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I am an insurance professional for 18 years. I also own some side businesses and have accepted a position in my company far below my experience, but the positive is I have time to focus on other ventures and can work from home. Recently, I broached my desire of raising my family in Costa Rica with my employer (Very Larg US Health Insurer). My employer indicated he would support me continuing to work from home if I chose to work move to Costa Rica. Because my income is significantly above the requirements of a rentista visa, would this be something the government would consider? I believe the income I would be bringing into the country would be consistent and offer some investment in the country. Plus, with the de-regulation of healthcare in Costa Rica, I already have some of the local companies wanting to talk to me due to my experience. Do you think this would work? Who would i contact for more information? Thanks!!!
Don’t talk to the immigration people about “insurance” because it’s EXTREMELY unlikely you’ll get permission to work here in “insurance” which – even though the market has opened up – remains a highly regulated industry but….
As a professional “health care consultant” there shouldn’t be a problem …
Who do you speak with?
An immigration specialist …
Scott
If one [i]’intends to bring income into Costa Rica'[/i] you will require a work visa, surely?
Do as Scott advises.Scott, Shirley, if Robert plans to continue to work for his current U.S. employer while living in Costa Rica, it’s reasonably safe to assume that he’ll do so via the Internet, no? If yes, then it is as arguable that he’s actually working in the U.S. (where his employer enjoys the benefits of his services and where his compensation is paid) as it is that he’s working in Costa Rica, in which case the matter of a work permit is moot. What’s more, who’ll know and how will they find out?
The remaining question in my mind is how he will legally remain here. We know that the noose is tightening around the necks of “perpetual tourists”, so that no longer appears to be a safe long-term strategy. That leaves either [i]rentista[/i] or [i]pensionado[/i] temporary status ’til he’s been here legally long enough to qualify for permanent residency. My guess is that he won’t qualify as a [i]pensionado[/i], so that means he’d have to meet the [i]rentista[/i] requirements including the required cash deposit in the bank.
Or maybe I’m missing something . . .
If it were me I would have the employer deposit the $150K in the bank and draw it off as required over 5 years + any income tax surcharges for such a lump sum payment. Whatever the annual difference is between what is withdrawn vs. salary amount would be direct deposited by them in a US account. Since payment is being made by a US company to a US employee within the borders of the US, the foreign earned income tax deduction would be a hard sell, but you would have to declare your CR bank accounts to the IRS, especially since this is an overt way of getting what you want accomplished.
[b]David[/b], it depends on the reading of the OP question. I looked at this a couple of times before I replied, but something doesn’t sound ‘right’.
If one is intending to ‘bring money in Costa Rica’ and they could apply under ‘Inversionista or Representante’ although they cannot claim spouse and dependents under 18 years of age, meaning they must apply separately or if he is employed by a company in the USA if he can get a work visa. And, of course, he can apply for Rentista and work via the internet….
But as mentioned, this looks like one, that [i]needs an expert[/i] 🙄Robert,
Please allow me to chime in. I highly recommend that you contact, and work with, Javier Zavaleta of http://www.residencyincostarica.com who can guide you through the process and get you on the temporary “Rentista” residency track. He knows this stuff inside and out.
Basically, you will need to meet the requirements of “Rentista” including the bank deposit and accompanying documentation, buying the required amount of colones each month, and not working as an employee of a Costa Rica employeer be it foregin or domestic.
Now, for the foreign earned income exclusion, you will need to meet the specific “tests” to determine your “tax home.” You can find all the information you need here: (http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html)
Amazingly enough, if you truly move to Costa Rica before January 1 of a calendar year, show that you are a resident (temporary is fine), intend to live here permanently, and are still living here on Dec 31st of that year, you should pass the “bona fide residency” test and Costa Rica will be your “tax home.” For 2011 the exclusion amount is up to $92,900 of your earned income. It does not matter that the income is earned from your employment by the US company and is paid to you in the US. If you are living here, and working out of your home, then this is your tax home if you meet the other tests. THe fact that you company has approved your living and working from here will seal the deal. You may want to consult a tax professional, who has experience in this particular field, to make sure you meet all the requirements. Good luck and Pura Vida!
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