Is a Foreigner able to Legally Work in Costa Rica?
As with most countries, Costa Rica has some particular laws and requirements to be met for a foreigner to legally work earning a salary, wages, or a commission income. These laws and requirements are designed to protect the Costa Rica citizenry from having unqualified foreigners illegally taking employment opportunities which are rightfully theirs. A limited Nomad Visa Program permits foreign online workers, working for foreign companies, and servicing foreign clients, to legally work in Costa Rica, subject to meeting the specified Costa Rica Immigration Department conditions for the grant of the one to two year Visa. In this Article, I will review the primary working income earning options available for foreigners in Costa Rica.
Immigration Status
For the majority of foreigners, establishing Permanent Residency Immigration Status will be the requirement for them to earn a living through salary, wages, or commission income employment. In order to obtain Permanent Residency Immigration Status, a foreigner must first apply for and be granted Temporary Residency Status in one of three categories of Pension Income Recipient (Pensionado), Investment Income Recipient (Rentista), or Investor (Inversionista). Each of these Temporary Residency Categories has a different financial requirement component, which will be discussed in detail in a separate article.
After maintaining Temporary Residency Status for a period of three years, a change of status to Permanent Residency Immigration Status may be applied for. A foreigner having married, or having a direct family connection with a Costa Rica Citizen, Such as being the biological parent of a child born in Costa Rica, will form the basis for being granted Special Residency Immigration Status, where the Immigration Department may specifically authorize the Applicant being able to work.
Owning a Business
One of the easiest ways to earn an income in Costa Rica as a foreigner is to operate a business in the capacity of a Manager, employing Costa Rica citizens, or foreigners holding Permanent Residency Immigration Status, to do the actual work of the business. This can be done in the case of a foreigner holding a valid Tourist Visa, or with Temporary Residency Immigration Status. Permanent Residency Status is not required. For instance, a foreigner could own a restaurant, or a bar business, where the foreigner performs managerial functions for the business only, performing such functions as bookkeeping, setting the employee work schedules, and dealing with the various product suppliers, etc.. In this scenario, the foreigner would hire Costa Rican Citizens, or foreigners with Permanent Residency Immigration Status, to perform the work functions of the business, such as cooking, waiting tables, bartending, etc. These activities could not be legally performed by the owner, unless the owner held Permanent Residency Immigration Status.
Work Permit
A less common method for foreigners to legally work in Costa Rica is for the Costa Rica Immigration Department to grant a Work Permit to the foreigner, at the request of a business operating in Costa Rica, that requires a particular work skill not otherwise available within the Costa Rica population. This method is usually reserved for unique scientific, or other professional work positions and is not open to be applied for by the vast majority of foreigners seeking employment opportunities in Costa Rica.
Penalties for Working Illegally
It should be noted, that foreigners undertaking employment situations in Costa Rica, without the correct Immigration status, face the penalty of immediate deportation with a prohibition to re-entering Costa Rica for a period of up to ten years.
