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IMPACT – MEDIUM
What is the change? Costa Rica has implemented a rule that allows some foreign nationals to begin work while their immigration applications are still under consideration.
What does the change mean? Foreign nationals working for accredited companies are among those who are now eligible to begin work while their applications are pending. Transportation workers, business agents, journalists and professionals invited by a government agency, university or college are also eligible.
Background: Non-resident foreign nationals are generally prohibited from working in Costa Rica, even when they have a pending residence permit application. Under an act that took effect Oct. 16, the following categories are exempt and are eligible to begin work upon submitting an application:
To take advantage of the exemptions, employers must register with Costa Rica’s social security fund and abide by Costa Rican wage and labor laws. Foreign workers will only be permitted to conduct activities consistent with those described in their applications; performing other activities could jeopardize their immigration status.
Analysis & Comments: While the change eases work authorization procedures in some cases, the new rule does not apply to all foreign workers. Those who are covered by the new rule, however, will be able to start work as soon as they file their application, rather than having to wait for final approval.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
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