The REAL Costa Rica
 



Residency in Costa Rica

*** Please note that as of March 1, 2010, the government of Costa Rica revised the immigration laws. I have written extensively about these changes in the Real Costa Rica Blog. Click here to read the article. I would urge all readers to carefully review these changes. This page is current as of March, 2010

Mini Menu:

Types of Residency
Comparison of Residencies
Required Documentation

Types of Legal Residency

To live in Costa Rica for an extended period of time, it is required that you qualify for and establish legal residency. If you also want to work in Costa Rica, you will need a form of residency that permits you to do so. Currently the ONLY form of residency that allows you to work in Costa Rica is Permanent Residency.

If you don't pay attention to this, you may well run afoul of immigration (migración). If you are deported, you may not be able to re-enter Costa Rica for as long as twelve years. Stories abound of folks who felt they could ignore the system, Many do and are not caught, others, like Steve, do get caught with serious consequences. Contributor Chris Howard tells the story.

Costa Rica offers several alternatives for legal residency:

  • a pensionado (retired person with a pension like social security or someone who has purchased or owns an annuity),
  • a rentista (a foreigner with a guaranteed income),
  • an investor,
  • if associated while doing a foreign government assignment or an international mission.
  • representante a person who is an executive of a company doing business in Costa Rica. Many restrictions apply

The pensionado and rentista programs are the easiest and most popular methods of establishing temporary residency in Costa Rica. They are temporary because each is for a period of five years, though after three years, some, especially rentistas,convert to permanent residency to avoid a second large deposit (see below).

In 1992, the legislature revoked the tax exemption laws that allowed pensionados and rentistas to bring all of their possessions into the country duty free. Under the current law, these groups are no longer exempt and must pay import taxes on their belongings.

To quality for the pensionado status, one must fulfill three basic requirements: (1) prove that one receives at least $1,000.00 per month from a qualified pension or retirement account or from Social Security, (2) change at least $1,000.00 per month from dollars into colones, and (3) live in Costa Rica for at least four months out of the year.

In order to quality for rentista status, one must fulfill three similar requirements: (1) Proof of US $2,500.00 per month income for at least five years, guaranteed by a banking institution, OR make a deposit of US $150,000 in an approved Costa Rican bank, (2) change at least $2,500.00 a month into colones, and (3) live in Costa Rica for at lease four months out of the year.

Check the RCR Blog for updates.

Neither pensionados nor rentistas pay Costa Rica taxes on money earned outside of Costa Rica.  Pensionados and rentistas have restrictions as well as rights in Costa Rica. While either may set up their own business, they may NOT work for anyone else. Individuals of either residency status must first become permanent residents in order to obtain a work permit.

Investor status is granted to those who invest at least $200,000 in a business. The investor must also reside in Costa Rica for at least six months out of the year. If there are no problems, the investor may apply for permanent residency after three years.

Permanent residency is granted to a qualifying person who is a first-degree relative (spouse, father, mother, sister, brother) of a Costa Rica citizen or to any other person who has held another legal form of residency (i.e. rentista) for a period of three years. With permanent residency, you enjoy all the rights of a Costa Rica citizen, save the right to vote or obtain a Costa Rica passport.

Another method is employment by a foreign government or an international mission.

One popular question is what happens if you marry a Costa Rican. It is really very simple. Once you marry a Costa Rican, you immediately qualify for PERMANENT RESIDENCY which grants all the rights of a Costa Rican save you may not vote. You may legally work in Costa Rica only after receiving your actual permanent residency ID card. The process takes about a year from time of filing.

After three years of living IN COUNTRY (as a legal resident!), you may apply for Permanent Residency. You must also PROVE you lived here, not always simple. Once you apply for this form of residency, the process takes about a year. 

After seven years of living IN COUNTRY (as a legal resident!) (two years if married to a Costa Rica citizen or five years if you are from certain countries i.e. Spain and some Latin American countries), you may apply for citizenship. You must also PROVE you lived here,. Once you apply for this form of residency, the process takes about a year or two.  Dual citizenship is permitted for some countries including the USA and Canada. Citizenship is expensive and very time consuming.

The interpretation and enforcement of residency laws is constantly changing, often as often as several times per year. I cannot stress enough the need to obtain proper counsel before starting this process! Probably the oldest organization specializing in this is the Association of Residents of Costa Rica (ARCR), but there are several others here in Costa Rica doing the same work.

When choosing someone to assist you, find out their experience, if they are attorneys themselves or hire attorneys, years in business, etc. Get active in users groups to find out (independently) how they did with other clients. Everyone wants a good deal! Costa Rican residency is like brain surgery... perhaps not best to shop for the best deal. There are HUNDREDS of stories of folks who got mired for years in the process simply because they tried to save 100 bucks.

The common types of residency are shown here. For specialized cases, such as student, work visas, temporary visas, diplomatic or political status, refugees or others, we suggest you consult ARCR.

Back to top of page

 

Residency In Costa Rica
Comparison of Types of Residency

PensionadoRentistaInversionistaRepresentantePermanent
Requires proof of US$1,000 per month income from permanent pension source or retirement fund. Requires absolute proof of US$2,500 per month for at least five years, guaranteed by a banking institution, OR a US$150,000 deposit in an approved Costa Rican bank.  $200,000 in any business OR a specified amount of investment in certain government approved sectors.Applicant must be director of a company meeting certain requirements, such as employing a minimum number of local workers as established by the labor law, with financial statements certified by a Public Accountant.First degree relative status with a Costa Rican Citizen (through marriage to citizen or having a Costa Rican child) OR may apply after 3 years in another residency
Must remain in country at least 4 months per year.Must remain in country at least 4 months per year.Must remain in country at least 6 months per year.Must remain in country at least 6 months per year.Must visit Costa Rica at least once per year.
Can claim spouse and dependants under 18 years of age.Can claim spouse and dependants under 18 years of age.Cannot claim spouse and dependants under 18 years of age. (Must process separately)Cannot claim spouse and dependants under 18 years of age. (Must process separately)Cannot claim spouse and dependants under 18 years of age.
Cannot work as an employee.Cannot work as an employee.Income allowed from the project.Can earn an income from the company.Can work.
Can own a company and receive income.Can own a company and receive income.Can own a company and receive income.Can own a company and receive income.Can own a company and receive income.

Need More Information?

I suggest you contact the Association of Residents of Costa Rica

Residency rules and interpretation change all the time and
these people make it their business to keep current

* Pensionados and Rentistas can claim their spouses and children under 18 as dependants (or a child between 18 and 25 enrolled in University).  No further income is required.

** Entero is the fee charged by the government for identity cards each time residency is granted / renewed (each person)

 

Back to top of page

Documents Required:

The first three documents are required for all types of residency in Costa Rica. (Valid 6 months from issued date)

1. Police Certificate of Good Conduct from your last place of residency. Valid for 6 months. Required for applicant, spouse, and any children aged 15 to 25.

2. Birth Certificate. Required for applicant, spouse, and all dependent children (up to 18 years old or up to 25 if a university student - proof of enrollment is required).

3. Marriage Certificate (if spouse wishes residency). Proof of divorce is not needed.

4. Income Certificate for Pensionado and Rentista Residency (required for only the applicant, valid 6 months).

Pensionados -proof of a pension of at least US$1000/month stating that it is for life, and that it will be paid in Costa Rica.

For pensions from the U.S. Social Security or Canada Pension, it is easier to obtain the certification at the U.S. or Canadian Embassy in Costa Rica. (You must provide them with proof of your pension.)

Pensions from other government agencies (all countries) must have a letter stating that the pension is paid by the government.

Pensions from other institutions must have a statement verifying the type of institution paying the pension.

Rentista Residency - contact the ARCR for wording of documents.

All The Above Residency Documents (other than those obtained in Costa Rica) MUST BE:

a) Notarized by a local notary public if they do not have an official government seal. If in doubt about the need to have it notarized, check with ARCR or the local Costa Rican consulate.

b) In the USA (and possibly some other countries) they must then pass through the Secretary of State (or other body) where they were issued.

c) Consularized (authenticated) by the Costa Rican consulate in the country where the document was issued.

Notarization: Your signature must NOT appear in the notarization of the document.

Authentication: A Costa Rican consulate will charge US$40 for authentication of each document. They must affix stamps worth that amount to collect the money. If they do not have the stamps, the ARCR can buy them in Costa Rica on your behalf. There is also a $30 application fee.

Back to top of page

 


 

Information used on this page contains copyrighted data provided by ARCR and is used with their kind permission.

 


page on your social networks. 

© Copyright 2003-2010  by Tim Lytle
Real Costa Rica Site Map  | Advertise on the Real Costa Rica
Link to Us 
| Odds and Ends | Contact Us
Design: Black Coral Design | Hosted by: TicoSites 

Sign our Guest Book and tell us what you think

JavaScript MUST be enabled to properly use this web site. To verify if yours is, click here.

The REAL Costa Rica is best viewed at a resolution of 1024 X 768 with Firefox or Microsoft Internet Explorer

Visually Impaired? Is our web site hard for you to read? Click Here