Immigration’s Guarantee Deposit Madness!

In recent weeks, we have noticed that the Immigration Department has been asking for additional security deposits from people changing category from temporary residency to permanent residency. This issue has also surfaced in various expat groups, so we wanted to weigh in and explain what is happening.

What Is the Immigration Guarantee Deposit?

So that we are all on the same page, under the Immigration Guarantee Deposit Regulation, the guarantee deposit is the “deposit of money that must be made by a foreign national who is authorized to enter the country.”

This deposit is paid once the Immigration Authority approves a residency or visa request. The amount is intended to be roughly equivalent to the cost of a ticket back to the applicant’s country of origin. The logic behind the deposit is that, if anything were to happen, Immigration would have sufficient funds to cover the foreign national’s return to their home country.

In other words, the guarantee deposit is not simply another government fee. It is a security deposit tied to the person’s immigration status.

Will I Ever Receive the Guarantee Deposit Back?

Yes, it is possible to receive the guarantee deposit back.

Under the applicable regulations, there are several circumstances under which a foreign national may request the reimbursement of the immigration guarantee deposit. For purposes of this post, we will focus on one specific situation: the change of category from temporary residency to permanent residency.

This is where the current issue has become relevant for many residents in Costa Rica.

If I Switch from Temporary Residency to Permanent Residency, Will I Have to Pay It Again?

Over the years, the Immigration Department has generally not required people to make a double payment. In many cases, Immigration simply rolled over the guarantee deposit from the temporary residency file to the permanent residency file.

That, however, is not what appears to be happening now.

Immigration is currently asking some permanent residency applicants to pay a second guarantee deposit and then request reimbursement of the original deposit paid when temporary residency was first approved.

This second payment allows the applicant to move forward with the issuance of the new DIMEX, the local identification card issued to legal residents in Costa Rica. The problem is that obtaining the refund of the original deposit is not easy. In practice, the reimbursement process can take over a year, placing applicants in a complicated and unnecessary position.

Why This Creates a Problem

The issue is not simply that Immigration is asking for money. The issue is that the government already holds a guarantee deposit from the same person.

If the foreign national is not leaving the country, but merely changing from temporary residency to permanent residency, then asking for a second deposit raises a reasonable legal and administrative question: why should the applicant have to pay again and then wait for the government to refund the first deposit?

This creates an avoidable burden for residents who are already going through an immigration process. It also complicates what should be a straightforward administrative transition from one legal category to another.

The Legal Concern

Consequently, on March 18, 2019, Outlier Legal Services filed a motion with the Immigration Department requesting an explanation of the legal nature of this procedure.

Law 8220, the Law for the Reduction of Legal Requirements for Administrative Procedures, compels the government to simplify administrative processes and avoid unnecessary burdens on the public.

Under the hierarchy of laws established in the Costa Rican Constitution, a superior law such as Law 8220 should not be overridden in practice by a regulation in a way that aggravates or complicates an administrative procedure.

In our view, asking permanent residents to pay a second guarantee deposit is an unwarranted and unreasonable request. It goes against the spirit of Law 8220 and should not be justified merely by relying on the Guarantee Deposit Regulation.

The Supreme Court Complaint

Unfortunately, to this day, we have not received a response to our motion. This has forced us to file a complaint before the Supreme Court, urging Immigration to respond and explain its reasoning in a timely manner.

The purpose of the complaint is simple: Immigration should answer the motion and clarify why applicants changing from temporary residency to permanent residency are being required to pay a second guarantee deposit instead of having the original deposit applied to the new category.

Why Expats Should Pay Attention

For expats in Costa Rica, this issue matters because it affects the real cost and timing of moving from temporary residency to permanent residency.

Many foreign residents plan their immigration process carefully. They budget for government fees, legal fees, document preparation, translations, certifications, and DIMEX issuance. Being asked to pay a second guarantee deposit may come as an unexpected additional cost.

More importantly, the refund process is not immediate. If the reimbursement of the original deposit takes months or even more than a year, the applicant is left carrying the financial burden created by an administrative decision that may not be legally justified.

What Happens Next?

Whilst we wait for an answer, we wanted to let expats know that we are doing everything in our power to protect your interests.

We will continue monitoring this situation and will provide updates as soon as we receive news regarding the complaint and Immigration’s response.

Fatima Chacon Immigration Attorney from Outlier Legal collaborated with this post. It was originally published at Outlier Legal