By Patrick Connelly
The Costa Rican government recently proposed several new measures in regards to immigration that could severely change the retiree and expat situation. Their aim, in theory, is to dually combat the large influx of mainly Nicaraguan migrant workers as well as the increasing stream of North American moving to the country. With the proposed increase in monetary qualifications for both prospective rentistas and pensioners, many would-be North American expats may be turned off by such a move, particularly in the current financial environment.
The Costa Rican immigration authority, Migracíon, has recently been quoted as saying that the immigration situation in the country is “out of control” and that stricter requirements are desperately needed. In response, the government has proposed to increase immigration requirements for pensioners from $600 a month to $2000 a month, while rentistas face an increase from $1000/month to $5000/month. Basically, to qualify for Costa Rican residency you will have be able to prove that your pension or monthly income equals or exceeds the amount for whichever category you fall into, rentista or pensioner.
In light of these astronomical increases, it is clearly evident that potential retirees and expats could get hosed on this one. According to the U.S. Social Security Administration, the average pensioner in the U.S. receives around $1100 a month, far below the prescribed requirement. And, as the U.S. has one of the highest pension averages in the world, these requirements would have a worldwide effect; for example, Canada – a major contributor to the Costa Rican expat and retiree scene – has an average of around $700 a month.
The government in San Jose continues to claim that these requirements are “easily attainable”, which, from their point of view, is understandable. Milk the cow. If a steady cash flow continues to arrive via North America, it is not surprising that a government would try to keep pressing to see what the ceiling is; that is merely good business. However, in this case it would appear as if the proposed requirements far and away exceed any rationality.
And therein lies the silver lining in this possible four car pileup of increased immigration requirements. This is not an isolated incident; in fact, as recently as 2004 a similar bill was introduced. Met with immediate uproar from the expat community, it failed to pass into law. Recently, when informed that the average U.S. pensioner receives $900 less than the desired requirement, a Costa Rican assembly member was unaware of these figures. Now, this could be a simple mistake on part of the Costa Rican government or an attempt to slide one past the North American community; either way, it poses potentially serious problems for would-be expats in Costa Rica. However, the government recognizes the importance of the expat and retiree communities and the income it brings in, and will certainly proceed with caution as to not disrupt such a vital part of the economy. Certainly a situation worth monitoring in the coming months.
Click on the link to read more analysis on how expats are affected by Costa Rican immigration laws
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I have been here in CR for almost 7 yrs. Should have get my residency when the rate was only $600 but when talking to lawyers they all wanted $3000-$4000 to help. As my spanish is not the greatest although I’m doing better everyday to many Costa Ricans it is not good enough. Since the new law is in effect which I’m $72 dollars short of qualifying and that CR raised it’s income level 25% most pensinados are having difficulty meeting that requirement. We haven’t received our normal COLA last year nor will receive one this year which would have let me meet the requirements. I have finaly met a Lawyer who will help with my residency at a reasonable fee but that $72 shortfall does not let me qualify. I have my SS direct deposited to a CR banco, have purchased 3 different cars,paid rent all this time, have helped with the economy in many other ways. I don’t use any services here without paying for them an many times at a higher cost. I could live in many other countries but I choose CR which in many cases are less expensive as I feel it is the best country in Central or So America. I just feel maybe you need to refine your laws but as I’m a guest here for now I will obey them, but in the end CR will be the loser,
Where do you people get your figures from? The increase for pensioners is around 50% from $600 to 1000. We all get around that figure or a little more so don’t take notice of half baked informations and go to an official source to find out the correct pension you will need.
I’m sorely disappointed in Costa Rica. When I got here 2 1/2 years ago, I knew I had to leave the country every 90 days but on a recent visa renewal to Panama, I was given only 30 days by Costa Rica….I was not over my days and I stayed the required 72 hours, yet they randomly decide how much time you get….my friend behind me got 60 days and another got the full 90. It makes me want to leave and never come back. This country makes it horribly difficult to live here….and honestly, it’s not worth it anymore.