Costa Rica has long been a coveted destination, known for its breathtaking nature and welcoming atmosphere. However, behind this idyllic image, an immigration issue is sparking debate: visitors who indefinitely extend their stay without changing their tourist status. This phenomenon, known as perpetual tourism, is now under scrutiny by authorities.
In response, Congresswoman Priscila Vindas from the Frente Amplio party recently introduced a bill aimed at tightening control over extended stays and penalizing violations.
If passed, the fines imposed on tourists who exceed their legal stay will triple, reaching $300 per month. All collected fines will be allocated to the General Directorate of Migration (DGME) to strengthen the enforcement of immigration laws.
Beyond financial penalties, the reform seeks to end a well-known practice among foreigners: visa runs. This method involves briefly leaving the country to reset the legal duration of a tourist stay. According to Priscila Vindas, this legal loophole allows many foreigners to live in Costa Rica without ever initiating the official residency process.
A Strained Real Estate Market
The implications of this practice extend beyond administrative concerns. According to the congresswoman, the influx of foreigners benefiting from perpetual tourism places significant pressure on the real estate market. In certain coastal and tourist areas, the high demand for short-term rentals is driving up prices, making housing less accessible for Costa Ricans. This trend contributes to a gradual gentrification that worries many local residents.
A Bill Sparking Many Reactions
One of the most debated provisions of the bill includes a particularly strict measure: a 90-day re-entry ban for tourists who have overstayed their legal stay.
Many in the tourism industry fear that this restriction could impact regular travelers and temporary residents who contribute to the country’s economy.
For Stacey Morrison, a Canadian from Toronto, this bill risks addressing the symptoms rather than the root cause of the issue. According to her, « The best way for the government to combat perpetual tourism would be to make residency requirements more flexible and welcoming. The current process is too long, too bureaucratic, and discourages many foreigners who would otherwise settle legally and contribute to the local economy. »
From another perpective, Costa Rican businessman Pablo Arias strongly supports the proposed bill, stating: « People who wish to stay long-term in Costa Rica should do the right thing—comply with the law and fully integrate into the community in all its aspects, » he says.
Watch his full reaction in this video on Pepito Live below:
A Legal Perspective from an Immigration Expert
Immigration lawyer Marcela Gurdian supports the reform, highlighting abuses related to foreigners working illegally in Costa Rica under tourist status.
« It’s important to understand that Costa Rica is a country that welcomes foreigners. However, there is a major irregularity among those who live here permanently without applying for residency.
Many work illegally, creating unfair competition with Costa Rican workers. A foreign chef, for example, who doesn’t pay taxes and comes to Costa Rica as a tourist to offer services, can charge half the price of a registered Costa Rican citizen. This kind of conduct needs to be regulated through this bill. »
She emphasizes that the reform does not target regular tourists but rather those who exploit tourist status as a loophole to reside in Costa Rica without following proper legal procedures.
« This law will help better regulate the situation by preventing foreigners from working illegally and requiring those who truly reside in Costa Rica to apply for residency as they should. I fully support this bill because it aims to prevent the abuse of the immigration system while protecting the rights of local workers. »
Watch the reaction from Marcela Gurdian on this important topic:
For Martin Boulanger, a legally established Canadian entrepreneur in Costa Rica, this bill represents a necessary step to ensure a balance between welcoming foreigners and upholding the country’s legal framework.
« Costa Rica is a land of opportunities, but like any country, it must ensure that the rules apply equally to everyone. Those of us who have invested time and resources to obtain residency, register our businesses, pay taxes, and comply with local laws understand the importance of a clear regulatory framework. »
At this point, it remains uncertain when this proposed bill might become law in Costa Rica. However, one thing is clear: it is gaining traction among lawmakers and the local population, sending a strong message to perpetual tourists living and working illegally in the country.
As discussions on this bill continue, its approval could mark a major shift in Costa Rica’s immigration policies. For some, the end of perpetual tourism would bring much-needed clarification of the rules, while others see it as a restriction on freedom of movement and a potential threat to the country’s appeal for regular visitors.
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