,000 the amount required to qualify for Residency under the Inversionista Resident program, down to US$150,000. This being just one of the categories that would qualify someone for Residency and for receiving Law 9996 benefits.

The persons who would benefit under Law 9996 would receive the following • Duty free of all import taxes for one time only, for the importation of household items. • Importation of up to 2 motor vehicles (for terrestrial, aerial and/or maritime transport) for personal or family use, free of all import, tariff, sales, and economic stabilization taxes. A total loss would allow a replacement vehicle to receive the same benefits. • The amounts declared as income to qualify for the benefits of this law will also be exempt from Income Tax. • Exoneration of 20% of the total property transfer tax for real estate acquired within the term of this law, provided that the beneficiary is the registered owner of the asset. • Tax exemption for the internment of instruments or materials for pro fessional or scientific practice.

While the Law was approved in the Legislative Assembly and posted in La Gaceta, the official new laws newspaper on July 14th, 2021, its final acceptance in its totality had been in limbo for a variety of reasons: Less urgency Post Covid, plenty of interest in Costa Rica lately anyway, voiced doubts by governmental entities like ICD (Anti-Drugs Institute)

about possible loopholes that could permit illicit capital to enter the country as purchased exempt goods and other possible money laundering schemes. Plus, anytime several government entities must reach a consensus it becomes slower than molasses in winter despite being in the tropics. In early February 2023, President, Rodrigo Chaves, gave a big push

to moving the project forward in a speech with the Ministers of Tourism (Mr. William Rodriguez), Tax (Mr. Nogui Acosta), and of Governance and Security (Ms. Marlen Luna) which is the Ministry that oversees the Immigration Department (Dirección General de Migración).

72 COSTA RICA REAL ESTATE MAGAZINE