Costa Rica's Immigration Laws In Limbo

by Mike Godfrey, Tax-News.com, Washington

15 August 2006

A new immigration law which was passed by Costa Rican lawmakers last week appears to have merely muddied further the already uncertain waters concerning new investment and income qualifications needed to obtain Costa Rican residency, or rentista, status for foreign expats.

The legislation aims to crack down on illegal immigration from neighbouring countries, particularly Nicaragua, by, among other measures, imposing tough penalties on businesses that employ, or individuals that harbour, illegal immigrants. However, the authorities say that they have not got nearly enough resources to police the new laws, and the Arias administration, which opposes the bill but was elected after it was drafted, is attempting to kill the law.

The law also sets out new income and investment limits for rentistas, but the legislation is ambiguous. Previously, rentistas were obliged to show a minimum monthly income of US$1,000 per month, or a lump sum of US$60,000 in a foreign bank account. Under the updated law, it seems that both the primary applicant and the spouse must pass the US$60,000 test, while an extra $30,000 would be required for each dependent. However, it seems that two separate sections of the legislation contradict each other and therefore at this time, confusion reigns.

Arias had attempted to get the enactment legislation delayed until December 31, 2007, but the government had failed to submit the amendment before the Legislative Assembly approved the bill.

Government ministers have indicated that they will act this week to introduce a new bill nullifying the changes, but until that happens, it seems that Costa Rica's immigration laws remain in limbo.

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