As a follow-up to Fragomen's August 23, 2005 client alert, the Costa Rican government has passed a new General Immigration Act (Law #8487) that will enter into force on August 12, 2006. This new law is designed to strengthen enforcement against violators and provide a better framework for highly-skilled migration to Costa Rica. Decree#32198 is one of several new regulations enacted under the new law by the General Migration Office to clarify requirements for work authorization and to streamline the Temporary Residence Permit application process.

The overall advantages for companies with operations in Costa Rica that undergo the General Migration Office's registration and accreditation process are outlined below.

• Substantially reduced processing times by the General Migration Office to approve residency applications sponsored by accredited companies. Currently, the General Migration Office takes at least four to five months to review Temporary Residence Permit applications. Under the new Decree, the review process should conclude in 15 business days from the date the application is filed with the General Migration Office.
• Less documentation required from foreign national assignees. Prior to the new Decree, assignees were required to submit a wide range of personal documentation including: birth and marriage certificates and police records, all of which had to be legalized by the Costa Rican Consulate with jurisdiction over the place where the document was issued. Under the new Decree, foreign national workers will no longer be required to present personal documentation. However, accompanying dependents will need to present such documentation to confirm the veracity of the legal relationship to the principal applicant.
• Police Clearances/Good Conduct Certificates no longer required. Police clearances and/or good conduct certificates will no longer be a requirement for the foreign national, nor any accompanying family members.
• Financial Guarantee of Repatriation no longer required. When filing for business visitor status on behalf of a controlled visa national (e.g. nationals requiring additional security clearance or control measures, such as Indian and Chinese nationals), accredited companies will no longer be required to deposit a financial guarantee to repatriate a controlled visa national as part of the visa application process.
• Priority filing status given to accredited companies. Accredited companies will be given priority status when filing Temporary Residence Permit applications with the General Migration Office.

In order for the General Migration Office to grant accreditation status under the new Decree, Costa Rican companies must meet at least two of the following criteria:

a) The Costa Rican company must need a considerable volume of foreign national workers. While the General Migration Office has not released definitive guidelines on how to demonstrate this need, evidence may be presented in the form of the local company's five-year plan, or an organizational chart that incorporates foreign workers into its management structure.

b) The company must operate under an incentive export regime, such as a Free Trade Zone. A Free Trade Zone is a special export promotion regime by which exporting companies are granted certain benefits (mainly tax exemptions) and generally operate in designated areas of Costa Rica where this special regime exists.

c) The entity in Costa Rica must be established through Foreign Direct Investment (FDI) that contributes to the country's economic development.

For those Costa Rican companies that operate under a Special Export Regime must also provide the following documents:

• Incorporation Letter issued by COMEX (Costa Rican Ministry of Foreign Trade) endorsing the inclusion of the company in the General Migration Office's list of accredited companies pursuant to the new Decree requirements.

• Certification issued by PROCOMER (local Costa Rican Free Trade Office) validating the accredited company's status under a special export regime and certifying its good standing under the obligations of an export agreement. Evidence of good standing can be submitted to the local Trade Office by submitting updated reports and proof of payment of export royalties.

• Application letter signed by the Costa Rican company's legal representative and addressed to the General Migration Office with a detailed description of the reasons certifying the company's incorporation under Costa Rica's corporate laws and requesting accreditation by the General Migration Office. The letter must also specify the company's line of business and its registered corporate address.

For those Costa Rican companies that do not operate under a Special Export Regime, additional criteria and documents (i.e. Certificates of Good Standing issued by the Costa Rican Social Security authorities as well as municipal, health, and safety authorities) must be met or presented to the General Migration Office in order to receive accreditation. In addition, the General Migration Office will require a copy of the Costa Rican company's financial statements, duly certified by a Costa Rican public accountant (CPA).

The General Migration Office will take at least twenty business days to approve applications by Costa Rican companies requesting accreditation. Once a company is accredited, the General Migration Office will add the company's name to its accreditation list and the company will receive an approval notice certifying its accreditation. The approval notice will be valid for three years from the date of issuance.

In preparing this alert, Fragomen has worked closely with the firm of Facio & Cañas. The content of this alert is provided for informational purposes only.

If you have any questions regarding this alert, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global Immigration Services.
 

Source: http://pubweb.fdbl.com/news1.nsf/c8abb103352ef95a86256e3100809438/f5040e4a89fcc22f8525713200798427?OpenDocument