Why Costa Rica Became Latin America’s Top Destination for Foreign Millionaires

Global Wealth Migration Trends Favoring Costa Rica

The global landscape of wealth migration is shifting dramatically. While the United Kingdom faces an exodus of 16,500 millionaires and traditional financial centers lose appeal, Costa Rica stands out as a rising star. This Central American nation is experiencing a wealth migration boom that outpaces even its neighbor Panama, which expects to attract 300 wealthy individuals with combined assets of $2.6 billion.

What makes this trend particularly noteworthy is that Costa Rica and Panama are the only Latin American countries gaining millionaires. Meanwhile, regional economic powers face significant outflows: Brazil (-1,200), Mexico (-150), Colombia (-150), and Argentina (-100) are all experiencing a wealth drain as their affluent citizens seek more stable environments.

According to Juerg Steffen, CEO of Henley & Partners, this shift reflects “a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere.” The record 142,000 millionaires relocating globally in 2025 signals a fundamental reassessment of where wealth can be best preserved and grown.

Tax Advantages Driving Foreign Millionaires to Costa Rica

One of the primary factors attracting foreign millionaires to Costa Rica is its favorable tax environment. Unlike many high-tax jurisdictions in Europe and North America, Costa Rica offers significant advantages for wealth preservation and growth.

Territorial Tax System Benefits

Costa Rica operates on a territorial tax system, meaning residents are only taxed on income generated within the country. Foreign-source income—including investments, dividends, capital gains, and pensions earned outside Costa Rica—remains untaxed. For wealthy individuals with diverse international income streams, this creates an immediate and substantial tax advantage.

Additionally, Costa Rica imposes no inheritance or wealth taxes, allowing for efficient generational wealth transfer. This contrasts sharply with the United Kingdom, United States, and many European nations where estate taxes can claim significant portions of inherited wealth.

Political Stability and Security Attracting Wealthy Foreigners

Costa Rica’s exceptional political stability stands in stark contrast to much of Latin America. Having abolished its military in 1949, the country redirected defense spending toward education and healthcare, creating one of the region’s strongest social systems. This long-standing democratic tradition has fostered institutional strength that wealthy foreigners find reassuring.

Safety and Security Advantages

While neighboring countries struggle with security challenges, Costa Rica maintains relatively low crime rates in areas popular with expatriates and investors. The government has invested in specialized tourist police units and security infrastructure in key development zones, particularly in Guanacaste province where many luxury developments are located.

This safety profile is particularly attractive to foreign millionaires who prioritize personal security and asset protection when choosing a destination for relocation or investment.

Bloomberg’s analysis of Costa Rica’s millionaire migration trend highlights the country’s institutional strength as a key factor. The perception of solid governance, respect for property rights, and judicial independence creates confidence among wealthy investors looking for long-term security.

Millionaire-Friendly Residency Programs

Costa Rica offers streamlined residency pathways for investors and retirees with substantial assets.

Costa Rica has developed several residency programs that particularly appeal to high-net-worth individuals. These pathways offer straightforward routes to legal residency and eventual citizenship, without the high costs associated with some Caribbean or European investment migration programs.

Investor Residency Program

The Investor Residency Program requires a minimum investment of $150,000 in a Costa Rican business, real estate, or government-approved project. This threshold is significantly lower than many competing programs globally while still providing full residency benefits. The process typically takes 3-6 months, with permanent residency possible after three years.

Real estate investments of $150,000+ qualify foreign millionaires for Costa Rica’s Investor Residency Program.

Rentista Program

For those with substantial passive income, the Rentista program offers residency to individuals who can demonstrate a monthly income of at least $2,500 for two years. This pathway is popular among entrepreneurs, remote workers, and early retirees who maintain income sources outside Costa Rica.

Pensionado (Retiree) Program

The Pensionado program caters to retirees with guaranteed monthly income of at least $1,000 from pensions or retirement accounts. This program includes various benefits and discounts on healthcare, hotels, and other services, making it particularly attractive for wealthy retirees seeking both tax advantages and quality of life.

Luxury Real Estate Market Catering to Foreign Millionaires

Costa Rica’s luxury real estate market has matured to meet international standards expected by foreign millionaires.

Costa Rica’s luxury real estate market has evolved dramatically to meet the expectations of foreign millionaires. The northwestern Guanacaste province, often called the “Gold Coast,” has emerged as a billionaire playground with properties ranging from $500,000 condos to $10+ million estates.

The development of international-standard amenities has been crucial in attracting wealthy foreigners. Five-star hotels like Four Seasons, JW Marriott, and Ritz-Carlton have established a luxury ecosystem that includes high-end restaurants, golf courses, marinas, and wellness facilities.

Lifestyle Benefits Attracting Foreign Millionaires to Costa Rica

Costa Rica’s “Blue Zone” lifestyle offers health and longevity benefits that appeal to wealthy foreigners.

Beyond financial and political advantages, Costa Rica offers lifestyle benefits that particularly resonate with wealthy foreigners. The country’s northwestern Nicoya Peninsula is one of only five “Blue Zones” globally—regions where people live exceptionally long, healthy lives.

Health and Wellness Advantages

Costa Rica’s healthcare system ranks higher than the United States in World Health Organization assessments, offering both excellent public healthcare and private options at a fraction of North American costs. The country’s life expectancy of 79.28 years exceeds that of the United States, reflecting the quality of care and healthy lifestyle.

Private healthcare facilities in Costa Rica offer world-class care at a fraction of U.S. costs.

Environmental Quality and Natural Beauty

With approximately 25% of its territory protected as national parks or reserves, Costa Rica offers unparalleled access to pristine nature. The country’s commitment to environmental preservation ensures clean air, water, and abundant biodiversity—increasingly valuable assets for wealthy individuals seeking escape from pollution and urban congestion.

The “Pura Vida” Lifestyle

Costa Rica’s famous “pura vida” (pure life) philosophy emphasizes simplicity, well-being, and appreciation for life’s pleasures. For many wealthy foreigners accustomed to high-pressure environments, this cultural mindset offers a refreshing alternative that promotes mental health and life satisfaction.

The combination of natural beauty, outdoor recreation opportunities, and relaxed pace creates an environment where wealth can be enjoyed rather than merely accumulated—a compelling proposition for millionaires seeking meaning beyond financial success.

How Costa Rica Compares to Other Latin American Destinations

While Panama offers similar tax advantages and has attracted 300 millionaires, Costa Rica’s combination of environmental quality, political stability, and lifestyle benefits gives it a competitive edge. Mexico, despite its popularity with North American retirees, is experiencing a net outflow of wealthy residents due to security concerns and political uncertainty.

Challenges and Considerations for Foreign Millionaires

Despite its many advantages, Costa Rica presents certain challenges that wealthy foreigners should consider before relocation or investment. Understanding these factors is essential for realistic expectations and successful integration.

Infrastructure Limitations

While significantly improved in recent years, Costa Rica’s infrastructure still lags behind North American and European standards in some areas. Road quality varies considerably outside major tourist zones, and internet connectivity can be inconsistent in remote areas. However, luxury developments typically address these issues with private infrastructure.

Bureaucratic Processes

Government processes in Costa Rica can move slowly compared to more developed nations. Residency applications, business permits, and construction approvals often take longer than expected. Wealthy foreigners typically mitigate this by hiring experienced local attorneys and consultants to navigate bureaucratic requirements.

Despite these challenges, the overall value proposition remains compelling for wealthy foreigners seeking tax efficiency, political stability, and quality of life. The growing community of international residents has created support networks and service providers specifically catering to expatriate needs.

The Future of Foreign Millionaire Migration to Costa Rica

Future developments are increasingly focused on sustainable luxury to meet the evolving demands of wealthy foreign residents.

The trend of foreign millionaires relocating to Costa Rica shows no signs of slowing. As global uncertainty increases and traditional wealth centers face political and economic challenges, Costa Rica’s stability, tax advantages, and quality of life will likely become even more attractive.

Henley & Partners projects continued growth in wealth migration to Costa Rica through 2025 and beyond, potentially accelerating as word spreads about the country’s advantages. This influx of wealthy residents and their capital will further develop the luxury ecosystem, creating additional opportunities for early investors.

For those considering joining this migration of wealth to Costa Rica, the combination of financial advantages and lifestyle benefits creates a compelling case. As one recent transplant from the United Kingdom told Bloomberg: “I came for the tax benefits but stayed for the quality of life. The financial advantages opened the door, but the lifestyle is what makes it home.”

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