Delay To Costa Rica's Immigration Bill A Bonus For Expats

by Mike Godfrey, Tax-News.com, Washington

30 June 2006

A new immigration law that could increase the income requirements for expats living in Costa Rica may now not take effect until the end of next year, as the government of President Oscar Arias seeks to study the impact of the proposals.

The General Law of Immigration, first proposed in February 2001, attempts to modernise Costa Rica's outdated immigration codes. It would 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, such as new powers to enter any business at any time and demand to see employees' documentation. Employees and employers who fail to provide the appropriate legal documentation would face steep fines.

The new law also seeks to raise the minimum income levels enabling foreigners to settle in Costa Rica. 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, according to a report in national online daily, A.M. Costa Rica, Security Minister Fernando Berrocal has stated that the executive branch will seek to delay the effective date of the law until sometime in December 2007. This would allow President Arias to establish a commission to study the human rights implications of the legislation, the report stated.

The government has also reportedly expressed reservations at the cost of enforcing the new legislation after it goes into force.

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