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Costa Rican Immigration Bill Faces 18 Month Delay

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

19 July 2006

The administration of President Oscar Arias has confirmed that a controversial immigration bill has been put onto the back-burner until December 2007 because the legislation is currently too expensive to implement.

As part of the law the minimum income levels enabling foreigners to qualify for Costa Rican residency are being increased. Currently, those applying for residency, or 'rentista' status, must show a monthly income of at least $1,000. The new law would retain this minimum threshold, but would require rentistas to show an additional $1,000 monthly income for a spouse, plus additional income for each dependent.

However, in a cover note to lawmakers, Arias explained that the effective date of the new immigration legislation is being delayed until 2007 because the government does not have the resources to fund the extra man-power needed to police the new laws, AM Costa Rica reported yesterday.

The General Law of Immigration, first proposed in February 2001, attempts to modernise Costa Rica's outdated immigration codes. It would also impose tough new provisions in an attempt to stamp out illegal immigration and allow the police greater freedom in their attempts to discover and remove illegal immigrants.

To work effectively, the new law will necessitate a huge expansion in the number of officers employed by the immigration police department, from about 35 to 350.

It is also reported that immigration department is ill-equipped to hand out fines to those found harboring illegal immigrants.

Questions have been raised about the law's constitutionality, and Arias has indicated that the entire bill may have to be redrafted.

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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