Legal Update

32 Legal Update

by Rómulo Pacheco New Subcategory for Foreign Teleworkers Being Discussed

There is currently in the legislative stream, a proposal for the creation of a “Law to attract workers and remote service providers of an international nature.” The intent of the Bill is to broadly modify the General Law on Migration and Foreigners to include, within the migratory category of non-residents, the subcategory of “Stay.” This subcategory would not be a Residency or Visa, but would give a limited authorized time for younger nomads remotely employed as a “Worker or Remote Service Provider,” to stay and work at their job in Costa Rica. The purpose is to incentivize the affluence of that category of foreign worker who works for their companies remotely, and can do so from within Costa Rica. In the Bill a “Remote Service Provider or Worker” is defined as “... a foreign person who provides (paid) services remotely, subordinate or not, using computer, telecommunications, or similar means, for which he or she receives a payment or remuneration from abroad.” The proposal includes that one of the essential requirements to opt for this immigration status is that the person qualifying for the subcategory would receive a stable monthly salary, fixed income, or an average monthly income, of at least three thousand US dollars (USD $3,000) from abroad; (If the request is made for a family, four-thousand American dollars [USD $4,000]). This requirement guarantees that the foreign resident in that subcategory will have their own independent income which will allow them to purchase national goods and services. Additionally, the Bill requires the applicant (and his family) to have international medical insurance to cover any health problems while in Costa Rica. What benefits does the proposed subcategory provide to teleworkers and service providers? 1. Total exemption from tax on profits (income). 2. Exemption from the payment of all taxes on the importation of equipment, instruments, tools, computers, telecommunications or similar equipment, necessary for them to correctly fulfill the functions of their employment. 3. Provides validity of a foreign driver’s license, without the need to apply for a Costa Rican driver’s license.

4. Allows the opening of accounts in the Costa Rican banking system. 5. Eliminates the requirement to constantly leave the country to remain legal (90 day Visa renewal). The time frame for inclusion in this new category would be limited to one year, with the option for an additional one year extension. What is not mentioned in this bill is if persons in this new subcategory will be provided the opportunity to change their status to a Temporary or Permanent residency.

Rómulo Pacheco

Attorney at Law, Notary Public Pacheco, Marin, and Associates: (506) 2220-0055, (506) 2290-1074 romulo@residencycr.com

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