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What I am getting out of the conversations here is that my SS and pension will be taxed if Costa Rica enacts the proposal to tax foreign income.
Since my income is so small that I pay no taxes in the U.S., all of my retirement income is exposed to taxation by Costa Rica. That said my income is more than 8 times the income of the average Tico family.
The system of taxation here is regressive in the extreme.
• Trying to pay for government programs utilizing a sales tax puts the burden of finance on the backs of the poor much more than the wealthy.
• My understanding of income taxes here is that they are extremely low and the cost of contributing to the Caja is high for the employed and very low for us expats.
• My property taxes are 1/10th what they were in the U.S. for a house that is double the size and a property that is eight times as large.If Costa Rica enacts a tax on my income that is reasonable, I have no problem with it.
Expats living in their gated and barred homes complain about the roads, the Caja, the crime and myriad other things and they apparently expect more from Costa Rica but are unwilling to contribute to improve what they see as wrong. I see this as pure greed.
When I look around at the condition of the infrastructure, the poor quality of the educational system and the fact that the national medical system (Caja) is severely underfunded I have to wonder what I owe Costa Rica for the privilege and pleasure of living here.
I pay into the Caja as everyone does at 1/10th the cost of the private medical system and I use it. I have learned how to work within the system and [b]NEVER[/b] stand in a line at six in the morning to set up my appointments, have yet to have an appointment scheduled more than two days later and rarely wait more than an hour to see the doctor when the appointment is scheduled. Preventive care is top-notch and when we have an emergency, Cruz Roja responds within 5 minutes and transport to San Juan de Dios has been immediate.
I have been had my medical covered by Kaiser-Permanente and various insurance programs over my work life and have never been provided better service than I have gotten through Caja. For these services Marcos, a Tico friend, as an employee, pays the total cost of Caja for his family at something over 15% of his income while his employer pays nothing. In comparison, I am paying something under 3% of my income to cover my wife and me.
The calle on which I live is a private calle and if it is ever improved, I will bear a major share of the cost. On the other hand, other expats complain about the roads in Costa Rica but are unwilling to pay taxes to improve infrastructure.
All of us are living lives we could never afford in our home countries so if we find it to be unacceptable, maybe a return to the home country should be considered.
Yes, I agree up to a point but to a point. I never ever used the services in CR while living and paying my fair share in the USA. If I move to CR as a retired person, I don’t compete with them for a job and still pay their taxes for purchases, visits their Restaurants and spend $$ and that pays their rent and workers salary.
Not counting, renting or buying a house, using a Taxi and buying food at the market or “Pulperias” and paying for other services that help the economy of CR.
In the meantime my 1040 goes back to the USA every year with my taxes while I am living in CR?? Is that FAIR??
Living in CR with a pension from the USA means you pay taxes where you made your income. I did not make a DIME in CR and will get a TAX from my pension in the USA?? What about a CR citizen that genertes his income from CR, should he pay taxes to the USA if he lives in Florida??
Maybe IF you earn Foreign Income while living in CR you should and be taxed in the country you live.
Wagoneer41, I agree with everything you wrote. It’s heartening to know there are North Americans in CR who share these sentiments and attitudes. Not only is your attitude realistic and pragmatic, it is fair and just.
but what if you never have your social security benefits deposited into an account here in costa rica?
I would like to respectfully remind you all that as far as I know, none of this is final.
‘If’ this global tax is actually implemented in Costa Rica I would be EXTREMELY surprised if there would be any double taxation.
Scott
What is sure to be taxed is the Foreing Income regardless of where you live and by your Citizenship.
Ha!
You’ve been here long enough to know that nothing is for “sure” in Costa Rica….
Be prepared and always expect the unexpected!
😆
Scott
[quote=”Scott”]Ha!
You’ve been here long enough to know that nothing is for “sure” in Costa Rica….
Be prepared and always expect the unexpected!
😆
Scott[/quote]
NOOO:
I know NOTHING!! All I know is that my Tica wife (of 40 years) is waiting for my retirement in 18 months to drag me with clothes to the Airport on or in my underwear into a plane to go and live in CR.
And “DAMM” the consecuences. It is CR or NOTHING, ZERO, NEIN, NYET for her.
I am being held HOSTAGE until my retirement by my job and the PRISIONER in CR by my wife.
But I like the idea!!
[quote=”aguirrewar”]In the meantime my 1040 goes back to the USA every year with my taxes while I am living in CR?? Is that FAIR??
Maybe IF you earn Foreign Income while living in CR you should and be taxed in the country you live.[/quote]You have a valid point and I will assume that you are not one of those who continually complain about conditions here.
Not knowing your situation I can assume several scenarios:
1 ~ That you are a tourist visiting occasionally, make your living in a foreign country, do not have any residency here and the sales tax suits that situation in contributing to Costa Rica.
2 ~ That you are a perpetual tourist who basically lives in Costa Rica because of the low cost and have an income, passive or active, from a foreign country. If the sales tax, which is based on the average Tico income of 3 million colons or less per year, is all you are paying you are enriching yourself at the expense of the country.
3 ~ That you have residency in Costa Rica and the sales tax works very well in your favor at the expense of the country, giving you the ability to enrich yourself as you spend only a portion of your income..
As I said, my income is small enough that I am not taxed in the U.S. but my income is much greater than the average Tico income. I am retired and, understanding the financial underpinnings of Costa Rica, I do not complain about the poor condition of the social programs like the Caja and infrastructure of the nation.
Just what is it that these complainers feel that Costa Rica owes them? What is fair?
I do know that there are in excess of 100,000 Americans living here and the number of Canadiens is probably near 15% of that. I have no idea how many Europeans are living in Costa Rica.
I also know that if all expats were taxes at a fair rate that we, whether our incomes are great or small in our eyes, could contribute much to improve what we see as the shortcomings of this society.
[quote=”maravilla”]but what if you never have your social security benefits deposited into an account here in costa rica?[/quote]
I have no bank account in Costa Rica. My SS and my pension are deposited in the States. I am sure that Costa RIca would have no problem getting a treaty with other nations to verify income whether it is active or passive.
We came to Costa Rica for the same reasons that most expats have come here, because we could do here what we could not do in the States. Where we differ from many is in the fact that we had a desire to pay back for a decent life that we led in our native country not to live higher on the hog.
There are many of us here, I think you are included, who have an attachment to the local Tico community in which each of us live. There are others who have the view that they can live a relatively higher lifestyle and accumulate greater wealth. They live in the gated ghettoes and look down on a poorer locals and dont bother to find out that that the locals are friendly, helpful and generous.
While I have no problem with the second point of view it seems that, as a community, expats could contribute to improve what we have found here to our mutual benefit. If it is done through some form of taxation so be it.
One group that I have a high regard for is the Womens Club of Costa Rica. They have managed to make technological contributions through donations to the national medical system that would not be available through other means.
In the States our property taxes, paid in to the counties, supported the educational system while out income taxes helped pay for infrastructure improvement.
[quote=”aguirrewar”] Maybe IF you earn Foreign Income while living in CR you should and be taxed in the country you live.[/quote]
So for the pleasure of living in Costa Rica you maintain that you owe nothing in return for a lower cost of living.
I disagree with the idea of double taxation and I dont expect to see that happen but if you wish to live in Costa Rica there must be a reason. While I may be missing something I see the reasons to be either a lower cost of living or the pleasure of living here. If you have another reason I would like to hear it.
In either case isn’t it fair to contribute something? The system of relying on a sales tax to support the government and all that it provides is totally regressive. Where there are those Ticos and expats whose income allows them to save and invest the average family spends everything it makes and pays a sales tax on their entire income.
Just what is fair?
[quote=”Scott”]Ha!
You’ve been here long enough to know that nothing is for “sure” in Costa Rica….
Be prepared and always expect the unexpected!
😆
Scott[/quote]
The unexpected would be to see something like this get through the assembly within my lifetime. 😆
The question that I pose is totally rhetorical. I just wonder what it is worth to expats for the pleasure of living here.
I keep bringing up the phrase “for the pleasure of living here” because if it is not why in the name of God would they be here?
[quote=”aguirrewar”] But I like the idea!![/quote]
You have just conceded my point. If you happen to arrive in your underwear, stop by and we will see if we can get you clothed.:lol:
You may, in the end, change your mind about liking the idea. If you are married to a Tica you have a great advantage over me.
I did not come here to live next to expats but I knew no helpful Spanish and great good fortune has provided me with friends with whom I initially had to communicate using the Langenberg internet translation web site.
Social interaction is slowly coming together as more Ticos find out who I am. I have been told by several that I am not what they have come to expect of a Gringo.
When you stop to think about the society here it is much like the U.S. of the 1930’s and earlier. Particularly in the fact that you will find several generations of a family living in one house or several houses sharing a property in mutual support.
You can call me old fashioned or you can call me a throwback but I do appreciate seeing it.
[quote=”waggoner41″][quote=”aguirrewar”]In the meantime my 1040 goes back to the USA every year with my taxes while I am living in CR?? Is that FAIR??
Maybe IF you earn Foreign Income while living in CR you should and be taxed in the country you live.[/quote]You have a valid point and I will assume that you are not one of those who continually complain about conditions here.
Not knowing your situation I can assume several scenarios:
1 ~ That you are a tourist visiting occasionally, make your living in a foreign country, do not have any residency here and the sales tax suits that situation in contributing to Costa Rica.
2 ~ That you are a perpetual tourist who basically lives in Costa Rica because of the low cost and have an income, passive or active, from a foreign country. If the sales tax, which is based on the average Tico income of 3 million colons or less per year, is all you are paying you are enriching yourself at the expense of the country.
3 ~ That you have residency in Costa Rica and the sales tax works very well in your favor at the expense of the country, giving you the ability to enrich yourself as you spend only a portion of your income..
As I said, my income is small enough that I am not taxed in the U.S. but my income is much greater than the average Tico income. I am retired and, understanding the financial underpinnings of Costa Rica, I do not complain about the poor condition of the social programs like the Caja and infrastructure of the nation.
Just what is it that these complainers feel that Costa Rica owes them? What is fair?
I do know that there are in excess of 100,000 Americans living here and the number of Canadiens is probably near 15% of that. I have no idea how many Europeans are living in Costa Rica.
I also know that if all expats were taxes at a fair rate that we, whether our incomes are great or small in our eyes, could contribute much to improve what we see as the shortcomings of this society.[/quote]
1. None of the above makes me qualify in your opinion
2. I live and work in FL and have done it for 18 years
3. I work for the USPS and pay my taxes to the USA
Before that I worked for the Department Of Defense and have paid my taxes every year for 45 (combined) to the IRS.
A tourist PERPETUAL or not spends $$ in the CR economy and they add an infussion of $$ to that Country from $$ derived outside CR and spent in that country. A tourist does not take advantage of any country they visit, they just spend $$ not generated in that country into the local economy.
The 4’th leg of income in CR is the tourist industry, derived from $$ spent in CR from an outside economic intput.
As far as complaining; you can complain at Burger King, Home Depot or at Sears if your service is not up to par, be that if it is merited or not. Can I complain with “JOSE” at his pulperia in CR???
NO service market in CR matches the ones in the USA but you have to remember “when you go to Rome, ACT like a Roman”.
Be that the case; do you think the EXPAT community, regardless of nacionality in CR is not paying their fair share while living there??
[quote=”waggoner41″][quote=”aguirrewar”] Maybe IF you earn Foreign Income while living in CR you should and be taxed in the country you live.[/quote]
So for the pleasure of living in Costa Rica you maintain that you owe nothing in return for a lower cost of living.
I disagree with the idea of double taxation and I dont expect to see that happen but if you wish to live in Costa Rica there must be a reason. While I may be missing something I see the reasons to be either a lower cost of living or the pleasure of living here. If you have another reason I would like to hear it.
In either case isn’t it fair to contribute something? The system of relying on a sales tax to support the government and all that it provides is totally regressive. Where there are those Ticos and expats whose income allows them to save and invest the average family spends everything it makes and pays a sales tax on their entire income.
Just what is fair?[/quote]
Foreign Income is just that; income derived from investments from your $$ and if you live in Japan, Germany or CR and deriving any income from those countries, YOU will pay those countries for the $$ it made not from the place you live.
FAIR?? is that if I live in CR and invest in CR $1,000.00 and get a profit from that investment means I pay TAXES to that country from where I made the profit.
UNFAIR; is when I make a profit in a business outside the USA and I pay that country it’s taxes and then get taxed again in the country I live.
No country can TAX the income you make in investments outside that country. You make a dollar in China and pay the taxes in China, regardless of if you live in Japan.
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