Costa Rica recently earned an important distinction as a country suitable for the digital nomad ecosystem. According to the Digital Nomad Index published by Visa Guide Magazine, Costa Rica ranks 13th on the list of Best Countries for Digital Nomads in 2024. This index is based on a score scale from 0 to 5 and refers to 6 different categories that mention indispensable elements for the execution of the work of digital nomads.
Costa Rica obtained an overall average of 3.16 out of 5 points, which positions it as the 3rd best country in Latin America for remote work.
In 2021, Law number 10008 came into force, which, together with its due regulation, lists all the requirements to apply for the digital nomad visa in Costa Rica.
Digital Nomads Index
The 6 categories that were evaluated in each country and that are indispensable for the role of digital nomads are the following:
- Internet speed: As Costa Rica has a score of 91.08 in terms of Internet speed, the country has a better score in the index, given that digital nomads are people who work for companies abroad and require a high-speed internet to hold video calls and be available 24/7.
- Taxation: A person being a digital nomad in Costa Rica only must pay taxes on their income between 10 and 20%, which makes the country an attractive destination for digital nomads compared to Mexico.
- The tax-free policy: For digital nomads to have an extended tax-free period is beneficial, therefore, Costa Rica offers the remote worker a tax-free period of 6 months.
- Monthly income: Usually the digital nomad visas require that the person has an estable monthly income, in Costa Rica the minimum is USD $3,000, therefore, it is a captivating destination for the new generations.
- Cost of living: In the index Costa Rica reflects a monthly cost of living of USD $753, having an affordable cost of living ranks the destination in the top 20 of the best countries for remote workers.
- Health care: Health care is an extremely important factor for digital nomads. The Costa Rican Social Security system is ruled by the principle of universality, which provides medical care to all people.
Costa Rica offers other benefits to digital nomads such as: The exemption of profit tax, visa for one year extendable to an additional year, tax-free import of any technological equipment needed to work, also the abundant tourist activity around the country, highlighting its diverse landscapes both on the coasts and its cloud forest in Monteverde, and offering 6% of global biodiversity, make Costa Rica a highly desirable destination for digital nomads for this 2024.
This article has been developed by Asuncion Quiros, associate and revised by Rafael Quiros, partner at CENTRAL LAW in Costa Rica.