As of July 2022, Costa Rica officially opened the application process for the country's new remote worker visa under the immigration category “Stay (Estancia) for Remote Workers and Service Providers.” Like many countries, Costa Rica suffered a hit to its tourism sector during the COVID-19 pandemic. The country created the digital nomad visa in an effort to attract long-term visitors and stimulate the local economy. The  law enabling the new visa category was signed in August 2021, but administrative and logistical requirements have delayed implementation until now.

Costa Rica's adoption of a digital nomad visa follows the introduction of similar immigration pathways in  Italy Romania Iceland, the  United Arab Emirates, and other countries. A major benefit of the new pathway is that visa holders will not have to obtain local sponsorship or employment authorization in order to work in Costa Rica for an employer abroad.

Visa Eligibility

The new visa type is available to foreign nationals who are employed or provide services to an employer, person, or entity outside of Costa Rica. The applicant must have an income of at least US$3,000 a month (or US$4,000 if accompanied by family/dependents) and private health insurance for themselves and any accompanying dependents while living in Costa Rica. Eligible foreign nationals will be allowed to remain in Costa Rica for one year with the possibility of a one-time extension for an additional year. It is important to note that visa holders will not be allowed to engage in local employment in Costa Rica, as the visa category was created specifically for remote workers.

The governing Costa Rican authority will process the visa application within 15 days. More information on the documentation requirements for the visa can be found on Costa Rica's  immigration agency webpage.

Benefits for Remote Workers

The availability of this new visa will bring several benefits to remote workers. Compared to other visa types, applicants for the remote worker visa are not required to obtain criminal clearance certificates or apostilles of supporting documents, such as proof of income, birth certificates, or marriage certificates. Applicants also benefit from relaxed proof of income requirements, an income tax exemption, and an  exemption from the tax on importation of work-related tech equipment.

Considerations for Employers

Given the streamlined nature of the application, employers are only minimally involved in the visa process for their employees who are seeking to remote work from Costa Rica. Specifically, employers of remote workers must only provide verification letters on behalf of their employees. Even so, companies should exercise caution to ensure that foreign nationals are not being employed beyond the scope of their immigration permissions. Employers are encouraged to review local tax and labor laws in order to be aware of any applicable rules and regulations that impact an employer with a remote worker in Costa Rica.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.