Requirements for Costa Rican PALS Returning Home

Posted on Oct 31, 2024 in Law & Jurisprudence

Requirements for Costa Rican PALS Returning Home After 24 Months

Basic Requirements and Other Conditions to Be Satisfied (Act No. 6986 of 03 May 1985, Article 21, Subsection A)

To qualify for the household goods exemption, the Costa Rican PAL must meet the following requirements:

  • Be a Costa Rican citizen.
  • Be older than 18 years of age.
  • Have remained outside of Costa Rica for 24 months prior to their final return.

Note: If the person has visited Costa Rica during those 24 months, the Ministry of Finance will deduct the time spent in the country from the 24-month period.

Household Goods Definition

Household goods are defined as all goods used for the convenience or ornamentation of a house. This includes items such as furniture, appliances, and a microcomputer with a CIF value up to $1,500.00. In the case of appliances, typically only one appliance of each type is exempted. The household goods must be used and originate from the country where the beneficiary resided.

The following items are not considered household goods:

  • Luggage
  • Building materials
  • Hot tubs
  • Electric switches
  • Ceramic tile flooring
  • Garage door openers
  • Office equipment (e.g., photocopiers, archives, folders)

Taxes and Application Process

The exemption is not total, and the applicant must pay certain taxes. Requests for exemption must be filed within six months of the return, and the recipient must claim the exemption within nine months. The application form must have an original and four legible copies. Signatures on the form should be distributed as follows:

  • Original: Customs Clearance
  • Copy: Beneficiary Record, Department of Exemptions

If additional sheets are needed, follow the instructions on the back of Form PIT 001.

Additional Requirements and Proof

Recipients must comply with all requirements outlined in Executive Order No. 17041-H of 21 May 1986, including:

  • Certificate on recent migrations: This certificate should cover the minimum period of 24 months outside of Costa Rica and indicate the last date of entry.
  • Document proving residence abroad: This document must be authenticated by the Consul of Costa Rica in the country of residence and the Ministry of Foreign Affairs and Worship in Costa Rica. It is recommended to request a certificate from the local Mayor’s office stating residency for more than 24 months, then legalize it through the Ministry of Foreign Affairs of the country of residence and the Consulate of Costa Rica. Alternatively, submit originals or certified copies of temporary or permanent residence permits, residence applications, lease agreements, or other documents proving residency abroad to the Consulate for certification.
  • Passport copy (single sheet)
  • Copy of identity card (both sides)
  • Copy of bill of lading
  • Notarized affidavit stating:
    • The beneficiary has not enjoyed a tariff exemption on household goods in the past five years.
    • The beneficiary is returning to reside permanently in Costa Rica.
    • The recipient authorizes the Treasury Department to investigate the use and destination of the imported duty-free goods.
    • If the beneficiary has no children or elderly Costa Ricans living with them, they must declare this in the affidavit.
  • Notarized affidavit from the spouse or adult family members: This affidavit waives the right to exempt household goods in their name.

Both affidavits must include the appropriate tax stamps. If a document is issued in a language other than Spanish, it must be accompanied by a translation. The translation can be done by the individual, who must indicate its accuracy and sign it. The signature must then be authenticated by a lawyer.

Other Requirements for Specific Situations

Changes or Additions to the Exemption Note

Submit a petition requesting the correction of the exemption note. This request must be signed by the beneficiary and include a photocopy of the exemption note.

Renewal of the Exemption Note

Submit a petition requesting the renewal of the exemption note. This request must be signed by the recipient and include the original exemption note. The beneficiary must formally apply to the Department of Exemptions for authorization to withdraw the original from the office where it is held.

Cancellation of the Exemption Note

File a petition requesting the annulment of the exemption note. This formal request must be submitted to the Department of Exemptions, along with authorization to withdraw the original from the office where it is held.