🇨🇷 Costa Rica

Costa Rica is a favorite expat destination in Central America, offering the Pensionado Visa (for retirees with $1,000/month pension income) and the Rentista Visa (for those with $2,500/month passive income or a $60,000 deposit). The Digital Nomad Visa launched in 2023 is valid for 2 years, renewable, with no work permit required. Permanent residency is available after 3 years on most temporary visa categories.

Foreign workers in Costa Rica need an employer-sponsored work permit, and the employer must demonstrate that no qualified Costa Rican is available. Most temporary visa holders are prohibited from local employment. Entrepreneurs can establish an SA (corporation) and work within it, though this is subject to scrutiny. Pensionado and rentista visa holders are not permitted to work locally but can do remote work for foreign employers.

Spouses, registered domestic partners, and children under 25 (or disabled children of any age) of primary visa holders can apply for a dependent residence permit. The dependent permit mirrors the primary holder category. Costa Rica also allows same-sex partners to sponsor dependents following the legalization of same-sex unions in 2020.

Costa Rica taxes residents only on Costa Rica-sourced income, not worldwide income, making it highly attractive for expats with foreign income sources. Individual income tax rates range from 0% to 25%. Capital gains tax of 15% was introduced in 2019 on certain transactions. Costa Rica has tax treaties with only a handful of countries but the territorial tax system largely reduces treaty dependency for expats.