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New Law Targets Visa Runs in Costa Rica
The Potential Impact of the Bill Regulating Tourist Re-Entry in Costa Rica
The Costa Rican government is working on a new draft law (Expediente 24.854) that could soon put the brakes on the well-known practice of “visa runs” — those quick trips out of the country just to come back in as a fresh tourist, no legal residency required.
Are the Rules Changing for Tourists?
Maybe you’ve already heard it through groups, maybe a friend has told you, or you’ve read a post with lots of question marks, “Are the rules changing for tourists?” The answer is yes, it’s being seriously discussed. Bill number 24,854 proposes a number of changes that would directly affect those who use the strategy known as the “visa run.”
Let’s explain briefly and clearly what that means, why the bill came about, what it proposes and who it affects. No drama, no panic. Just pure information so you know where you stand.
The real purpose of the tourist visa
What is “visa run” and why is it considered a problem?
New Law Targets Visa Runs in Costa Rica
Background and motivations
Many foreigners who love Costa Rica, but have not obtained a residency status, choose a fairly well-known method to stay legally in the country:
Temporarily leaving the country (to Panama, Nicaragua or even back home), followed by returning as a tourist, again obtaining the 180 days of residency.
This practice has become so popular that agencies and groups specializing in “visa run” tours have even sprung up. It’s not illegal in itself, but it has become a way to get around residency requirements – and that’s attracting the attention of the authorities.
“Permanent” tourists find the advantage of a longer period before having to cross the border.
The proposed law aims to eliminate the practice of “visa runs”, whereby foreigners with tourist status renew their stay every time they come close to the expiry of their visa by temporarily leaving the country.
In practical terms, the “visa run” allows some tourists to remain virtually long-term without official residence.
A recent amendment (decree of August 31, 2023) extended the legal stay to 180 days per year.
But legislative documents show that, although it was intended to discourage the practice, the facility has even been perceived as an incentive – “permanent” tourists find the advantage of a longer period before having to cross the border.
The government claims that this creates a “legal vacuum” because these permanent tourists:
are not subject to the same checks as residents;
do not formally contribute to the tax or health system;
may become legally vulnerable in the absence of a clear status
The real purpose of a tourist visa?
To visit, enjoy the sights and leave.
What actually happens?
Many use it to live here permanently, without tax contributions or stable legal status.
The consequence of these extended stays
What effect does the “visa run” have on communities in Costa Rica?
Beyond legal status, the visa run has real consequences on the ground
No clear rules = social and economic imbalance.
🏘️ Rising rents and house prices
Foreigners who stay here “long-term” as tourists can pay more, leading to a general rise in the real estate market – especially in tourist areas (Jacó, Uvita, Quepos, etc.). Locals can’t keep up.
📈 Gentrification = changing community structure
Affordable areas are slowly becoming ‘expat’ places, where small local businesses are disappearing and ‘international’ restaurants and services are popping up, but without local roots.
The original population is often marginalized or forced to leave due to high costs.
📊 A recent study (IDESPO - UNA, 2025) says:
- 86.8% of Costa Ricans think foreigners are grabbing land in coastal areas;
- 76.9% say they are making property more expensive;
- 66% feel life is getting more expensive for locals.
🚨 The problem is not that tourists are coming.
The problem is the lack of clear rules to differentiate between a short-term visitor and someone who lives here for years, but without legal residency and without real contributions.
The consequence of these extended stays is evident in some regions, pushing up real estate prices and rents
The Schengen area
How do other countries treat the visa run?
Strengthening control of tourism migration and protecting local communities
The bill, initiated by MPs from the leftist Frente Amplio party, proposes that:
- Once the authorized stay expires, tourists may not return to the country for at least 90 days,
- as well as tougher fines for irregular stay (from 100 USD to 300 USD per month for tourists).
All fines collected would go to the Directorate General for Migration to strengthen its administrative capacity.
The initiative is partly inspired by the Schengen area model, where tourists can stay for a maximum of 90 days in a 180-day period, and there are severe penalties for breaking this rule (bans on return of up to 5 years, deportation, having their passport marked as “illegal immigrant”, etc.).
The stated aim is thus to strengthen control of tourist migration and protect local communities from the negative effects of overstaying.
The countries of the Schengen area (29 European countries without border controls between them) have learned the hard way what “permanent tourism” means. That is why they have imposed strict rules and clear sanctions.
- You can stay a maximum of 90 days in a 180-day period. After that, you have to leave the area and stay out long enough to comply with the rule.
🚫 If you break the rule:
- You risk a re-entry ban of up to 5 years
- Your passport can get an illegal immigrant “seal”
- The information ends up in common databases of all Schengen countries
- Even a new passport won’t get you out of the ban
💡 Conclusion?
- There, you can’t “bypass the system” by going out and coming back in every few days. The rules are clear, and compliance is digitally and seriously followed.
👉 It is precisely for this reason that the proposed Costa Rican law wants to introduce stricter and more consistent control, partly inspired by these models. The aim is not to “scare” tourists, but to prevent abuse and maintain a balance between visitors and permanent residents
The law does NOT apply to all foreigners
Who is excluded from the rapid re-entry ban?
The law does NOT apply to all foreigners. There are clear categories of people who are exempt, because they come to Costa Rica for well-defined and temporary purposes. Here is who they are:
Special categories of visitors (Article 87 of the General Migration Act):
– Invited professionals (researchers, doctors, artists, etc.)
Invited by the state or public/private institutions, universities, NGOs, for activities of special interest. They do not have to reside permanently in the country and are not paid in Costa Rica.
– Journalists, cameramen and media crews
They come for press activities and do not receive local salaries.
– Commercial agents or delegates
They come to do business for their companies from abroad, without actually working here or being paid locally.
– People in medical treatment
Who come for procedures or treatments in recognized clinics/hospitals.
– Digital nomads
Who work remotely for companies outside Costa Rica. (Note: they must not have local clients or employers)
– Persons in transit:
Short transit (max. 48 hours) between borders
International transportation staff (drivers, sailors, crews
✅ Temporary Residents
Those who already have a legal temporary resident status (e.g. pensioners, investors, students, etc.) can enter and leave without any problems, they are not affected by this law.
🟢 Why are they exempt?
- No intention to stay long-term
- No pressure on local resources
- No internal economic activity (not taking jobs or services from locals)
👉 Conclusion:
The law does not target “occasional” visitors or those who come with a clear and temporary purpose, but those who practically live in Costa Rica without changing their migratory status and without a clear contribution to the system.
humanitarian aid and migration security
Fines and use of collected funds
What is happening now?
Under the current law (Law 8764), an alien who:
- overstays the legal period of stay (e.g. stays more than 90 days without residency)
- or violates other legal conditions of stay,
may pay an administrative fine when leaving the country. This is 100 USD for each month of illegal stay.
What does the new law propose?
The draft provides that:
- The payment of these fines becomes a mandatory condition in order to legally return to Costa Rica.
- If you fail to pay the fine, you will be prevented from re-entering the country.
In other words: “Want to return as a tourist? Pay the fine for your previous illegal stay.”
Problem?
Fines are rarely enforced. Officials often don’t charge them, and many foreigners leave the country and return without paying them.
What happens to the money collected?
Here comes the interesting part, the funds from the fines will not go to the general state budget, but will be directed as follows:
supporting vulnerable migrants
- Reception centers
- Food and accommodation
- Legal assistance
- Voluntary transportation to country of origin
combating trafficking in human beings
- Funding investigation teams
- Assistance for victims of trafficking
strengthening migration control
- Technology
- Additional staff
- Infrastructure for border checks
The short conclusion
- An already existing fine (100 USD/month of illegal stay) will be more strictly enforced
- No fine → no entry
- The money does not get stuck in the system, but goes to humanitarian aid and migration security
The DGME is responsible for implementing
Application, authority and entry into force
Here comes the interesting part, the funds from the fines will not go to the general state budget, but will be directed as follows:
Who enforces and manages this law?
The law strengthens the role of the Directorate-General for Migration and Aliens (DGME), which remains the authority responsible for:
- enforcing entry bans
- collecting fines
- coordinating with border police and other authorities
- managing funds collected from fines
🔹 DGME is basically the “executive arm” of the law.
How will it apply?
A specific regulation will be drafted after the adoption of the law. This regulation will establish:
- the concrete procedures for calculating and enforcing fines
- how the affected persons will be informed
- what steps need to be followed in order to pay the fine and re-enter the country
🔸 Until this regulation is in place, the law cannot be fully implemented.
When does it enter into force?
The draft law provides that:
“This law enters into force on the date of publication in the Official Gazette (La Gaceta)”.
💡 So there is no need for a transition period, but the actual enforcement will depend on the implementing regulation, which may take several months.
The short conclusion
- DGME has implementation responsibility
- Implementing regulation to be created
- Law becomes active after publication, but not 100% immediately applicable without regulation
Who enforces and manages this law?
Advantages and disadvantages of the draft law
The main pros and cons of the project are summarized below, structured by relevant categories:
Immigration Control
Advantage (Pro)
It strengthens migration control by discouraging unlimited tourist stays.- Much higher fines (300 USD/month) for illegal stay increase the deterrent effect and generate additional resources for DGME.
Disadvantages (Cons)
Increases administrative workload for authorities; uniform enforcement may be difficult if DGME capacity remains insufficient.
(But the law proposes that resources from fines be used precisely to strengthen DGME.)
Tourism and economy
Advantage (Pro)
Clarifies the status of long-term tourists: those wishing to stay will be encouraged to apply for temporary residence or work/digital-nomad visa.
Additional revenue to state budget from fines (earmarked for investment in migration control).
Disadvantages (Cons)
Risk of reduced tourism activity: frequent tourists (“snowbirds”, travel professionals, etc.) may be discouraged from returning to Costa Rica frequently, reducing their spending locally.
For example, one commentary notes that an international celebrity visiting the country several times a year would have to spend their money elsewhere.
The total economic impact of restricting return visits is likely to prove modest compared to more important factors (e.g. the boom in tourist rentals).
Real estate / housing markets
Advantage (Pro)
May slightly alleviate the pressure of speculative demand in the real estate market in tourist areas (fewer “permanent tourists” looking for properties).
Contributes to maintaining housing affordability for Costa Ricans by limiting coastal urban gentrification.
Disadvantages (Cons)
The draft does not tackle the real causes of rising house prices: the boom in short-term rentals (Airbnb, etc.) remains unregulated. Its effect on the real estate market is possibly minor: some “permanent” foreign buyers might give up speculative purchases, but the affected segment is small.
House prices would continue to be largely determined by foreign capital inflows and short-term demand.
Local communities
Advantage (Pro)
It can alleviate the pressure on local resources and infrastructure mentioned in the explanatory memorandum: reducing the demand for temporary rentals and the influence of foreigners on the real estate market.
In practical terms, limiting permanent residence could protect Costa Ricans’ access to housing and basic services.
Disadvantages (Cons)
The law can fuel resentment and xenophobic discussions if the issue is presented simplistically. Social media analysis shows an increase in scapegoating of foreigners on networks, with many Costa Ricans blaming “permanent tourists” for rising prices and job losses.
In reality, many long-term tourists are retirees or digital nomads who are not competing for local jobs; but public perceptions may be exacerbated.
Thus, the law risks diverting attention away from structural problems (e.g. insufficient real estate regulation) and creating community tensions.
International attractiveness
Aligning with international standards (Schengen model 90/180 days) could strengthen the image of a country that rigorously enforces its migration laws. Through clear sanctions, Costa Rica sends a signal that it respects global criteria for orderly migration.
The analysis is based on official legislative texts and specialized press reports.
Conclusion! Further implications
The law excludes several categories of foreigners from the 90-day restriction – e.g. temporary residents, visiting professionals or digital nomads, journalists, persons under medical treatment, etc.
Thus, the measure applies in particular to occasional tourists trying to become “permanent”.
A repeated recommendation by analysts is that authorities should be careful about the clarity of the wording: the proposal uses the “maximum legal stay ceiling” as a reference point, which in practice can be confusing (e.g. tourists with stays of 30 days should stay 90 days out before returning).
There may also be constitutional or civil law challenges – one question raised by commentators is how the law would affect Costa Rican citizens married to foreigners who come as tourists, as family law is a core constitutional principle.
In conclusion, the bill targets real problems (unlimited stays and gentrification effects) and proposes clear solutions (90-day ban, higher fines).
Benefits would be increased migration control, additional revenue for DGME and protection of local habitats.
On the other hand, disadvantages include the possible negative impact on return tourism, the effective limitation of the local seasonal economy and the risk of over-penalizing harmless visitors without addressing the root causes of price increases (short-term tourist rentals).
In any case, any finalization of the law will need to be carefully calibrated and implemented gradually to avoid undesirable side effects and to avoid fuelling social discontent.
The analysis is based on official legislative texts and specialized press reports.
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