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I have been worried about the new law and have followed the discussion with great interest. In January I’m coming on my 5th vacation (since 2005), this time to prepare my move to this Paradise on Earth.
I’m surprised North Americans have so small pensions. I’m Danish and my pension is $2,600/month before taxes. I suppose I pay taxes in Denmark, so I will receive $1,860 in Costa Rica. I wonder if that approves me as pensionado according to the new law? I’m single (until I marry my beautiful Tica).
I decided to spend my last years in Costa Rica because I love the country and the people. This makes me think of “Maravilla” who refers to a graffiti saying FUERA GRINGOS! – I really wish all immigrants would leave Costa Rica as it is without changing it into a mini-USA. I think all changes should be done by the Costa Rican people. – If North Americans want a copy of the USA, I think they should stay there. – Being an immigrant, I intend to accept the local customs and learn the language. In other words: Show some respect. Then there would be no such graffiti’s.
If my pension isn’t enough to be a resident, so be it. It’s the governments’ decision. – In that case I will marry my dream girl. – Well, I will do that anyway!Edited on Dec 01, 2008 10:33
Posted in the wrong place and reposted here.
Posted Nov 30,2008 12:20 PM sueandchris
Have been reading with much concern the blizzard of posts regarding new income requirements. Can some of you please clarify the following questions: Is the $2000 per month requirement a cumulative amount for the family/couple? Is this what is required to begin the pensionado process? Does everyone think this IS going to pass? How long ago was the last increase and how much?
Also, if we have a house or apartment in Costa Rica and rent it (furnished), does this require us to have a work permit? If not, how is the income claimed? We know more than a few people that are doing this there, but NOT as B&B’s, just as rentals. I also intend to do some design consulting there – would this put me in the way of any violations? Are any of you there consulting and if so, how do you do this legally?
We are continuing to look at property in Costa Rica, but this topic is very, very worrying. Can some of you who are already there comment on this?
I read the original article in AM Costa Rica and I have tried to go through the postings on WeLoveCostaRica but there is so much speculation and so many trips down cul-de-sacs that I think we have lost the sense of what it is all about. Can someone please state the facts again in simple terms and plain English. Just what are they trying to get passed and how will it affect pensionados if it passes? Also when will it take effect?
Put your house/apartment in a corporation (Sociedad Anonima), well protected, sometimes easier to sell (transfer shares), and you can receive the income whatever visa you have. Your are not working, so that’s no problem.
davidrushton, a legislative committee has sent to the full legislature a proposed law that would, among other things, increase the income requirements for rentistas and pensionados. The proposed monthly income requirement for rentistas (presumably per person, as it is today) is $5,000US; the proposed monthly income requirement for pensionados (presumably per family, as it is today) is $2,000US.
The proposed legislation contains language which would apply these standards to currently approved rentistas and pensionados when they apply to extend their residencies for another term. Two knowledgeable attorneys have opined that such a provision, essentially changing the law retroactively, would not stand up to a constitutional challenge.
The proposed legislation is subject to amendment in the review and approval process on the floor of the legislature, so none of its provisions is yet carved in stone.
My own attorney, a residency specialist, has observed that the legislature is a place where you can put in apples and have oranges come out the other end, so while the good folks in the media and in this forum can speculate to their hearts’ content, we really cannot say anything for certain until the proposed law passes a first reading.
It is also entirely possible that the proposed law which the committee has reported out will never be acted upon by the full legislature.
Edited on Dec 01, 2008 04:18
Thanks David. With all of the one-liners and off the wall speculation it was becoming very confusing. Now, with your explanation, it comes back to what I had felt all along. Thanks for, once again, being able give a reasoned synopsis of the situation and getting this discussion back on track. I don’t know what we would do without your help.
Posted in the wrong place and reposted here by Scott
message Posted By
Posted Dec 01,2008 6:46 AM daddydogI am a permanent resident. The new proposed law talks about Pensionados and Rentistas but I have not read anything about the other categories. Are they subject to these changes? Does the word “Permanent” mean anything?
Thanks for the detailed info. It is sadly lacking in the media. But does anyone know:
1. Is permanent residency a “safe haven” or is my permanent status not permanent?
2. Does the law contain a Spanish word for “grandfathering”?This posted in the wrong place and reposted here….
Posted Dec 02,2008 7:02 PM ed f
This was posted by Ryan Piercy, I’ve reposted here for additional assistance please.
ed f“Do you have clients that are foreigners? Are they important for your business?
Are you aware of a new immigration proposal that will prevent a vast majority from coming? Is this wise at a time when the global economic situation appears so weak?
Please read about our initiative, and lend us your support….
PLEASE EMAIL YOUR CONCERNS, OPINIONS, OR SIMPLY A LETTER OF SUPPORT TO US AT admin@arcr.net }
The new immigration proposal has requirements that most, for technical reasons, would not be able to meet. The intention is to increase the category of Pensionado from $600/month to $2000 peer month required. For Rentistas from $1000/month to $5000/month requirement. With both of these groups at an unreasonable 500% increase, what would be the new financial requirement for Investors? We don’t yet know.
The government is saying that these numbers are “easy to attain”. The ARCR works with these groups, abd we belive that to be entirely false.
A typical pensionado here has a pension of around $1200 per month, and information supplied by Social Security in the USA, their Average Pension is currently $1090 per month. In our opinion, the USA has amongst the highest pensions paid in the world, and for that we fail to see how $2000 could be easy to obtain? We are also certain that the Canadian pensions, another large group of retirees here, are only around US$600-$700 per month.
Yes, it is true that these person spend more here, averaging around $2000 per month in expenses, the problem is that like most retirees around the world, this comes not only from pension, but also their savings and investments from years of labouring. To obtain the status the requirement is ONLY proof that you pension is high enough.
For Rentistas, the only allowable proof is a letter from a Financial Institution that you will receive the required amount over 5 years. For many to put $60,000 has been somewhat acceptable trade-off to live here. The new requirement would now be $300,000 tied up in a bank… at low interest. Most people find this to be ridiculous, and simple insanity to tie up so much at such a poor return. Maybe 2 or 3% annually. Most simply would go elsewhere, along with their investment capital.
And does it really now cost that much to live in Costa Rica? Is it reasonable?
How much will now be required by Investors??? And do individuals with this much money really need to move to Costa Rica?
The government has also said that this is for reasons of National Security. Does this mean then that those with less than the new requirement are undesirable? Or criminal? We cannot agree.
Anyone who has a pension, by design of having one, is indirect proof that they have labored for 20+ years to receive one. This to us demonstrates that they likely then were normal upstanding members of their community. Furthermore, migracion requires proof of criminal history from their country, and supposedly the police here do a background check via fingerprints. Are these methods not more correct in determining the desirability of those who wish to move here?
WE FEEL THS WILL NOT ONLY STOP MANY FROM COMING, BUT THE MERE PROPOSAL IS ALREADY SENDING A MESSAGE INTERNATIONALLY THAT COSTA RICA DOESN”T WANT FOREIGNERS HERE which is not true. Though many want to disagree with us, we have received communications to this effect, and this will affect both Tourism and Foreign Companies from coming with new jobs. We know also because this happened before when the proposal was made in 2004.
How will this affect Costa Rica? The government feels there will be no economic impact. We disagree.
JOBS: These people who relocate here hire people. From help at home, to gardeners, taxis, and so on. Some even start up small businesses, creating more employment in the private sector.
REAL ESTATE: Just ask a local realtor or developer, how much of the sales of new homes and condos are to foreign investment. Less sales… less construction…
And again, this will mean less jobs in construction, less sales in hardware and building supplies, and so on.INVESTMENT: Oh, ok. A foreigner can no longer move here, the sentiment projected is that they are no longer wanted here, but they will go ahead anyway and send down investment capital, or put money with the banks here? Why? It is not likely to happen that way.
TOURISM: That same feeling, not being wanted, will affect tourism. If you don’t want foreigners here, likely they will comply by not coming. In addition, those that live here often have friend and family visiting every year. Our survey showed this to be 5 visitors on average per resident. That adds up to HUNDREDS OF THOUSANDS OF LESS TOURISTS that will go visit these residents who have to move to other countries.
INTERNATIONAL CORPORATIONS: The same perception has caused, and we have knowledge of specific instances, has also deterred already some major companies from opening offices here, costing again hundreds or thousands of potential new jobs from being created. This will have greater impact as this perception gets out to other countries and businesses.
IF YOU HAVE ANY FEEDBACK, PLEASE SEND US YOUR EMAIL ASAP.
——————–Ryan Piercy
The Dollar Amount:
It may or may not change. The problem in many cases is not the $1000, or $2000 but that it must be part of a pension, retirement or SS plan. In my case my income has been up and down over the years so my SS is far from what it could be. At this time at retirement age it would be enough under the $1000 per person to meet the pensionado requirement. If the amount was doubled I would be locked out of a CR retirement.
I have MORE long term income but not in an approved retirement plan which is what is required. I would also be living in a paid for home in CR (not renting). This is something else that is not considered by the law. I COULD take part of my housing fund and put it into a CR bank to provide a “known income” but then my planned home and lifestyle would be diminished considerably. . .
I have realestate here to sell before I can plan a move, so all I can do at this point is watch and dream. But it is starting to look like I should make other plans. . .
daddydog, nothing is ever permanent. No legislature, not the U.S. Congress, not the British Parliament, and not the Costa Rican legislature, can prevent a future legislature from changing a law. Even a constitutional amendment is ultimately subject to a future amendment. We are always subject to some future legislative change.
We were at the Costa Rican Consulate in Miami today with our application for pensionados and were told that we would have to comply with the $2,000 per month change. That is for a family. That is stright from the consulate. We have to go to the American Embassy and have that verified and submit to Immigration
It isn’t even a law yet, so how can they enforce that increase? And I’ve heard that it isn’t likely to pass anyway.
Even the talk of pending changes has me re-thinking my plans. Yes plunking 300k in a bank account is crazy and with the mess in the US financial world, even well-off folk would think twice about that. I was planning on a home in the 3-4 hundred thousand range and a small, seasonal business, buying a truck, dinning out and having friends come visit. The ultra rich won’t come to open small businesses and might only be around a few weeks a year to employ staff.
Whatever the outcome of the final law is, just the talk is scaring people away. For the kind of money the CR gov is talking about I can get a very nice beach house in Tortola or Virgin Islands (300K for a house, 300K in bank and 150k for biz), about an hour and half flight from where I live. Maybe CR can replace Pura Vida with Pura Greeda.If it does pass Costa Rica is finished. MASS unemployment, closed down supply houses,Real Estate and rentals ? Finished. Property values ? ” normalized” …you know. Back to $2-$6 a meter like it was 10 years ago, since that’s all it’s worth anyway.
Arias : ‘To not pass TLC would be collective suicide”
Me:’ Hey shortie, if you let this happen it is an economic nuke and dirt floors will once again be fashionable.”Me… “Ometepe Island is beautiful”
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