After retiring to Costa Rica Next Step Residency

By Helen Dunn Frame                                                                                                                           

You’ve found your dream home and are living in Paradise in Costa Rica.  What is the next logical step?  Answer: to apply for residency. Initially you have to apply for temporary residency but after having a cédula for three years, you may apply for permanent residency.

As a foreigner you and your family, including your spouse, parents, single siblings and children, have three types of temporary residency to apply for as of 2012.   In each case the cédula holder may work in Costa Rica only if he has his own Costa Rican corporation or business but may not work for another company.  Once you obtain permanent residency this restriction disappears.

The first type of temporary residency is as a retiree or pensionado or pensionada if you are entitled to a lifetime pension of $1000 per month in your country of origin.  In the United States these include an IRA program, 401K retirement plan, and a certifiable pension from a corporation or a union or the US Social Security System.  The same applies for Canadian residents who have a Registered Retirement Savings Plan or RRSP.  To apply as a retiree obtain a certifiable letter to prove a life time pension authenticated either by a Costa Rica Consulate or through the “Apostille” process.
A second option is to apply for residency as an investor if you own investments in Costa Rica valued over $200,000 in the fields of tourism, reforestation, a shared ownership in a Costa Rican corporation, properties and/or any other activity supported by the Costa Rican government.   

This is one of the easiest ways to obtain and maintain residency in Costa Rica. A retiree may purchase a property worth more than $200,000 such as a home, villa, condo or even a farm and retire to it, as long as the property is held in a Costa Rican corporation that is legally registered in the National Public Registry.  All that is required to maintain the temporary residency for the three years is proof of the property’s value and that taxes have been paid.

Finally, you may apply for residency as a Renter, if you will receive a certifiable monthly income of $2,500.00 for the following five (5) years or you have verifiable bank investments in Costa Rica of $150,000. (The Immigration Law is expected to change soon and will require the bank investment in Costa Rica to be $60,000.00 for two (2) years.) To prove the income, you must obtain a letter from a Costa Rican bank, financial institution or foreign bank, and have it certified by a CPA or Law Firm.  If the letter is issued outside of Costa Rica, this document must be authenticated either by a Costa Rica Consulate or through the “Apostille" process.

What is the “Apostille" process?  In March of 2011, Costa Rica joined The Hague Convention through which it recognized the effectiveness of a public document issued in any signatory country affiliated with the convention.  Since December 14 of 2011 this has meant the documents issued in the United States with the Apostille will be recognized in Costa Rica without the need to go to a Costa Rica consulate or to the Foreign Ministry in San Jose.  The Apostille may be obtained from the Secretary of State in the state where the document was issued. For more information visit this website:  http://www.fec.gov/pubrec/cfsdd/cfsdd.shtml

A number of general requirements govern each application for temporary residency.   The latest rules may be obtained from an attorney.  Linda Gray, owner/broker of Coldwell Banker Coast to Coast located in Playas del Coco, works with Immigration Attorney and Owner of Immigration Experts Marcela Gurdian who provided information for this article. Contact Linda to learn more about finding your dream home and applying for residency at (506) 2670-0805, at her cell (506) 8347-4704; or email her at linda@coldwellbankercr.com.  The US toll free number for Coast to Coast is 1 877 589 0539.

Be sure to ask Linda about the real estate and concierge services she offers in the beach communities of the Northwest Pacific Province of Guanacaste.  Her agents are prepared to leverage the company’s legacy, its network and their unsurpassed knowledge in assisting clients to find a home to buy or rent and establish residency in Costa Rica.