Moving to Costa Rica in 2026: Territorial Taxation, Nature and the Rentista Visa

Costa Rica applies territorial taxation: Costa Rican-source income is taxed, that is, income derived from property located or activities carried out within the national territory. Foreign-source income is not included in the tax base.

This is the basis of the country's appeal to retirees and remote workers. Like any territorial system, it protects the foreign source, not the person: income earned from an activity carried out from Costa Rica calls for a separate analysis, and that analysis must be secured before relocating.

This territorial system is the subject of a reform bill: the bill on the taxation of foreign-source passive income (file 25.796), filed on 22 September 2026, would target interest, dividends, rent and capital gains derived from assets held abroad by residents. It is in committee and has not been put to any vote: it does not apply in 2026, and its outcome remains uncertain.

The scale applicable to employees, retirees and pensioners has several brackets. The intermediate rate is 10%³ and the top rate is 25%⁴ above the last threshold.

Legal entities whose gross income exceeds a defined threshold apply a flat rate of 30%⁵, with reduced rates applying below it.

We do not publish the Costa Rican regime for capital gains, dividends or inheritance: they do not appear in the extracts of texts available to us. The treatment of real estate capital gains in particular has been amended in recent years and must be checked before any sale.

For a French national, the general rule applies: Costa Rican territorial taxation takes effect only after an actual transfer of tax residence, assessed under French criteria and the applicable tax treaty, if there is one.

Costa Rica has several categories of temporary residence, three of which are of particular interest to French nationals: investor, retiree and rentista.

For the investor category, Law No. 9996 of 2021 set a minimum investment threshold of at least $150,000⁶. The investment may be in real estate, securities or a productive project.

This law also attached temporary benefits to the category, notably exemptions on the import of personal belongings and vehicles, intended to attract investors and remote workers. These schemes are limited in time and their continuation must be checked.

Retirees (pensionado) must show a permanent pension from abroad of at least from $1,000⁷ per month, and rentistas a permanent, stable income of at least from $2,500⁸ per month, which may cover the spouse and children (Migration Law No. 8764, articles 81 and 82).

The duration and renewal conditions of the permits do not appear in the official sources we were able to consult: we do not quantify them.

One point common to all categories deserves attention: temporary residence requires enrolment in the Costa Rican social security system, the Caja, whose contribution is calculated on declared income. This is a recurring cost that must be included in the budget, and it is often discovered only after settling in.

Permanent residence is obtained after several years of temporary residence, and naturalisation after an even longer period.

A distinction must be drawn between the right to stay and the right to work. Temporary residence obtained on the basis of investment or independent income does not, in itself, allow local salaried employment: this requires a separate authorisation, and the Costa Rican labour market protects national employment. A project based on an activity carried out locally must therefore be structured accordingly, generally by setting up a company.

The move from temporary residence to permanent residence, and then to naturalisation, also follows a strict timetable that requires regular renewal and proof that the initial conditions continue to be met. Prolonged interruptions of stay and failures to pay Caja contributions are the two most frequent causes of this path being broken.

Finally, remote workers fall under a separate status created by Law No. 10008 of 2021. It targets employees and self-employed persons working for foreign employers or clients who can show a minimum income and private health insurance. This income from abroad is exempt from income tax, with no extension to the family, and any service provided to a Costa Rican client takes it outside the exemption. The permit is short and extendable once; we do not quantify its thresholds, which were checked in a single private source.

Acquisition by a foreign national is free and requires no prior authorisation: a foreigner has the same rights as a national over private property. This openness is rare in Central America.

There is, however, one major exception: the maritime terrestrial zone, which covers a strip along the coastline. Land there belongs to the public domain and can be held only by concession, the granting of which to foreigners is restricted. Yet this is precisely where most of the sought-after properties are located.

Confusing freehold ownership with a concession is the costliest mistake on the Costa Rican market. The exact nature of the right must be established by an adviser independent of the seller, on the basis of the national registry.

The market is also highly segmented between the Central Valley, where most of the population lives, and the coastal areas geared to foreign buyers, whose prices and liquidity follow a different logic.

We publish neither Costa Rican transfer duties, nor property tax, nor the tax on luxury homes: they do not appear in our extracts.

Contrary to a widespread belief, Costa Rica is one of the most expensive countries in Central America. The political stability, level of education and environmental protection that make it attractive come at a cost, and it shows in prices.

We do not publish a typical monthly budget: we have not found an official Costa Rican series measuring a basket of expenses comparable to that of an expatriate.

Four items shape a budget. Imported goods, heavily taxed, cars in particular, whose price is far above European levels. The Caja contribution, mandatory for residents. Electricity, largely from renewable sources but expensive. And housing in the areas favoured by foreigners.

In return, local food, services and labour remain affordable, and the public health system is of a high standard for the region.

Climate and geography carry an indirect cost that is often overlooked: the humidity of coastal areas requires sustained property maintenance, and road distances are long relative to the number of kilometres.

One last item weighs on budgets and is hard to anticipate: the country imposes high import duties on many durable goods, and vehicle taxation is particularly heavy. Bringing in personal belongings and a vehicle is therefore costly, outside the temporary exemptions available to certain categories of residents, which are limited in duration.

1. Choose the residency category, as the thresholds and required documents differ markedly between investor, retiree and rentier;
2. gather civil status documents and criminal record certificates, legalised by apostille and translated — a lengthy step, to be started in France;
3. plan for enrolment in the Caja and its recurring cost from the initial budget;
4. for a coastal purchase, have the exact nature of the right established — full ownership or concession — before any payment;
5. handle your departure from France according to its own criteria: Costa Rican territoriality only takes effect after an actual transfer of residence.

We do not publish processing times: we have no dated, quantified official source for Costa Rican residence permits, whose actual processing times are reputed to be long.

• Territoriality protects income from foreign sources, not an activity carried out from Costa Rica.
• Mandatory enrolment in the Caja is a recurring charge proportional to declared income.
• The maritime terrestrial zone falls under concession, not ownership: the nature of the right must be established.
• The cost of living is higher than in neighbouring Central American countries, and cars are very expensive.
• The temporary benefits of Law No. 9996 are limited in time: whether they remain in force must be verified.

Finally, Costa Rica illustrates a frequent confusion between cost of living and quality of life. The country is expensive for the region, and the gap with France on a family budget is less striking than advertised. What it offers lies elsewhere: long-standing institutional stability, an abolished army, a consistent environmental policy and territoriality enshrined in law. These things come at a price, and it is a deliberate trade-off rather than a bargain.