It is hard to not say I told you so…  I cannot.   Sorry!

On January 11, 2009, in response to a large number of emails and phone calls, I blogged about the proposed immigration law. One online newspaper told concerned expats, future residents and readers that the new law would be passed immediately… before the Christmas (2008) break!  They said it would be retroactive and even those folks already here legally would be affected and have to comply. Everyone panicked.

I tried to explain that nothing happens that fast in this country and that panic sells newspapers and increases readership and thus sells advertising. I also explained that it is against Costa Rica law to have a new law be retroactive. I suggested a wait and be patient approach.

Well that was January and this is August and yes, finally, the Asamblea Legislativa (the congress) has passed the new Ley de Migración (immigration law) which should for years influence the rights and responsibilities of foreigners coming to live in Costa Rica.  Note I use the word foreigner and not the words American, Gringo, US Citizen or other such word as despite our often enormous sense of self importance, this law is designed to affect anyone from any nation who seeks to reside in Costa Rica on a legal and permanent basis. It covers a lot more as well.  I held off a few days trying to get a more complete picture of this new law, but sadly, reliable details are not forthcoming so for those of you who are interested in this topic, read on!

First, I must say that everything I have read about the new law is just plain fair and is, in the years that I have lived here,  this is about the only law that got  it almost 100% right. It falls a little bit short of fully protecting Costa Rica, but I’ll discuss that later.

OK so what is in this law?  Here are the salient points!

• Costa Rica is getting tough on the trafficking of persons. This is now a criminal offense with much stronger penalties.  Trafficking can be for purposes of slavery, prostitution, or simply smuggling people from, to or through Costa Rica to other countries.
• Pensionados, those who receive a guaranteed income from US Social Security, a State pension fund or other “guaranteed” source, will be now required to show proof of $1,000 per month (US) income. There will be no deposit required.  This is spot on as it is just no longer possible to live here for $600.00 per month, the old requirement. All but a few recipients of social security should qualify easily.  The spouse is included in the $1,000 figure.
• Rentistas,  those who wish to live here legally but are too young or otherwise do not qualify for a pension like social security, will now deposit  $2,500.00 per month ( a one time deposit of $150,000.00 to cover five years).   I am presuming it will work the old way.  (Not 100% sure yet).  However the $2,500 per month is correct. Besides being 2.5 times the old $1,000 per month, this figure includes immediate family members and that may actually save money for a family with kids. However, it would seem to penalize single persons wishing to move here and thus is one of my few concerns  regarding this law.
• Marriages between Costa Rica citizens and foreigners can be brought under far closer scrutiny.  This has been a serious issue for years, with numerous marriages of convenience allowing low-lifes (and maybe some not-so-low-lifes) to purchase a Costa Rica spouse they perhaps have never met and immediately be eligible for Permanent Residency. Now a couple under investigation may have to  prove to immigration (migracion) that they are a couple, have been through a courtship-  both persons living in this country. In other words.. it’s love and not a scam!
• A new immigration police force will be formed, composed of specially trained officers from the Fuerza Pública plus existing members.  With this is the stronger enforcement which should allow Costa Rica to deal far more efficiently with the many illegals (often referred to as perpetual tourists) living here.  This new law will finally allow for active tracking of these scofflaws as opposed to the random raids now so popular. Costa Rica has a significant problem with illegals from Nicaragua,  the USA and Canada and with luck, there should be enough enforcement power to handle this problem.
• Owners and operators of hotels will now be required to maintain registers of all guests with residency documentation and backup, presumably similar to those in Europe.  Will they be required to hold the guest’s passport?  Unclear…  and we will not know until we all see the actual law. There was talk also of heavy penalties to employers of illegals and I have thus found nothing addressing that.
• It also appears that a new court will be formed to deal solely with issues and appeals of immigration.
• Foreigners will now have to join the Caja Costarricense de Seguro Social or the CAJA as it is known.  This is the socialized medical plan of Costa Rica also covering pensions. CAJA provides medical care for all members without regard to pre-existing conditions and this is the other area where I believe the diputados  made an error.  While it is one thing to control the pre-existing rules within one country (like the USA for example) and between insurance carriers in that country, it is quite another to open the CAJA system to the world and allow anyone with a very costly illness to “buy” unlimited medical care for as little at $600.00 per month.  I fear this may come back and bite those legislators on their collective butts.
• Show me the $$$.  Where is the money coming from?  That is always a fun and interesting question in Costa Rica.  Sadly, the answer often is…  there is none.  There does, however, appear to be a provision affecting all immigration transactions (tramite) that may now carry a charge, in one report, $25.00 per tramite.  This is not a verified fact.
• Amnesty? One source indicates the the president of Costa Rica will now have the right to grant residency.  This was interpreted to mean that the president could grant a massive amnesty to illegals now here in the country.  I am not sure I agree with that leap of logic though it may be correct. After having asked around, I cannot very anything, but there is precedent for amnesty as it was twice given in the 90’s, in essence granting legal residency to all those who could prove they had lived here illegally for a specified period of time. Could this happen again?  Quien sabe?  It would certainly make the job of the new immigration police force a lot easier as they could start with a clean slate.

So what is next? When is this law? So why is this all not just clear?  For that, you must understand how things work here.

The next step as that the law must be signed by the president of Costa Rica, Don Oscar Arias.  Once that has been done, the law will be published in La Gaceta.  The law goes into effect six months after being published there. So that’s when we will  know everything right?  Nope, and this is a point that is often simply impossible to teach those from other countries, especially those from the USA where the law is the law.

Law is NOT law here. Yes, there is a law, but that law is then  interpreted by the agency involved, in this case immigration. They will then interpret and enforce this law as they see fit and enforce it as they see fit.  If someone does not like it, they will take it  to the Supreme Court and THEY will interpret it.   Sound easy?  Nope… because in the past, various government agencies have paid not the least attention to the supreme court decisions and have just continued to operate as they had before.  This has happened several times with immigration since I have lived here.  This time though, they have a pretty good law and the director of immigration seems to be an intelligent man… so we shall see!  In any case, the supreme court eventually gets torqued and starts handing out threats of jail, monetary penalties, etc. at which point the government agency involved does pay attention.. This issue just seems to make Gringos go crazy as it is anathema to the structured and well defined laws in the USA. Hint… If you are going to live here, you must understand that you are not in Kansas anymore and that what me be clear to you, is not clear at all.

Comments welcome!

Today, I received a comment from one of the companies here in Costa Rica that assists people in establishing legal residency. The first half of his email pretty much tells stuff about him and a bit about his company. Pretty much like SPAMing through commenting.  Almost the entire second half is built around this comment:

I take personal offense to the paragraph that reads; “One online source put the panic into a lot of folks by warning that it appears this law would be retroactive and affect all Rentistas and Pensionados at renewal… a truly stupid statement designed only to cause panic as Sala IV (the constitutional court) has never permitted that sort of thing.  Again, panic sells!”

The writer of the article is truly misinformed and it is equally clear that he or she has never bothered to read the language of the proposed law.

Odd he would take “personal offense”… but to move on…  as my readers probably know, I could not let THAT stand unanswered, so here for all to read (and comment upon)  is my reply:

Me: I read with some amusement your comment to my Blog (not published).  It is clear you have an issue reading English, and I find your attempt to drum up residency business by posting your personal and business information to be disingenuous at best.  However, I will publicly respond briefly to a couple of your comments however.

I have no issue with those who are pro-active in this matter.  I have a STRONG issue about those who, somewhat like the Brothers problem of some years past, try to sew panic when panic is not what is needed and in fact is not even remotely necessary.

You state:

“If the writer had taken the time to read Article 263 – Transitorio II, the second sentence, he or she would have known that the new language is intended to apply the law retroactively at the time the resident renews the carnet.”

Your presumptuousness is remarkable and your ability to read is clearly faulty. First, of course I read it… in fact, I acknowledged it…   but I did not CARE if it was in the proposed law because

1. It may well be removed before passage and
2. Even if it is not, Sala IV will overturn it on appeal.

I have read the many other online articles, including your web site, and not one mentioned that it is almost 100% SURE that that part of the law will be eliminated or ruled valid. So why was it stated?  As I said, panic sells… whether residency web sites or newspapers. THAT is low class behavior and nothing more than preying on people’s fears.

“Yet, the writer criticizes those who are concerned enough to really take a proactive stance on behalf of their clients.”

Ummm… and just where did I critize anything other than inaccuracy?

“Sir or madam, perhaps you should take the time to learn about the subject matter you write before calling others “stupid.””

You say I called someone “Stupid”. Huh?  Where? I also find it kind of amazing that again, you presume I know nothing. In any case, let’s review exactly what I wrote.

The word “stupid” was used twice (and correctly!):

stupid #1:

“One online source put the panic into a lot of folks be warning that it appears this law would be retroactive and affect all Rentistas  and Pensionados at renewal… a truly stupid statement designed only to cause panic as Sala IV (the constitutional court) has never permitted that sort of thing.”

It was a stupid and needlessly provocative statement as it did not contain the all the facts.

Did you READ that? If one is going to write about the retroactive portion of the proposed law, the LEAST they can do is to make 100% clear that they state clearly that even if it IS passed, Sala IV has never permitted it before and is VERY unlikely to allow it now! That means it will not happen… and to NOT say that means that someone is just trying to  needlessly scare the bejesus out of a bunch of people, often older people! THAT sir, is not acceptable. Even your web site should have made that clear. It did not.

stupid #2:

“Calm down… send emails if you wish but make them sound intelligent and well thought out.  As you can’t vote regardless of  residency, using an aggressive or threatening tone is not only stupid, it makes you sound like… well…  a Gringo… NOT a good thing in general.”

I am not calling anyone stupid, but again, you seem to have reading issues. I am telling people to write and contact if they wish, but don’t be rude as THAT behavior is counterproductive and STUPID. Ticos are scrupulously polite and offending them is not the way to approach an issue

You write this comment:

“My intension (sic) is not to cause panic for financial gain,…”

LOL!  Of COURSE it is!

The more you get your name and your company’s name in front of either current or potential Costa Rica  residents, the more chance you have of landing new residency business! I have no problem with that! You are providing a service and need to market that service. What I do NOT like, (nor permit on my Blog) is the wholesale panic approach.

After many years here, I have seen innumerable proposed laws come and go. Should this one be ignored?  Of course not!  BUT as my Post said clearly… do NOT panic. Send the emails and state your opinion, but do not make wholesale changes in your (residency) plans because of it.  I have received over 15 emails from people who canceled plans for moving here based on various online groups and newspapers. THAT sir, is truly sad! In fact, it has likely done YOU more harm than good. I also told people what they NEED to hear and that is that the retroactive part has almost NO chance of affecting anyone.. something YOU should have made clear on your web site. THAT would have been responsible and had you done so, I likely would have placed a link to your site so people could follow up intelligently and calmly.

Finally, you asked what has the writer (that would be me) done?

“Again, what has the writer of the article done for his clients?”

Pretty odd question as I do not HAVE clients. I have readers who want the truth.  I try to provide it.   This Blog is not a business!  Sheesh!

However… let’s see what I did…or did not do!

I did NOT panic back in November nor did I Blog about this earth shattering crisis! My readers value my opinion and many rely upon it… so I did nothing.  I waited, met with a couple of knowledgeable people, and still did not Blog. I saw no reason to even comment on this law as it was over-covered everywhere else. I finally decided to Blog about it yesterday as I had received a lot of email asking for my thoughts and a lot more emails telling me that people were deciding whether to move here at all.  My post yesterday was to tell people 4 things:

1. Don’t panic
2. Send emails to to the legislators if they want and
3. Be pleasant and logical if you do write and
4. I told them where they could find sample emails and email addresses.

Sounds perfectly reasonable to me! That is what I did and I think I did the correct thing.

I did NOT tell my readers (as one online source did) that (paraphrased) ‘it is likely that the legislators will pass this before they dismiss for Christmas break’. HUH? I have NEVER heard of Costa Rica passing ANY law in a month nor has anyone I asked. That article alone caused needless commotion.

Sir, I am not going to publish your comment as it is not only faulty, it contains your business profile and links to your residency web site which to me is nothing less than SPAMing.

I would suggest your re-read my Post thoroughly, this time for content.

As always, responsible comments are encouraged.

First… let’s look at what this is all about.

The two most popular forms of residency are Pensionado and Rentista. I am NOT going to cover the variations… just using generalities. For more info, Read This.

Pensionados must currently show a guaranteed for-life (not always easy!)  source of income of at least US $600.00 per month.  This is pretty easy to do if people  use their Social Security payments as the guaranteed source (or perhaps a military pension), but not always easy if funds are coming from the private sector.

Rentistas need to deposit $60,000 (equal to $1,000 per month for 60 months) in a Costa Rica bank to assure they have adequate funds on which to live. After 3 years, they can switch to Permanent Residency and no more deposits are required.

Both plans are fair, in fact far more fair than in just about any country in the world.

The proposed plans (you see the bold and italics?) would change this to $2,000 per month for Pensionados and $5,000 per month for Rentistas.

These of course, are the biggies.  $2,000 per month from Social Security would be difficult if not impossible unless one waited to perhaps age 74 to file and had paid in the max each year for many years. The vast majority of applicants would be thus eliminated.

The $5,000 per month for Rentistas would eliminate a huge number of applicants, leaving only a non-stop stream of real estate developers able to afford Costa Rica Rentista Residency… though with no one else coming, I guess they’d just have to sell their products to each other!

There are some other changes like… increasing the time to convert to Permanent residency to five years…  requiring all residents to join and pay to the CAJA – Caja Costarricense del Seguro Social (”CCSS”) Costa Rica’s socialized medical care and retirement, which I think would be an excellent idea… and fining anyone who gives either Pensionados or Rentistas jobs as neither class are permitted to work legally.

One online source put the panic into a lot of folks by warning that it appears this law would be retroactive and affect all Rentistas and Pensionados at renewal… a truly stupid statement designed only to cause panic as Sala IV (the constitutional court) has never permitted that sort of thing.  Again, panic sells!

While I think many would agree that the current immigration law needs to be reviewed and changed, this is far away from actually happening.  By far away, I think six months to two years is about right.   I think it is getting a lot more difficult to live here on $600.00 per month, though not impossible I suppose.  At the other end, it does not take $5,000 per month to live here.

Readers of the ARCR Forums and other user groups have been given the email addresses of the various legislators to whom they can write their thoughts and opinions. In fact, there are even simple emails in Spanish!  I would urge you to do this if you wish to make your thoughts known.

Finally, and this is part of our culture, everyone seems to think that these proposed laws are aimed at US citizens.  This is pure silliness, of course.  It affects anyone from any country who wishes to live here legally.  If it were to be passed “as is”, it would cause far more damage than the good it would do. I think the chances of it passing are about nil.  The negative effects, like the immediate increase in perpetual tourism (or just illegal residency) would be an huge issue.  It further would send a message to the world that I am fairly sure Costa Rica does not want to send.

My advice?

Calm down… send emails if you wish but make them sound intelligent and well thought out.  As you can’t vote regardless of residency, using an agressive or threatening tone is not only stupid, it makes you sound like… well…  a Gringo… NOT a good thing in general.  Use logic! Don’t rant. Remember… Gringos are not nearly as important to the Costa Rican economy as many think we are.

Finally… If possible, begin your residency process now because if changes are made in the future, and there will be some changes for sure, , they almost assuredly will not affect current residents or applicants in process.

Happy New Year