Costa Rica launched its digital nomad visa (formally called the “Ley para Atraer Trabajadores y Prestadores Remotos de Servicios de Carácter Internacional,” or Law 10.008) in 2022, and it has been one of the more practical nomad visa programs in the Americas. I went through the application process myself, and while it is not as fast or simple as some countries make it, the benefits — legal residency for up to two years, tax exemption on foreign income, and the ability to open a local bank account — make it worth the paperwork. Here is the honest breakdown of how it works, what it costs, and what they do not tell you on the official website.
Who Qualifies
The visa is designed for people who work remotely for employers or clients outside of Costa Rica. You must demonstrate a minimum monthly income of $3,000 USD (or $4,000 for families), or alternatively show savings of at least $60,000 USD. The income needs to come from foreign sources — if you are freelancing for Costa Rican clients, this visa is not the right path. You also need health insurance that covers you in Costa Rica for the duration of your stay. The Costa Rican National Insurance Institute (INS) sells policies, or you can use international coverage that explicitly includes Costa Rica.
The Application Process: Step by Step
Step 1: Gather your documents. You will need: a valid passport, proof of income (bank statements, employment letters, or client contracts showing $3,000+/month), a criminal background check from your home country (apostilled), and proof of health insurance. All documents must be recent — generally within the last three months — and apostilled or authenticated for use in Costa Rica.
Step 2: Apply online. The application is submitted through the Costa Rican immigration authority (DGME) website. The portal works, though it can be slow and the interface is primarily in Spanish. Having a Spanish-speaking friend or an immigration lawyer review your submission is smart. The application fee is approximately $100-150 USD.
Step 3: Wait. Processing times vary — officially it should take 15-30 business days, but in practice it has taken anywhere from three weeks to three months depending on the workload. You can enter Costa Rica on a tourist visa while your application is processing, and your legal status is maintained during the review period.
Step 4: Biometrics and final approval. Once approved, you will need to visit the DGME office in San José to provide biometrics and finalize the paperwork. This is one of the few steps that requires an in-person visit to the capital — worth factoring into your plans if you are based at the beach.
The Tax Benefits
This is the headline feature: digital nomad visa holders are exempt from Costa Rican income tax on their foreign-sourced earnings for the duration of the visa (up to two years, renewable once). Costa Rica uses a territorial tax system, so income earned from foreign clients or employers was arguably not taxable anyway, but the visa makes this explicit and unambiguous. You are also exempt from import duties on personal equipment (laptop, camera, etc.) during your first stay.
Important caveat: the visa does not exempt you from your home country’s tax obligations. US citizens are taxed on worldwide income regardless of where they live. Consult a tax professional who understands both jurisdictions — this is genuinely complicated and getting it wrong can be expensive.
Practical Benefits Beyond Taxes
The visa gives you legal residency, which unlocks several practical advantages. You can open a Costa Rican bank account (try BAC or Scotiabank — they are the most foreigner-friendly). You can get a Costa Rican driver’s license. You can enroll in the public healthcare system (CCSS/Caja), which provides comprehensive coverage for a monthly fee. And perhaps most importantly, you do not have to worry about border runs or overstaying your tourist visa — the peace of mind of legal status is real and underrated.
What They Do Not Tell You
The apostille process for your home country documents can take weeks, especially for criminal background checks. Start this before you arrive in Costa Rica, not after. The DGME portal has occasional technical issues — if your submission gets stuck, an immigration lawyer can often resolve it faster than trying to navigate the system yourself. Budget $500-1,500 for a lawyer if you want professional help, which I recommend for first-timers.
The $3,000/month income requirement is verified at application time, but there is no ongoing reporting. That said, you should maintain documentation in case questions arise at renewal. Bank statements and contracts are your friends.
The visa is currently renewable once for an additional two years, giving you up to four years total. After that, you would need to transition to a different residency category if you want to stay long-term. Many nomads use the digital nomad visa as a bridge to permanent residency.
Do You Actually Need It?
If you are staying less than 90 days, probably not — the tourist visa is simpler. If you are staying 3-6 months, it depends on your risk tolerance with border runs. If you are staying longer than six months, absolutely yes. The legal security, tax clarity, and practical benefits (banking, healthcare, driver’s license) make it worth the application effort.
Once you have your visa sorted, the next step is finding your workspace. Impact Hub San José is a great starting point in the capital. For beach-town options, check out Selina Tamarindo or Outpost Nosara. Browse our full coworking directory to find the right fit, and read our digital nomad guide for everything else you need to know about building your life here.