Costa Rica
“Costa Rica is a slice of paradise on Earth.”
Chris Hemsworth
Costa Rica
Natural beauty always attracts digital nomads and remote workers and this Central American country certainly has that, boasting diverse landscapes, lush rainforests and pristine beaches.
In July 2022, Costa Rica introduced the “Stay for Remote Workers and Service Providers Visa,” allowing digital nomads to stay for up to one year, with the option to extend for another year. This visa requires applicants to prove a monthly income of at least $3,000 for individuals or $4,000 for families.
With it’s relatively affordable cost of living, monthly expenses for a comfortable lifestyle range from $1,500 to $2,500. The country boasts reliable internet connectivity in urban areas and a growing number of coworking spaces, particularly in San José and popular coastal towns.
While Spanish is the official language, English is widely spoken in tourist areas, easing integration for international workers.
| 🌎 CONTINENT | NORTH AMERICA |
|---|---|
| 📌COUNTRY | COSTA RICA |
| 👫🏻POPULATION | 5,220,000 |
| 🙏RELIGION | CHRISTIANITY |
| 💵CURRENCY | COSTA RICAN COLÓN (CRC) |
| 💉C19 VAX REQUIRED | NO |
| 🔌POWER | 120V - 60Hz |
| 💰GDP PER CAPITA | $13,663 PER YEAR |
| ✈️AIRPORT | JUAN SANTAMARIA INT - SJO |
|---|---|
| 🪪UK VISA FREE | 180 DAYS |
| 🏝️LAND OWNERSHIP | ALLOWED |
| 🛜AVG INTERNET SPEED | 24.37 MBPS |
| 💧TAP WATER | QUESTIONABLE |
| 🏧ATM LIMIT | VARIES BY BANK |
| 💳CASHLESS | WIDELY ACCEPTED |
| 💸TIPPING | 10 - 15 PERCENT |
TAX FRIENDLINESS
- Digital Nomad Tax Friendliness: 95/100
- Costa Rica offers a specific Digital Nomad Visa program.
- The visa is valid for one year and can be extended for an additional year.
- Digital nomads are exempt from income tax on their foreign-sourced income.
- Minimum income requirement of $3,000 USD per month for individuals or $4,000 for families.
- Visa holders are exempt from import taxes on computers and other equipment necessary for work.
- The visa allows holders to open a local bank account and drive with their home country’s license.
- The application process can be done online or in person.
Expat Tax Friendliness: 90/100
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- Costa Rica follows a territorial tax system, only taxing income from Costa Rican sources.
- Foreign sourced income is not taxed for residents or non residents.
- Progressive tax rates apply to local income, ranging from 0% to 25%.
Investor Tax Friendliness: 80/100
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- Corporate tax rate is 30%, with lower rates for small businesses.
- Capital gains are generally taxed at a flat rate of 15%.
- There are some tax incentives for certain types of investments and industries.
- Crypto Tax Friendliness: 65/100 (down from 75)
- Cryptocurrencies are considered virtual or intangible assets and are not authorized as legal tender by the Central Bank of Costa Rica.
- Virtual assets linked to business activity are subject to corporate income tax.
- Returns on investment from personal virtual asset holdings are subject to capital income and capital gains tax.
- Fees for transactions involving or related to the organization, verification, or exchange of virtual assets are subject to corporate income tax and VAT.
- Both residents and non-residents providing crypto-related services in Costa Rica are subject to specific tax regulations, including withholding tax for non resident service providers.
PRICE REFERENCE
HOLIDAY LETS
VISA REQUIREMENTS
Tourist Visa
Costa Rica is a popular destination for UK citizens, known for its rich biodiversity, rainforests and stunning coastlines.
- Visa-Free Entry: UK citizens can enter Costa Rica without a visa for up to 90 days for tourism purposes (extendable to 180 Days).
- Passport Validity: Your passport must be valid for at least six months from the date of entry.
- Onward Travel Proof: Visitors should provide proof of onward travel and sufficient funds for their stay.
Important Links:
- Costa Rica Embassy in the UK – for visa and entry requirements.
Digital Nomad Visa
Costa Rica offers a Digital Nomad Visa for remote workers, allowing them to live in the country while working for foreign companies.
- Eligibility: Applicants must provide proof of a minimum monthly income of USD 3,000, or USD 4,000 if they are bringing family members. Freelancers and self employed professionals are also eligible.
- Duration: The visa is valid for 12 months, with the option to extend for another 12 months if the individual spends at least 180 days in Costa Rica during the first year.
- Benefits: Visa holders receive tax exemptions on their foreign income and are permitted to open local bank accounts.
Important Links:
- Costa Rica Tourism Board – Visa, lifestyle and accommodation information.
Retirement Visa
Costa Rica’s Pensionado Program is perfect for retirees seeking a peaceful lifestyle in a tropical setting.
- Eligibility: Applicants must show proof of a monthly pension income of at least USD 1,000 from a government or private pension.
- Duration: This visa is issued for 2 years and can be renewed indefinitely.
- Residency: After 3 years under this visa, applicants may apply for permanent residency.
Important Links:
- Costa Rica Embassy in the UK – for details on the retirement visa.
OTHER NOTES
ARE ID CARDS REQUIRED
Are ID Cards Required for Everyday Interactions and Transactions?
Overview: Identification is important for many everyday transactions in Costa Rica.
- For Locals: Costa Rican citizens carry a Cédula, a national ID card used for banking, voting, and accessing services.
- For Foreigners: Expats and residents will receive a DIMEX card (Documento de Identidad Migratorio para Extranjeros), which serves as an identification card. Tourists generally use their passport for identification.
- Daily Use: You may be asked to present your passport or DIMEX card when making purchases, signing contracts, or dealing with legal matters.
ARE GM FOODS ALLOWED
Are GM Foods Allowed in Costa Rica?
Costa Rica has a cautious approach to genetically modified (GM) foods, but they are present in the market.
- GM Crop Production: GM crop cultivation is limited, but some are allowed for research purposes. There is also limited commercial planting of GM crops.
- Regulation: GM food imports are allowed, and they must comply with the country’s strict regulations. However, labeling GM foods is not mandatory.
- Public Perception: There is significant public opposition to GM crops, with some regions declaring themselves GM free.
TRESPASSING - RIGHT TO ROAM
Trespassing, Right to Roam, and Wild Camping in Costa Rica
Costa Rica’s diverse ecosystems make it a hotspot for outdoor activities but there are strict rules about private property and wild camping.
- Trespassing: Private property is well defined in Costa Rica, and trespassing is illegal. Landowners can restrict access to their land.
- Right to Roam: Unlike in some European countries, Costa Rica does not have a “right to roam” policy. Always ask for permission if you plan to hike or camp on private land.
- Wild Camping: Wild camping is generally allowed in national parks and some public lands, but you must follow local rules and obtain permits in certain areas.
- Safety: Costa Rica’s wildlife can be dangerous, it’s best to camp in designated areas with proper facilities.
Important Links:
- SINAC (National System of Conservation Areas) – for camping regulations and national park permits.
420 FRIENDLY?
420 Friendly?
Overview: Costa Rica has relaxed cannabis laws compared to many other countries but marijuana is still not fully legal.
- Personal Use: While possession of small amounts of cannabis for personal use has been decriminalized, public consumption is still illegal and you may be fined.
- Medical Cannabis: Costa Rica recently passed laws legalizing the use of medical cannabis but regulations around cultivation and possession remain strict.
- Law Enforcement: Police may turn a blind eye to small quantities for personal use, but larger amounts or the intent to distribute can result in severe penalties, including jail time.