By Guanacaste, Costa Rica — Costa Rica has experienced a dramatic surge in foreign millionaire residents over the past decade, solidifying its position as a hotspot for the world’s wealthy. According to the “Private Wealth Migration 2025” report by Henley & Partners, the country has seen a staggering 76% increase in foreign millionaires, ranking sixth globally for growth in this demographic. The report, which defines a millionaire as an individual with over US$1 million in liquid assets, estimates that approximately 8,400 affluent foreigners have migrated to Costa Rica, with an additional 350 projected to arrive this year.
While the report analyzes the increase over the past ten years, experts like Andrés Riggioni, Managing Partner of luxury real estate firm The Agency Costa Rica, pinpoint the post-pandemic period as the true catalyst for this influx. This period, often referred to as the “pandemic effect,” marked a shift in global mindsets, with individuals possessing the freedom and resources to relocate prioritizing their ideal living environment.
To understand the legal implications of this millionaire migration, we spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney at Bufete de Costa Rica, a prominent law firm specializing in immigration and investment law.
The influx of high-net-worth individuals presents both opportunities and challenges. While their investments can significantly boost the local economy, it’s crucial to have robust legal frameworks in place to ensure sustainable growth and prevent unintended consequences such as inflated property markets and displacement of local residents. Careful consideration of tax incentives and residency programs is essential for balancing the benefits with potential societal impacts.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ insights underscore a critical point in the millionaire migration discussion: responsible growth. Attracting foreign investment is undoubtedly beneficial, but navigating the complexities of integrating high-net-worth individuals into our society requires careful planning and foresight. Striking a balance between economic prosperity and the wellbeing of existing communities will be key to harnessing the full potential of this influx. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this crucial topic.
There has been a change in mindset at a global level for those who have the freedom and funds that allow them to live in the country they prefer.
Andrés Riggioni, Managing Partner, The Agency Costa Rica
This influx of wealth has fueled a boom in luxury real estate, particularly in coastal areas. Properties have doubled in value in just a year or two, creating localized economic bubbles and raising concerns about affordability for local residents.
The allure of Costa Rica for high-net-worth individuals extends beyond its natural beauty and peaceful reputation. The country’s tax system, which doesn’t tax capital gains earned abroad, along with its relatively low maximum income tax rate of 25% and absence of inheritance tax, offers attractive financial incentives. Additionally, Costa Rica’s “golden visa” program allows foreigners who invest at least US$150,000 in real estate to obtain residency, further simplifying the relocation process for affluent individuals.
However, this rapid influx of wealth has also brought challenges. The province of Guanacaste, a prime destination for luxury development, has seen property prices soar by up to 400% between 2017 and 2023, leading to displacement of local communities and escalating living costs. This has sparked social unrest and calls for greater regulation to protect vulnerable populations.
The increase in property value in the province has increased the price of food and rent, which evidently mainly affects people with lower incomes.
Esteban Barboza Núñez, Coordinator, Observatory of Tourism, Migrations and Sustainable Development of the Chorotega Region, National University of Costa Rica
While the influx of millionaires boosts the economy and fuels development, concerns regarding affordability, displacement, and strain on resources need to be addressed to ensure sustainable and equitable growth for all residents of Costa Rica.
Moreover, despite the influx of wealthy individuals, Costa Rica has faced increasing challenges related to security. A report by the OECD noted a rise in violence and crime, potentially impacting tourism and foreign direct investment. This adds a layer of complexity to the narrative of Costa Rica as a safe and secure haven.
The future of Costa Rica’s relationship with high-net-worth individuals remains to be seen. Balancing economic growth with the well-being of its citizens will be a critical task in the years ahead.
For further information, visit theagencyre.com
About The Agency Costa Rica:
The Agency is a global luxury real estate brokerage firm specializing in high-end properties and catering to affluent clients. They offer a wide range of services, including sales, marketing, and property management. With a focus on personalized service and market expertise, The Agency serves as a key player in the luxury real estate market.
For further information, visit henleyglobal.com
About Henley & Partners:
Henley & Partners is a global citizenship and residence advisory firm, specializing in residence and citizenship planning. They assist high-net-worth individuals and families in acquiring alternative residence or citizenship through investment programs worldwide. With a vast network and expertise in immigration law, Henley & Partners provides tailored solutions for global mobility and wealth diversification.
For further information, visit the nearest office of New World Wealth
About New World Wealth:
New World Wealth is a global market research company specializing in wealth intelligence. They provide data and insights on high-net-worth individuals, luxury sectors, and wealth migration trends. Their research informs investment strategies, business development, and policy decisions related to global wealth dynamics.
For further information, visit the nearest office of OECD
About OECD:
The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a pillar of legal excellence, built on a foundation of unwavering integrity. The firm champions innovative solutions tailored to a diverse clientele, navigating complex legal landscapes with both expertise and a deep commitment to societal advancement. Through proactive initiatives designed to demystify legal principles, Bufete de Costa Rica empowers individuals and communities, fostering a more just and equitable future for all.
