Yesterday, legislative file 22.215, Law to Attract International Workers and Remote Service Providers, was approved in first debate. The main purpose of this project is to attract digital nomads to Costa Rica, who will be granted a series of tax benefits.
Who is a digital nomad?
Digital nomads will be those persons who meet the following conditions:
- Foreign persons working and providing services remotely, who perform work on behalf of a natural or legal person abroad.
- Their work is performed remotely by computer, telecommunication, or similar means.
- Their remuneration or payment must come from abroad.
- Your average monthly income during the last year must be equal to or greater than $3,000 if you are traveling alone, or $5,000 if you are traveling with your family.
What is the migratory status of a digital nomad?
The person considered as a digital nomad will have the migratory category of non-resident, within the subcategory of stay. The term of validity of the stay will be up to one year and may be extended only once for the same period. The digital nomad will not be granted a work permit. To obtain this stay, the foreigner must apply to the General Office of Migration and Foreigners, which must comply with the requirements set forth in the law and regulations. The request must be resolved within 15 calendar days.
What tax benefits would be granted to digital nomads?
The tax benefits to be granted are:
- Total exemption from profit tax.
- Exemption from the payment of all taxes on the importation of basic personal computer, IT, telecommunications, or similar equipment necessary to perform their work or provide their services.
- The digital nomad is not considered a tax resident.
These benefits will remain for the term of the stay. When the General Office of Immigration and Foreigners decrees the cancellation of the condition, the tax benefits will be eliminated.
For this bill to become a Law of the Republic it still must be approved in the second debate and published in the Official Gazette.