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COSTA RICA IMMIGRATION REPORT
Immigration Trends •Registered and Non-Registered Entities •
Work Permits • Immigration Compliance and Penalties •
IMMIGRATION REPORT TOPICS
COSTA RICA SIGNIFICANT US BUSINESS PRESENCE
Source: https://www.costarica.com/documents/pdf/AmBusinesses%20inCR.pdf
COSTA RICA IMMIGRATION AT-A-GLANCE
“Costa Rica’s political stability and relatively high standard of
living have made the country
an attractive destination in
Central America and given it
the highest percentage of
immigrants in the region.”- OECD, Latin America Outlook Report 2010
Source: http://www.oecd.org/countries/costarica/44535774.pdf
COSTA RICA IMMIGRATION AT-A-GLANCE
• The majority of immigrants (ages 20-39) living in
Costa Rica are women, educated, and represent
12% of the total working population:o 75% of immigrants have some type of schooling.
o 64% of immigrants work for a private company.
• 40% of occupied immigrants work in unskilled
jobs.
• 60% of occupied immigrants work in skilled jobs:o 10% are managers
o 14% are service providers and vendors
o 16% are technicians
o 20% are professionals
Source: http://www.elfinancierocr.com/economia-y-politica/Migracion-historias-espera_19_997290262.html#section01
COSTA RICA IMMIGRATION TRENDS
https://esa.un.org/miggmgprofiles/indicators/files/CostaRica.pdf
• Growth industries: o electronics
o pharmaceuticals
o telecommunications
o software development
o tourism
• Free Zone
• CAFTA-DR: US–Central American Free Trade Agreement
• Foreign companies already in Costa Rica: 94% either expanded or maintained same level of operations in 2016.
COSTA RICA RISING FOREIGN INVESTMENT
• Expedited ID card process for registered companies.
• New visa rules issued for non-residents.
• Paper migration forms eliminated at Juan Santamaría International Airport (effective August 15, 2017).
COSTA RICA RECENT & UPCOMING IMMIGRATION CHANGES
COSTA RICA BUSINESS VISITORS
In Costa Rica, business visitors may enter the country as tourists either under a visa waiver, with a Consular Visa obtained in advance from a Costa Rican consulate, or a Restricted Visa granted by the Dirección
General de Migración y Extranjería (DGME). A tourist may participate in a limited range of business activities so long as they do not produce income locally or potentially displace local labor.
• Costa Rica divides all visitors into two groups based on their nationality:
• 1. Visa-exempt nationals; and
• 2. Nationalities that require a consular or restricted entry visa, unless they possess one of following visas or statuses:
• - Valid multiple-entry U.S. visa, including B1/B2 visa, D visa or C1/D visa for multiple entries;
• - Canadian multiple-entry visa; or
• - U.S., EU or Canadian legal residence (e.g. temporary or permanent residence, student visa, work permit), with a visa that has a minimum remaining validity of six months from entry into Costa Rica. Such foreign nationals will have to demonstrate their status at the port of entry in Costa Rica and their documents will have to meet certain legalization and translation requirements.
COSTA RICA BUSINESS VISITORS (CONT)
• Currently, visa nationals can enter Costa Rica without a visa if they hold one of the following visas, but will no longer be able to use the following visas for the exemption:
• - Multiple-entry visa from the European Union and/or Schengen countries; and
• - Multiple-entry visa from Japan.
• Nationals of the following countries will no longer be required to apply for an entry visa: Brunei, Kazakhstan, Malaysia, Peru, Qatar, Taiwan, Ukraine and the United Arab Emirates.
CHANGE OF STATUS
• Business visitors may apply for a Temporary Residence Permit or Estancia while in country, provided they have met all the requirements. They may not work until the issuance of the Temporary Residence Permit or Estancia
COSTA RICA REGISTERED AND NON-REGISTERED ENTITIES
Entities must be registered at a corporate level to sponsor employees:• Only those companies with Costa Rican operations and the ability to demonstrate the
need for regular immigration to fulfill business needs may register.
• Work permit processing times and supporting documentation are drastically reduced for applications submitted with Registered Entities.
• Registration processing time: generally 6-8 weeks and typically valid for 2 years.
Classification F:• Characterized as being multi-national and linked to a parent company that has decided to
establish a subsidiary in Costa Rica with a line of operations that is developed in the production and marketing of goods and services.
• Parent company must have operations established in at least three different countries, excluding Costa Rica.
COSTA RICA REGISTERED ENTITIES
• Extensive documentation requirements for application submissions.
• Processing times are very long.
COSTA RICA NON-REGISTERED ENTITIES
COSTA RICA WORK PERMIT OPTIONS
© 2016, Fakhoury Global Immigration Professional Services Inc.
Option 1:
Permit of Stay
Option 2:
Temporary
Residence for
Local Hires
Remain on contract with home entity. Payroll in home country. May apply for temporary authorization to stay
(Estancia) for up to one year with the option to renew for one additional year.
Applicable for both Registered and Non-Registered Entities with the Costa Rican Immigration Authorities (Dirección de Migración y Extranjería de Costa Rica, or DGME).
The foreign national must demonstrate expertise in the field of work in Costa Rica by means of a university degree or professional experience.
COSTA RICA PERMIT OF STAY DESCRIPTION
© 2016, Fakhoury Global Immigration Professional Services Inc.
COSTA RICA PERMIT OF STAY APPLICATION PROCESS
Visitor visas:• Only applicable for certain nationalities.
• Processing times vary by consulate.
• Citizens of the US, Canada, or the EU are exempt nationals and
do not need obtain a visitor visa to enter.
The visa requirement is waived if:• The applicant holds a permanent residency, a student visa,
work visa, multi-entry visa, or refugee status valid for at least
six months in the United States or Canada.• Permit of Stay application is submitted to the DGME after the
applicant enters Costa Rica but before their visitor visa expires
(applicant can work after this step).
© 2016, Fakhoury Global Immigration Professional Services Inc.
COSTA RICA PERMIT OF STAY PROCESSING TIMES
Processing time with Registered Entity: 3-4 weeks
Processing time with Non-Registered Entity: 3-4 months
COSTA RICA PERMIT OF STAY IMPORTANT CONSIDERATIONS
• A Guarantee Deposit must be paid to the
government before the Permit of Stay is issued.
• The amount to be paid will be indicated on the stay
approval letter and is based upon the cost of the
trip for the applicant to return to home country.
COSTA RICA TEMPORARY RESIDENCE FOR LOCAL HIRES
• For foreign nationals who wish to be
locally hired with a Costa Rican
company.
• The applicant can apply for Temporary
Residence permission in Costa Rica
(Permanencia Legal) for up to two years
with an option to renew.
• Applicable to both Registered and Non-
Registered Entities with the DGME
COSTA RICA TEMPORARY RESIDENCE FOR LOCAL HIRES PROCESS
Visitor visas:• Only applicable for certain nationalities.
• Processing times vary by consulate.
• Citizens of the US, Canada, or the EU are exempt nationals and
do not need obtain a visitor visa to enter.
The requirement to obtain a visa is waived if:• The applicant holds a permanent residency, a student visa, work
visa, multi-entry visa, or refugee status valid for at least six
months in the United States or Canada.
• Temporary Residence application appointment booking may be
done in advance and generally take about 2 months.
• Temporary Residence application is submitted to the DGME.• Social Security registration is completed after Temporary
Residence application is submitted.
COSTA RICA TEMPORARY RESIDENCE FOR LOCAL HIRES
PROCESSING TIMES
Processing time with Registered Entity: 2 - months
Processing time with Non-Registered Entity: 8 months – 1 year
COSTA RICA TEMPORARY RESIDENCE FOR LOCAL HIRES
IMPORTANT CONSIDERATIONS
• A Guarantee Deposit must be paid to the
government before the Temporary Residence is
issued.
• The immigration authorities normally check the
labor market (i.e. conduct checks to see if
resident workers may be available for the
position) before making a decision on temporary
residence applications.
Dependents
In Costa Rica, the State defines “spouse” as a partner legally married or in a de facto stable union (“union de hecho estable”) as evidenced by a court resolution. Costa Rican immigration law does not recognize same-sex marriages or domestic partnerships. Dependents are typically defined as children under the age of 25.
Recognized As A Dependent Authorized To Work As A Dependent
Opposite-sex spouse
Yes No, unless they obtain work authorization in
their own right.
Same-sex spouse No N/A
Opposite-sex domestic partner No N/A
Same-sex domestic partner No N/A
Children Children under the age of 25* No, unless they obtain work authorization in
their own right
ANY OTHER DEPENDENTS (ie:
parents, financially dependent family members, etc.)
Children with physical or mental handicaps
may also qualify as dependents even if they are over the age of 25.
Hiring of illegal workers• Penalties to the employer or business owner.
• Individuals or legal entities providing work for foreigners who are not authorized to work in Costa Rica or who perform duties for which authorization is lacking will be penalized with fines of two to twelve times the base salary of the worker or workers involved.
• Verification of this violation does not exempt employers from complying with the obligations inherent in the social security regime or from paying the wages or other types of remuneration to which the hired personnel has a right.
• Employers must remit reports of hired foreigners when so requested by the Immigration Office (Articles 174 to 180 of the Immigration Law).
COSTA RICA IMMIGRATION COMPLIANCE AND PENALTIES
Immigration Inspection• Costa Rica’s Ge eral Immigration and Foreign Affairs Office
reserves the right to make unannounced visits to a co pa y’s facility.
• Violators will be subject to:
• Fines of two to twelve times the base salary of the worker or workers involved, and
• A request that the executive and his/her family immediately leave the country, with the consequent prohibition of his/her future re-entry into the country (indefinitely).
COSTA RICA IMMIGRATION COMPLIANCE AND PENALTIES
