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Greetings all, we have been searching the net and this site for a definitive answer as to how much does CAJA cost? I have read that it is based on income, but I CAN’T seem to find the percentage that is used. I saw 13% but that seems high ….if for example you have a 3000 a month pension do you pay $390 a month? Is that for a couple?
TIA
[quote=”ratus”]Greetings all, we have been searching the net and this site for a definitive answer as to how much does CAJA cost? I have read that it is based on income, but I CAN’T seem to find the percentage that is used. I saw 13% but that seems high ….if for example you have a 3000 a month pension do you pay $390 a month? Is that for a couple?
TIA[/quote]Ratus – Sorry, I can’t give you a definitive answer because from what I can tell the amount they charge is (a) either somewhat arbitrary, or (b) changes every so often with new regulations or interpretation of existing regulations.
Our total amount for the two of us is about 6.1% of the amount detailed in my Social Security benefits letter, but I have a cadre of friends that I have discussed this with and we have determined that some are as low as 4.5% and others that are as high as 7.5%.
What I can tell you, assuming you are applying for residency and the CAJA as a pensionado, is that you want to prove that you meet the $1,000/month requirement with the lowest amount required. What I am trying to say is if you have 2 or more pensions, only use the lowest one that meets the requirement when you submit your documents for residency. Say you have a company pension of $1,900/month and Social Security benefits of $1,100/month, then only submit the $1,100/month benefits letter from Social Security.
As I understand it, the Migracion attorneys used to write the “Resolution” stating that you met the monthly requirement for residency requirements, but now they actually state the amount that you will be receiving as shown in whatever documentation you provide to Migracion, and that is the amount that CAJA will use to calculate your monthly fee.
Another consideration – only one spouse need actually apply for residency and the other spouse can “coat tail” on the spouse that is applying, so if you are married and your spouse gets has a retirement and/or Social Security and it is less than yours but still above $1,000, then use that retirement benefit document as the basis for your application.
Again, sorry to not answer your specific question, but maybe this will help.
Thanks for the reply…..hhmmmm, need to come up with a new plan. We have 1 pension in one name, that pension is 3000 a month.
[quote=”ratus”]Thanks for the reply…..hhmmmm, need to come up with a new plan. We have 1 pension in one name, that pension is 3000 a month.[/quote]
Good luck – I don’t know how you will get around that one! Be creative!
[quote=”ratus”]Thanks for the reply…..hhmmmm, need to come up with a new plan. We have 1 pension in one name, that pension is 3000 a month.
If you are eligible for Social Security use only that document for both of you. You get that notarized at the US Embassy San José at the Social Security Section. It took me 20 minutes in October with my appointment. Full information is on the Embassy website under benefits. If you are already drawing your monthly payout from SSA, you still will be to get your official letter at the Embassy. The letter they send you for your award in the States will not do it. It is not what the Costa Rica government requires. I hope you both are able to substitute you Social Security payout for the current pension. Also, have you thought to ask your pension fund to give you an a notarized award letter for just the amount you need for two people? That should be that difficult for them to do that for you I would think.
[quote=”Cancertomnpdx”][quote=”ratus”]Thanks for the reply…..hhmmmm, need to come up with a new plan. We have 1 pension in one name, that pension is 3000 a month.
If you are eligible for Social Security use only that document for both of you. You get that notarized at the US Embassy San José at the Social Security Section. It took me 20 minutes in October with my appointment. Full information is on the Embassy website under benefits. If you are already drawing your monthly payout from SSA, you still will be to get your official letter at the Embassy. The letter they send you for your award in the States will not do it. It is not what the Costa Rica government requires. I hope you both are able to substitute you Social Security payout for the current pension. Also, have you thought to ask your pension fund to give you an a notarized award letter for just the amount you need for two people? That should be that difficult for them to do that for you I would think.[/quote]
We are Canadian and are 8 years away from any government pension. The pension letter we have also states the pension benefit before taxes, gawd i hope they DON’T base the premium on that.
[quote=”Cancertomnpdx”]
………. If you are already drawing your monthly payout from SSA, you still will be to get your official letter at the Embassy. The letter they send you for your award in the States will not do it. It is not what the Costa Rica government requires………[/quote]When I submitted my documents for residency 3 years ago I included the regular benefits “form letter” from the US SSA stating that I was eligible to apply for SSA and what the monthly amount would be. At the time, that letter was 3 years old. It was accepted by the Consul in DC and Migracion in San Jose.
Has something changed?
It seems to be correct, 12-13% of your declared pension. And yes, it is expensive, especially as you may decide not to use this system.
ARCR used to offer a group rate, but CAJA have not approved/agreed to a ‘new group’ for recent applicants. and personally, I don’t expect they will now that every new resident [u]must[/u] sign up prior to receiving and renewing their [i]cedula[/i][quote=”costaricafinca”]It seems to be correct, 12-13% of your declared pension. And yes, it is expensive.
HOWEVER, if you consider the Costarican worker who has paid the required percentage amount for his/her whole working life…you will only be paying during your retirement years,an amount calculated from your pension, which I assume is less than your earnings during your working years, it seems rather unfair to try to ‘get around’ paying the appropriate amount.[quote=”anneliseped”][quote=”costaricafinca”]It seems to be correct, 12-13% of your declared pension. And yes, it is expensive.
HOWEVER, if you consider the Costarican worker who has paid the required percentage amount for his/her whole working life…you will only be paying during your retirement years,an amount calculated from your pension, which I assume is less than your earnings during your working years, it seems rather unfair to try to ‘get around’ paying the appropriate amount.[/quote]Big difference is that an expat with a $3k/month pension from the US that’s required to now pay $390/month into CAJA ALSO paid into Medicare his or her working life back in the US. Chances are that a retired expat in this situation will pay more in a few short years than an average Tico has paid during their working years. Also consider that in retirement chances are that NO Child coverage is offered. Not really a fair or reasonable system.
It seems that such a system based on a percentage of retirement income will discourage more affluent retirees from relocating to CR. That opens a whole other issue of job creation and money coming into CR.
An interesting question…. how does CAJA price it’s services to those expats that obtain residency through the other two methods of obtaining it?
Once again CR very well might be shooting itself in the foot on it’s desire to attract retirees and wealth to it’s shores!
Perhaps next year’s elections here in CR will find the country with a leader who has experience in business and business growth steps. Such a leader might recognize that CR is indeed “shooting itself in the foot” when dealing with expats.
I have a 3k a month retirement. Does that mean I will have to pay $340 a month for CAJA. Is their an alternative plan. Also I was told by a Costa Rica lawyer that all my documents to apply for a pnsionada residency would have to be certified in U.S.
CAJA will use this percentage of your declared pension that [u]you will have to provide[/u] when your application is made, to come up with your monthly fee for service.
If you were applying for [i]Rentista[/i] who is required to deposit funds, $60K and then $2500 is transferred into your ‘living expense account’ each month, then the ‘percentage’ would be of the $2500.
ARCR is still trying to get new group rates, but I wouldn’t hold your breath…[quote=”costaricafinca”]CAJA will use this percentage of your declared pension that [u]you will have to provide[/u] when your application is made, to come up with your monthly fee for service.
If you were applying for [i]Rentista[/i] who is required to deposit funds, $60K and then $2500 is transferred into your ‘living expense account’ each month, then the ‘percentage’ would be of the $2500.
ARCR is still trying to get new group rates, but I wouldn’t hold your breath…[/quote]Can anyone confirm this recently having been through this process? And if so has CAJA been assessing a 13% monthly fee on the required $2500 transfer to join the plan as is now required for residency?
The question still remains as to how CAJA is addressing the “investor” residency status and what monthly fee they charge there.
Perhaps Scott can have one of his contacts write an article clarifying the issue since many folks with sizable retirement income may balk at being required to join a medical plan they have no intention of using and paying $400/month as part of a residency application.
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