Law 9996 Closed a Door. Here's Which Doors Are Still Open for Expats in Costa Rica
Updated: Oct 15
Updated October 2026: Law 9996 expired on July 14, 2026, without an extension. This article has been updated to explain what changed, who is still covered, and what your options look like now.
For months, the question I heard most from families planning a move to Costa Rica was some version of "Should we rush to make the Law 9996 deadline?" Now that the deadline has passed, the question has changed to "Is it still worth moving?"
The short answer is yes. The tax perks are gone for new applicants, but residency itself is still very much available, and the reasons people fall in love with this country haven't gone anywhere. What has changed is the math, and how much patience and organization the process now requires.
What Actually Closed on July 14, 2026
Law 9996 was created in 2021 to attract investors, rentistas and pensionados after the pandemic. It came with a five-year window of tax incentives, and that window is now closed. For anyone applying after the deadline, these benefits no longer apply:
The one-time duty-free import of household goods
Tax-free import of up to two vehicles
The income tax exemption on the income declared to qualify
The 20% exemption on the real estate transfer tax
Duty-free import of tools and materials for your profession
The investor category also went back to its previous minimum of $200,000, instead of the reduced $150,000 the law allowed. Investments in venture capital funds and sustainable tourism projects, which the law had added as qualifying options, are no longer part of the picture.
As attorney Oscar López Hernández explains in his analysis below, tax exemptions in Costa Rica can only be created by law. That means the government can't simply extend these benefits on its own. It would take new legislation.
Applied Before the Deadline? You're Still Covered
This is the part that brings a lot of relief. What counts is the date you submitted your application, not the date it gets approved. If you filed under the investor, rentista or pensionado category by July 14, 2026, you keep the right to claim the benefits, even if your resolution arrives months later. Once granted, those benefits last for ten years.
If you're in that situation, keep a copy of your filing receipt somewhere safe. It's the document that proves your date.
Which Doors Are Still Open for Expats
Costa Rica is still one of the most stable and welcoming places in Latin America to retire or relocate. The main residency routes are still there:
Pensionado: for retirees with a lifetime pension of at least $1,000 a month.
Rentista: with $2,500 a month in stable income, or a $60,000 deposit in a Costa Rican bank.
Inversionista: with a qualifying investment of $200,000.
After three years of temporary residency, you can apply for permanent residency. And Costa Rica still uses a territorial tax system, so income earned outside the country is generally not taxed here.
Requirements and amounts change, so always confirm your specific case with an immigration attorney before you make decisions.
The New Reality: Patience and Good Paperwork
The biggest change I see on the ground isn't the law. It's the waiting. Residency processing has slowed down noticeably, and in February 2026 the backlog of DIMEX cards passed 20,000. To help, Migración signed an agreement with Banco de Costa Rica so cards can be printed at bank branches, and some applications can now be filed at participating Correos de Costa Rica offices.
A realistic timeline today, from gathering documents to holding your DIMEX, is anywhere from 12 to 24 months.
There's also something many people don't realize until it's too late: enrolling in the CCSS (the Caja) is mandatory, and you have to stay current with it to keep your residency. Retirees and rentistas are not exempt.
The families who get through this smoothly have one thing in common. Someone is keeping track of every document, every date and every payment.
Where I Come In
I'm not an attorney, and I don't do legal work. What I do is the administrative side that keeps your life here running while the legal process moves forward, and long after it's done:
Keeping a calendar of your DIMEX renewal, CCSS payments and other deadlines
Helping you gather and organize documents for your attorney
Booking appointments and going with you when you need support
Handling yearly obligations like the marchamo and municipal property taxes
Reporting back to you or your family in clear English
For the legal side, I work with trusted attorneys and coordinate the introduction for you.
After five years managing residences and operations for the British Embassy in San José, I learned that the best administration is the kind you never have to think about.
The Legal Analysis: Consequences of the Expiration of Law No. 9996
Editor's note: The following analysis by Lic. Oscar Andrés López Hernández was published before the July 2026 deadline. It remains the clearest explanation of what the law offered and how the expiration works, so we've kept it here for reference.
Consequences of the Expiration of the Benefits Contemplated in Law No. 9996
By Lic. Oscar Andrés López Hernández, Attorney-at-LawExpat Legal Advisors
It is well known that one of the most effective means of attracting foreign investment to a country lies in the creation of tax incentives sufficiently persuasive to encourage individuals to invest their capital within that jurisdiction. The matter becomes even more significant when such a decision also entails relocating one's family residence to another country. In those cases, the fiscal and immigration conditions—together with a variety of internal and external factors that fall beyond the scope of this article—must be sufficiently favorable to motivate a person to emigrate.
Such was precisely the case of Costa Rica when, on July 14, 2021, the Ley para la Atracción de Inversionistas, Rentistas y Pensionados, Ley N.° 9996, was enacted. The purpose of this legislation, as expressly stated in its Article 1, is to serve as an instrument for the country's economic reactivation in light of the consequences derived from the COVID-19 pandemic. Consequently, the benefits set forth therein encouraged, and continue to encourage, many individuals seeking to relocate abroad to choose Costa Rica as their preferred destination.
Main Law No. 9996's Benefits
Among the main incentives established by Law No. 9996 are:
The full exemption from import duties and tariffs, on a one-time basis, for the importation of household goods belonging to the beneficiary and their dependents;
The tax-free importation of up to two vehicles for personal or family use;
The income tax exemption for amounts declared as income to qualify for the benefits of the law;
The 20% exemption from the real estate transfer tax applicable to properties acquired during the term of validity of the law, provided that the beneficiary is registered as the owner of record; and
The exemption from import taxes applicable to the instruments or materials necessary for the professional or scientific practice of the beneficiary and their dependents.
Critical Deadline: July 15, 2026
However, it is essential to note that, pursuant to Article 12 of the law, these benefits are of limited duration, and the term is about to expire. The provision stipulates that such benefits may only be granted to those who apply under the corresponding category (Investor, Rentier, or Retiree) within five years following the law's entry into force. Therefore, individuals seeking to access these fiscal incentives after July 15, 2026, will no longer be eligible. It is thus timely to analyze some of the main legal consequences arising from the expiration of this term.
Investment Amount Requirements After Expiration
The first relevant aspect concerns the minimum investment amount required to qualify for residency under the Investor category. Article 8 of Law No. 9996 temporarily reduced that amount to USD $150,000, which may be satisfied through the acquisition of real estate, registrable assets, shares, securities, productive projects, or projects of national interest. Moreover, the law broadened the definition of "investment" to include venture capital funds and sustainable tourism infrastructure projects.
Upon the expiration of the term of validity of the law's benefits, this financial threshold could revert to the previous minimum of USD $200,000, as established in Article 87 of Executive Decree No. 37112-GOB, published in La Gaceta No. 170 on September 1, 2009, which governed prior to the enactment of Law No. 9996 .
Nonetheless, it is also possible that the Executive Branch may adjust this amount, since it is a matter falling within its discretionary authority. Furthermore, the inclusion of investments in venture capital funds or sustainable tourism infrastructure projects would cease to be an eligible option, as that prerogative was exclusive to the term of Law No. 9996 .
Loss of Tax Benefits After Expiration
Likewise, once the validity period of the benefits expires, although it would remain possible to obtain residency by demonstrating the minimum investment amount determined by the Executive Branch, applicants would no longer be entitled to the tax incentives established by Law No. 9996. This is because, in tax matters, the creation of taxes as well as the establishment of exemptions, benefits, and penalties must derive exclusively from a law, and therefore it would be legally impermissible for the Administration to extend, modify, or repeal provisions of a fiscal nature on its own accord.
Important Clarification: Application Date vs. Approval Date
Finally, it is important to clarify that all individuals who submit their residency application within the term of validity of the benefits—that is, up to July 14, 2026—shall retain the right to claim recognition of such exemptions, even if, by the time the resolution granting their immigration status is issued, the term has already expired. This interpretation follows directly from the wording of Article 12 of Law No. 9996 , which distinguishes between those who "opt for the benefits during the first five years of validity" and those who, having obtained them, retain them for a ten-year period counted from the date on which the right was granted.
Accordingly, what determines eligibility for the benefits is the date on which the right to opt is exercised, not the date on which the Administration concludes the proceeding.
About the Author:
Lic. Oscar Andrés López Hernández is an Attorney-at-Law with Expat Legal Advisors, a Costa Rican law firm specializing in immigration law, real estate transactions, corporate law, and tax advisory services for international clients.
Ready to Walk Through the Open Doors?
Law 9996 closed one door, but the ones that matter most are still open. If you're planning a move, already in the residency process, or just want someone on the ground keeping your paperwork in order, I'd love to help.
Send me a message on WhatsApp at +506 7075-5307, write to info@expatseniorcr.com, or request a coordinated introduction to our legal partner below.
Disclosure: I receive a referral fee for clients I introduce to Expat Legal Advisors. This does not affect the fees you pay. My recommendation is based on their expertise and the quality of service they provide to my clients.
Teresita is a bilingual life manager and personal advocate for expat seniors in Costa Rica. For over a decade she has been "the person in the room" — navigating healthcare and the CCSS, coordinating trusted local providers, handling paperwork, and caring for private homes — so seniors can live here safely and independently, and their families abroad can finally stop worrying.
📅 Book a free 30-minute consultation · 📱 WhatsApp: +506 7075-5307
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance on your specific immigration situation, please consult a qualified Costa Rican immigration attorney.
Comments