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[i]’Incidentally, are you aware that Costa Ricans currently contribute to CAJA at higher percentages than do expatriates that apply for residency there?
For a Costa Rican the contribution rate is about 23%, with employers responsible for about 15% and the worker responsible for about 8%'[/i]
[b] This is incorrect![/b]
The [b]employer,[/b] albeit an Expat or Costa Rican citizen, is required to contribute 26% of the salary and the employee 9%, (there may be a slight difference now, but this is what we paid). The employees pension is derived from these deductions, at a later date.
When a ‘regular citizen’ applies as a [i]Seguro Voluntario[/i], CAJA is may be as low as 4-7%, depended on many circumstances. *This does not included payment into a pension.
[url=http://www.costaricalaw.com/Labor-Law/registering-your-employee-with-the-costa-rican-social-security-system.html]Please read [/url] and the rest of the [url=http://www.costaricalaw.com/Labor-Law/registering-your-employee-with-the-costa-rican-social-security-system.html]Labor Law [/url]
[quote=”sweikert925″]I suppose we need to be more careful of our use of the term “Caja” because it seems to mean more than just the assessment for participation in the Costa Rican healthcare system.[/quote]
That was a point I made earlier about it being their pension (old age) system, disability, and their retirement healthcare that is provided at no cost. Not just a health insurance plan. Benefits not extended to expats that are now forced into CAJA contributions as a condition of applying for residency.
What expats are being asked to pay for is healthcare insurance. While I believe some folks have indicated that an international heathcare policy might be rather costly I wonder if anyone can provide information on what a private healthcare policy might cost in CR.
All things being equal if the cost for a private plan were the same as being subjected to a “CAJA” assessment as a percentage of income I think I’d rather follow Scott’s advice and NOT disclose my income to any government officials and needlessly place myself on the radar.
Complying with immigration rules and lengths of stays wouldn’t be an issue.
[quote=”sweikert925″][quote=”Imxploring”]…expats that are now forced into CAJA contributions as a condition of applying for residency.[/quote]
I guess I need to remind you that residing in a Rica is a privilege, not a right. I suppose you can look at it as being [b]forced[/b] into paying CAJA but in that case so, too, are you being [b]forced[/b] to fork over $58,000 to own a Lexus. CAJA assessments are simply the price you pay. But like most commodity purchases you have choices – you can pick one of the other countries that offer residency to expats. Or, you just stay in the US. You seem to consider residing in Costa Rica as some sort of, oh, I don’t know, “entitlement”.
[quote=”Imxploring”]
..an international heathcare policy might be rather costly[/quote]
To say the least!
[quote=”Imxploring”] I wonder if anyone can provide information on what a private healthcare policy might cost in CR. [/quote]
I’ve already done that (scroll up) but you can get quotes for yourself [url=https://www.cignaglobal.com/]here[/url] and [url=http://www.healthcareinternational.com/fastquote-international-medical-insurance.php/]here[/url].
[quote=”Imxploring”]
I think I’d rather follow Scott’s advice and NOT disclose my income to any government official… [/quote]
Thereby “gaming the system” which you object to strongly – when others do it.[/quote]
Not at all Steve…. I, at this point based on the rules, choose not to play the game. I will not apply for residency and the perceived benefits when forced to pay (what I consider) an excessively high price for CR provided healthcare insurance. As with buying any product, if the cost is too high for what you will receive in return…. you shop elsewhere or don’t buy the product. Just like your Lexus example… none of us are forced to buy a PRODUCT if we feel the price is not worth the value received…. unfortunately the folks in CR don’t see it that way and will be forcing those that preceive residency as important to buy what I feel is an inferior product at an unreasonable price. That’s my opinion based on the cost I would pay and for the product received and the quality of the product provided. When I said I had no intention of disclosing my income to government officials it was not with the intention of getting something for nothing, it was with the intention of not applying or disclosing my information for several reasons as I’m sure Scott was implying… not just because of the CAJA issue.
I have been fortunate to call CR my part-time home for eight years and enjoy my stays very much, and will continue to do so following the rules. I have always complied with the rules and will continue to do so. I have no expectations of being entitled to anything, nor do I believe that CR owes me anything and I’m not looking to game the system…. I’m just not looking to be gamed by yet another government desperately trying to keep promises they made to some by milking others….
Wait until you relocate and you learn the term “Gringo Pricing” and see it in action! Having somewhat of an idea as to your personality you’re going to LOVE it…. perhaps then you’ll understand my point! LOL
P.S. Thanks for the insurance links… I’m interested in a CR based company/plan that would provide healthcare coverage via the private hospitals in CR. I’ll see if I can get some info next week from our local insurance fellow in CR.
Has anyone in our group had any experience with the Instituto Nacional de Seguros’ (INS) regional medical plan? I’ve read that its premiums are reasonable but haven’t seen any actual premium quotes.
http://portal.ins-cr.com/NR/rdonlyres/AAFBB22F-5F00-4CDD-9DE9-A0C99F7FC34B/2245/ReferenciaCondicionesGeneralesINSMedicalRegional.pdf[quote=”sweikert925″][quote=”Imxploring”]I will not apply for residency and the perceived benefits when forced to pay (what I consider) an excessively high price for CR provided healthcare insurance.[/quote]
I suppose this means that you will adopt the same strategy as pixframe and simply stay in CR on a tourist visa and leave once every 90 days. Which is fine, I’m not sure that’s 100% legal but the Costa Rican government seems to tolerate that so it is de facto legal, even if not de jure. Kinda like jaywalking – it may be illegal but everyone does it, so in effect it’s not a crime.OK, but then to continue my Lexus analogy you’ve decided that you won’t pay the $58,000 and aren’t wiling to accept the other reasonable alternatives – buy a used one or (eek!) buy a Mazda instead. So you’ve decided to show up on the car lot every day and take the Lexus out for a “test drive” (wink, wink). Every day. The car dealer, easygoing fellow that he is, allows this. And that’s not “gaming the system? Hmm. We seem to have a difference of opinion on the meaning of the term.
But if all that’s the case why ever have you spent so much time and effort complaining about a tax you will never pay?
[quote=”Imxploring”]Wait until you relocate and you learn the term “Gringo Pricing”….if the cost is too high for what you will receive in return…. you shop elsewhere or don’t buy the product.[/quote]
You don’t see any connection between those statements?You know, it just doesn’t bother me that much if it turns out that I may have paid more for something than soemone else did. Don’t get me wrong, I like a bargain as much as the next guy. But as your second statement rightly says, if the price is acceptable for something then you buy the product. If not, you don’t. It doesn’t matter if someone else paid or will pay a different price. Every day people pay different prices for the same product that someone else purchased. Airline fares? A book on Amazon that was $12.95 when you bought it and $11.66 today? A suit you bought today that may be on sale tomorrow? As a good little capitalist you should applaud when market forces come into play. There is never a “correct” price for anything. Supply and demand.
You never negotiated the purchase price of a new car?
I would be very interested to hear what kind of inmsurance premiums you are offered by those insurers I directed you to. Not that I think I would ever be in a posuition to pay them, but just for curiosity.[/quote]
As I won’t be forced (blessed) to have to place all my eggs in one basket and relocate to CR thus giving up my US residence the PT issue won’t impact me. I won’t have to do the quick jump out of the country every 90 days. I can travel freely complying with the rules and stay durations. No gaming the system or expecting a service for which I’m not paying for. Your daily “test drive” analogy doesn’t really apply in my situation.
For those folks that must completely pull up roots in the US and completely commit to relocating to CR it is a different story. And part of the reason for this entire discussion. While I had originally intended to apply for residency the new rules really make that unreasonable based on the cost of mandatory CAJA enrollment. I have checked a few international and travel insurers and have found two reasonable alternatives that will provided coverage at a much lower cost in my particular situation. Both based on age and risk factors… not income. Funny when you price the plans and exclude US healthcare coverage in these plans the cost goes down significantly! In my situation with paid healthcare in the US it works out very well with a reasonable deductible, about 40% of what CAJA would cost… and this is for coverage at a private hospital rather than in the CR State run clinic/CAJA system. Without starting a dispute over the quality of care in the CR government system I will simply say that the private system is better in MY opinion.
The point is for many folks considering the move to CR this CAJA cost issue is very important, hence this exchange was worthwhile. They will be facing a payment that may represent a good portion of their income and possible large future increases as some have indicated. It’s a factor that must be considered when thinking of moving to CR.
The idea that the government of CR is now engaging in Gringo Pricing is rather sad… and as I said before, just the most recent blunder in attracting investment and baby boomers. Unlike a car dealer or restaurant that might try it where you have the ability to walk out there will be plenty of folks that will not have that ability in this situation.
In the end the debate is moot.
Those of us who live here can accept whet we have here and be happy or we can decide we don’t like it and leave. We are not prisoners here.
For those who do not live here but think that the problems are as extreme as some posters here are inclined to represent can accept what we have and try it out and those who see problems in living here can seek other places to retire.
I am perfectly happy with our situation here and see the same issues presented here as being the same everywhere.
Pura Vida.
[quote=”Scott”]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[/quote]
How do they determine contribution if you become a resident by investing the one lump sum of $60,000 so there is no recurring monthly income?
I always recommend the site where you retrieved this information from, and have previously read this article but I would not encourage anyone [i] to expect/hope to only have to pay the “Health Coverage S.E.M” portion and percentages shown[/i].
Of course, I could be totally wrong…Good information Steve. Just wish there was a firm government source that gave solid numbers. For many folks going through the time, trouble, and expense of processing a residency application only to have this assessment for CAJA set during a rather subjective interview at the will of the person reviewing your application seems very unusual.
A young Canadian man in his early 30’s, who had one pension from the Canadian military was required to pay CAJA, approx. $450 per month, last year for coverage for both him and his wife. And this was [u]before[/u] the rate changed in January. When they had first applied for Residency, they had expected to get coverage through ARCR group plan but alas new members are not permitted by CAJA.
[quote=”costaricafinca”]A young Canadian man in his early 30’s, who had one pension from the Canadian military was required to pay CAJA, approx. $450 per month, last year for coverage for both him and his wife. And this was [u]before[/u] the rate changed in January. When they had first applied for Residency, they had expected to get coverage through ARCR group plan but alas new members are not permitted by CAJA.[/quote]
Ouch! I was kind of hoping the subjective part of the process took into account something tangible that provided a clue as to how the true final number was arrived at!
At $450/month and at that young age the apparent annual increases will eat up his retirement income in no time at all!
Unfortunately, it is a disability pension and the couple have already determined that they will [i]only[/i] use private facilities. I do know of another man, an American who was quoted a similar amount for himself, wife and child.
Another Canadian is paying over $350, applying 6 years ago, under the Investor status but it does [u]not[/u] include coverage for his longtime ‘common law wife’, as her (Rentista) Residency/CAJA fees are separate from his. Both are now Permanent residents but are trying to sell their remaining properties to return to Canada to get better access for cancer treatment that he can only get here, privately.It is not a fair playing field.
[quote=”sweikert925″]
Health Coverage S.E.M
(Monthly income) (Assessment)
$896 to $1,773 6.25%
$1,774 to $2,660 7.25%
$2,661 to $3,546 8.25%
$3,547 to $4,433 9.5%
$4,433 and up 11.0%The final approval of your social security insurance application must be done at any of the regional offices of the CCSS. The approval generally requires a personal interview with a social security administration officer who will evaluate your information, income, age and then set the percentage that you must pay according to the sliding scale indicated above.
Each applicant will have a different set of circumstances as such the determinations are evaluated on a case by case basis by the Social Security administration.[/i]
As the statement immediately above implies, these are apparently just guidelines and individual assessments seem to be up to the local social security administration office, so take this for what it’s worth.[/quote]
Since I am paying substantially below these figures I think I will pass on seeing the administration for adjustment.
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