Costa Rica Tightens Residency Rules

by Leroy Baker, Tax-News.com, New York

30 May 2005

A new measure currently under consideration in Costa Rica's legislature will see an increase in the minimum income level required of foreign families seeking residence status in the country.

Under current Costa Rican immigration rules, a 'Rentista' applicant must demonstrate a permanent fixed income of at least US$1,000 per month which generally will be derived from investment income, although it is not required that these funds be held in Costa Rica.

A 'Pensionado,' or retiree, must demonstrate a permanent fixed income from a pension or similar retirement income of at least US$600 per month. The typical applicant in this category has a government, private sector pension or social security retirement benefits.

However, under new provisions approaching a vote in the Asamblea Legislativa, Rentisita applicants with a spouse must be able to demonstrate a fixed income of at least US$2,000. In addition, the measure requires that applicants must add an additional $500 per month for every dependent child.

The Costa Rican immigration service has also introduced a new identity card for all foreigners with legal residency in the country. The new photo ID card contains information about the cardholder in a secure form and will replace the various documents currently showing residency status.

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