Costa Rica Proposes New Law to Regulate Tourist Visas and Strengthen Immigration Control

Panama and Costa Rica have long been a popular destination for expats, digital nomads, and long-term tourists. However in Costa Rica, a new proposed immigration law seeks to regulate tourist re-entry and strengthen migration control, effectively putting an end to the widely used practice known as the “visa run.”  If approved, this law will prevent indefinite tourist stays, increase fines for overstaying, and enforce stricter re-entry rules.  In this Newsroom Panama article, we’ll break down the key aspects of the proposed law, its intent, and what it means for Costa Rica’s future.

What is the Intent of the Proposed Law?

The proposed law, officially titled “Ley para Regular el Reingreso de Extranjeros en Condición de Turista y Fortalecer la Gestión Migratoria” (Law to Regulate the Re-entry of Foreigners in Tourist Status and Strengthen Immigration Management), seeks to address a practice known as “Visa run.” This is a common tactic where foreigners with tourist status leave Costa Rica temporarily—often to a neighboring country like Nicaragua or Panama—and then re-enter to renew their stay. This allows them to remain in the country indefinitely without obtaining legal residency, bypassing the intent of Costa Rica’s immigration laws. In response, lawmakers have proposed changes to the General Migration and Immigration Law (Law No. 8764) to close this loophole and tighten immigration rules.

The Law Aims To:

• Prevent indefinite stays by tourists: By imposing stricter controls on re-entry, the law seeks to discourage the misuse of tourist visas for long-term stays.
• Mitigate the impact of “permanent tourists”: The law addresses the negative effects of long-term tourists on local communities, including rising housing costs, gentrification, and pressure on local resources.
•  Strengthen immigration enforcement: The law proposes increased fines for overstaying and allocates the revenue from these fines to the General Directorate of Migration and Foreigners to enhance its capabilities.

Key Provisions of the Proposed Law

1) Mandatory 90-Day Exit Before Re-Entry

Tourists cannot re-enter Costa Rica for 90 days after reaching their maximum stay limit. This aims to stop indefinite tourism and encourage those wanting to stay long-term to apply for residency or digital nomad visas.

2) Higher Fines for Overstaying

The new law raises penalties for illegal overstays:

$300 per month for tourists staying beyond their legal period.

$100 per month for other foreigners who overstay.

Failure to pay the fine results in an entry ban equal to three times the overstay period.

3) Exceptions to the 90-Day Exit Rule

Certain foreigners will not be affected by the 90-day re-entry ban, including:
Temporary residents.
Business travelers, journalists, and foreign professionals on official invitations.
Digital nomads working remotely for foreign companies.
Foreigners seeking medical treatment in Costa Rica.

4) Stricter Enforcement Inspired by the Schengen Zone

Costa Rica models this new approach after the Schengen Area rules, where tourists can stay 90 days within a 180-day period. Violators may face entry bans of up to five years, as seen in European immigration policies.

Gentrification

The law acknowledges the negative impact of long-term foreign residents on local communities, particularly in coastal areas, where rising property prices and living costs are displacing local residents.  The proponents of this law in the Legislature is the left-wing political party of Costa Rica known as Frente Amplio (The Broad Front).

According to a study by the Instituto de Estudios Sociales en Población (IDESPO), 86.8% of Costa Ricans believe that foreign residents are appropriating land in coastal areas, and 76.9% think they are driving up property prices. The law aims to mitigate these effects by regulating the indefinite stay of foreigners under tourist status.

What Does This Mean for Tourists and Expats?

For tourists, the proposed law means stricter enforcement of visa rules. If you plan to stay in Costa Rica for an extended period, you’ll need to ensure you comply with the new regulations or risk facing fines and re-entry bans.  For expats and digital nomads, the law’s exclusions for remote workers are good news. If you’re working remotely for a company outside Costa Rica, you won’t be subject to the 90-day re-entry restriction. However, it’s essential to ensure you have the correct visa or residency status to avoid any issues.

Final Thoughts

Costa Rica’s proposed tourist visa reform is designed to curb the misuse of tourist visas, prevent gentrification, and improve migration control. While it may disrupt current travel habits, it ultimately pushes long-term visitors toward legal residency options.  If you’re planning to stay in Costa Rica long-term, now is the time to explore your residency options and ensure compliance with the country’s evolving immigration laws.

Latest Report Has Costa Rica Tourism Continuing to Decline

Tourism in Costa Rica continues to slump, with the country recording a lower number of visitors for the sixth consecutive month, according to the latest data from the Costa Rican Tourism Board (ICT). In February 2025, 270,810 tourists entered the country, a 7% drop compared to the same month in 2024, the ICT reported. This figure falls short of two historical peaks for February—2020, just before pandemic-related border closures, and 2024. The ICT tracks tourism activity solely through air arrivals.  North America and Europe, the two primary sources of tourists to Costa Rica, saw significant declines in February 2025.  Declines were attributed to two main factors: the appreciation of the colón against the dollar, which has made Costa Rica more expensive for foreign visitors, and an ongoing security crisis that has tarnished the country’s appeal as a vacation destination.