Work Remotely from Costa Rica: Complete Guide

Visa Options for Remote Workers

Digital Nomad Visa (Rentista - Trabajador Remoto)

Costa Rica’s official Digital Nomad Visa launched in 2022 is designed specifically for remote workers and offers significant tax advantages.

Visa Duration:

• Initial period: 1 year
• Renewable for 1 additional year (total 2 years)
• After 2 years, must leave or apply for different residency category

Income Requirements:

• $3,000 USD per month for individuals
• $4,000 USD per month if including dependents (spouse/children)
• Must provide 12 months of bank statements proving consistent income
• Income verified with sworn affidavit, notarized and apostilled

Health Insurance Requirement:

• Comprehensive international health insurance mandatory
• Minimum coverage: $50,000 USD
• Must cover entire duration of stay
• Travel insurance is NOT accepted - must be long-term residency insurance
• Insurance must be valid in Costa Rica

Required Documents:

• Valid passport (6+ months validity beyond stay)
• Bank statements for past 12 months showing $3,000+/month income
• Sworn affidavit of income (notarized by CPA or Public Notary, apostilled)
• Proof of remote employment (employment contract, business registration, client contracts)
• International health insurance policy with $50,000+ coverage
• Clean criminal background check (apostilled)
• Completed application form

Application Process:

1. Prepare and apostille all required documents
2. Submit application online through Costa Rica’s immigration portal or at consulate
3. Pay application fee ($100 USD)
4. Wait 2-4 weeks for processing
5. Receive visa approval
6. Enter Costa Rica with digital nomad visa

Major Benefit - Tax Exemption: The digital nomad visa includes tax exemption on foreign-earned income. You will NOT pay Costa Rican income tax on your remote work income as long as it’s earned from companies/clients outside Costa Rica.

Rentista Visa (Traditional)

The traditional Rentista Visa is an alternative residency option that predates the digital nomad visa.

Requirements:

• Guaranteed monthly income of $2,500 USD for 2 years
• Income must come from a “stable and permanent” source (pension, investments, rental income)
• Initial residency period: 2 years
• Can lead to permanent residency

Key Difference from Digital Nomad Visa:

• Lower income requirement ($2,500 vs $3,000)
• NO tax exemption - you’ll be subject to Costa Rican income tax
• Can transition to permanent residency after 3 years
• More suitable for those seeking long-term residency, not just 1-2 years

Verdict: The Digital Nomad Visa is better for most remote workers due to tax exemption and simpler requirements.

Tourist Visa (Visa-Free Entry)

Most nationalities (US, Canada, EU, UK, Australia) receive 90-day visa-free entry on arrival.

Key Points:

• Free entry for up to 90 days
• Can be extended for an additional 90 days (total 180 days per year)
• Extension requires visiting immigration office
• Technically not permitted to work (even remotely) on tourist visa
• Many digital nomads start on tourist visa before committing to digital nomad visa

Tax Implications

Costa Rica’s taxation system for remote workers is straightforward, especially with the digital nomad visa.

Digital Nomad Visa - Tax Exempt

If you hold the Digital Nomad Visa:

• 100% tax exemption on foreign-earned income
• No requirement to file Costa Rican tax returns
• No registration with tax authority (Hacienda) required
• Only income from Costa Rican sources would be taxed (not applicable to remote workers)
• This is the main advantage of the digital nomad visa over other residency options

Important: This tax exemption is specific to the digital nomad visa category. Other types of residency may require tax filing.

Rentista Visa - Tax Resident

If you hold a traditional Rentista Visa or other residency:

• Considered a tax resident of Costa Rica
• Must register with Hacienda (tax authority)
• Required to file annual tax returns
• Costa Rica taxes worldwide income (though double taxation treaties exist with some countries)
• Progressive tax rates from 0% to 25%

Tax Rates for Residents:

• Up to ~$11,000 USD: 0%
• $11,000-17,000: 10%
• $17,000-26,000: 15%
• $26,000-52,000: 20%
• $52,000+: 25%

Length of Stay Considerations

Costa Rica doesn’t use the typical “183-day rule” for tax residency in the same way as other countries. Instead, your visa type determines your tax status. The digital nomad visa provides tax exemption regardless of days spent in the country.

Best Cities for Remote Work

San José (Escazú, Santa Ana)

The capital area, specifically the western suburbs of Escazú and Santa Ana, is the hub for expats and remote workers.

Why San José Area:

• Best internet infrastructure in Central America (fiber optic standard)
• International airport (SJO) with direct flights to US
• Largest expat community in Costa Rica
• Modern shopping malls, coworking spaces, restaurants
• Central location for exploring Costa Rica on weekends
• Neighborhoods: Escazú (upscale), Santa Ana (suburban), Rohrmoser (central)

Cons:

• Traffic congestion can be severe
• More expensive than other Costa Rican cities
• Urban environment, not beachy
• Air quality issues during dry season

Cost of Living: $2,000-3,500/month

Tamarindo

Beach town on the Pacific coast, popular with surfers and digital nomads seeking beach lifestyle.

Pros:

• Beautiful beaches and consistent surf
• Growing digital nomad community
• Coworking spaces: Selina, Work Eat Surf Play
• Good internet (fiber available in many areas)
• English widely spoken
• Year-round warm weather
• Outdoor lifestyle: surfing, yoga, beach

Cons:

• Very touristy and can feel less authentic
• More expensive than inland cities
• Dry season gets very hot (90-95°F)
• Smaller town feel - limited cultural activities

Cost of Living: $2,200-3,500/month

Puerto Viejo

Caribbean coast town with Afro-Caribbean culture, laid-back vibe, and great beaches.

Pros:

• Relaxed “Pura Vida” lifestyle
• Beautiful beaches (Playa Cocles, Punta Uva)
• Unique Caribbean-Costa Rican culture
• Lower cost than Pacific coast towns
• Good community of digital nomads
• Jungle and beach combination

Cons:

• Internet less reliable than San José or Tamarindo
• More remote (4-5 hours from San José)
• Rainy season can be very wet
• Smaller expat community than other locations

Cost of Living: $1,500-2,800/month

Timezone Overlap with Global Companies

Costa Rica operates on Central Standard Time (CST, GMT-6) year-round (no daylight saving time).

Working with US Companies

Perfect alignment with US business hours:

• EST (New York): 1 hour ahead
• CST (Chicago): Same time
• MST (Denver): 1 hour behind
• PST (Los Angeles): 2 hours behind

Costa Rica’s timezone makes it ideal for US remote workers. A 9am EST meeting is 8am in Costa Rica. You can easily maintain standard US work hours.

Working with European Companies

Challenging but manageable:

• London (GMT): 6 hours ahead
• Berlin (CET): 7 hours ahead
• Eastern Europe: 8 hours ahead

A 9am London meeting is 3am in Costa Rica. European remote workers typically work early mornings or rely heavily on asynchronous communication.

Cost of Living Breakdown

Costa Rica is the most expensive country in Central America, but still affordable compared to the US or Western Europe:

• Accommodation: $800-2,000/month (furnished apartment in Escazú or beach town)
• Food: $400-800/month (groceries more expensive; eating out varies)
• Coworking: $150-250/month (dedicated desk)
• Transportation: $100-300/month (car rental or Uber; public transit limited)
• Health Insurance: $100-200/month (international coverage required)
• Utilities & Internet: $80-150/month (electricity expensive, fiber internet excellent)
• Entertainment: $200-500/month

Total: $1,830-4,200/month depending on lifestyle and location

Why More Expensive:

• High import taxes on goods
• Tourism-driven economy
• Better infrastructure and services
• Strong environmental regulations
• Political stability premium

Internet and Infrastructure

Costa Rica has exceptional internet infrastructure, among the best in Latin America.

San José Area:

• Fiber optic nearly universal: 100-300 Mbps standard
• Many apartments come with 200 Mbps included
• Providers: ICE (Kolbi), Movistar, Cabletica, Tigo
• Coworking spaces: 300+ Mbps common
• 4G/LTE coverage: Excellent nationwide with Kolbi

Beach Towns (Tamarindo, Nosara, Puerto Viejo):

• Fiber optic increasingly available: 50-200 Mbps
• 4G coverage good as backup
• Always test before signing lease

Rural/Mountain Areas:

• 4G LTE generally available
• Fiber expanding but not universal
• Satellite internet as last resort

Power Outages:

• Infrequent but occasional during rainy season
• UPS/battery backup recommended

Costa Rica invests heavily in infrastructure, making it one of the most reliable countries for remote work in Latin America.

Healthcare for Remote Workers

Costa Rica has excellent healthcare, one of the best systems in Latin America:

• Public healthcare (CAJA): Universal coverage, high quality, but long wait times
• Private healthcare: World-class facilities at fraction of US costs
• Top hospitals: CIMA San José, Hospital Clínica Bíblica, Hospital La Católica
• Doctor visits: $50-100 USD without insurance (private)
• Prescriptions: Many medications available over-the-counter, very affordable
• Dental tourism: Popular destination for dental work (60-70% cheaper than US)
• International insurance: Required for digital nomad visa and recommended

Many expats use a combination: CAJA for major emergencies and private insurance for routine care.

Safety and Quality of Life

Costa Rica is one of the safest countries in Latin America:

Safety:

• Low violent crime rates
• Petty theft (car break-ins, pickpocketing) is main concern
• Tourist areas well-policed
• Political stability (democracy since 1948, no military)
• Generally safe to walk at night in touristy areas

Quality of Life:

• “Pura Vida” lifestyle - relaxed, friendly culture
• Exceptional natural beauty: beaches, rainforests, volcanoes, wildlife
• Strong environmental protections (30% of country in protected areas)
• Good work-life balance culture
• Stable electricity and water (unlike some Latin American countries)
• English more widely spoken than most Latin American countries

Challenges:

• Driving can be stressful (potholes, mountain roads, aggressive drivers)
• Bureaucracy can be slow (“Tico time”)
• High import costs on goods
• Rainy season (May-November) can be very wet on Caribbean coast