Moving to Costa Rica is a dream for many expats, but figuring out how to earn an income in your new home can be a challenge. Costa Rica’s work regulations for expats are specific, so understanding your options is critical to creating a sustainable lifestyle.
Costa Rica has some pretty strict rules regarding working. Unless you’re a Costa Rican citizen or have permanent residency, you’re not legally allowed to work in the country. I know that might sound like a roadblock, but it’s really just something to be aware of as you plan your move.
Costa Rica protects its local job market, which is why these rules exist. But don’t worry—this doesn’t mean your dream of moving to Costa Rica is over. There are still plenty of ways to make it work, and I’ll walk you through them.
Whether you plan to work remotely, start a business, or invest, this guide will help you navigate the legal and practical aspects of earning an income in Costa Rica.
Remote Work: The Digital Nomad Visa
Costa Rica’s Digital Nomad Visa is an ideal solution for expats with remote jobs or online businesses.
- Who It’s For: Freelancers, remote employees, and online entrepreneurs who earn income from foreign sources.
- Requirements: Proof of at least $3,000 monthly income ($4,000 if applying with dependents) from outside Costa Rica.
- What You Can Do: Legally work for international clients or companies while enjoying life in Costa Rica.
- Restrictions: You cannot offer services to Costa Rican residents or businesses under this visa.
The Digital Nomad Visa allows you to live in Costa Rica for up to one year, with the possibility of renewal, making it an excellent option for remote workers.
Starting a Business in Costa Rica
Entrepreneurial expats can start businesses in Costa Rica, offering a pathway to earn income while contributing to the local economy.
- Eligibility: You must secure the Investor Visa by investing at least $150,000 in a Costa Rican business, property, or other qualifying assets.
- How It Works: Expats can own and operate businesses but need help to work directly in them (e.g., as a barista or tour guide). Instead, you hire locals and pay yourself through dividends.
- Popular Business Ideas:
- Hospitality ventures like boutique hotels or eco-lodges
- Tour companies catering to the thriving tourism market
- Restaurants or cafes
Starting a business allows you to earn income while respecting Costa Rica’s rules about expat employment.
Investing for Passive Income
Investing in Costa Rica can generate passive income if you’re looking for a more hands-off approach.
- Options for Investment:
- Rental properties in high-demand areas like the beaches or the Central Valley
- Agricultural investments such as coffee or cocoa farms
- Eco-tourism ventures
- Key Considerations: While earning passive income is allowed, ensure you comply with tax regulations and seek advice from local professionals.
Passive income through investments provides financial security without violating work restrictions.
Teaching English or Skills Online
If you have teaching experience, offering online classes can be a great way to earn income while living in Costa Rica.
- Teaching Platforms: Platforms like VIPKid or Cambly let you teach students worldwide.
- Skills-Based Classes: Consider offering courses in areas like cooking, yoga, or music to international clients.
If your clients are outside Costa Rica, this approach aligns with expat work regulations.
Freelancing or Consulting for Foreign Clients
Freelancers and consultants can continue working for international clients while residing in Costa Rica.
- Popular Fields:
- Graphic design, web development, or marketing
- Business consulting or coaching
- Writing, translation, or editing services
- Digital Nomad Visa: Use this visa to reside in Costa Rica while working with global clients legally.
Freelancing offers flexibility and the ability to maintain your career from paradise.
Work Restrictions for Expats
Understanding Costa Rica’s work restrictions is crucial for staying compliant:
- Expats can only work as employees for Costa Rican companies if they have permanent residency or special permission.
- Direct employment in your own business is prohibited, but you can manage it and pay yourself through dividends.
- Always consult an immigration or legal expert to ensure your income activities follow the rules.
Partner with a Relocation Expert for a Smooth Transition
Navigating Costa Rica’s work regulations and income opportunities can be tricky. Partnering with relocation experts or local advisors ensures you’re fully compliant and set up for success.
- Help you secure the appropriate visa\
- Provide advice on tax implications and business setup
- Connect you with trusted local professionals
Working with experts saves time and avoids potential legal headaches.
Let’s get you moved to Costa Rica
Earning an income in Costa Rica as an expat is possible with careful planning and an understanding of local regulations. Whether you work remotely, invest, or start a business, Costa Rica offers a range of opportunities to create a sustainable and fulfilling lifestyle. By aligning your plans with the country’s rules, you can enjoy the best of both worlds: a thriving career and the “pura vida” way of life.