Guest Expert Article: Consequences of the Expiration of Law No. 9996's Benefits & What It Means for Future Investors

One of the most common questions I receive from potential clients considering relocation to Costa Rica involves residency requirements and tax benefits. With the upcoming expiration of Law No. 9996's benefits in July 2026, understanding the legal implications has never been more important.

I'm honored to share this expert legal analysis written by Lic. Oscar Andrés López Hernández, Attorney-at-Law with Expat Legal Advisors, a law firm specializing in immigration, real estate transactions, corporate law, and tax advisory for expats and investors in Costa Rica.

This article provides critical information for anyone considering investor, rentier, or pensioner residency in Costa Rica—especially those planning to apply before the July 2026 deadline.

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:

1. 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;

2. The tax-free importation of up to two vehicles for personal or family use;

3. The income tax exemption for amounts declared as income to qualify for the benefits of the law;

4. 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

5. 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.

Why This Matters for Your Costa Rica Relocation Plans

If you're considering relocating to Costa Rica as an investor, rentier, or pensioner, the July 2026 deadline outlined in this article is critical for your planning.

Key takeaways from the legal analysis:

• Benefits have a firm expiration date - You must APPLY (not just be approved) before July 15, 2026 to qualify for Law No. 9996 benefits

• Tax incentives are substantial - Import exemptions, income tax benefits, and real estate transfer tax reductions represent significant financial advantages

• Investment minimums may increase - The current $150,000 threshold could revert to the previous $200,000 requirement after expiration, though the Executive Branch has discretionary authority to adjust this amount

• Application date is what matters - As the attorney explains, eligibility is determined by when you submit your application, not when it's approved—meaning you can still receive benefits even if approval comes after July 2026, as long as you applied before the deadline

What You Should Do Now

If you're seriously considering Costa Rica residency under Law No. 9996:

1. Don't delay your planning - With the July 2026 deadline approaching, beginning the process sooner rather than later is advisable

2. Consult with specialized immigration attorneys who thoroughly understand Law 9996, its requirements, and current processing timelines

3. Understand the documentation requirements - Apostilled documents, background checks, and financial records may take time to obtain

4. Structure your investment properly - Ensure your qualifying investment meets all legal requirements under Law No. 9996

Note: Immigration processing timelines in Costa Rica can vary significantly depending on application volume, documentation completeness, and other factors. For current processing time estimates and to ensure your application timeline allows for submission before the July 2026 deadline, consult with qualified immigration counsel early in your planning process.

Specialized Legal Expertise for Immigration & Residency

Expat Legal Advisors specializes in helping international clients navigate Costa Rica's immigration system, including:

✓ Immigration & Residency Services - Complete application management for investor, rentier, and pensioner visas under Law No. 9996

✓ Real Estate Legal Services - Property due diligence, purchase contracts, title verification, and closing coordination

✓ Tax Advisory & Planning - Strategic guidance for maximizing available benefits

✓ Corporate Formation - Establishing Costa Rican entities for business and investment purposes

✓ Estate Planning - Protecting your Costa Rican assets for the future

Their practice provides:

• Bilingual legal services (English/Spanish)

• Complete immigration application management and coordination

• Direct liaison with government entities (DGME, tax authorities, registries)

• Strategic planning to optimize your residency application

• Ongoing legal support after residency approval

Professional Legal Services for Immigration & Real Estate

For specialized legal assistance with Law No. 9996 applications, real estate transactions, corporate formation, or other legal matters, I recommend Expat Legal Advisors.

I can coordinate introductions to ensure your needs are clearly communicated and you receive appropriate guidance for your situation.

Click below to request a coordinated introduction

Request Legal Referral

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.

Comprehensive Lifestyle Support for Your Life in Costa Rica

While specialized attorneys handle the legal and immigration aspects of your move, successful relocation also requires reliable support for daily living, property management, and lifestyle coordination.

That's where complementary services become valuable.

Once you've secured your legal residency status, many expats and retirees find they need trustworthy local support for:

• Property management if you own real estate

• Healthcare navigation and medical appointment coordination

• Daily living assistance - errands, bills, household coordination

• Senior care and companionship services

• General concierge support for busy professionals

For comprehensive lifestyle and property management services in Costa Rica:

📧 Expat Senior Concierge: info@expatseniorcr.com

📱WhatsApp: +506 7075-5307

🌐 www.expatseniorcr.com

(We provide professional household management, senior care services, and lifestyle concierge support for expats, retirees, and property owners throughout the Greater San José area and Guanacaste)

A Holistic Approach to Costa Rica Relocation

Successful relocation requires two complementary types of support:

Legal & Immigration Expertise:Specialized attorneys ensuring compliance, proper documentation, and maximizing available benefits under Costa Rica law

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Lifestyle & Daily Living Support:Trusted local professionals managing your property, coordinating daily needs, and helping you build a comfortable life in Costa Rica

Together, these services provide a complete foundation for confident, successful relocation.

Don't let the Law No. 9996's benefits expire. With the July 2026 deadline approaching and processing times extending 6-12+ months, the time to begin your application is NOW.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The numerical examples provided in the commentary are illustrative estimates, not verified figures. For specific guidance on your immigration situation and accurate calculation of potential Law No. 9996's benefits, please consult directly with a qualified Costa Rican immigration attorney.