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Costa Rica Grants Expats Automatic Visa Extension
by Leroy Baker, Tax-News.com, New York

04 July 2007

The government of Costa Rica has granted another automatic one-year extension for foreign nationals holding temporary and permanent residency permits, as the immigration department struggles to cope with its workload amid changes to the country's immigration laws.

In a decree signed by President Oscar Arias, 'pensionado' or 'rentista' residents whose permits were due to expire on August 15, 2007 were given an extra year on their permits, which will now expire on August 15, 2008. The decree follows a similar move last year, when permits expiring on August 15, 2006 were automatically extended for twelve months.

According to the decree, the extension has come about because the immigration office has been swamped by a high volume of renewals.

The immigration department is currently busy working on a new computer system that will issue credit card-like 'cédula de residencia' or the carnet for pensionados, regardless of the type of residency. However, the backlog has also caused delays in the approval of new applicants for Costa Rican residency, with A.M. Costa Rica reporting that some applicants have been told that they must wait 15 months for an appointment with immigration officials.

Costa Rica's immigration laws have been in a state of flux since lawmakers approved new legislation to control the rate of immigration under the administration of former president Abel Pacheco in 2005. The General Law of Immigration attempts to modernise Costa Rica's outdated immigration codes. It seeks to impose tough new sanctions on businesses which employ, or individuals that harbour, illegal immigrants in a bid to stem the flow of economic migrants from neighbouring countries, particularly Nicaragua. The law also allows the police greater freedom in their attempts to discover and remove illegal immigrants. However, to work effectively, the new law will necessitate a huge expansion in the number of officers employed by the under-resourced immigration police department.

Arias, who was elected after the law was approved and who initially opposed the bill, had attempted to get the enactment of the legislation delayed until December 31, 2007, but the government failed to submit an amendment in time.

Arias subsequently commissioned a technical team to study the law, which last week came up with 60 proposals to reform the legislation, mainly in the area of protecting human rights. The proposals would also allow foreigners to process paperwork for residency in Costa Rica rather than having to return to the consulates in their respective countries.

These recommendations will be further studied by the government commission and if approved will move onto the legislative assembly, meaning uncertainty in Costa Rica's immigration framework is likely to continue for the foreseeable future.

A comprehensive report in our Intelligence Report series giving background tax and residence information on many of the key offshore jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report4.asp

 


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