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RESIDENCY LAW

Stiff penalties for overstaying tourist visa
Immigration draft easy on pensionados, not rentistas

A proposed redraft of the nation's immigration laws would require less monthly income to be a foreigner here living on a pension, but the monthly income to be a rentista would double.

The proposal, provided in draft form Thursday by Casa Presidencial, is not fixed in stone, and after it is sent to the Asamblea Legislativa major changes may take place. And the proposal might not even be passed into law.

The proposal also allows so-called temporary residents, inversionistas, pensionados and rentistas, to apply for permanent residency after just two years in the country. The current period is three years, and the period used to be five years.

The law also creates a special fund and assessment for most foreigners living here. The purpose is to generate some income for the state to pay for medical and educational services used by foreigners. No figure is set in the proposed law, and the amount is left to the discretion of the director general of Migración y Extranjería. Officials have said that the base amount, around $20 a month, might vary depending on the immigration category, a suggestion that North American residents who generally are pensionados, rentistas and inversionistas would pay more each month than Nicaraguan day laborers.

The proposal has 268 articles and 26,200 words. Some sections appear to be just suggestions for changes in the existing law that was passed by the previous legislature and signed by former president Abel Pacheco. The law is full of references to the human rights of foreigners and contains language against discrimination.

The proposal also takes a firm stand against those who work here on tourist visas, something which is not clear in the current law.

The proposal continues current penalties for hiring illegal immigrants or housing them, but there is a new phrase that exempts those who house illegal immigrants for humanitarian purposes. The Catholic Church has opposed the current law because the church officials thought safe houses provided for displaced illegal immigrants might lead to penalties.

The proposed law also contains stiff penalties for overstaying a tourist or other visa that could run into the hundreds or thousands of dollars. Those who overstay visas face a fine equal to double the monthly assessment for their immigration category for each day they have overstayed their visa. Or they must remain out of the country for triple the time they have overstayed the visa.

According to the proposal, those seeking to stay in Costa Rica as a pensionado would have to show a monthly income, usually a secure pension, of $500 a month. Now the amount is $600 a month.

Rentistas would have to show a monthly income of $2,000 instead of the current $1,000. However, the proposal eliminates an additional $1,000 of income for a spouse and $500 a month for each dependent child.

Typically rentistas have put $60,000 in a bank account to show financial capability for five years.

Recently the amount doubled for those with spouses. That amount was keyed to the five years one must remain a rentista before seeking permanent residency. Now with permanent residency possible after just two years, a rentista might be able to qualify with just $48,000 in the bank, depending on how the proposed law, if passed, is interpreted.

Tourists continue to be considered non-residents and do not build time toward residency, under terms of the proposal.

The proposal continues to forbid entrance to Costa Rica to persons who have been convicted of various crimes ranging from drug smuggling to domestic violence and also to those associated with criminal gangs. But the way to check such crimes in other countries is limited.

Much has been said about how the immigration proposal would legalize the status of thousands of illegal residents of Costa Rica, primarily Nicaraguans. But a detailed reading of the proposal shows it does not do that. Instead, it creates the possibility that the executive branch may issue a decree that would legalize persons — as long as they were not criminals. — who would otherwise not be eligible for residency here.

Temporary residents, such as inversionistas, pensionados and rentistas would still be forbidden to work for a salary, but the law spells out clearly that they can do work on their own account. That has been interpreted as running their own businesses. They must spend at least six months in the country each year, according to the proposal.

The proposal would allow tourists to prolong their stay here at the end of 90 days but would expose someone in that category to penalties if they did not leave when their tourism period had expired. The proposal also specifically forbids tourists from working.

The law withholds permanent residency from new foreign spouses of Costa Ricans for three years and requires them to show that they are living together as a couple every year.

The proposal also lets foreigners apply for various immigration categories while they are in Costa Rica. The current law requires that foreigners do so at the Costa Rican consulate in their country, although in the past this has been ignored sometimes.

Those who are deported do not have the right to return to Costa Rica for five years, under the proposal. Those who are expelled for compromising the peace and security of the country would not be able to return for 10 years. But those who commit serious crimes against young people, the aged or the disabled would not be able to return for 25 years.

The Arias administration decided to redo the immigration law even though the new one only went into effect in August. The new law has been criticized for being harsh.

IMPORTANT: Costa Will add an extra digit to telephone numbers

At 12:01am on 20 March 2008 – This Thursday; the entire country of Costa Rica will change from 7 digit phone numbers to 8 digit phone numbers. All land lines will have a 2 added before them and all cell phone lines will have an 8 added before the number.

Land phone lines begin with 2,4,5,6,and 7

Cell phone lines begin with 3, 8, and 9.

OLD NUMBER will become NEW NUMBER:

2xxxxxx will become 2 + 2xxxxxx land phones

3xxxxxx will become 8 + 3xxxxxx cell phones

4xxxxxx will become 2 + 4xxxxxx land phones

5xxxxxx will become 2 + 5xxxxxx land phones

6xxxxxx will become 2 + 6xxxxxx land phones

7xxxxxx will become 2 + 7xxxxxx land phones

8xxxxxx will become 8 + 8xxxxxx cell phones

9xxxxxx will become 8 + 9xxxxxx cell phones

1xxxxxx will become 1xxxxxx + 0 DSL lines

RCR NOTE: When dialing from abroad to Costa Rica, you still will have to dial the 011 international call access code and the Costa Rica country code of 506, then the new telephone number. Thus, if calling from the U.S., you would dial 011 506 2 + 2xxxxxx

Lise & Rolf Zersch
www.bosquedeltolomuco.com

03.018 www.insidecostarica.com

Countdown To Eight Continues

Callers from outside Costa Rica will have to dial the eight digits to connect come Thursday.

The countdown to the eight digit telephone number system continues as the deadline of 12:01am March 20 approaches. And all the resources of the Institutio Costarricesense de Electricidad (ICE) - state monopoly on telecommunications - have been diverted to the changeover.

In fact, ICE is so absorbed in ensuring that the changeover goes smoothly, telephone subscribers cannot even pay their telephone bills this week, either online, at the supermarket or any ICE agency.

At the Banco de Costa Rica (BCR) website, all is normal in the process of paying a telephone bill. However, once the telephone number is entered and a payment request is made, notice is given that the system is offline until March 21.

At the Scotiabank website, the system is offline until March 31, the online banking website politely tells customers that the online payment system will return on April 1 in its normality.

Costa Rica, on March 20, moves to an eight digit telephone system from the current seven digit system.

The changeover will affect all fixed line and cellular telephones, as the prefix 2 is added to all fixed line - residential and commercial telephone numbers - and an 8 to all cellular phones.

Callers from outside Costa Rica will have to dial the eight digits to connect come Thursday.

www.insidecostarica.com March 12, 2008

Country Readying For Semana Santa
Semana Santa or Easter Week, a time that many Costa Rican head for the beach, resorts and mountains, is around the corner and the Policía de Tránsito (traffic police) say they are ready, working around the clock in full force, patrolling the major highways and routes around the country.

The hope of the Tránsito is to reduce the number of traffic accidents and fatalities and according to the MOPT minister, Karla González, all 850 Tránsito officers will be on duty beginning this Friday (March 14) and until Sunday March 23.

The main roads that Tránsito officials will be mostly visible on are the routes to Limón, Guanacaste, Puntarenas and the southern zone.

Part of the Tránsito program is to have spot checks along the major routes, checking drinking and documents of drivers and the vehicles. The spot checks will be during the day and night.

German Marín, head of the Policía de Tránsito, said that the objective is to make drivers aware of the dangers of reckless driving and consuming alcohol before getting behind the wheel and the hope is that the spot checks will raise the consciousness of many drivers to slow down.

In addition to the Tránsito officials on the road, the Consejo de Transporte Público (CTP) will have 20 undercover agents riding the buses ensuring that bus drivers obey the traffic laws, in addition to a untold number of mechanics who will be carrying out mechanical inspections of buses.

Authorities are asking users of buses to help in the fight to reduce deaths on the roads by calling either 911 or 800-Tránsito any irregularities.

Bus operators say they have added more buses and with more frequency on the major routes to Liberia, the Caribbean, Puntarenas and the southern zone, reminding that no buses will operate on Good Friday, March 21.

As to the weather, the Instituto Meteorológico Nacional (IMN) - national weather service - is predicting hot and sunny weather for most areas of the country. Temperatures are expected to range between 19C and 37C for the north and central Pacific coast and 20C to 33C for the south Pacific areas for most of the week.

The Central Valley is expected to have normal seasonal temperatures for Semana Santa with possible strong winds at times, Areas like San José, Cartago and Escazú, will see cooler temperatures than in places like Heredia, Alajuela and Santa Ana. The Caribbean coast and the northern zone is expected to see hot days and cool nights with scattered showers.

Many businesses will be closed starting Wednesday and re-open on Monday, some will be closed all week, better to call ahead.

Government workers will be off work as Wednesday and be back on the job on Monday. Most malls and many retailers are expected to be open, supermarkets will be on holiday hours for Thursday and Friday.

From www.Insidecostarica.com March 10, 2008

Immigration Says At Least 10.000 Ticos Do Not Know They "Foreigner" Spouse According to a report by the Spanish daily, La Nación, Costa Rican immigration authorities estimate that some 10.000 Costa Ricans married to foreigners do not know their spouse, let alone having met.

The current legislation leaves the Dirección General de Migración y Extranjería (immigration service) powerless to act against marriages of convenience, a loophole in the legislation that is often used by notaries public and lawyers as an instrument for foreigners to obtain their residency in Costa Rica.

The immigration service says it has 44 notaries public on its list that continually file residency applications mainly catering to Cuban, Chinese, Colombian and Dominican nationals.

The director de Migración, Mario Zamora, believes that the lawyers are part of an international trafficking ring, using false documents to register marriages with the Registro Civil and then process a residency application with the immigration service.

In many cases the marriage is by "por poder" (power of attorney) which allows a foreigner to marry a Costa Rican from outside Costa Rica by way of power given to the lawyer or notary public. The loophole is contained in Article 30 of the Código de Familia.

The Registro Civil is obligated to accept as valid any such marriage. Luis Antonio Sobrado the president of the Tribunal Supremo de Elecciones (TSE), the government body that managers the Registro Civil, says the subject is "complicated" as the Registro is obligated to accept as valid a marriage as long as there are no irregularities with the filing.

In addition, the immigration service had its hands tied behind its back by a decision of the Constitutional Cort in 2007, when it decided that the immigration service does not have the authority to question a marriage.

Zamora says that that decision and the registry process is open to immigration abuse and has become a way of many "undesireable" foreigners to enter the country and remain without questions by the his office.

Jorge Murillo, chief of the visa section at the Migración added that many times, during the interviews for a residency visa, they have seen that the person being interviewed does not even know the name of their spouse, adding that his knows of situations were lawyers or notaries have charged up us$10.000 for the marriage, then paying only ¢80.000 colones (us$160) to the Costa Rican signing the marriage document.

Both Sobrado and Zamora say there is an urgent need to change the laws that would do away with these types of marriages, as well as give the immigration service the right to question marriages of conveniences when it detects irregularities.

There is already legislation in the works, legislation presented by legislator Evita Arguedas. However, it has not been a priority of the Poder Ejecutivo (government) and is not on the current schedule of discussion in the Legislative Assembly.

Insidecostarica.com 02.12.2008
Savings in Colón Versus Dollar On the Increase

The declining US dollar is forcing many in Costa Rica to save and borrow in colones rather in dollars, an apparent trend over the last three months.

Today, for every ¢100 colones that is saved, ¢56 is deposited in a colones account to only ¢44 colones to a dollar account. A year ago the ration was 50/50, while before 2006 the ratio was 55% of the deposits were in dollars.

At the same time, currently, for every 10 loans, five are in colones. Prior to that, 60% of all loans were in dollars, according to figures released by the Banco Central de Costa Rica (BCCR) - Costa Rican central bank.

The lower interest rates and strong competition between the financial institutions have influenced many to make adjustments to their savings and loans.

For example, interest rate on real estate loans went from an average 20% annually to the current 9%. In addition, banks over the last several years have been promoting loans in colones.

Francisco de Paula Gutiérrez, president of the Banco Central, said that appreciation of the colón against the US dollar has "revived" investor expectations for the colón.

The BCCR says that deposits in colones is up 27% in the last year, while savings in dollars only grew 6%.

The biggest change came last November when the BCCR re-evaluate the exchange rate by 4%, taking the exchange rate of the colón to the U.S. dollar from ¢520 colones to ¢500.

With Costa Rica's mail, it's address unknown

A nation without street signs or numbers tries to sort out a new system
By Marla Dickerson
Los Angeles Times Staff Writer

November 5 2007

SAN JOSE, COSTA RICA & Pity the poor Costa Rican postman. Sure, he doesn't have to deal with sleet or snow. But consider what passes for an address here

The complete article can be viewed at:
http://www.latimes.com/news/nationworld/nation/la-fi-crmail5nov05,1,28
7769.story

Visit latimes.com at http://www.latimes.com

Casa Presidencial produces yet another immigration proposal
By the A.M. Costa Rica staff

Casa Presidencial has revised yet again the draft of a proposed law on immigration that the executive branch will send to the legislature.

The new draft was unexpected because the Arias administration said Jan. 24 that it was ready to send a measure to lawmakers for consideration.

Although a Casa Presidencial spokesperson said that only a few small changes were incorporated in the new draft, the number of words grew by 2,300, not counting a lengthy explanation of motives that has been added as a preface.

The new draft specifically levies a $25 annual charge on anyone who uses the immigration services as a resident. A separate $5 charge would be assessed on persons who were not residents, presumably tourists, cruise ship passengers, business people who visit briefly and those on work visas. This assessment had been talked about but was not contained in previous drafts of the proposed law.

Under the current law, pensionados have to show a monthly income of $600. The first draft of the proposed law reduced this to $300. Now the new draft specifies $500 a month.

Rentistas continue to have to show income of at least $2,000 a month or a bank deposit assuring that level of income. Spouses are included in this amount.

Government officials call the new draft a key element in the fight against corruption, human trafficking and sexual and labor exploitation. Fernando Berrocal, the minister of Gobernación, Policía y Seguridad Pública, said that officials spent 800 hours during the last six months in meetings discussing the new draft. His ministry holds the Dirección General de Migración y Extranjería or immigration service.

The $25 a year that foreign residents would pay is earmarked for the Caja Costarricense del Seguro Social and the Ministerio de Educación Pública to help support the overworked health and educational services.

Berrocal said that the new law would provide 6 billion colons (some $11.5 million) to overhaul the immigration information computer systems, transforming the agency from a place where work is done manually to one that is automated.

The immigration agency is having computer problems now with the link from the Daniel Oduber airport in Liberia and the central computer systems. That has meant long waits for tourists entering and leaving the country.

In addition, the immigration agency has been the victim of internal and external frauds that have provided persons with false renewals of their visas and false documents. A secure computer system would cut down on frauds.

The upgraded Policía Técnica Migratoria will have more powers, and the work of human trafficking will continue to be a crime with a possible 16-year sentence.

Immigration workers who accept bribes could be jailed for up to five years, and private employers who hire persons who do not have the right to work in Costa Rica, such as tourists, could face fines of up to 1.5 million colons (about $3,600) per employee.

The new draft expands the power of officials to grant waivers from the law. The initial draft gave the president of the country this privilege. The proposed draft extends these rights to the director of immigration.

Article 65 of the draft says that the president, after consultation with the Consejo de Gobierno, can issue a decree to legalize the immigration condition of foreigners
The immigration director can do so but only case by case.

Observers expect President Óscar Arias Sánchez to extend residency to illegal Nicaraguans and others on the condition they pay the fees for the Caja and the education ministry.

Such a move would solve how the central government would extend payment of this fee to illegal immigrants who are heavy users of medical and educational services.

The new draft does not differentiate between residents, and there is no provision for a higher monthly fee from North Americans and Europeans as there was in the initial draft.

There is no limit in the new draft on how many times persons may renew their tourist visa. Many foreigners live here as perpetual tourists, leaving every 90 days for 72 hours to renew their tourist visa.

As a news story said Monday, there are no regulations drawn up yet to provide working guidelines for the proposed law or even the law that is on the books. It would be within the regulations where many details are established. The proposed draft makes reference to regulations.

The New York Tines, electronic edition 08 October 2007

Costa Rican President Says U.S. Trade Pact Passes
By THE ASSOCIATED PRESS
Published: October 8, 2007
Filed at 10:15 a.m. ET

SAN JOSE, Costa Rica (AP) -- Costa Ricans on Sunday appeared to narrowly vote in favor of joining the Central American Free Trade Agreement with the U.S., and President Oscar Arias declared victory for the pact. But with results so far contradicting most earlier polls, the opposition balked at conceding before a manual recount.

With 89 percent of the precincts reporting, nearly 52 percent of votes backed the agreement, which sharply divided the country between those arguing it would bring continued economic development and critics who feared it could hurt farmers and small businesses.

''Costa Rica's people have said 'yes' to the treaty, and this is a sacred vote,'' Arias said.

But Eugenio Trejos, the leader of the pact's opposition, said he would not recognize the results and vowed to wait for a manual recount scheduled to begin Tuesday.

''The people have spoken, and the achievements we have obtained won't be lost,'' he said. ''That's why we will wait for the ballot-by-ballot recount.''

Arias urged the nation to move forward.

''The treaty isn't what divides us,'' he said. ''It's poverty that affects 900,000 Costa Ricans, a lack of work and violence. These are the things that separate us, and they will continue to be my priority.''

The presumed victory was a surprise, given that most polls leading up to the vote had predicted an easy defeat.

Costa Rica is the only one of the six Latin American signatories to the trade deal, known as CAFTA, that has yet to ratify it. The pact is in effect in the Dominican Republic, Guatemala, Honduras, Nicaragua and El Salvador.

The results were closely watched by the White House, which fought a bruising political battle to get the deal ratified by the Congress, where it passed by a two-vote margin.

Ahead of the vote, U.S. officials and Arias appealed for voters to back the deal. The White House on Saturday said if Costa Ricans vote against joining the agreement, the Bush administration will not renegotiate the deal and it urged people to recognize the treaty's benefits.

The pact would ''expand Costa Rica's access to the U.S. market, safeguard that access under international law, attract U.S. and other investment and link Costa Rica to some of the most dynamic economies of our hemisphere,'' White House press secretary Dana Perino said in a statement.

U.S. officials also suggested they may not extend trade preferences now afforded to Costa Rican products and set to expire next September.

Arias said a 'no' vote would affect industries in this Central American nation of 4.5 million people, and called it an ''important tool for generating wealth in the country.''

Arias, who won a Nobel Peace Prize for helping end Central America's civil wars in the 1980s, also said rejecting the pact would threatened trade benefits that help Costa Rica's textile and tuna industries.

But critics of the pact object to its requirements that Costa Rica open its telecommunications, services and agricultural sectors to greater competition. They also fear it will mean a flood of cheap U.S. farm imports.

When Arias arrived at a polling station to vote, opponents of the pact almost prevent him from entering and yelled ''Arias traitor!'' Others shouted in support of the pact.

Groups of demonstrators for and against the agreement marched Sunday in the capital, San Jose.

Pablo Chacon, a 63-year-old former truck driver, said he planned to vote 'yes' because that would mean more opportunities for his children.

''I have children who are studying and one even works for Intel, and if they took it away, what would my children do?'' he said.

But many Costa Ricans were skeptical of the pact, or downright hostile.

Lawyer Flor Vega said she feared the trade agreement would end up giving foreign interests the development rights to Costa Rica's natural resources.

''I'm going with 'no' because the treaty has a very broad definition of land,'' she said. ''They can use the ground and underground, and this is a good reason to say 'no.'''

As polls closed Sunday evening, electoral authorities estimated that participation surpassed 40 percent of registered voters, the minimum for results to be binding.

Despite its conflicts over trade, Costa Rica fares better than other Central American countries: It has a thriving eco-tourism industry, maintains relatively high-paying jobs and is a magnet for Salvadoran and Nicaraguan migrants.

Costa Rica exported $3.37 billion in goods to the United States last year and imported goods worth $4.57 billion, according to Costa Rica's trade ministry.

09.03.2007
Costa Rica: Land of Pure Life

Description:
This website is one of Public Broadcasting System's (PBS) Living Edens. The site includes material on turtles and other animals including crocodiles and caimans, ants, monkeys, poison dart frogs, quetzals, snakes, and butterflies.

Users can also read about Arenal
Volcano, and about visiting parks in Costa Rica including Arenal National Park, Poas Volcano National Park, Palo Verde National Park, Tortuguero National Park, Manuel Antonio National Park, and Corcovado National Park.

Viewers can also look at web resources, download free screensavers, and find two middle school classroom projects. One is about population dynamics; students grow frog eggs. The second is about volcanoes and soil formation; it involves growing seeds on volcanic rocks. The classroom projects also suggest exercises built around viewing the video. DLESE's mission is to improve the quality, quantity, and efficiency of teaching and learning about the Earth System, by developing, managing, and providing access to high-quality educational resources and supporting services through a community-based, distributed digital library.

Intended users include
students, educators and citizens of all ages, in both formal and informal learning environments.

For anyone planning a visit to Costa Rica, the site contains an overview of several national parks. The website also contains a collection of
annotated web resource links.

http://www.pbs.org/edens/costarica/index.html

Insidecostarica.com 04.03.2007
What is Open And Not During Semana Santa (04/02/07 - 04/06/07)
Many institutions and businesses are still open this week, Semana Santa, but on limited hours and days.

Banks, embassies, and public utility institutions are all open today, Monday and Tuesday and while some remain open Wednesday morning, all will be closed Thursday and Friday.

The Instituto Costarricense de Electricidad (ICE), the Compañía Nacional de Fuerza y Luz and the Acueductos y Alcanterillados (AyA), will all be open Monday and Tuesday. After that the lines will be open for emergency calls and repairs.

The U.S. and Canadian embassies in Costa Rica will be open regular hours Monday, Tuesday and Wednesday, closed Thursday and Friday. Other embassies will follow similar hours.

Banks, both private and state, will be open Monday, Tuesday and Wednesday and be closed Thursday to Sunday, reopening for regular business on Monday. However, some bank branches inside department stores like the EPA and Pricesmart will remain open offering limited services.

Supermarkets and malls will be open all week, however, will be on limited hours on Thursday and Friday.

And just in case you forgot, as of midnight Wednesday the sale of all liquor, wine and beer will be suspended until after midnight on Friday.
--------------------------------------------------
NOTE FROM RESIDENCY IN COSTA RICA: MIgracion will be open all day on Monday and Tuesday, and Wednesday from 8 am to 12 noon for emergencies only.

www.amcostarica.com Edition date: 01.26.2007

Stiff penalties for overstaying tourist visa
Immigration draft easy on pensionados, not rentistas
By the A.M. Costa Rica staff

A proposed redraft of the nation's immigration laws would require less monthly income to be a foreigner here living on a pension, but the monthly income to be a rentista would double.

The proposal also takes a firm stand against those who work here on tourist visas, something which is not clear in the current law.

According to the proposal, those seeking to stay in Costa Rica as a pensionado would have to show a monthly income, usually a secure pension, of $500 a month. Now the amount is $600 a month.

Typically rentistas have put $60,000 in a bank account to show financial capability for five years.

Tourists continue to be considered non-residents and do not build time toward residency, under terms of the proposal.

The law withholds permanent residency from new foreign spouses of Costa Ricans for three years and requires them to show that they are living together as a couple every year.

The Arias administration decided to redo the immigration law even though the new one only went into effect in August. The new law has been criticized for being harsh.

From Investors Off-Shore News, 16 August 2006
http://www.investorsoffshore.com

Costa Rica's Immigration Laws In Limbo, by Mike Godfrey, Tax-News.com, Washington 15 August 2006

A new immigration law which was passed by Costa Rican lawmakers last week appears to have merely muddied further the already uncertain waters concerning new investment and income qualifications needed to obtain Costa Rican residency, or rentista, status for foreign expats.

The legislation aims to crack down on illegal immigration from neighbouring countries, particularly Nicaragua, by, among other measures, imposing tough penalties on businesses that employ, or individuals that harbour, illegal immigrants. However, the authorities say that they have not got nearly enough resources to police the new laws, and the Arias administration, which opposes the bill but was elected after it was drafted, is attempting to kill the law.

The law also sets out new income and investment limits for rentistas, but the legislation is ambiguous. Previously, rentistas were obliged to show a minimum monthly income of US$1,000 per month, or a lump sum of US$60,000 in a foreign bank account. Under the updated law, it seems that both the primary applicant and the spouse must pass the US$60,000 test, while an extra $30,000 would be required for each dependent. However, it seems that two separate sections of the legislation contradict each other and therefore at this time, confusion reigns.

Arias had attempted to get the enactment legislation delayed until December 31, 2007, but the government had failed to submit the amendment before the Legislative Assembly approved the bill.

Government ministers have indicated that they will act this week to introduce a new bill nullifying the changes, but until that happens, it seems that Costa Rica's immigration laws remain in limbo.

www.amcostarica 08/14/2006 edition
Rentista category up in the air Immigration rules clouded by temporary law
By the A.M. Costa Rica staff

A new immigration law has gone into effect, and those who are seeking residency and the experts who help them are confused.

One problem for expats is that the law is ambiguous on the financial requirements for rentistas. In the past a rentista could show a foreign income of $1,000 a month to qualify. Frequently this was nothing more than $60,000 placed in a foreign or local bank account.

The new law seems to require $60,000 for the primary applicant and $60,000 more for a spouse. For each minor child, an applicant would have to show $30,000 more.

The immigration law actually got passed and went into effect with two sections that conflict on this point. But no one seems anxious to remedy this problem.

The Arias administration said that it wanted to delay the new law going into effect. It even proposed a one line change that would have delayed the effective date until December 2007. But the executive branch took six weeks to submit this small change to the legislature, and lawmakers took their time in reviewing it.

Now that change seems to be moot. It seems unlikely that the legislature can change the effective date when the law already has gone into effect. What is needed now is a new bill to make the changes the Arias administration wants.

The changes would be extensive because Fernando Berrocal, the security minister who oversees immigration, said he does not have the resources to enforce the law. The new law creates penalties for those who employee and harbor illegal aliens. It also criminalizes for the first time human trafficking.

The missteps by the administration and a compliant legislature raise the question of whether the Arias administration let the law go into effect even as officials claimed they opposed it.

The foreign minister, Bruno Stagno, told Nicaraguan officials the law would not go into effect. That irked lawmakers who are jealous of their rights.

Óscar Arias Sánchez calls the law draconian, but a careful reading shows that the law is not unlike similar laws of many countries.

The Arias administration, however, has hundreds of thousands of Nicaraguans living illegally here, mostly in poor conditions. This is a simmering danger for public safety, and occasional riots do take place in the slums. The Roman Catholic Church opposes the new law, too, because church leaders believe the law could bring problems for shelters and church houses used mainly by illegal Nicaraguans.

Security officials have said their first concern is rooting out corruption in the Dirección General de Migración y Extranjería. Corruption is widespread. That was seen Thursday when law officers detained a man believed to be a leader of a Colombian rebel group. He gained residency in what appears to be a fake marriage. And he got his papers in a month, an astoundingly short time for the slow-moving immigration department.

A wave of apparent fake marriages to Chinese and Cubans is under investigation by officials, and some current and former immigration employees are at the center of the probe.

If the assessment of Berrocal is correct, the current administration does not have the resources needed to enforce immigration rules at all. Thousands of persons are living here illegally, and not just Nicaraguan agricultural workers.

David Carruthers, the former BetonSports sportsbook manager imprisoned in the United States, appears to have been working here illegally on a tourism visa.

When police raided the home of another sportsbook operator, they found foreigners with guns. They were identified by Calvin Ayres, operator of Bodog.com, as actors hired to play bodyguards in a film. The men were quietly ushered out of the country. Now, according to sources at Bodog.com, they are back in the country again working as armed bodyguards.

In another case, Escazú investment adviser Mark Boswell, doing business under the name of Rex Howard, openly brags on his Web site that he has been conducting business here for five years while holding just a tourism visa.

Others are not so open, but are what are called perpetual tourists, getting their passport stamped with an exit and entrance visa every 90 days. The status of perpetual tourist is cloudy, but if someone is working on a tourism visa, they are violating the law, old or new.

The new immigration law that the government says it cannot enforce makes that clear. Still, immigration has been lacking in response when illegal situations are pointed out. In one case, expats were involved in a court case with a businessman here who has just a tourism visa. They asked immigration officials to detain the man but said they were told that the agency has limited staff.

Nicaragua's foreign minister, Norman Caldera, was very clear in a Managua press conference Saturday when he said Costa Rica has assured him that there would be no enforcement of the new law with regard to his citizens. He also said that he was told the legislature would either change or abolish the new law.

Mario Zamora, director general of Costa Rican immigration, was in the border town of Peñas Blanca over the weekend meeting with the Nicaraguan immigration director, Fausto Carcabelos. They were said to be discussing a possible system that would allow easier border crossings for nationals of both countries.

There has been no change under the new law of the requirements for pensionado. Still required is proof of a pension income of at least $600 a month, spouse included.

Still, there has been no disclosure of the internal regulations that accompany a new law. It would seem that much of the work of the immigration department is frozen now without clear regulations to guide workers.

And no one knows what changes in the new law might actually be made after proposals experience hearings, discussions and amendments in the Asamblea Legislativa.

RCR Staff: (25 June 2006): There appears to be a strong possibility that the Immigration Reform Law, presently scheduled to go into effect on 12 August 2006, may be delayed for up to 15 months. This delay will allow the Arias Administration to amend and or rescind certain portions of the law that deal with human rights issues, the criminalization of hiring illegal aliens and the harboring of illegal aliens. Additionally, the Arias Administration claims that it does not heave the $13 million required to fund the programs mandate by the maw, including additional Migracion police officers, jails, hiring of legal counsel to defend those initials arrested under the new regulations.

Should the effective date of the Immigration Law be postponed, that would also postpone the new income requirements for rentistas from coming into effect on August 12, 2006.

Below are the two articles used as the source for this update, TicoTimes 06.16.05, and La Nacion 06.25.06 (in Spanish). Javier Zavaleta

Tico Times, June 16, 2006 www.ticotimes.net
Arias Administration Plans To Postpone Immigration Reform Law

The administration of President Oscar Arias plans to send a bill to the Legislative
Assembly that would prevent the new Immigration Law from taking effect in August and delay it for at least a year. The delay is designed to give the government time to prepare for the costs of implement-ing the law and examine aspects of the law that have been criticized by the President,as well as academics, religious figures and the
Ombudsman's Office.

Mario Zamora,the new director of Immigration, told the daily La Nacion his institution would have to spend ¢7 billion ($13.7 million) for the new police, infra- structure and administrative reforms the law demands. For example, the law would require increasing the Immigration Police force from 35 to 600.

Zamora added that the law, which cracks down on illegal immigration through measures such as increased penal- ties for people who hire illegal immigrants,
includes eminently repressive regulations, and Arias administration officials would use a delay to study reforms to counteract those regulations.

Public Security Minister Fernando Berrocal told the daily the government would have to spend a fortune to apply the new law, and that he couldn't under- stand how the law could have been drafted.The bill the Arias administration plans to submit would alter Article 269 of the law; the article states that the law must take effect eight months after its publication in the official government daily La Gaceta, which took place Dec.12,2005. Other measures the law includes are greater freedom for police in their efforts to find and remove illegal immigrants, deten- tion for an undefined length of time for those suspected of being illegal immigrants, and changes to improve the efficiency of Immigration (TT,Aug.26,2005). Tico Times

La Nacion, 25 June 2006 -- http://www.nacion.com/ln_ee/2006/junio/25/pais3.html

Gobierno urge atrasar nueva Ley de Migración

Álvaro Murillo M.
alvaromurillo@nacion.com

El Gobierno aplicará un intenso cabildeo legislativo a favor de la reforma que presentará esta semana para posponer más de un año la entrada en vigencia de la nueva Ley de migración y extranjería.

El Gobierno trabaja en el texto para convencer a los diputados de la imposibilidad presupuestaria para ejecutar la ley, lista para que partir del 12 de agosto se apliquen medidas que, además, no agradan del todo a las nuevas autoridades.

"Me iré a la Asamblea Legislativa a hablar con los jefes de fracción. Necesitamos meterlo en agenda y darle dispensa de trámite ¡Agosto está encima!", expresó el ministro de Seguridad, Fernando Berrocal.

La Dirección General de Migración y Extranjería carece de los ¢7.000 millones que, según calcula Berrocal, son necesarios para aplicar la legislación creada por el Congreso anterior.

El dinero es necesario para tener más abogados, policías especializados, más oficinas y vehículos, centros de detención, equipo tecnológico y oficinas, entre otros.
"No tenemos ese dinero este año y es muy difícil que se nos conceda para el 2007", agregó Berrocal.

Por eso, la intención es reformar el artículo que establece la entrada en vigencia de la ley, para tener unos 15 meses más.

La nueva legislación contempla cárcel para el tráfico de personas, multas a patronos que contraten inmigrantes ilegales y a nacionales que los encubran, además de deportación a cualquier inmigrante que no logre demostrar su condición legal en el país.

La ley enfrentó las críticas de la Iglesia, universitarios y grupos defensores de derechos humanos, además de que el presidente, Óscar Arias, calificó de "draconianas" algunas de esas medidas, aunque reconoció la necesidad de regular el flujo inmigratorio.

Berrocal admitió que, de posponerse la entrada en vigencia, podría iniciarse un debate para reformar la ley en en el fondo.

El director de Migración, Mario Zamora, aseveró que la ley hecha por los anteriores diputados "parte de principios errados" y ni siquiera debería tomarse como punto de arranque para un nuevo plan.

Source: insidecostarica.com 05/04/2006

Constitutional Court To Decide on Gay Marriages

It wouldn't be until later in the day that the Sala Constitucional or Sala IV as it is known will begin to discuss the appeal that would allow marriage between partners of the same sex.

A number of homosexuals will be on hand for the hearings will decide if gay couples have the same equal protection of rights as straight couples.

Child adoption is a major part of the controversy.

Holland was the first country to legalize gay marriages. This year Spain made a turnabout from a firm no to a yes to allow same sex marriages and to benefit from all the legal rights as traditional marriages.

Though the case is going before the Constitutional court today, a decision is not expected until sometime in June.

Seven magistrates will hear the arguments and made decision on the Constitutionality of gay marriages, specifically Article 14, section 6 of the Código de Familia (Family Code), which says that "it is leally impossible marriages... between people of the same sex".

The appeal to that section of the law was first made in July of 2003 and has been in study since. Today's hearings is for the benefit of the magistrates who will hear the opinions on the matter, including those of the Attorney General.

Expected to present arguments are groups both in favour and against the union that may include up to 94 people giving testimony.

The major argument in the appeal is that the Código de Familia discriminates people of the same sex in contracting marriage and violating the basic concept of equality and liberty of expression established in the Constitución Política (political constitution) of the country.

The pro group will argue for the rights of adults of the same sex to demonstrate their love, voluntarily and openly and be able to get married without having their rights violated

Source; amcostarica.com 03.02.2006
Married rentistas hurry to make deadline
By the A.M. Costa Rica staff

Those seeking rentista residency and the advisers who guide them are trying to get the application papers filed as soon as possible.

The problem is that the new immigration law contains a clause that doubles from $60,000 to $120,000 the money a married rentista must have. Although the clause is in conflict with another section, those who deal in helping foreigners with residency expect immigration officials to accept the most strict version.

The immigration law has been passed but does not go into effect until August. One company involved in residency applications, Residency in Costa Rica, said it strongly recommends that rentista applications be filed not later than the first week of July 2006.

Single persons who seek rentista status and those who seek pensionado status face no changes in financial capability in the new law. A single rentista must show that he or she has $60,000 in a bank and agree to change $1,000 a month into colons.

In addition to an extra $1,000 a month income for a spouse, rentistas have to show income of $500 a month for each minor child.

A pensionado or a pensionado and spouse must still show that he or they have a recognized pension generating at least $600 a month.

Ryan Piercy is executive director of the Association of Residents of Costa Rica. The organization also helps foreigners gain residency. He said Wednesday that lawyers for his organization will be seeking easy ways for foreigners to meet the requirements. But because the regulations that implement the new law have not been written yet, there are no clear answers, he said.

He urged anyone who wants to gain rentista residency to do so before August. However, he also noted that many part-time residents may be able to visit here for up to six months simply by using tourist visas.

Piercy said that he sees the new law as providing an opportunity for more flexible treatment of the funds held by rentistas. In the past, the Dirección General de Migración y Extranjería accepted only a cash sum on deposit in a traditional bank.

Johnny Marín, the new director of immigration has said that he was open to changes in the way the rentista shows financial stability. He said a flow of monthly rents from real estate holdings might be acceptable.

The rentista category attracts persons who have money but no traditional pension or persons who are too young to receive pension money. Marín testified against the category at the Asamblea Legislativa, saying that money launderers use the category to live here.

As with other residency requests, applicants have to provide certified copies of birth, marriage and other certificates. This can be a lengthy process because the documents have to be validated by the Costa Rican consul in the area where the certificate was generated.

Immigration creates new form of ID cards
By the A.M. Cost Rica staff

Pensionados and rentistas in Costa Rica have a new form of identification in the future, but it will cost them. $114 to be exact.

The idea is to have one type of identification instead of the six different types in use now. The new identification is a plastic card, much like a driver's license or the cédula de identidad that Costa Rican citizens carry. The card will be encoded with electronic information.

The resolution and the cost appeared in La Gaceta Feb. 14 and was the subject of an announcement by the Dirección General de Migración y Extranjería Tuesday. The rule went into effect Friday.

Refugees and others get a better deal. They have to pay $14 and 2,500 colons, about $5, according to the announcement. They used to get their identification papers for free. Lost or stolen identifications now will cost $28. In all cases, the money is paid to a national bank and just the receipt is brought to immigration for renewal.

New Immigration Law to become effective August 12, 2006
NEW INCOME REQUIREMENT OF RENTISTA PROGRAM

Costa Rica's new Immigration Reform Law, approved November 2005, is set to become effective eight months after the publication of the bill in La Gazeta, the government's official newspaper. Since the law was published on Monday, December 12, 2005, the new law will go into effect on August 12, 2006.

The NEW law contains a new section, Article 79, that requires income of US$2,000 per month when the applicant is also claiming his/her spouse as a dependent resident (both husband and wife are applying for residency), plus an additional income of $500 per month per child. Thus, a family of four--husband, wife and two children-- would be required to prove $3,000 of monthly income in order to qualify for rentista status.

Because of the marked increase in the rentista income requirement and its potential impact, there is be a possibility that Article 79 could be modified prior to the law coming into effect in August 2006. However, if no changes are made to the income requirement, the NEW law will stand and require $2,000 for a married couple to apply for residency under the rentista program.

Please note that the old requirement of $1,000 for a SINGLE (unmarried) rentista applicant remains unchanged under the new law.

Some good news: Rentista applications filed prior to the August 2006 deadline will be decided by Migracion under the CURRENT monthly income requirement of $1,000 for the entire family unit (husband, wife and all children under 18). To be able to take advantage of this window of opportunity to file under the old income requirement, Residency in Costa Rica strongly recommends that "rentista" applications be filed not later than the first week of July 2006.

For your information, the text of Section 79 reads in Spanish:
"ARTÍCULO 79.

Para la obtención de la permanencia legal bajo la subcategoría de rentistas, los extranjeros deberán comprobar que disfrutan de rentas permanentes y estables provenientes o generadas desde el exterior, por un monto no inferior a dos mil dólares, moneda de los Estados Unidos de América. Con dicho monto el interesado podrá solicitar su permanencia legal y la de su cónyuge, bajo esta
subcategoría. Además, el extranjero que pretenda la permanencia legal de
sus hijos menores de edad, o que cursen estudios hasta los veinticinco años,
o discapacitados, deberá demostrar que recibe adicionalmente en sus rentas, quinientos dólares, moneda de los Estados Unidos de América, por cada uno."
Ley de Migracion y Extranjería (Costa Rica)

Source: insidecostarica.com 12.11.2005
New Immigration Law Will Go Into Effect Next August

The countdown begins tomorrow when the Ley de Migración y Extranjería is published in the official government newspaper La Gaceta. The law was ratified some five weeks ago and allowed for an eight month grace period. All laws and regulations must be published in La Gaceta before they can take effect.

On August 12, 2006, immigration authorities will then have the power to apply the strict new measures, unless the new president and government that will take office next May makes changes to the law.

"Coyotes" - those who move illegals between borders - will face fines of up to ¢2.2 million colones (us$4.400 dollars). As well, the estimated 400.000 illegal foreigners need to have their status cleared up by then or face deportation.

The new law will also sanction employers who hire illegals.

Authorities say that the new immigration law will improve security and reduce the exploitation of immigrants. A problem the government has faced for years is the burden on the social security system of illegal workers who don't make contributions but are not refused medical attention at state hospitals and clinics.

Critics against the new immigration law are many, including politicians, academics and social and religious leaders.

For Example, presidential candidate, Oscar Arias, asked president Pacheco to rescind a part of the new immigration law, saying the new law would give immigration police "gestapo" type authority.

"With the new legislation, we will see an abuse in deporting illegal immigrations because they don't have their documents in order", said Arias last October.

With the delay in the law coming into effect, Arias will have the opportunity to change the law if he is elected president in February, who, according to the polls is a shoe-in.

As well the Bishops of the Comisión Nacional de Rectores (Conare) and the Defensoría de los Habitantes (Ombudsman) are against the law.

For his part, Minister of Seguridad Pública, Rogelio Ramos, says that "if they don't like it, they can change it", referring that the opposition can then press the new government for the change, meanwhile his ministry is moving ahead with the logistics plans, equipment and personnel for the changes the law will require.

One obstacle that the Dirección de Migración y Extranjería (immigration department) has to overcome is the getting budget approval for the added cost of enforcing the new regulations come August.

Source: insidecostarica.com 11.02.2005
Costa Rica Tops List on Fodor's Unique Travel Experiences

Set among an ancient forest yet only 200 metres from the beach, Blue Jay eco-lodge, Mal Pais, Costa Rica, suggests exclusivity.

But like the nine other hotels to make it onto Fodor Travel Guide's choice list for 2006, it has been selected not because it is one of the world's most famous or most expensive hotels, but because of the unique and unusual experience it offers its guests

With rooms starting from just over us$80 per night in the high season, and little over us$55 per night in the low season – based on two people sharing – expensive it is not.

Fodor asked its editors and writers for their top picks for hotels, restaurants and sites/experiences and has come up with a variety of options for different sized budgets.

For those wishing to spend a bit more on accommodation, the Coral Reef Club, Barbados, And for those who truly want to splash the cash, Fodor recommends the Esperanza, Los Cobos, Mexico.

The Carnaval de Quebec in Canada's Quebec City heads the list of not-to-be-missed sights and experiences, which also includes diving in St Eustatius in the Caribbean, Kayaking in the Bahia Mosquito, Vieques, Porto Rico, and skiing at Cortina d'Ampezzo, Italy.

A visit to the Recoleta Cemetery in Buenos Aires, Argentina, a trip to Australia's Red Centre to see Uluru (Ayers Rock) and Kata Tjuta; and stargazing atop Mauna Kea on Hawaii's Big Island also make the list.

Fodor's Choice 2006 list of hotels
Blue Jay Lodge, Malpais, Costa Rica
Chakrabongse Villas, Bangkok, Thailand
Coral Reef Club, St. James, Barbados
Esperanza, Los Cabos, Mexico
Faena Hotel + Universe, Buenos Aires, Argentina
Ho'oilo House, Maui, Hawaii, US
Mala Mala, Mpumalanga, South Africa
Morgan's Rock Hacienda and Ecolodge, Playa Ocotal, Nicaragua
Parador de Malaga Gibralfaro, Malaga, Spain
Red Setter Inn, Greer, Arizona, US

Immigration bill gets a new first approval
By the A.M. Costa Rica staff

The Asamblea Legislativa approved on first reading a revised immigration bill Monday. The vote was 38 to 5 suggesting that the measure has a good chance when it comes back on the floor for the second and final vote.

The purpose of the bill is to give Costa Rica more control over the flow of foreigners who come to the country. The measure creates new categories of legal visitors. And the bill would criminalize people who smuggle illegal immigrants.

The proposal also puts more legality behind the Policía de Migración y Extranjería.

The immigration law already was approved on first reading once, but lawmakers sent it to the Sala IV constitutional court for review. The magistrates generally found the law to be constitutional but had some concerns that were addressed in the draft that was approved again Monday. The Roman Catholic Church also expressed some concerns, particularly for the poor and refugees who might run afoul of the law.

A big sticking point was a section of the law that said foreigners who marry Costa Ricans must live together as man and wife for two years outside Costa Rica. That section was deleted, even though the original goal was to attack fake marriages.

Johnny Marín, the new director general of Migración y Extranjería, said in an interview published Oct. 12 that new regulations would be drafted if the new law were to be approved. The regulations would translate the wording of the law into working policies for his department. But lawyers will need time to draft the policies, so the new law, even if approved as anticipated next week, would not have a quick impact.

For the expat community, the law still says a pensionado must have a monthly income of at least $600. Some lawmakers wanted to raise that amount to reflect current prices. The rentista category, which was deleted from the first draft of the law, has been reinstated with a monthly income qualification of $1,000. Marín said he would like to draft rules that would guarantee that rentistas actually do bring that amount of money into the country each month. He speculated that bank transfers might be a solution

The new law specifically states that pensionados and rentistas can apply to be permanent residents after living here three years. That is an unclear issue now.

For many expats the concern is that with new powers and authorizations, the immigration police will be aggressive in cracking down on what is known as perpetual tourists and people who work here when they have tourist visas.

Regulations likely will require a criminal record check at border entry points even for tourists. A number of expats are living here on tourist visas that are renewed continually contrary to the spirit of the existing law. Some of these are fugitives, and each month agents arrest expats who are wanted in their own countries or elsewhere.

An embarrassing revelation came Friday when a henchman of Panamá's deposed Gen. Manuel Noriega was found living a normal life in the Central Valley even though he had been convicted of participating in a political massacre in 1989. The man, Evidelio Quiel Peralta, was granted residency in 1999 despite his exploits in Panamá. Heis fighting his extradition.

Immigration officials also have to face the issue of false exit stamps. Some expats who hold tourist visas never actually leave the country to renew them every 90 days, as the law requires. There is a cottage industry in fake immigration stamps and paperwork which defeats the purpose of the national laws and allows individuals with significant criminal records to continue to live here.

To obtain pensionado or rentista status requires an applicant to present a police report from his home country, something criminals do not want to do.

The immigration department has been criticized heavily lately for delays in processing paperwork. Much of the problem was in granting passports to Costa Ricans. Officials hope to have the department fully computerized by the beginning of the new year and to begin issuing plastic cédula-like identification cards to resident foreigners. They also hope to bring the various data bases up to date

From Insidecostarica.com 10.19.2005

TLC Expected To Go To Congress This Friday

Returning from his trip to Spain, president Abel Pacheco de al Espriella, will be keeping his promise to send the Tratado de Libre Comercio (TLC) - free trade agreement with the United States - to Congress.

The document could reach the Legislature as early as this Friday. Sources closed to the president say the presidential decree that is ready and just needs signing.

Pacheco is expected to arrive today following a week in Spain where he attended the XV Cumbre Iberoamericana de Jefes de Estado. Before leaving for Spain, the president said he would send the TLC to Congress, where legislators can begin discussing the document.

Vice President Lineth Saborío added that the Ley de Fortalecimiento del Instituto Costarricense de Electricidad (ICE) - the law that would allow the government institution to face competition in the future - is ready and the government can now send the TLC to Congress.

Costa Rica is the only Central American country that has yet to ratify the Central American Free Trade Agreement (CAFTA) that was signed with the Unite States. U.S. officials say that CAFTA will move ahead as scheduled even if Costa Rica does not ratify it.

Reprinted from www.insidecostarica.com 07.31.2005

Retiring Abroad Could Make Good Economic Sense
By HILLARY CHURA The New York Times

These days, some Americans heading for retirement are as concerned with pesos as with pensions, and with foreign-language classes as with Medicare. They are part of an emerging population expecting to spend their retirement abroad.

In 2006, baby boomers will start hitting 60 at a rate of more than 4 million a year. More mobile, active and adventuresome than prior generations, these 78 million Americans are rethinking retirement. Many will be lured overseas by a more affordable cost of living and temperate weather. Some will want to return to their native countries or to places where they once worked or studied.

Though out-of-country retirement is not the norm, it is likely to become less of an anomaly, experts say. Many baby boomers have been relocating their entire careers. An estimated 4 million Americans live abroad, but there is no data on how many are retired, according to the State Department.

It's tough for Americans on a fixed pension to stay put, so they're looking elsewhere.

Mexico, Costa Rica and Panama are common retirement havens, but Nicaragua, Honduras, Ecuador and English-speaking Belize are making a push to attract retirees. Various countries in Europe are also viable alternatives, but current exchange rates make them less attractive for those with limited resources.

John Briley, senior managing editor for iJET Intelligent Risk Systems, which monitors security around the world, warned that retirees should consider issues like racism, police corruption, organized crime, drug trafficking and terrorism, as well as strength of banks, financial institutions and governments, before they pack up.

"Things will change over time, but look for stability of the government and the stability of the country," he said. "Probably there (are) not one or two ultra-utopias out there. For anything you gain, you have to give up something." Many American cities have seen tremendous real-estate appreciation. But because home prices have risen more or less universally, pensioners may not be able to buy elsewhere in the United States and live off their gains.

There are relatively less expensive places to relocate in the United States, but they often lack the attractions and amenities that retirees crave. (Reverse mortgages are one alternative. They are a type of loan whereby homeowners, typically older ones, take equity out of their property without selling it. Heirs repay the loan when the owner dies or no longer lives in the home. But many elderly owners fear losing their homes and thus are unwilling to take the risk.)

With "the decline of the stock market, the collapse of pension plans, real estate and housing are really where most people's wealth lies," said Daniel J. Kadlec, who wrote "The Power Years: A User's Guide to the Rest of Your Life" with Ken Dychtwald (Wiley, 2005), which discusses baby boomer retirement. "As real estate has gotten more expensive in the U.S., people are looking for that next great nirvana."

Tom and Nancy Mead, retired restaurateurs, moved to Costa Rica almost four years ago. After a lifetime of free spending, they had no pensions other than their combined $1,583 a month in Social Security and found they could not comfortably live in the United States. Now, auto insurance is $100 a year, and utilities are next to nothing. At 69, Tom Mead and his 72-year-old wife pay $600 a year for Costa Rica's version of Medicare. Their two-bedroom, two-bath home cost $42,500 cash. They pay a housekeeper $5 to help them clean weekly.

"There was insurance and insurance on the car and medical costs, and we were getting older, and we couldn't afford it," he said.

Mead said his heavily accented Spanish and poor language skills had not impeded their making local friends.

Amy Morgan and her husband, Fred, moved to Costa Rica last year to run their reforestation project, Finca Leola. Though still working, the couple from Somerset, N.J., whose children no longer live at home, set up the business for when they do retire. Amy Morgan is 52, her husband 46. She said they moved south for lifestyle reasons, and the hardest thing was leaving their children, who are in their 20s. She said they spoke to their daughter more frequently than they did when they were living in the United States, but the distance was trying. "You can learn to live without anything you used to have a taste for," she said. "But you really can't work around that."

The Morgans rent a five-bedroom, three-bath home with two living rooms, brick patios and several terraces down to the jungle for about $285 a month. A live-in housekeeper helps with the business.

"We wanted to end up in Costa Rica and be retired in Costa Rica," she said, "but there was no reason for us to stay in the States until retirement."

www.amcostarica.com 07.22.2005
Sala IV gives go-ahead to new immigration law

By the A.M. Costa Rica staff

The Sala IV constitutional court, in a decision released Thursday, gave the green light to nearly all of the proposed immigration law.

The proposed law had been sent to the high court by legislative deputies and also the Defensor de los Habitantes. For various reasons, those who appealed thought the proposal had constitutional flaws. The measure already has received one favorable vote in the Asamblea Legislativa.

The court examined more than 40 sections of the 240-article law. Only in one case did the court find a constitutional flaw.

The new law is important to expats because it specifies ways foreigners can live here legally, including as rentistas and pensionados.

It was in Section 67 where the court found a problem. That section would require a foreigner who sought residency by marriage and a Costa Rican spouse to live as a married couple for a year outside of the country. The section of the proposed law was a legislative effort to prevent residency here via false

by contracting marriage with a person they do not know. Lawyers set up these relationships for a fee.

Among other measures the proposed law would provide a legal framework for the Policía de Migración y Extranjería who would be charged with strict enforcement.

When the new law was proposed two years ago, the residency status of rentista was left out. However, that residency category has been reinstated and no changes have been made to the financial requirements for pension income for those who seek to be pensionados. They must still be able to show an income of $600 a month from a recognized pension, according to the law, and rentistas must show they have $60,000 in a bank and agree to withdraw and convert to colons $1,000 a month.

In Costa Rica officials can present a measure to the constitutional court for review even before it becomes law. With the high court approval, a second and final vote is likely soon on the measure.

From: Inside Costa Rica 07.14.05
Costa Rica Most Stable Country in Latin America

A World Bank study released in May aims to provide a "set of governance indicators that can help depoliticize efforts to track the quality of institutions, support capacity building, improve governance and address corruption."

The index, which analyzed 209 countries between 1996 to 2004, focuses on six components of good governance: political, civil and human rights; political stability and violence; government effectiveness; the incidence of unfriendly market policies; rule of law; and control of corruption.

"On average the quality of governance around the world has remained stagnant, highlighting the urgent need for more determined progress in this area in order to accelerate poverty reduction," said the World Bank.

The percentile ranks below indicate the percentage of countries worldwide that rank below the selected country. For example, 83 percent of countries studied worldwide have less political stability than Costa Rica, meaning that according to this study, it is the most stable country in Latin America.

CountryPercentile	Percentile
Costa Rica	83.0
Chile	76.7
Uruguay	62.1