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Costa
Rican Residency Status
NOTICE: PLEASE BE AWARE THAT THE PROCESS FOR APPLICATION FOR
RESIDENCY IS UNDER REVIEW AND CHANGING. WE DO NOT EXPECT THIS TO
AFFECT THE VARIOUS TYPES OF RESIDENCY AVAILABLE HOWEVER.
1. On August 19, 2002 the Government Procurer informed the
Immigration Department that if they wish to make changes in the
current procedure, they must publish an official notice.
2. As of August 28th Immigration is no longer accepting
applications for any type of residency from within the country.
All residency applications must be made in the Costa Rican
Consulates either by the individual or his/her official
representative.
(NB. Though ICT (Instituto Costarricense de Tourismo) was still
accepting Pensionado & Rentista applications after the 28th, the
Department of Immigration has stated now that these will not be
processed due to incompliance with their order.)
Residency Status For Foreigners
Permanent Residency Status
First Degree Relative Status
Required Documents
Translations of Documents
Sample Checklist
Criteria Information
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costa rica residency costa rica residency
Residency Status For Foreigners
There are several options if you are considering applying for
residency in Costa Rica. If none of the options below apply to
you, consult your specific case. Pensionados and rentistas can
claim their spouses and children under 18 as dependents. A child
between 18 and 25 can be a dependent if he/she is enrolled in a
university.
Pensionado Residency Source of Income - minimum income US$600 (or
equivalent) per month from a qualified retirement plan or
pension source, such as a government pension. The qualifying
income must be for the applicant only - combined income is
usually acceptable.
Rentista Residency Source of Income - from an investment such as
a certificate of deposit or annuity that will provide income of
at least US$1,000 per month (US$12,000 per year). An approved
banking institution (in a foreign country or in Costa Rica) must
guarantee in writing that:
1. They hold sufficient funds in a stable and permanent account
to provide an income of $US1,000 per month for at least five
years of your residency.
2. If the financial conditions above change the financial
institution agrees to notify the Instituto Costarricense de
Turismo.
3. The monthly income will be sent to the rentista resident in
Costa Rica.
4. Qualifying funds are in the name of the applicant.
Approved banks in Costa Rica, for a deposit of $US60,000, will
satisfy all government requirements for this status of residency.
Deposits in state owned banks are government guaranteed without
limit and most bank interest in Costa Rica is tax free.
For rentista residency, you must prove your continuing income
every five years.
Inversionista Residency Status
1. Invest at least US$50,000 with an approved organization in a
field such as tourism or export businesses; US$100,000 in a
reforestation project; or US$200,000 in another type of business.
2. Spend six months per year in Costa Rica.
Permanent Residency Status
1. After two years of pensionado, rentista, or inversionista
status, application can be made for permanent residency in Costa
Rica. This is usually unrestricted, and working is permitted.
2. Citizens of Spain can apply for permanent residency right
away.
3. Permanent residents must visit Costa Rica at least once each
year.
4. $US300 must be deposited with the Government of Costa Rica as
a guarantee.
First Degree
Relative Status
Permanent
residency can also be applied for if you have first-degree
family members (parents, siblings, spouses, children) who are
citizens of Costa Rica. OR Marry a citizen of Costa Rica.
Required Documents
The first three documents are required for all types of
residency in Costa Rica.
1. Police Certificate of Good Conduct from your last place of
residency. Valid for 6 months. Required for applicant, spouse,
and any children aged 18 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).
Pensionados -proof of a pension of at least US$600/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 -
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 the local Costa Rican consulate.
b) Authenticated by the Costa Rican consul 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.
Other requirements for both
Pensionado and
Rentista Residency
1) Income must be changed into colones at a government bank or
an approved private bank in Costa Rica
pensionado
rentista
US$7,200 per year
US$12,000 per year
2) Physical presence in Costa Rica for a minimum of 4 months
each year
3) Renewal of residency identification card (carnet) every two
years. The government of Costa Rica charges a US$100 tax for
each renewed identification card.
4) You and your dependents cannot earn a salary or supplant a
Costa Rican in a work situation. You can own and operate a
business and pay yourself, and/or make investments.
All pensionados and rentistas must submit proof of 1 and 2 above
to the Costa Rican government each year.
Inversionista Residency Status
1). Invest at least US$50,000 with an approved organization in a
field such as tourism or export businesses; US$100,000 in a
reforestation project; or US$200,000 in another type of business.
2). Visit Costa Rica at least six months per year.
Translations of Documents for Residency
Translations from other languages to Spanish have to be either
done by the Costa Rican consulate (no one else) in the country
where the document was issued or here in Costa Rica by an "official"
translator for the specific language to Spanish. Here we can
arrange for the services of a translator at the cost of the
member. Translation from the original language to English is not
accepted by the Costa Rica government.
Sample Check List
1. What is required to obtain legal residency? Can I meet these
requirements? What is the cost? How often does residency have to
be renewed, what are the conditions of renewal and what is the
cost?
2. What is required to visit, or while you are waiting for
residency? (Visas, length of stay permitted, restrictions on
residents on visa or in tourist or temporary resident categories)
3. What is the political situation? (Dictatorship, democracy,
monarchy, etc.)
4. How stable is the country? (History of coups, potential for
future unrest)
5. Weather (Do you like 4 seasons? Hot weather? Temperate all
year? Snow?)
6. Income taxes (Are you taxed on income brought into the
country? Are you allowed to earn income in the country? If yes,
how is it taxed?)
7. Other taxes (Sales taxes, import duties, exit taxes, vehicle
taxes, property taxes, etc.)
8. How much will it cost you in fees, duties and taxes to bring
into the country your personal possessions? (Cars, boats,
appliances, electronic equipment, personal effects, artwork,
etc.)
9. Rental Property - rental rates, laws protecting tenants,
lease laws, rental taxes
10. Purchase of Property - Property value, taxes, restrictions
on foreign ownership, purchase taxes, legal and registration
fees, laws about foreign property owners, history of government
respect for these laws, expropriation laws, squatters rights. If
you are going to build, building regulations, how are local
construction companies, is there any guarantee on construction
once finished, what are construction costs?
11. Communications - Are there reliable phone and fax lines,
cellular phones, connections to Internet and other computer
communication services, are there local newspapers - radio - TV
in a language you understand? Is there cable vision or is
satellite TV available?
12. Transportation - How are the roads? Are flights available to
places you wish to go? How are the bus, train, ferry services?
How costly is it to travel to and from your chosen country to
frequent destinations? (To bring in or visit family, business
interests, etc.)
13. What time zone is your proposed country of residence in
compared to areas in which you may want to be in frequent
telephone communication, such as where there are family or
business interests.
14. Shopping - Would you have a choice of items which you wished
to purchase to compare prices? In case of malfunction, are parts
and service available locally? (Appliances, electronics,
photographic equipment, computers, vehicles, furniture and
fixtures, etc.) Is computer software support and repair service
available?
15. Are the types of food to which you are accustomed readily
available, both in restaurants and markets?
16. If you have hobbies, are clubs, supplies and assistance
available?
17. What cultural activities are available? (Art, music, theater,
etc.)
18. What entertainment is available? (Sports, cinemas, night
clubs, dancing, fiestas, etc.)
19. What recreational facilities are available? (Golf courses,
tennis, health clubs, recreation centers, other participatory
sports)
20. Will your appliances, electronics and electrical equipment
work on the available power supply?
21. If you like the beach are good beaches available? What is
the water temperature?
22. What is the situation with poisonous growth, insects, snakes,
dangerous animals?
23. What is the violent crime rate? Sneaky crime (theft, car and
house break ins)? What support can be expected from the police
department? How helpful are the police to local residents and
foreign residents?
24. How do the local residents treat foreign visitors and
residents?
25. What are the local investment opportunities? Is there any
consumer or investment protection legislation for investors?
What return can you expect on investments?
26. Is the banking system safe and reliable? Can they transfer
funds and convert foreign currency cheques, drafts and transfers?
Are chequing, savings and other accounts you may need available
to foreigners? Is there banking confidentiality? Exchange
controls? Can money brought into the country be taken back out
again?
27. Are good lawyers, accountants, investment advisors and other
professionals available?
28. How is the health care system? Are there diseases which are
dangerous to foreigners, and if so does the local health care
system address the problem? What is the quality of hospitals,
doctors, dentists? What is the availability of specialist? How
is the ambulance service? Is dentistry up to standards you are
used to?
29. How is sanitation? Can you drink the water? Do restaurants
have good sanitation standards? Are pasteurized milk and dairy
products available? Do meat, fish and vegetable markets have
satisfactory sanitary standards?
30. How is the education system? If you have children, are good
private schools available in the language in which you would
like them educated? What is the school year?
31. If you are interested in having domestic staff, what is the
cost of cooks, housekeepers, gardeners, etc.?
32. What legislation is there to protect foreign residents? What
rights do foreign residents have in comparison to citizens? What
is the government's past record in respecting the rights of
foreign citizens?
33. What natural dangers are there? (Hurricanes, tornadoes,
typhoons, volcanoes, earthquakes, droughts, floods)
34. Where does the country stand environmentally? What are the
environmental issues? What is the history in dealing with
environmental concerns?
35. Is there controlled growth and well managed development?
36. Can pets be brought to the country?
Criteria Information
1. Residency Requirements
$600 per month pension from an approved source - or
Investment income of $1,200 per month from an approved source -
or
Invest between $50,000 and $200,000 in an approved sector of the
economy.
Regular, unrestricted residency can be applied for after two
years on one of the above plans
The cost to process residency is approximately $735 per family
head plus $365 for spouse and $155 per child.
Residency renewals are usually every second year. General
conditions for renewal are 4 months residence in Costa Rica, the
required amount of monthly income was changed into Costa Rican
currency or that the terms of the investor residency are met.
Renewal cost is $150-$200.
2) North Americans can stay in Costa Rica legally for up to 3
months. They must then leave for a period of 72 hours, then can
then return to the country for another three months. If the
three month period is overstayed, a travel agency or ARCR can
arrange payment of a small fine and prepare the travel documents
required to leave the country for the required 72 hours.
Tourists can own vehicles, property, businesses and generate
income from self employment
3) Costa Rica is a very democratic republic, headed by a
president who is in power for one 4 year term. He cannot run for
a second term. Ministers are appointed and there is an elected
congress. There has been no military since 1948 when it was
banned constitutionally.
4) Costa Rica has a history of stable government which stretches
back to when the country was founded. It had one brief civil war
in 1948, when a president wanted a second term in power. At this
time a new constitution was drawn to ensure such a situation
could not occur again.
5) Weather in Costa Rica is largely a matter or choice, unless
someone is looking for snow. There is none, even on the 13,000
foot high mountains. It varies from hot coastal lowlands, where
rainfall varies according to location and season, to very cool
mountainous regions. There are plains which go months without
rain, and areas where it rains daily. The average temperature in
the Central Valley is ideal, with evenings of 17 - 18 C and days
averaging 25 - 28 C year round. The dry season is usually from
the end of November until past Easter. The amount of rain in
rainy season depends on the climate zone, with heaviest rains
usually in October. Rainfall is usually in the afternoon, if it
is going to rain.
6) There is no income tax on money earned outside of Costa Rica
by residents. Personal income taxes are low compared to North
America, with many personal expenses deductible from locally
earned income. Corporate taxes are also low.
7) Other taxes:
* Sales Tax - 13%
* Import duties are being decreased in Costa Rica in compliance
with the GATT agreements. Duties are high however, ranging from
50-90% of the vehicles current value. (blue book rates)
* Tourists pay an exit duty of approximately $17, while
residents pay more.
* License plate fees are paid annually for vehicles, and depend
upon the value. They are not excessive.
* Property taxes are very low in comparison with North America.
8) New residents will be charged import duty on cars and boats
at the same rate as would be paid by a resident bring them in.
Personal effects and artwork are not taxed. Electronic equipment
and appliances will be valued and a duty charged.
9) Rental rates depend on the area. Any rental agreement is
assumed to be for three years, during which time the landlord
may not raise the rent. Lease contracts are honored by the
courts provided they are drawn according to the law of rentals.
Landlords may not evict tenants for other than non-payment of
rent or illegal activities.
10) Property prices vary from area to area. There is a
computerized central registry system similar to North America,
and lawyers or others, such as the ARCR, who subscribe to the
service can search title from their office computers. Foreign
residents and non-residents have the same property ownership
rights as citizens, with the exception of leasing land from the
municipality and purchasing land close to the frontiers.
Registration, taxes and legal fees will be approximately 5.5% of
the declared value of the land on purchase. The government has
an excellent history of respecting foreign ownership of land.
Construction is less costly than usually found in North America.
A finished luxury house currently would cost about $350-400 per
sq. meter ($35-40 per sq. ft.) to build.(1997) The contractor is
responsible for defects in construction for 5 years.
11) Costa Rica has a state owned hydro/telephone company. Phone
installation can be slow, but once installed they function well.
Touch tone international dialing for phone and fax is in place,
as is a well developed cellular system. Costs are competitive.
Internet was introduced in 1995 and use has become widespread.
There are several Spanish language and one English daily
newspaper, two English and one German language weekly, and
various magazines. Foreign newspapers can be purchased readily.
There are several Spanish language television stations, and
different cable TV companies offering English language channels.
Satellite TV dishes and Direct TV are readily available.
12) Costa Rican roads are in generally poor condition. Potholes
are common, and an endless chain of patching is underway. Air
service from Costa Rica is well developed, with many direct
flights daily to Mexico, USA, Central and South America, and
also direct flights to Europe (Italy, Spain, Germany, England,
Holland), Canada and Cuba. Average return airfare to a
destination in the USA would be $550. Bus service is excellent,
frequent and inexpensive. Deluxe buses are operated on many runs
with air conditioning and video movies. There is no passenger
train service except for commuter trains near San Jose.
13) Costa Rica is within 2 hours of most North American cities
for time zone. There is no daylight saving time, so it varies
seasonally.
14) Most things are offered for sale in and around San Jose,
much less so in the rest of the country. The central valley
boasts many large, enclosed malls and there is little which one
could want which is not readily available at competitive prices.
There is a wide range of warrantee, service and repair companies
to choose from. Computer software sales and service is common,
as are hardware repair facilities. There is a duty free zone in
Golfito in the South West of the country, where everyone is
permitted to purchase up to $600 in goods from some 80 stores at
low prices twice a year.
15) There are thousands of restaurants in the central valley
offering cuisine from most countries of the world. Giant
supermarkets offer most familiar items. Items imported from
North America are more expensive usually, however many familiar
name brands are manufactured in Central America and the prices
are reasonable. Also, many items will be available inexpensively
from local manufactures with as good or better quality than the
brand name you are used to.
16) Almost all hobbies are represented by clubs and suppliers
locally.
17) There is an excellent symphony orchestra, several live
theaters, and many local or visiting musical, dance and
entertainment groups. There is an active art community and
several galleries.
18) Football (soccer) is the most popular local sport. Every
region, no matter how small, has a football field. There are
dozens of cinemas, and most films are in English with Spanish
sub-titles. San Jose never sleeps, with a large number of night
clubs, discos, bars, casinos and dance halls. Fiestas are
popular and frequent throughout Costa Rica.
19) There are many recreation and health centers, private and
public, and 18 and 9 hole golf courses. Many courses are under
construction by various resort developers. Tennis and basketball
are popular. Whitewater rafting, kayaking, horseback riding,
water sports, hiking, bicycling and many other sports are
popular and well provided for.
20) Costa Rica has 110-115 Volt electricity and the NTSA
television system as in North America.
21) There are hundreds of miles of world class sand beaches in
various colours. The ocean temperature is warm - well over 80 F
- year round. Surfing is world famous.
22) There are few dangerous animals. There are several varieties
of poisonous snakes, but are not usually seen. Insects are few
in the central valley, more on the coast and in rain forest.
23) Violent crime is low. In the San Jose area break-ins of
unoccupied cars and buildings are common, and care is necessary.
The police do not differ in their treatment of foreigners or
citizens. Generally the police will not come to a break-in until
the victim goes to their office and files a report.
24) Costa Ricans are a very welcoming and friendly people who
welcome foreigners.
25) There are two stock markets in Costa Rica, and all banks
issue Certificates of Investment (as do many private companies
and licensed finance companies). OPAB's are available (similar
to money market funds) and yield about 5% annually. Private and
national banks have savings accounts with interest rates in the
2-4% range. Mortgages, investments in private companies and
investments in stock, bond and commodity markets outside of
Costa Rica are easily arranged through local investment brokers.
There is no consumer protection legislation.
26) There are 4 national (government owned) and about 23 private
banks operating in Costa Rica, including Citibank from the USA
and the Bank of Nova Scotia from Canada. All deposits in
national banks are guaranteed without limit by the government of
Costa Rica. Banking is both safe and reliable, although the
national banks can be bureaucratic. Checking, savings and
investment services are available from all of them. It is also
possible to operate accounts in the USA or elsewhere through
Costa Rican private banks. Banking in Costa Rica is protected by
secrecy legislation. Foreigners may have bank accounts. There
are no exchange controls or restrictions on removing funds from
the country.
27) There are a wide variety of professional people available in
all fields. Lawyer-client relations are protected by
confidentiality laws. Many of the major international accounting
firms have offices in Costa Rica.
28) The health care system is excellent. There is a plan for
citizens and residents who have work permits covering medical
care, hospitalization and prescription drugs. Citizens are also
covered for dental care. This is funded by employers
contributing 22% of wages paid, and the employee contributing
9%. There is also private medical insurance, through the state
owned insurance monopoly, which is inexpensive and covers 80% of
medical costs. For those who wish, medical services and
hospitals are available on a "pay as you go" system for those
without medical insurance. Medical care costs are very low
compared to North America. Hospitals regularly do high tech
operations such as heart & organ transplants. There are many
specialists in Costa Rica, and doctors have their home phone
numbers in the yellow pages for emergencies. There is an
ambulance service in almost every town in the country, operated
by the Red Cross. There is also a wide choice in dental care. No
special shots are required to come to Costa Rica.
29) Water can be drunk from the tap throughout Costa Rica.
Sanitary standards are very high for a third world country.
Pasteurized milk and dairy products are normal everywhere.
30) There is a free education system for all, through high
school. The official literacy rate is over 93%. There are many
universities and technical training schools. Many university
students have their tuition paid by grants. English is taught in
the public school system but the main language is Spanish. There
are excellent bilingual and trilingual schools available with a
principal language of English, French or German. Some schools
are on the North American school year.
31) The current cost for domestic staff is $1.00 per hour. This
will vary if second language ability is required, and may be
dependent upon specific conditions, such as whether room and
board area provided.
32) Foreign residents are protected by the constitution, and
have most of the rights of citizens. The record of the
government historically has been excellent in honoring these
rights. They do not have the right to:
* Vote or participate in political activities
* Work for wages without a permit
* Own land close to national borders
33) Costa Rica is in an earthquake zone. While there are many
recorded earthquakes per year, only about half a dozen can be
felt. There are no hurricanes, but heavy rains may cause
flooding. There are several active volcanoes, the most active of
which is Arenal. It erupts almost continuously, without causing
damage. There have been loss of life and damage caused by
volcanic eruptions in the past.
34) Costa Rica, in comparison with other third world countries,
is very environmentally conscious. 27% of the area of the
country is in national park or protected reserve, the 50 meters
above high tide is public property and cannot be privately owned
or developed and the next 150 meters inland in approximately 85%
of the country is owned by the local municipality and cannot be
sold. This land can be leased from the municipality for approved
projects or residence. There are strict environmental guidelines
in place for all developments and mining activity. Logging is
closely monitored. Most international ecological groups are
represented in Costa Rica, so even where the government
overlooks an infringement of the environmental laws, the legal
mechanisms are in place for concerned organizations or
individuals to halt development with cause. Coastal construction
is limited to low rise buildings. Attempts are being made to
address pollution in rivers and streams, and vehicle emissions
are now being tested to keep them within set standards. There
are many privately funded research facilities, as may be
expected in a country with more bird and insect species than all
of North America, over 200 types of hardwood tree, over 1,500
varieties of orchids and so on.
35) Development is planned to a certain extent, although in much
of the country private land can be used as the owner wishes.
Subdivisions must meet government standards, including paved
roads, power, water and park land and they must be maintained by
the developer for several years after being sold out. Free zones
and industrial areas are well defined, and government policy has
been to encourage business to take job providing factories to
the villages to allow people to travel short distances to work
and to slow the spread of large cities. All construction must
meet strict earthquake standards. Most industry in Costa Rica is
of a non-polluting type. Examples would be electronics,
pharmaceuticals and clothing manufacturing. Agriculture is still
the largest export sector, led by traditional bananas and coffee,
but with non-traditional items such as ferns, flowers and
tropical plants gaining rapidly. Huge refrigerated facilities
are in place to encourage new agricultural exports.
36) Pets can be brought to Costa Rica. A veterinary certificate
is required
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