Overview Law 9996
Effective Date of the Law: July 14, 2021
Regulation Effective Date: February 23, 2023
✨ Tax Exemptions for New Residents:
Law No. 9996 offers attractive tax benefits for foreigners seeking residency in Costa Rica under the Investors, Rentista, or Pensioner categories.
What’s Covered?
✔️ Import tax, customs duties, and VAT exemptions on:
- Household Items
(New or used, reasonable in quantity and nature)
Examples include:
• Furniture
• Appliances
• Home décor
• Kitchen and bathroom utensils
• Bedding - Registrable Assets
(Subject to registration under Executive Decree No. 26883-J)
Examples include:
• Motor vehicles
• Aquatic vehicles (non-expendable)
➔ Up to two (2) vehicles for personal or family use only (land, air, or sea).
👉 Key Points:
• The tax exemption is valid until July 2026.
• The benefit can only be used once.
• Goods must be retained for 10 years (otherwise, taxes must be paid if sold or transferred early).
• In the event of total vehicle loss, a replacement vehicle can be imported tax-free within the 10 years term.
🏡 Shipping Household Goods
It is essential to plan the shipment of your household goods around the timing of your residency application.
The tax exemptions can only be applied once you have obtained your residency ID card number (cédula de residencia).
Arranging the shipment after your residency is approved is advisable to avoid unnecessary storage costs in Costa Rica’s fiscal warehouses.
🌟 Why It Matters
Costa Rica’s Law No. 9996 significantly eases the financial transition for expats moving to the country.
If you plan your move carefully and take advantage of these benefits, your relocation can be much smoother and more affordable.
🔄 Residency Renewal: What You Need to Know
Residency under Law No. 8764 (General Law of Immigration and Foreigners) is temporary but renewable. Here’s how it works:
Renewal Timeline
- Submit your renewal from 3 months before up to 3 months after your residency expiration date.
- Your monthly CCSS payment must be paid and current.
👉 Important to Remember:
• If you miss the 3-month renewal window:
➔ Provide a justification letter explaining the delay and providing backup documentation in detail. Executing an affidavit or sworn statement before a CR Notary Public may be required, and the renewal approval is subject to the Immigration officer’s discretion.
➔ Pay USD$ 3.00 for each month of delay.
• If you have spent over 1 year outside Costa Rica:
➔ Submit a criminal background certificate (from your country of origin or where you legally resided in the past six months).
➔ Certificate must be issued within the last 6 months and duly apostilled.
At GM ATTORNEYS, we are glad to address your inquiries and provide guidance on this and other related legal matters. Feel free to contact us at info@gmattorneyscr.com or visit our website and blog section at https://gmattorneyscr.com/blog/
