Residency in Costa Rica

*** Please note that as of 5 August 2009, the goverment of Costa Rica revised the immigration laws. This new law is expected to be signed very soon (within days) the will then be published in La Gazeta. Once published, the law will take affect in six months or around February 2010.

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. For some (like families with several children) it may actually be best to wait until next year to apply for residency. Others, like singles, may benefit from applying now.

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 (pensioner),
• a rentista (a foreigner with a guaranteed income), an investor, a relative of a resident, or
• 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 methods of establishing temporary residency in Costa Rica.

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 $600.00 per month from a qualified pension or retirement account or from Social Security, (2) change at least $600.00 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 $1,000 per month income for at least five years, guaranteed by a banking institution, OR make a deposit of US $60,000 in an approved Costa Rican bank, (2) change at least $1,000.00 a month into colones, and (3) live in Costa Rica for at lease four months out of the year. Note: You can claim (add) a spouse (additional $1,000/mo) and/or dependants under 18 years of age (additional $500/mo each).

Check the RCR Blog for updates.

Neither pensionados nor rentistas pay 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 $50,000 in special projects such as reforestation, tourism and exports, or who invest at least $200,000 in any other 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 become a permanent resident in two years.

The two other methods of achieving legal residency are atypical, since both are contingent upon very particular circumstances. The resident as a first-degree relative status is the easiest method, as one need only be closely related to a Costa Rican. One with such status has all of the rights of a Costa Rican save for the right to vote. 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 Rica, 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.  This may change soon, so always check for current rules.

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.

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.

As stated above, rules and enforcement are constantly in flux, there is just no way I can keep 100% current, so please use this as a guide and hire a competent person to see you through the process.

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.

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)
 

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