Costa Rica, long celebrated for its welcoming immigration policies and vibrant expat communities, is taking significant steps to reform its immigration system. A new legislative proposal aims to address the widespread practice of the “Visa Run,” a loophole that has allowed foreigners to extend their stays indefinitely without applying for residency. This development has far-reaching implications for tourists, expats, and immigration professionals alike.

Understanding the “Visa Run” Phenomenon

The “Visa Run” is a well-known strategy employed by foreigners in Costa Rica to circumvent the 180-day limit typically granted to tourists under the country’s visa policies. By briefly exiting the country—often to neighboring Nicaragua or Panama—and re-entering shortly thereafter, individuals can obtain a new tourist visa, effectively resetting their 180-day stay. While this practice has been a convenient workaround for long-term visitors, it has also created significant challenges for Costa Rica’s immigration system and local economy.

The Rationale Behind the Proposed Reforms

The proposed legislation, spearheaded by lawmakers from the Frente Amplio party, seeks to address the unintended consequences of the Visa Run. These include rising housing costs in popular expat destinations, increased pressure on public services, and unfair competition in the labor market. By closing this loophole, the government aims to create a more equitable and sustainable immigration framework.

Marcela Gurdian, President of Immigration Experts Costa Rica and a leading immigration lawyer, has been a vocal advocate for these reforms. She emphasizes the need for a system that distinguishes between genuine tourists and those who misuse tourist visas to live or work in Costa Rica indefinitely.

“Costa Rica has always been a welcoming destination for foreigners, but the current system allows for exploitation. Many individuals work illegally under the guise of tourism, undermining local businesses and workers. This reform is about fairness and ensuring that those who reside here contribute to the system in a meaningful way.”

Key Components of the Proposed Legislation

The proposed reforms focus on two critical amendments to Costa Rica’s General Law of Migration and Foreigners:

Mandatory Waiting Period for Re-Entry

Articles 33 and 91 of the law would be amended to introduce a mandatory waiting period before individuals can re-enter Costa Rica under the same visa status. This change would effectively eliminate the ability to perform back-to-back Visa Runs, requiring long-term visitors to pursue legal residency options instead.

Increased Penalties for Overstaying

The legislation proposes higher fines for individuals who exceed their authorized stay. These fines would be directed to the General Directorate of Migration and Foreigners (DGME) to fund improvements in immigration services and enforcement.

Legal and Practical Implications for Immigration Professionals

For immigration experts, these reforms underscore the importance of guiding clients toward compliance with Costa Rica’s residency requirements. The proposed changes will likely lead to an increase in applications for temporary and permanent residency, particularly among digital nomads, retirees, and long-term visitors who have historically relied on Visa Runs.

Marcela Gurdian highlights the broader implications for the immigration landscape:

“This reform is not about discouraging tourism or expatriation. Rather, it is about ensuring that those who choose to make Costa Rica their home do so through the proper legal channels. As immigration professionals, our role is to help clients navigate these changes and secure the appropriate visas or residency permits.”

What This Means for Tourists and Expats

For short-term tourists who adhere to the 180-day limit, the reforms will have little impact. However, long-term visitors, including digital nomads and retirees, will need to reassess their strategies for staying in Costa Rica. The proposed waiting period for re-entry will make Visa Runs impractical, necessitating a shift toward formal residency applications.

A Balanced Approach to Immigration Policy

Costa Rica’s proposed reforms reflect a broader effort to balance the country’s open-door policy with the need for sustainable and equitable immigration practices. By addressing the misuse of tourist visas, the government aims to protect local resources, support Costa Rican workers, and maintain the country’s reputation as a welcoming destination for responsible visitors and residents.

Conclusion: Navigating the Changing Landscape

As the legislative process unfolds, immigration professionals will play a critical role in helping clients adapt to the new rules. The proposed reforms represent a significant shift in Costa Rica’s immigration policy, emphasizing compliance, fairness, and sustainability. For those who cherish Costa Rica as a home or destination, understanding and adhering to these changes will be essential.

Marcela Gurdian and the team at Immigration Experts Costa Rica remain committed to providing expert guidance and support as these reforms take shape. For updates and assistance with residency applications, contact our office to schedule a consultation.