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My husband has just returned from paying our CAJA at the local office and it went up this month by $7, so [i]possibly [/i]all of us, citizens and expats alike, will see the payments rise. Others who have also affiliated on their own, directly with CAJA, have also reported $8 and $10 a month increase
[quote=”costaricafinca”]My husband has just returned from paying our CAJA at the local office and it went up this month by $7, so [i]possibly [/i]all of us, citizens and expats alike, will see the payments rise. Others who have also affiliated on their own, directly with CAJA, have also reported $8 and $10 a month increase[/quote]
Like everything else we are seeing inflation in CAJA. The wife’s went from 16,000 to 23,000 and mine went from 42,000 to 49,000.
Once government gets their hand in your pocket… it never comes out…. it only goes deeper!
The new requirement of CAJA enrollment for expats seeking residency takes on a whole new meaning. Besides the apparent approximately 10% charge on your declared pension income for CAJA it seems your retirement income (which for many is fixed) will now be eaten away by possible annual CAJA increases.
This CAJA issue is becoming a real game changer!
Last year the fees also went up, and this year it [i]seems[/i] to have risen 17% of the declared ‘income’ according to other posted increases.
[quote=”costaricafinca”]Last year the fees also went up, and this year it [i]seems[/i] to have risen 17% of the declared ‘income’ according to other posted increases.[/quote]
It makes you wonder if residency is really worth it! I had original planned on applying when I retired and wanted to spend more time in CR. After the recent change of REQUIRED CAJA enrollment and the subsequent 10% (approx) monthly fee of declared retirement income, I’d be foolish to do so. The cost would cover a lot of trips back to the states as well as other travel.
I’m lucky enough to have paid health insurance in the US. I might consider an international major medical plan for time spent in CR and pay minor medical needs out of pocket. Does anyone have any experience with international plans? Cost and coverage in CR is what I’m interested in.
According to Randall Zamora our resident Costa Rica Tax Expert
“The official percentages applied to the reported monthly income go from 10.5% to 18.5%, so in order to reach a $1000 monthly CAJA payment the reported monthly income should be between $5405 to $9523.”
Why anybody would be voluntarily declare that kind of income is beyond me but there ya go …
If someone was to do that in other, less-secure countries your wife would be kidnapped 2 hours later …
Scott
Scott, do you know what percentage someone, who has applied as an Investor, by way of purchasing a house would be?
[quote=”costaricafinca”]Scott, do you know what percentage someone, who has applied as an Investor, by way of purchasing a house would be?[/quote]
Although I could have qualified as an investor I chose to become a pensioner.
What I pay into CAJA is still under 6% of my income. Although I can not quote rates I do know that private insurance is much more expensive.We have been totally satisfied with CAJA hospitalization and services.
[quote=”waggoner41″][quote=”costaricafinca”]Scott, do you know what percentage someone, who has applied as an Investor, by way of purchasing a house would be?[/quote]
Although I could have qualified as an investor I chose to become a pensioner.
What I pay into CAJA is still under 6% of my income. Although I can not quote rates I do know that private insurance is much more expensive.We have been totally satisfied with CAJA hospitalization and services.[/quote]
If I’m not mistaken you obtained your residency prior to the new rules being put in place. Can you confirm that? I know the ARCR use to have a pretty good deal for CAJA participation prior to the change in the law as well but I don’t believe that is available any longer either.
Some up to date current info on what residency applicants are being charged NOW for CAJA would be very helpful. I have a big problem paying a precentage of my income for a service (insurance) which is not normally based on such. My home, auto, health, and life insurance premiums are based on risk…. not on how much I earn. If CR is basing it on a percentage of income I see it as a tax… so let’s call it what it is! At least then we’d get the foreign tax credit on our US tax returns!
And for folks that think you’ve beaten the system by only declaring the minimum needed for residency (for example just your SS income) and not included other income sources (such as a pension) you can bet the next step CR will take is requesting your US tax return information. Don’t think for a minute it can’t happen. The information agreements that Uncle Sam forced on the world’s governments to collect taxes and find out what you have and where will become a two way information exchange with CR and any country you’re residing in wanting to know just how much you earn in total…. and they will seek their share! Even if Uncle Sam doesn’t provide it to CR, how many folks will be comfortable being told they must provide tax return information on total income as part of a residency application or renewal?
I see this CAJA issue as the start of a bigger problem. Opinions welcomed!
Yes, we are now Permanent residents but have been personally asked many time by potential residents [i]”what will we need to pay per month, if we apply under the Investor status, by purchasing a house valued at over $200K”.[/i] I would like to be able to answer their questions, to whether they would be better off financially applying under another status if they were able to do so.
In regards to long term residents paying a lower rate, and now paying ‘catch up’: someone I know was granted Temporary Residency in Dec 2013, and paid his first payment to CAJA, then this week, his second payment had risen by 17%.His payment was increased, just like others as of 1st January, who were told it was due to ‘costs going up’.
Last year, the increase took place in January, but other years the months varied.[quote=”sweikert925″][quote=”costaricafinca”]..his second payment had risen by 17%.[/quote]
Wasn’t he given a reason as to why the assessment had increased? And do changes on CAJA asssessments occur on a fixed schedule, i.e., every January or do they happen at random times of the year?
[/quote]It seems not much with this mandatory CAJA participation is written in stone. The rates people pay seem to vary on a case to case basis. And it looks like expats are being hit with some rather large increases…. far above that which CR citizens are being asked to pay. And it seems there is no clear information provided by the government for folks considering applying for residency. To go through the trouble and the expense of applying only to be hit with a major tax clothed as “insurance” makes no sense to me! The advantages to residency are far out weighed by the cost, at least in my case and opinion.
While I saw the ability to join CAJA (for basic medical care) if you wished under the former residency laws as a positive (it was at a reasonable rate)…. I see the new rules as a BIG negative and will not be doing so as a pensioner or investor.
There needs to be some clarification and reasonableness applied to this situation. I’m not looking for the good folks running the CR government to start treating me like a money tree… that game has already been tried and I’m not playing.
[quote=”waggoner41″][quote=”costaricafinca”]My husband has just returned from paying our CAJA at the local office and it went up this month by $7, so [i]possibly [/i]all of us, citizens and expats alike, will see the payments rise. Others who have also affiliated on their own, directly with CAJA, have also reported $8 and $10 a month increase[/quote]
Like everything else we are seeing inflation in CAJA. The wife’s went from 16,000 to 23,000 and mine went from 42,000 to 49,000.[/quote]
A 43% increase in your wife’s case is a tab more than “inflation”…. even in Costa Rica! Something else is in play here and you might want to be a bit less accepting and try to find out what is going on before this gets worse.
[quote=”Imxploring”] If I’m not mistaken you obtained your residency prior to the new rules being put in place. Can you confirm that? I know the ARCR use to have a pretty good deal for CAJA participation prior to the change in the law as well but I don’t believe that is available any longer either.[/quote]
We applied for residency in August 2008 and I finally obtained my cedula in September 2009. However, I was able to join CAJA in April 2009.
I have what I have and am satisfied with it.[quote=”Imxploring”] Some up to date current info on what residency applicants are being charged NOW for CAJA would be very helpful. I have a big problem paying a precentage of my income for a service (insurance) which is not normally based on such. My home, auto, health, and life insurance premiums are based on risk…. not on how much I earn. If CR is basing it on a percentage of income I see it as a tax… so let’s call it what it is! At least then we’d get the foreign tax credit on our US tax returns![/quote]
Since it is government provided program I have always seen the charge for CAJA as a tax. My income is not so high that I need to worry about nickel and diming on my tax return. In addition I did not move to Costa Rica to enrich myself. I moved here to enjoy the beautiful country and the temperament of the locals.
However, I don’t see it as based on income because what we pay is all over the board compared to income. It seems to be based on some incomprehensible arbitrary decisions made by the CAJA itself. While my cost is just under 6% of income my wife is paying 3% of her income.
The Tico living in house is seeing his employer paying more for his CAJA too so it appears to be the normal result of inflation.
I have no idea whether new residents are paying more for their CAJA than we did when we arrived. I’m sure that some of the more recent residents will be willing to share what percentage of income CAJA is charging them. We will have to wait for their input.[quote=”Imxploring”] And for folks that think you’ve beaten the system by only declaring the minimum needed for residency (for example just your SS income) and not included other income sources (such as a pension) you can bet the next step CR will take is requesting your US tax return information. [/quote]
I claimed all of my income, my pension as well as our Social Security, even though it exceeded the required $1,000 by multiples and I am willing to provide Costa Rica with my tax returns if they ask for them. If you are so worried about the cost you should forget about the CAJA and purchase private insurance.
[quote=”Imxploring”] Don’t think for a minute it can’t happen. The information agreements that Uncle Sam forced on the world’s governments to collect taxes and find out what you have and where will become a two way information exchange with CR and any country you’re residing in wanting to know just how much you earn in total…. and they will seek their share! Even if Uncle Sam doesn’t provide it to CR, how many folks will be comfortable being told they must provide tax return information on total income as part of a residency application or renewal?
The last thing I am going to do is worry about what policies any idiot government is going to enact.
[quote=”Imxploring”] I see this CAJA issue as the start of a bigger problem. Opinions welcomed![/quote]
1 – If your income is so high that you need to worry about what you pay in taxes you certainly don’t need the benefit of the lower cost of living here.
2 – Spending your time worrying about what the government may do is a waste of time and not good for your health.
3 – If you can’t enjoy Costa Rica on the basis of what we have here don’t live here.[quote=”waggoner41″][quote=”Imxploring”] If I’m not mistaken you obtained your residency prior to the new rules being put in place. Can you confirm that? I know the ARCR use to have a pretty good deal for CAJA participation prior to the change in the law as well but I don’t believe that is available any longer either.[/quote]
We applied for residency in August 2008 and I finally obtained my cedula in September 2009. However, I was able to join CAJA in April 2009.
I have what I have and am satisfied with it.[quote=”Imxploring”] Some up to date current info on what residency applicants are being charged NOW for CAJA would be very helpful. I have a big problem paying a precentage of my income for a service (insurance) which is not normally based on such. My home, auto, health, and life insurance premiums are based on risk…. not on how much I earn. If CR is basing it on a percentage of income I see it as a tax… so let’s call it what it is! At least then we’d get the foreign tax credit on our US tax returns![/quote]
Since it is government provided program I have always seen the charge for CAJA as a tax. My income is not so high that I need to worry about nickel and diming on my tax return. In addition I did not move to Costa Rica to enrich myself. I moved here to enjoy the beautiful country and the temperament of the locals.
However, I don’t see it as based on income because what we pay is all over the board compared to income. It seems to be based on some incomprehensible arbitrary decisions made by the CAJA itself. While my cost is just under 6% of income my wife is paying 3% of her income.
The Tico living in house is seeing his employer paying more for his CAJA too so it appears to be the normal result of inflation.
I have no idea whether new residents are paying more for their CAJA than we did when we arrived. I’m sure that some of the more recent residents will be willing to share what percentage of income CAJA is charging them. We will have to wait for their input.[quote=”Imxploring”] And for folks that think you’ve beaten the system by only declaring the minimum needed for residency (for example just your SS income) and not included other income sources (such as a pension) you can bet the next step CR will take is requesting your US tax return information. [/quote]
I claimed all of my income, my pension as well as our Social Security, even though it exceeded the required $1,000 by multiples and I am willing to provide Costa Rica with my tax returns if they ask for them. If you are so worried about the cost you should forget about the CAJA and purchase private insurance.
[quote=”Imxploring”] Don’t think for a minute it can’t happen. The information agreements that Uncle Sam forced on the world’s governments to collect taxes and find out what you have and where will become a two way information exchange with CR and any country you’re residing in wanting to know just how much you earn in total…. and they will seek their share! Even if Uncle Sam doesn’t provide it to CR, how many folks will be comfortable being told they must provide tax return information on total income as part of a residency application or renewal?
The last thing I am going to do is worry about what policies any idiot government is going to enact.
[quote=”Imxploring”] I see this CAJA issue as the start of a bigger problem. Opinions welcomed![/quote]
1 – If your income is so high that you need to worry about what you pay in taxes you certainly don’t need the benefit of the lower cost of living here.
2 – Spending your time worrying about what the government may do is a waste of time and not good for your health.
3 – If you can’t enjoy Costa Rica on the basis of what we have here don’t live here.
[/quote]Sorry if I stuck a nerve that was not my intention. I am sorry if I have done so.
You apparently were able to obtain residency under the old rules and as such are not currently being fleeced to the degree that current applicants are. No doubt the increases you have been hit with are a slow attempt to equalize that difference since they seem to well exceed the current rate of inflation. This should concern you unless you feel your time horizon on this planet will expire prior to the increases having a serious effect on your ability to survive in a reasonable lifestyle.
Just a few point in reply to your posting.
1- My attraction to Costa Rica is much more than a lower cost of living since I have the ability (A blessing) to maintain homes in a few nice places. The lower lost of living is pretty far down my list of priorities.
Taxes are one thing. This is INSURANCE… a product… a service which is based on risk. To base the premiums on a percentage of income is not fair nor normal. And the arbitrary ability of applicants to only disclose part of their income to lower their premium makes it even more unfair and unreasonable. For those that will compare the CAJA that CR citizens participate in and SS/Medicare which are based on income, it’s not the same both SOCIAL programs offer many other benefits to participants. They are medical, disability, and retirement plans with covered health insurance in retirement without premium. What expats are currently being ask to pay for as part of residency is health insurance period.
We should all be concerned no matter where we live as to what government does with our money.To ignore such attempts by government to unreasonably tax us would be the actions of a fool and goes against the very concept of the founding of America and what is fair and reasonable.
2- NOT spending time watching what government does is a BIGGER waste of time and MUCH worse for your health. To simply become one of the sheep to be herded by government has resulted in much larger problems all over the world. And as much as you think they don’t or won’t effect you…. they may very well! Ignorance is bliss. But at some point a big wake up results.
3- Enjoyment and being fleeced as a money tree are two entirely different things. We all enjoy our freedoms until they are slowly eroded and taken away. Much the same can be said of our assets. Governments are getting quite desperate to fuel the society they created with the entitlement class. If you simply roll over and give in without question or action you have no one to blame when they come calling for you.
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