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has anyone out there set up a bank account in cr before physically moving? what is the best bank and what type of account brings you the best interest?
thanks.doug
We established an account at [i]Banco Nacional[/i] prior to making our final move to Costa Rica in 2005. Since then, documentation requirements and other bureaucratic hoops have made the process more convoluted, but it can still be done.
None of the banks will pay you squat on your deposits, so don’t let that govern your thinking.
Were it mine to do, I’d go for convenience to wherever I’ll be settling. In Grecia, [i]Banco Nacional[/i] is typically a nightmare of long, long waits. By contrast, Grecia’s HSBC branch rarely has three people standing in line. Where do you suppose we bank?
You can use a [i]Banco Nacional, BCR,[/i] HSBC or other debit card in any Costa Rican ATM.
The nationally chartered banks and the private banks are all stable. While I wouldn’t deposit my entire life’s savings in any of them, I’d spread it around in the U.S., too.
The HIRE act takes effect Jan 1, 2011, and changes everything
HR 2847-27
TITLE V—OFFSET PROVISIONS
Subtitle A—Foreign Account Tax
Compliance
PART I—INCREASED DISCLOSURE OF
BENEFICIAL OWNERS
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.
(a) IN GENERAL.—The Internal Revenue Code of 1986 is
amended by inserting after chapter 3 the following new chapter:
‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON
CERTAIN FOREIGN ACCOUNTS[quote=”hasselwander”]The HIRE act takes effect Jan 1, 2011, and changes everything
HR 2847-27
TITLE V—OFFSET PROVISIONS
Subtitle A—Foreign Account Tax
Compliance
PART I—INCREASED DISCLOSURE OF
BENEFICIAL OWNERS
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.
(a) IN GENERAL.—The Internal Revenue Code of 1986 is
amended by inserting after chapter 3 the following new chapter:
‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON
CERTAIN FOREIGN ACCOUNTS[/quote]it doesn’t sound good although i’m a little confused. could you elaborate or explain for a layman, please.
thanks.doug
Hmmm . . . My layman’s reading of this explanation of the HIRE Act reflects that foreign bank accounts the value of which, taken together, are $50,000 or greater must be reported. Unless one were building quite a house, I would guess that most expats in Costa Rica wouldn’t see that great a balance at any one time.
Nor do I see what in the Act makes it more difficult for an American who is not yet resident in Costa Rica to open a bank account at a domestic bank here.
Regardless of the impact of the HIRE Act, expats living in Costa Rica will do well to establish bank accounts in-country, so we/they might as well face the music and get it over with.
As with all government legislation, I am again disgusted that IRS driven increased reporting and enforcement requirements got into a HIRE Act when it has nothing to do with creating jobs for Americans?
We published articles about this in March 2010
Congress Enacts Obama’s Anti-Offshore Jobs Bill at [ https://www.welovecostarica.com/members/Congress_Enacts_Obamas_AntiOffshore_Jobs_Bill.cfm ]
Secret Treasury Agency Wants to RETROACTIVELY Expand Offshore Reporting Requirements – Part I at [ https://www.welovecostarica.com/members/Secret_Treasury_Agency_Wants_to_RETROACTIVELY_Expand_Offshore_Reporting_Requirements__Part_I.cfm ]
Secret Treasury Agency Wants to RETROACTIVELY Expand Offshore Reporting Requirements – Part II at [ https://www.welovecostarica.com/members/Secret_Treasury_Agency_Wants_to_RETROACTIVELY_Expand_Offshore_Reporting_Requirements__Part_II.cfm ]
Scott
One important thing you will need to be present in Costa Rica to open the bank account.
The State banks your deposits are insured by the Costa Rica Govt.
Your funds will not be insured by the private banks.Whatever you if you open an account with Banco Nacional is not leave Costa Rica without a ficha (token). I spent two days getting my account setup so when I was asked if I wanted a ficha I thought they were talking about a token for the Madrid streetcars! Dumb Tom! If you leave Costa Rica without a ficha you will not be able to add accounts for bill payment without one outside of Costa Rica. Every time I pay my gardener or put money into my personal account I get hit $30 a pop from my credit union when for about 6,000 and a “yes” to the question, I would have cough up $30 every time I pay my gardener!
Now I must wait until June before I can get my ficha!
Later,
Tom
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