Residence in Costa Rica

A complete guide to residency in Costa Rica for Italian citizens. Costa Rica offers temporary residency to retirees, renters, investors, and digital nomads, with local taxation on foreign income. The process is initiated through the General Directorate of Migration and Foreign Affairs (DGME). On this page: immigration categories, requirements, documents, the 5-step process, taxes, citizenship, and FAQs.

How to obtain residency in Costa Rica

Costa Rica is often called the "Switzerland of Central America" ​​for its pleasant lifestyle, stable democracy, lack of a military since 1948, and impressive natural beauty. With just over 51,000 km² of territory and approximately 5.2 million inhabitants, it is considered the happiest, most eco-friendly, greenest, and most sustainable country on the planet. The capital and political, cultural, and economic center is San José, and the official currency is the Costa Rican colon (CRC), although the US dollar is widely accepted everywhere.

Taking up residency in Costa Rica allows you to take advantage of territorial taxation: income earned abroad is exempt from taxation. The main economic sectors are tourism, high-tech manufacturing, agriculture, and fishing. Costa Rica is the most visited country in Central America, accounting for approximately 25% of the region's tourism market. It has traditionally been an attractive jurisdiction for incorporating companies conducting international trade, thanks to its territorial tax system and free zones.

Costa Rica's Residence Permit System

The Costa Rican immigration system is regulated by General Law on Migration and Foreigners No. 8764 and managed by the DGME ). Migration categories are divided into: Permanent Resident, Temporary Resident, Special Categories, and Non-Resident. Temporary residency is valid for two years and is renewable. After three consecutive years of temporary residency, permanent residency can be requested. The identity document issued to residents is the DIMEX (Documento de Identidad Migratoria para Extranjeros), equivalent to the cédula and required to operate in the country.

Summary table of migration categories

Temporary residence in Costa Rica

Temporary residency is the first step to legally settling in Costa Rica. It is valid for two years, is renewable, and, after three consecutive years, allows access to permanent residency. The application fee is USD 50 for each category. Registration with the CCSS is mandatory and must be completed within 22 business days of approval. The DIMEX is issued after biometric registration at the Banco de Costa Rica or Correos de Costa Rica and arrives in 4–6 weeks.

Pensionado Residence (Pensioner)

The Pensionado is intended for retirees with a monthly income of at least $1,000 from a permanent pension source. Proof of ability to electronically transfer funds to a local Costa Rican account is required. Employment is not permitted, but you may own a company and receive dividends. You may include your spouse and children under 18 as dependents. You must visit Costa Rica at least once a year.

Rentista Residence (Independent Income)

The Rentista requires proof of a guaranteed income of at least USD 2,500 per month for 24 months, certified by a bank, or a USD 60,000 deposit in an approved Costa Rican bank. Since 2025, the DGME has required direct deposit certification with actual transaction records. Employment is not permitted, but you can own a company and receive dividends. A single deposit covers the entire family.

Investmentist Residence (Investor)

Residency for Inversionistas requires a minimum investment of USD 150,000 in real estate, stocks, production processes, or other assets in Costa Rica. The investment must be documented with appraisals certified by authorized tax assessors. Income can be earned from the investment project. A spouse and children under 18 may be included. Visits are required at least once a year.

Residence for Company Representative

The candidate must be a director, manager, or technical staff member of a Costa Rican company that meets certain requirements, including employing a minimum number of local workers as required by labor law, and must have financial statements certified by a licensed public accountant. The company must be registered with the DGME (District Economic and Monetary Authority). The applicant may earn income from the company. The spouse and children may be included as employees.

Visa Nómada Digitale

Introduced in 2021, the Digital Nomad visa is designed for those who work remotely for foreign companies. Requirements: minimum monthly income of USD 3,000 (individual) or USD 4,000 (family), demonstrable through bank statements or CPA certification. Valid for one year, renewable once. Offers tax exemption and exemption from taxes on technology equipment. Please note: the Digital Nomad visa does not accumulate time toward permanent residency and does not lead to naturalization.

Permanent Residency in Costa Rica

Permanent residency is obtained after three consecutive years of temporary residence or directly through a first-degree family relationship with a Costa Rican citizen (parents, minor children, or minor siblings). Permanent residency does not expire, but the DIMEX must be renewed periodically. It allows you to work in any profession without restrictions. You must visit Costa Rica at least once a year. If you are absent for more than four consecutive years, your residency is cancelled.

Requirements for permanent residence

• 3 years of consecutive temporary residence under any eligible category (Pensionado, Rentista, Inversionista, Representative, Employee)
• General requirements identical to those for temporary workers (criminal history, CCSS registration, identity document)
• Application fee: USD 50 per application
• Category change fee: USD 200 for switching from temporary to permanent
• Civil Registry certification of family ties (if related to a Costa Rican)

How to obtain residency in Costa Rica

5 steps to obtain residency in Costa Rica

Documents required for residency in Costa Rica

The basic documents required for all categories of residence in Costa Rica are:

• birth certificate for Costa Rica, translated into Spanish
• Criminal records and pending charges with apostilled status, valid for a maximum of 6 months. Required for the applicant, spouse, and children between the ages of 15 and 25.
• Original passport with adequate residual validity (minimum 180 days for Italians, Group 1)
• Cumulative registry certificate (residence, marital status, citizenship) apostilled
• Proof of payment of USD 50 to the Government for the solicitud
• Recent passport photo in digital format

In addition to these, there are specific requirements for each category:

Taxation in Costa Rica

Costa Rica applies a territorial tax system: only income generated domestically is subject to tax. Income earned abroad—including that from investments, professional activities, and corporate participation— is not taxed. This makes Costa Rica one of the most advantageous jurisdictions for those with international income. The tax year runs from January 1st to December 31st.

What is life like in Costa Rica?

Life in Costa Rica is very good. The country consistently ranks among the world's top performers for quality of life, happiness, and environmental sustainability. With over 25% of its territory protected in national parks and reserves, it offers extraordinary biodiversity. The climate is tropical but temperate in the Central Valley (where San José is located, at about 1,200 meters above sea level). The two coasts—Pacific and Caribbean—offer spectacular beaches and a unique marine ecosystem.

The cost of living is the highest in Central America but remains competitive with Western Europe, especially in less touristy rural and coastal areas. Public healthcare is of a good standard thanks to the CCSS system, and private clinics offer excellent services at lower costs than in the US. The expat community is very active, with a strong presence of North Americans and Europeans, especially in the Guanacaste, Central Valley, and the southern Pacific coast.

San José and Valle Central

San José is the capital and the country's financial, commercial, and cultural center. It is located in the Central Valley at approximately 1,200 meters above sea level, ensuring a mild climate year-round (20–26°C). The main institutions, embassies, top-quality hospitals (Bible Clinic, CIMA Hospital), universities, and shopping centers are concentrated here. The satellite cities of Escazú, Santa Ana , and Heredia are favored by expats for their high quality of life, modern services, and international schools.

Guanacaste and the North Pacific Coast

Guanacaste is a coastal province in the North Pacific, famous for its white-sand beaches, dry tropical climate, and Daniel Oduber International Airport (LIR), which connects it directly to the US and Canada. The towns of Tamarindo, Playas del Coco , and Nosara are home to established expat communities. It's a favorite among retirees and surfers. The cost of living varies: higher in tourist areas, reasonable inland.

South Pacific Coast and Caribbean area

The southern Pacific coast (Dominican, Uvita, Ojochal) offers a quieter atmosphere and more affordable prices than Guanacaste. The Caribbean coast (Puerto Viejo, Cahuita) has a unique cultural character influenced by Afro-Caribbean culture, with a more relaxed pace and lower prices. These areas are ideal for those seeking a more authentic and less touristy experience, while still maintaining access to basic services.

Costa Rican Citizenship and Passport for Naturalization

Costa Rican naturalization is administered by the Supreme Election Tribunal (TSE) and requires continuous legal residence in Costa Rica. Article 14 of the Constitution establishes the following terms:

• 5 years of legal residency for Central American, Latin American, and Spanish citizens by birth (includes Italians)
• 7 years of legal residency for all other nationalities
• 2 years for those married to a Costa Rican citizen (marriage registered in the Civil Registry)

Requirements for naturalization

• Continuous domicile in Costa Rica for the required period
• Good conduct and no criminal convictions
• means of subsistence (profession, business or income)
• Passing exams in Spanish and Costa Rican History and Values ​​(minimum grade 70). Those who have completed school in Costa Rica are exempt.
• birth certificate from the country of origin
• Criminal record from the country of origin apostilled (valid for a maximum of 3 months)
• Current DIMEX
• Sworn statement of two witnesses attesting to the applicant's knowledge

Naturalization costs

Setting up a company in Costa Rica

Costa Rica has traditionally been an attractive jurisdiction for establishing companies that conduct international trade, thanks to its territorial tax system and free zones. The most common corporate forms are:

• Sociedad Anónima (SA) — equivalent to a joint stock company. Minimum two shareholders. It is the most commonly used form for real estate investments and commercial activities. Directors may be foreigners.
• Sociedad de Responsabilidad Limitada (SRL) — similar to an LLC. Liability limited to paid-up capital. From 2 to 25 members.
• Sucursal (Filiale) — Foreign companies can open a branch or representative office in Costa Rica.

Every company, active or inactive, must payannual corporate tax (approximately CRC 105,000 for active companies, approximately CRC 53,000 for inactive companies) by January 31st each year. Companies in free zones enjoy significant exemptions on taxes, customs duties, and VAT.

To acquire residency in Costa Rica you can contact us from the About Us / Contact Us.

You may also be interested in Panama residency, Paraguay residency or an offshore account.

Panama vs. Costa Rica: Residency Comparison for Italians

Both Panama and Costa Rica apply territorial taxation and are among the most popular destinations for Italians wishing to relocate to Latin America. However, the two jurisdictions present substantial differences in terms of costs, timeframes, bureaucracy, and lifestyle. The following table compares the main aspects.

Frequently Asked Questions about Residency in Costa Rica