Recently, the deputies of the Republic Jorge Dengo Rosabal and Luis Diego Vargas Rodríguez presented a Bill that is being processed under file number 23494, called “REFORM TO ARTICLE 7, ITEM 7 AND ARTICLE 80 OF THE GENERAL MIGRATION LAW NO. 8764, OF AUGUST 19TH, 2009, AND ITS REFORMS, TO PROMOTE THE INCLUSION OF INVESTORS, RENTERS, AND PENSIONERS IN THE COSTA RICAN TERRITORY“.

The purpose of this bill is to reform articles 7 clause 7) and article 80 of the General Law of Migration and Foreigners, in order to promote and strengthen the attraction of investors, renters, and pensioners in our country.
Recently, the Law for the Attraction of Investors, Pensioners, and Retirees (Law No. 9996) was approved, which is loaded with great benefits for the applicants within the indicated categories. However, even with this law, difficulties continue to exist in practice for foreigners applying under these conditions.

The General Law of Migration and Foreigners, introduced by means of article 7 clause 7) the obligation to contribute to the social security of the country to whom a migratory category is granted, including of course the Residents with Income, Investors, and Pensioners.

This has generated, in our opinion, a great problem, since due to the different insurance rules, for medical services and retirement, the Costa Rican Social Security Fund has established high monthly percentages for these residents, which on many occasions exceed reasonable amounts. And, in addition, there are no clear rules to establish these contribution rates, creating a sensation that it is left to the “whim” of the authorities.

It is an obvious issue that investors, annuitants, and pensioners are not people who come to use the medical services of the Costa Rican Social Security Fund, since they have their own private insurances that can perfectly cover any medical emergency.

Therefore, it is neither reasonable nor justifiable to impose very high charges on these residents, since they prefer to leave the country, to look for another destination where they will not have to pay $300, $400, or even more monthly as a contribution to the CCSS. In our opinion, the ideal would be that if they are obliged to contribute, it should be the minimum amount and that the Disability, Old Age and Death Regime is not included, since none of these people come to Costa Rica looking for a pension.

The draft bill intends to reform the article to read as follows:

“ARTICLE 7.

The migratory policy will be oriented to the implementation of joint actions, through inter-institutional coordination, to provide an effective response to the migratory situation. Likewise, it shall seek to promote binational or multinational actions with the countries that expel migrant populations in order to achieve:

(…)
7) The processing of all migratory procedures shall guarantee social security insurance for migrants. Such guarantees will oblige that all migratory proceedings must contemplate, as one of its basic requirements, to have the insurance provided by the Costa Rican Social Security Fund (CCSS) except for the exceptions contained in this law. “

“ARTICLE 80.
Temporary residents may only perform remunerated or lucrative activities, on their own account or in a dependent relationship, as authorized by the General Directorate. Such authorization shall consider the recommendatory opinions prepared by the Ministry of Labor and Social Security, as well as other criteria of convenience and opportunity.

Also, the dependents of such temporary residents will be able to study or work, with the previous authorization of the Directorate. In addition, they must pay the corresponding migratory payment.

The temporary residents included in categories 1), 2), 5) and 6) of article 79 of this Law, shall be exempted from the migratory payment contemplated in paragraph 4) of article 33 of this Law.

For renewing their migratory condition and when it corresponds, the other temporary residents must accredit their insurance to the CCSS insurance, from the moment in which they are granted such residence and in an uninterrupted form until the moment of renewing their foreigner’s card. Investors, rentiers, and pensioners are exempted from the obligation of insurance and contribution to social security; however, they may do it voluntarily. Additional exceptions to this rule will be established by regulation.”

As we indicated above, it seems to us that there should be a contribution obligation, but that it should be a minimum. Today the bill is just beginning its legislative path, but we hope that it will be well taken, and the necessary reforms will be introduced to benefit this group of residents as well as the Social Security of our country. At ERP Lawyers we have a multidisciplinary team that will be able to advise you in any of your needs. Contact us at: jose@erplawyers.com