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It is necessary to qualify for and establish legal residency if
one plans to live in Costa Rica for an extended period of time. To
this end, 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 one
with a foreign government assignment or an international mission
(Lawrence Publication, 1995).
The pensionados and rentistas program has historically been the
easiest method of establishing temporary residency in Costa Rica.
Keep in mind when receiving advice from current ensionados and
rentistas who have been residing in Costa Rica since before 1992,
that the laws governing such residency status have changed. 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 of up to 100 percent on their
belongings
To qualify for the pensionado status, one must fulfill
three basic requirements (1) prove that one earns at least $600.00
per month from a qualified pension or retirement account or from
Social Security, (2) change at least $500.00 per month 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) prove that one has outside
investments that will guarantee $1,000.00 income per month for five
years, (2) change at least $1,000.00 a month into colones, and (3)
live in Costa Rica for at lease six months out of the year. Neither
pensionados nor rentistas pay taxes on money earned
outside of Costa Rica.
Pensionadosand rentistas have restrictions as well
as rights in Costa Rica. While either may set up their own business,
as discussed below under the investor classification, neither may
work for someone else. Individuals of either residency status must
first become permanent residents in order to obtain a work
permit.
The 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
internationalmission.
by Marie C. Wold - Revised January 1998 by Steve Olson and Jose
M. Quiros
US EMBASSY
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