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My husband and I are wanting to retire in Costa Rica within 1-2 years.
We’d like to go ahead and purchase property there now since we understand that the property values are going up alot, preferably on the Pacific coast. We’d like to apply for residency and understand that the pensionado status requires $600 per month from a pension.
We are selling some property here in the states and were wondering if we can set up out own account here to draw a pension from or does the pension have to be from a retirement account?You have to have a bona fide pension — either from a legal pension fund or the US government in the way of social security.
. . . and, once you have been granted residency status, you must spend four months a year in Costa Rica, although those four months need not be continuous.
One of the nice things about Costa Rica is they change thier laws or they dont follow them. Nothing is written in stone but the pensionado status. Your income has to be coming from a guaranteed source. The type of income that comes from an investment is not a guaranteed source. That is unless it is coming from an investment that is non-revocable. Sort of like an insurance annuity policy. If you can go in and cancel or take your money out that is not considered as a guaranteed investment. Then also if you are coming in two years they may change their requirements, for Pensionado as well. One never knows for sure.
Many people are purchasing property because everyone says how fast it is going to increase in value. I am waiting for our place to be worth a cool million and, then we will get a little apartment and just count our cash. No, that is just a joke, we have lived in Costa Rica for 4 years and we have seen things peak and then fall and peak again.
These things are attached to the peaks, many people coming to purchase property. These things are attached to a fall, earth quakes, high crime rate, and poor blending of new visitors into the Costa Rican culture. We US citizens have a way of wanting to take over and make the changes we feel are necessary. Well Costa Ricans are just as stubborn, they are not interested in us taking over. Now, the Germans, French, Canadians and Russians may do the same thing, I can not speak about them because I am not one of them. The person from the US is a countryman of mine.
So, my dear trying to get a jump on things for two years down the road can be both smart and dumb, it is just according to what happens. It is a gamble, but the one thing we can guarantee is that prices are going to sky rocket, for building materials and other construction cost. They will sky rocket probably much faster then the cost of land. The land that is costly is the land which is located in the places people are flocking to there is other land available.
My husband and I came during one of the peak times and if we would have purchased our B&B at that time it would have cost us over $100,000 more then we paid for it. We purchased it during the time of the fall. So who is to say what would be the smartest thing to do.
That is about as unpredictable as the law in Costa Rica. So, trying to save today to spend tomorrow may be effective, and then maybe it will not be effective.
Currently in Costa Rica, we are at a stalemate, the country is growing, but only surface changes are being made. The need to grow, to advance is very important, but Costa Rican’s are trying to figure out how to do that without spending money on things they really need. Such as better communication systems and making them available to everyone. If they make the changes that are needed then we will have a boom, but if they do not make the needed changes, such as new roads, better telecommunications and job opportunities for the thousands of young people that are getting their education, Costa Rica will have some big problems.
Do not let me discourage you from coming to Costa Rica. I just want to encourage you not to make a mountain of problems out of a mole hill. Many people are living here for a few months a year then applying for pensionado, after they start recieving social security. You can purchase land, start a business, and buy a house with out being a pensionado or residentista. They will let you spend your money. I lived in Costa Rica two years without status, and many others do the same. You have to leave town for a few days but then most of us travel to other locations or return to the US.
Relax, Costa Rica is not going to leave the Planet, it will be here for a little longer.
This is just one womans opinion
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