There are four main types of residency options for expats in Costa Rica—the Pensionado Visa, a Rentista Visa, an Investment Visa, and a Work Visa.
Pensionado Program in Costa Rica
After working so hard to woo American and European retirees, Costa Rica seemed to change its mind. The Costa Ricans didn’t drop their famous pensionado program, but they did eliminate most of the tax breaks it had promised, as part of a deficit-reduction austerity package. And they didn’t grandfather existing pensionados.
Those who chose Costa Rica for the retiree benefits it offered felt surprised and disappointed to find that those benefits didn’t exist anymore.
Up until 1992, Costa Rica offered two major benefits for those who attained the pensionado status.
Firstly, the right to import a vehicle every five years free of import duties, which can cost up to 89% of the total of the vehicle.
Secondly, a one-time pardoning of import tariffs up to $1,000 in household goods.
Also, the average application only took a few months to complete, in stark comparison to the 12- to 18-month period it averages now.
The process is far from convenient, but still, what keeps drawing retirees here is mostly a lower cost of living, that lets pensioners rely on their monthly payments in order to live comfortably.
As an applicant, you must demonstrate income from a qualified pension of at least $1,000 a month.
The visa is valid for two years. After that, you can renew as long as you can prove that the pension is still $1,000 a month (or more), that it has been received in Costa Rica, and that you have lived in the country at least four months of the year.
As a pensionado, you can establish a business or work on your own, but you can’t be an employee in the country.
The Rentista Visa Program in Costa Rica
This program is currently aimed at expats who are not of retirement age. You don’t have to work in Costa Rica, but you have to prove a guaranteed $2,500 a month from savings, investments, or other sources for at least two years.
To prove this, you’ll need to get a notarized letter from a bank or other financial institution indicating you have at least $60,000, in a CD for example.
You have to agree in this letter that you will withdraw $2,500 to a Costa Rican bank account per month during this two-year period—($60,000 USD = $2,500 x 24 months). This amount stays the same for the case of a married couple.
This type of visa is temporary, but you can apply for permanent residency after being temporary for at least three years.
This visa doesn’t come with a work permit, as the law states you have to be a permanent resident in order to acquire one. That means you can’t work for a three-year period.
Inversionista Visa Program In Costa Rica
To apply for this visa, you’ll need to make an investment in Costa Rica of at least $200,000.
It doesn’t matter what type of investment you make, whether it’s in business or real estate, as long as it’s in Costa Rica.
This type of visa won’t give you a work permit either as you won’t have permanent residency. You would have to go through the same three years of temporal residency in order to upgrade. There are additional requirements that are subject to change, so be always informed.
We highly recommend you investigate the necessary paperwork you’ll need when looking for a visa in Costa Rica.
It is important to acquire all necessary documents before you leave home, as working them out from abroad proves costly in money and time.
The pensionado residency normally asks for the following documents: