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Digital Nomad Law: Opportunity for teleworkers, opportunity for Costa Rica.
[/vc_column_text][us_separator][vc_column_text]The COVID-19 pandemic has undoubtedly completely changed the world we live in. While these types of statements usually refer to the new challenges that the pandemic has presented, these changes can also mean opportunities. Such is the case of the "Law to Attract International Remote Workers and Service Providers," better known as the "Digital Nomads Law," an initiative that has already been approved in its second reading by the Legislative Assembly and signed by President Carlos Alvarado last Wednesday, August 11, 2021. With the entry into force of this law, the General Law on Migration and Foreigners is amended, adding within the immigration category of "non-resident" the stay subcategory called "Remote Worker or Service Provider," applicable to foreigners who, through telecommunication means, perform paid work for a natural or legal person located outside the country. In other words, teleworkers. Teleworking has represented a revolution in the way we work, even becoming the norm and rule for many companies and the preference for many workers. In this way, this could prove to be an important opportunity for Costa Rica to position itself as a tourist destination and attractive to international teleworkers, who will enjoy a series of benefits, and in turn, represent a significant injection of resources into the national economy. Beneficiaries of the Digital Nomads Law will enjoy the following benefits: (i) a total exemption from income tax, as well as from any other profit tax, related to their income from abroad; (ii) they will be exempt from paying taxes on the import of equipment, instruments, tools, or computer, telecommunications, or similar media required to provide their services; (iii) teleworkers who fall under this new immigration category will be able to circulate within the country using their foreign driver's license, without being required to obtain a Costa Rican license and without the expiration of their foreign license in relation to their stay as tourists; and finally, (iv) they will have the possibility of opening bank accounts in the national banking system. Those interested in applying for this new immigration subcategory must submit the visa application form to the General Directorate of Immigration and Foreigners, along with the following documents: – Proof that the applicant receives an average monthly income of USD $3,000, or USD $4,000 if the immigration category application extends to the applicant's entire family. This can be demonstrated through bank statements from the foreigner's country of origin. – Proof that the applicant has medical insurance that covers them for the duration of their stay in the country. If the application is also for the family of the teleworker, each of them must also be covered by medical insurance. – Proof of a single payment for the granting of a non-resident visa, as a Remote Worker or Service Provider. – The remaining specific requirements and procedures will be established through regulations. These regulations are currently being prepared by the Executive Branch, with the aim of being published in the coming weeks and serving as a guide for the application of the law. The application will be resolved within fifteen calendar days. However, if necessary, the General Directorate of Immigration and Foreigners' Affairs will notify the applicant within five days of any omissions or defects that need to be corrected. The applicant will then have an additional eight days to complete or clarify any necessary information, suspending the resolution period. Immigration status will be granted for a period of one year, extendable for another six months, and interested parties may apply not only for themselves but also for their immediate family (spouse and children). It should be noted that it is absolutely essential that the beneficiary provide their services to, and be compensated by, a natural or legal person not located in Costa Rica. In this way, Costa Rica could capitalize on the opportunity that teleworking offers. The arrival of remote service providers in the country, encouraged by the aforementioned benefits, would represent a significant step forward in the economic recovery process, as it would bring activity to the tourism sector for those who wish to stay in the country's forests, beaches, and mountains to work remotely. These are the ones who would also inevitably be involved in the consumption of goods and services nationwide. By living in the country, it would be assumed that they would not only enjoy consumption in tourism activities (hotel accommodations, restaurant meals, and other leisure activities), but would also hire local providers and suppliers for the services that are part of anyone's daily life. Thus, positioning ourselves as an ideal teleworking destination through immigration incentives could represent a key factor in the country's economic development.
Written by:
[/vc_column_text][us_person image=”7657″ name=”Gabriela Miranda” role=”Asociada” link=”url:http%3A%2F%2Flexincorp.com%2Fequipo_costarica%2Fgabriela-miranda%2F|title:Gabriela%20Miranda||” layout=”cards” img_size=”full”][/us_person][us_separator][vc_column_text]
Assistant: Mijael Aviram.
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