Costa Rica, with its breathtaking landscapes and vibrant culture, is an attractive destination for digital nomads, expats, and location-independent workers. If you are considering making Costa Rica your home, obtaining tax residency is a crucial step. Below is a step-by-step guide to help you navigate through the process of acquiring tax residency in Costa Rica.
Step 1: Entry Visa and Initial Stay
Before applying for tax residency, ensure that you enter Costa Rica legally with the appropriate visa. Depending on your nationality, you may require a tourist visa, which typically allows a stay of up to 90 days. Verify the specific entry requirements for your country of origin.
Step 2: Obtain a Temporary Residence Permit
Apply for a temporary residence permit under a specific category, such as the Rentista, Pensionado, or Investor program. You will need to provide documentation, including proof of income, investment, or pension, a copy of your passport, and a background check. The application must be submitted to the Dirección General de Migración y Extranjería (General Directorate of Immigration and Foreign Affairs).
Step 3: Register with the Civil Registry
Once you have obtained your temporary residence permit, you must register with the Costa Rican Civil Registry (Registro Civil). This registration is necessary to obtain your DIMEX card (Documento de Identificación de Migrante en el Exterior), which serves as your identification in Costa Rica.
Step 4: Establish a Permanent Residence
After holding a temporary residence permit for a stipulated period (usually three years), you may apply for permanent residency. This application requires additional documentation and must be submitted to the Dirección General de Migración y Extranjería. Upon approval, you will be granted a permanent residence permit.
Step 5: Prove Fiscal Ties to Costa Rica
To establish tax residency, you must demonstrate that you have significant fiscal ties to Costa Rica. This can include owning property, having a long-term lease, or demonstrating continuous physical presence in the country for at least six months per year. Ensure to maintain proper documentation to support your claims.
Step 6: File for Tax Residency Status
Submit an application to the Costa Rican Tax Administration (Administración Tributaria) to be recognized as a tax resident. This involves providing evidence of your fiscal ties, temporary or permanent residence status, and any other required documentation. The tax authority will review your application and determine your tax residency status.
Legal References
- Ley General de Migración y Extranjería (General Law of Migration and Immigration), Law No. 8764
- Reglamento de Extranjería (Immigration Regulations)
- Código de Normas y Procedimientos Tributarios (Code of Tax Rules and Procedures)
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