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truly amazing…
I write a simple note about falling asleep on the couch and within 5-6 new posts, we have covered the international costs and governmental subsidies of a gallon of petrol (US & Imperial, not the beer)![quote=”DavidCMurray”]The single most problematic thing you will face is the matter of employment. In simple terms, no foreigner can work in Costa Rica if they are competing with a Costa Rican citizen for that job. You must have a skill that does not exist in the local labor force, and those jobs are few and far between.
If you do have some unique skill, your prospective employer can apply for a work permit on your behalf, but the process can take a year or longer to complete, and success is not assured. In the meantime, how will you support your family?
The best you might hope for would be to qualify for one of the temporary legal residency statuses (with their attendant financial requirements), remain in that status without working for three years, and then apply for permanent residency with is typically granted without restrictions. Then, once that permanent residency is granted, you could seek employment on your own.
You should also be aware that wages in Costa Rica are laughably low as compared to those in North America. If you aspire to educate your children to compete in American or European universities, you are probably talking about private schooling in Costa Rica. While costs vary, you should assume that such schools are not inexpensive. What’s more, they tend to be clustered in areas settled by foreigners. Those areas are not characterized by cheap housing.
I understand that the foregoing is not the answer you were hoping for, but it’s better to know what you’re up against before making what could be a very expensive and disappointing decision.[/quote]
David – as always, you have a very kind and understanding way of telling people what they may not want to hear. This response is perhaps one of your best to date.
crb[quote=”costaricafinca”][b]quelindo[/b] you will only be covered bu CAJA if you are a legal resident.[/quote]
You CAN buy a medical policy from INS (regional or worldwide) that will cover you during your travels …… but INS excludes pre-existing conditions.
[quote=”sunshinegirl”]Is it worth it to ship household goods to Costa Rica or just buy new when you get there?[/quote]
Good points so far, but it also depends on
1. how much do you have to ship (full or partial container)
2. where you now live and where you will be shipping from (if you live in Kansas, you have a trucking charge to just get to the port, versus if you live in Florida near a port).
3. if you decide to ship your stuff, you need to be prepared to load the container yourself or pay to have someone load it for you.We shipped EVERYTHING except appliances, because I wanted to have a warranty on the appliances – and it has paid off handsomely. We bought, and paid a bit more than in the US, all GE appliances from GE in Escazu. It took almost 2 years longer than anticipated for us to get here, and GE stored what we bought, and even substituted the newer models for some of the items at no additional costs. If you decide to go that route, Harold at Escazu GE was GREAT to work with!
On the furniture, we decided to buy all new because it was part of the idea of retiring and starting over in a new place – part of the adventure! It helped that our daughter is an interior architect and got us substantial discounts on the stuff in the States, about 75% of the furniture. The remainder we bought at Tamarindo Pacific Interiors in Santa Ana.
I am very happy with the way we did it and it has worked well for us, but in hindsight after considering the hassle of purchasing and gathering everything in the states ($$), storing ($$) it until a date specific, getting ($$) it to the container packing location on date specific, packing ($$), shipping ($$$$$$$), storage in CR ($$) and delivery ($$), etc.($$), it probably would have been jus as easy and no more expensive (if not less), to just buy the furniture here in CR (either custom or off the floor of a store).
You can get everything you need here, from ‘typical furniture’ to high end furniture, and it may cost more than in the states, but there are so many “incidental costs” associated with getting it here that must be added to the US price…..
It is sort of like buying a “cheap seat” on Spirit Airlines (I hate Spirit). You think you are getting a good deal, but by the time you pay for their taxes and fees (higher than other airlines) and selecting a seat, and paying for checked baggage, paying for carry on baggage, paying for water during the flight, etc. they are no longer a “bargain airline”. Before long, they will charge to go the bathroom on the plane!
Sorry, I waivered from the subject, but was as an example only….. I just hate Spirit!
You didn’t ask about what to bring, but I’ll make suggestions anyway.
GENERAL – unless you are connected to the Central Valley “social scene”, you will find that most all of CR is very casual. Leave expensive jewelry & bling at home.
CENTRAL VALLEY – this is the nicest time of the year in the Central Valley. You will probably find yourself over-dressed (also, “over-packed”) in a sport coat (gentlemen) or cocktail dress (ladies). Simple is better, maybe a pair of slacks and collared shirt for dinner, but you will also see a lot of jeans and long sleeve T’s – it can get cool at night.
MOUNTAIN COMMUNITIES – definately does get cool at night, but still casual is the norm.
BEACH COMMUNITIES – T’s, shorts, flip flops and bathing suits are the uniform of the day, and even the night.
Most of the towns have a laundry, some even have an “eco-laundry” or “green laundry”, so pack light and you’ll find that you’ll enjoy yourself just as much without all of the packing and unpacking at your stops along the way.
HAVE A GREAT TRIP!
We have been here (Playa Samara) going on 2 and a 1/2 years and they are still coming. The first year we had more “guest nights” than non. The second year it increased, and this year looks so far like another increase.
Yes, we are at the beach and we enjoy the climate here, and like us, 90% of our visitors (friends and family) are from either Florida or Texas, so they are used to “beach weather” as well. It gets much cooler here at night than during the summer months in either Tampa or Houston, so many of our guest actually think the weather here is “cooler than at home”.
Short answer – in our case, they keep coming!
For similar reference – listen to Jimmy Buffet’s song “Everybody’s Got A Cousin In Miami”Scott –
Thanks to you and randall for your ongoing research into this subject. I hope that the new taxes, if approved, turn out no more onerous than you report.[quote=”DavidCMurray”]I wrote a long letter to A.M. Costa Rica about this which they’ve not seen fit to publish. You’re right on all counts and then some, Bill.
Question is, as you transition to Panama, what’re you going to do with your home in Costa Rica. Who, exactly, do you think will be inclined to buy it?[/quote]
David, hopefully they will choose to publish your letter, but if not, I (and I am sure others on WLCR) would appreciate the opportunity to read your well-reasoned perspective.
[quote=”Scott”]It wasn’t so long ago people were all being terrified by various sources who said the the income requirement for the pensionado status was going to be raised to $3,000 per month…
As we all know, that has not happened.[/quote]
I think the original proposal was $2,000 per month, and they settled on an increase from $600 to $1,000, but I get your point – things change during the final process of approval and implementation. And that was my point exactly …. in the case of the luxury tax they changed for the WORSE, not better, and it can happen again.
Maybe your and/or Mr. Zamora’s interpretation is correct that pension monies and monies sent into the country are intended to be excluded from the 15% proposed tax, but no one can predict what will happen when a bunch of politicians start discussing a tax that will not affect them! And that problem is not the private property of CR, it happens in the States all of the time.
Let’s keep our fingers crossed that Ms. presidente does not gather a majority to approve the new tax proposal.[quote=”Scott”]Please see our new article (as of 2 minutes ago)
‘Costa Rica Investor Residency Category is Clarified with New Immigration Regulations’ by Attorney Roger Petersen at:
Scott[/quote]
Scott –
can you please get clarification(s) from Mr. Peterson in regard to:
1. as written, does this apply to existing ownership (prior investment in property or building a home) or is it applicable to future transactions only?
2. as written, can the investment be done through a corporation (as long as the indiviual making application is the sole or majority shareholder) or does the law stipulate that the investment be made by the applicant as an individual?
Thank you.[quote=”Scott”]
I just got off the telephone with Costa Rica Tax Expert Randall Zamora who says that:“If” this is implemented and it’s a big “if”.., then the 15% would apply to interest, dividends and rental income.
The 15% would NOT apply to your pension.
And your example about adding 15% to the cost of a new home is also NOT correct!
Scott[/quote]
Scott, it is great that you have the ability to call a tax expert at your whim! Not all of us have that priviledge, but we can all profit by your ability to do so and offer us your and Randall’s sage advice!
That being said, and in the absence of any information on your site pertaining to the proposed tax package proferred my Ms. Presidente, all the rest of us have to go on is your second least favorite stepchild (behind the TT), being “AM Costa Rica” and the information they offered in their recent edition which stated [i]”The proposal also calls for a 15 percent tax on interest, dividends, profits [b]and money sent from outside the country[/b].”[/i](emphasis added).
As far as your, or Randall’s [b][i]”If” this is implemented and it’s a big “if”.., [/i][/b] I am pretty sure I can recall similar “ifs” and “big ifs” coming from you (and maybe Randall) when the luxury tax was first proposed and its terms were being bantered about.
I always enjoy Randall’s writings and his advice. I have corresponded directly with him regarding the luxury tax, and his advice is always concise and considered (he told me that the luxury tax may never be enacted if one lawsuit were filed against it), but the simple fact is until the law and regulations are published and enacted, NOBODY knows what they will say or how they will be interpreted…..cases in point:
1. your property (land) will not be added to your property improvements when calculating the luxury tax on your home; and,
2. the luxury tax will only be calculated on that portion of your property (excluding land) above 100 million colones.We all believed those two things were fact UNTIL the final law and act were published and implemented!
As far as your statements that “The 15% would NOT apply to your pension.” and “your example about adding 15% to the cost of a new home is also NOT correct!” I hope you are right, but again, I refer back to what we thought we knew about the luxury tax, only to find out that we were wrong!
Instead of new tax laws, CR just needs to improve their efficiency in collecting the tax laws already on the books. Everyone knows that most bars and restaurants keep 2 sets of books to reduce their tax oblgation, and there is still tens of millions of dollars that should be collected on the luxury tax, and they have no process in place to go after those monies.
And yes, I paid my luxury tax (both years) – and from my house I can see a dozen or so homes that should have paid and did not!
I hope that AM Costa Rica has it wrong, but if their report is accurate, and the money for my (and others) pension or new home comes from outside the country, then this new law will be catastophic for existing and future expats, as well as the CR economy!!
[quote=”DavidCMurray”]I wrote a long letter to A.M. Costa Rica about this which they’ve not seen fit to publish. You’re right on all counts and then some, Bill.
Question is, as you transition to Panama, what’re you going to do with your home in Costa Rica. Who, exactly, do you think will be inclined to buy it?[/quote]
I thought about that while writing my original post, David, and it is a very worrysome question! And all I can hope for is a wealthy Tico or Gringo who already has their money in CR before the law is passed, if it is passed.
