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I remember two incidents over the last few decades of “walls of water” that destroyed property and killed people, near Rivas Nicaragua, and in Parrita. I think the one in Rivas was a Tsunami, but I can’t remember whether the one in Parrita was or not.
I found an article from La Nación which backs up what dkt2u said. It was about a study by OVISCORI (Observatorio Vulcanológico y Sismológico de Costa Rica) in 1999 about the coming “big one” in Nicoya. It said that if it were centered in the ocean, even in high tide the tsunami would be only minimal.
I don’t understand this, because Banda Aceh was close to the epicenter.
All in all, you’re much more likely to get struck by lightning. Anyway, building codes do not permit construction that near the beach anymore.
It’s hard for anyone to get financing in CR because there’s no credit reference bureau, and therefore no credit reports. You’d think it would be easier for foreigners to get financing if they come from countries which offer credit reports, but evidently it’s not.
It’s also hard to find a North American bank that’ll loan you money based on foreign collateral.
I don’t know if rentistas or pensionados are eligible, but I was able to finance my home construction through el INVU (Instituto Nacional de Vivienda y Urbanismo). Their central office is in Barrio Amón. This is a government program, and no private lender comes close to the interest rate offered.
You pay a monthly premium with no benefit for several years. You can select the amount of the premium, and the number of years, but these factors impact the amount of the loan you eventually get. When the term is up, they give you the loan, and then you continue to make payments on it until it’s paid in full.
If you don’t want to wait too long, you can buy a “maduro”. This is a package someone else was paying on, but then decided to sell before it matured. There will likely be an intermediary involved, and therefore a commission. However, sometimes people do advertise in La Nación to sell their’s, and if it’s compatible with what you’re looking for, you can cut out the middle man.
Given the cost of money from the private sector in Costa Rica, even with a commission, this is the best way to go if you can, bar none.
So is BICSA (Banco Internacional de Costa Rica), and that’s government-owned. There is, however, a fee applied to deposit in Miami and withdraw in San Jose.
gsekam – This is not quite true. Anyone can start, own, operate and (attempt to) profit from a business in Costa Rica, regardless of their residency status, or lack thereof. You cannot be “employed” by that business unless you have a legal status that permits employment (i.e. resident by virtue of family relation).
However, I completely agree that sandwiches are better toasted.
Nice map. But the larger quakes are felt well beyond the faults shown. Anything 4.5 or above, even centered around the farthest reaches of the country (a whole 150 miles!), is felt pretty good in San Jose.
Another way to tell how bad the ground shakes in different areas is the number of adobe structures. Where there are few, there used to be more…
That should be http://www.casacanada.org.
I don’t think it’s advisable to set up an S.A. remotely, particularly with regard to naming the officers. See the posting entitled “Starting a busines in Costa Rica”.
BTW, that site has a much more complete and accurate requirement list for setting up a business there.
Regarding contracting with an attorney for signing on your behalf, there are two types of Power of Attorney in Costa Rica. A “Poder Generalísimo” is a General Power of Attorney, and empowers the attorney to do ANYTHING on your behalf. That’s pretty broad. Then there’s a “Poder Especial” which only empowers the attorney to perform the specific acts embodied in the Power of Attorney. That’s probably what you’ll want to do.
But again, for the initial set up, don’t you think it’s worth the trip? I don’t know anything about Casa Canada, but:
1. You could probably fly there and back and start it with a less expensive attorney for less than what they would charge you.
2. They’re actually offering to name the corporate officers for you. Hmmm, maybe that’s a business I should get into…
I’d also like to hear if anyone has worked with them.
Tsunamis can occur on any ocean coast in the world. As far as I know the two factors which make them worse are proximity to oceanic epicenters, particularly where major plates collide, and how open that part of the coast is to the sea where those epicenters occur. Central America, like California, are especially vulnerable because of the Cocos Plate and the Juan de Fuca Plate, respectively, both of which slip against the major Pacific Plate off the west coast. Want to live on the beach? Ya’ pays your money and ya’ takes your chances…
Earthquakes in Costa Rica aren’t too bad, even when they are. There are three reasons for this:
1. They happen a lot. This is good. They’re usually small, and it relieves pressure.
2. It’s not like Mexico City, which is built on an ancient lake bed. This type of foundation magnifies the shaking.
3. Anti-seismic construction standards in Costa Rica are excellent. I’m talking rebar sunk into the building foundations, tied into the walls, tied into the roof. They’re bomb shelters. The old wood homes fare well too, since there’s a lot of “give” in them. Bamboo has also proven to be very good in holding up during earthquakes. Furthermore, the taller commercial buildings have counterweights. That’s state of the art when they were built.
I was in San Jose during the 7.4 quake centered in Limón in 1991, and believe me, it was rockin’ & rollin’. Hardly any damage in San José, and even that was minor. One older concrete hotel fell in Limón, but the major damage was to bridges and railways. It took years for the bridges on the Caribbean coast to get rebuilt (they used temporary bridges in the meantime), and train service to Limón died for good that day. Only 54 deaths, about 10% of the number who died in the 6.9 quake in Kobe in 1995.
You get used to the small ones. But when a big one hits, even the small ones are unnerving for a while.
I worry more about the Irazú volcano. It has destroyed Cartago twice (that’s why they moved the capitol to San Jose), and there are a lot more people living there today. They say its cycle is every 30 years or so (but that’s a debated point), and the last time it blew its top was on the day John Kennedy visited on March 19, 1963. Cartago was again devastated, and acidic ash fell on San Jose for two years, corroding all those tin roofs.
I concur. Banco Nacional, Banco de Costa Rica, BanCrédito and BICSA are the four State banks existing today. Their deposits are fully backed by the government, and if something happens, depositors are guaranteed their money back. It already happened in 1995 with Banco Anglo. Banco Nacional and Banco de Costa Rica are the largest and have the most branches. BICSA (Banco Internacional de Costa Rica SA)is geared more towards international trade (it’s actually charterd in the Bahamas – yes, that’s right, a State-owned bank finds it convenient to base their operations off-shore, very telling), and BanCrédito is geared towards agricultural financing.
In other words, Banco Nacional and Banco de Costa Rica are your two best picks if you’re depositing a large amount of money.
In general, lines are much shorter in the private banks, whose deposits are not guaranteed. The largest ones (though tiny as compared to the two largest State-owned banks), are Banco Interfín, Banco de San José, Banco Banex and BanCrecen. There are many other good private bands, some of which are based in other countries, such as ScotiaBank (Canadian) and Banco Cuscatlán (El Salvador). Banco de San José is part of the group that owns Credomatic, the largest credit card service company in the country, so they can provide you with better service in that regard.
All of these banks offer ATM and Internet Banking services.
Consider Banco Nacional or Banco de Costa Rica for holding large deposits, and a 2nd, smaller account in a private bank for day-to-day business. That way the bulk of your funds are guaranteed, but you won’t grow old (or older) standing in line. I’ve waited up to two hours in line at Banco de Costa Rica on paydays.
Then there’s the question of security. Since the end of the war in Nicaragua, bank robberies have increased dramatically. You know, Nicaraguan ex-contras, armed to the teeth, trained by the CIA, hungry, bored… Word got around about their successes, and then the Colombian and Venezuelan bad guys started to get into it. Since then, even Ticos have entered into the fray (they used to be pussycats). In other words, banks are not a good place to hang around a lot. Unlike most of the armaments carried by the Costa Rican Rural Guard, those shotguns carried by bank security guards do work, but not as well as the ones carried by the guys in black hats…
Edited on Aug 31, 2006 07:58
Edited on Aug 31, 2006 08:00
I’m glad you’re thinking of it more as a hobby, Also, my security concerns were more in relation to San Jose – a small town does sound much more inviting.
However, I would not recommend making your Tico friend President, letting him run it, and you fronting the money.
How about this – You and your wife offer English classes for a fee, and the sandwiches are free?
Metropolitan busses run constantly from early morning (6:00 am or earlier) through at least 10:00 p.m. or so. There are no schedules that I know of, unlike busses to more distant points. It’s important to note that public bus service in Costa Rica consists of private concessions. Entrepreneurs buy the rights to the route, run and repair their own busses, and hire their own drivers. I believe they’re only required to complete their route as often as they feel it will justify the cost. Fortunately, there seems to be enough riders to make it worthwhile just as fast as they can make their rounds. A 10 minute wait for any metropolitan bus would be long. On the other hand, during rush hour they might just pass you by because they’re already full.
Taxis are omnipresent as well, and are only scarce during rush hour or in a heavy rain.
Asking the driver for a schedule will do nothing but invite a strange look, followed by a giddy laugh. Don’t do it. They will tell you when they start and finish though. In addition, exact routes are published, but in truth they can barely keep up with the seemingly annual changes in which way all the one way streets in San Jose go. I’m not familiar with the books mentioned by “editor”, but I imagine their routes get out of date just as quickly. The most up-to-date information is on the street just ask any Tico in earshot, and as often as not they’ll probably offer to walk you to the stop.
The Escazú San Jose route is part of the metropolitan system. Busses to more distant points, as I said, do have schedules, and are generally very prompt.
Public transportation in CR is excellent, and I highly recommend it, (unless you’re spoiled like me and need your a/c), but keep your wallet in your front pocket. The busses have gotten a lot better over the years too. I remember when they were mostly used and decrepit “Bluebirds” bought from US school districts I swear one time I saw my own name scratched on the seatback…
If you’ve searched through the postings in this site, you surely have come across the many trials and tribulations of gringos who try to start small businesses in CR. Personally, I made a vow to myself that the only way I would do that again is if it were more of a hobby, rather than something to fund my life there. Costa Rica is a terrific place to visit and retire, but making a living there is a completely different story.
That said, once you decide to take the dive, the first thing you need to do is establish the legal entity, called a “Sociedad Anónima” or S.A. This is similar to an LLC. The S.A. must be comprised of several people, including President, Vice President, Treasurer, Secretary and possibly Sergeant at Arms if my memory serves me. It is customary for a single Tico entrepreneur to have his relatives sign off on the positions below President, and then simply forget about it.
Only an attorney can create such an S.A., and this act must be recorded in the attorney’s “protocolo” (legally registered book with page numbers, line numbers, and official, royal-looking squiggly lines at the top of each page, black ink only, all numerics must be spelled out including dates, all persons mentioned must be accompanied by cédula (State-mandated ID card) or passport number, address of residency, and marital status, if you’re a gringo with only one last name, it must state this fact…)
All companies must “keep the books”, but in Costa Rica this is an actual official book with page numbers and line numbers on each page. Books must be pre-registered and stamped by the authorities, and handwritten in black ink only, just like the attorney’s “protocolo”. Annual reports are required as well.
In other words, there is a plethora of arcane rules and regulations which must be followed to a T, or some government clerk will gladly take the opportunity to exercise what little power he/she has to put the kybosh on your entrepreneurial aspirations. Use an attorney and an accountant.
An S.A. is not required to have employees, but you’ll need them for your business. You’re also desirous of a storefront operation for walk-in clientele. You’ll be collecting cash and transporting it to a bank. You want to hawk food.
You’d get it over with quicker and less painfully if you just hit yourself over the head with a sledgehammer.
You’re a foreigner living in Tiquicia. Leverage your resources (i.e. find a way to EARN your money in dollars and SPEND them in colones). Use the “kiss” method (Keep It Simple Stupid) – avoid the need for employees if at all possible, as well as storefront operations, regularly carrying large amounts of cash, and food service.
I have Tico friends who do what you’re proposing, but they’re Tico, they know the language and the culture, they have “patas” (connections), they’re properly paranoid about being assaulted because they’re known to carry cash to the bank, they can tell the difference between a police officer and an impersonator, they keep a gun in the drawer, etc. Keep in mind, gringos are targets – easy prey. Again, if you don’t need the money and you just want to have fun, go for it (though my definition of “fun” is somewhat different). If not, consider yourself forewarned.
Sorry to pour cold water on your idea, but it’s tough love.
Edited on Aug 24, 2006 22:57
Leftwingers: Coddle the wetbacks in the US, kick the visa-skirting gringos out of CR.
Rightwingers: Let the free market reign, except for labor of course.
We are all hypocrites. The dazed and confused centrists are our only hope, and they’re a quiet bunch.
Not sandcastles, but yes scandalous. Sorry about the vulgar reference. My more elegant descriptions were evidently blocked by Scott’s commie cyber censor. Is that the same software Google’s using in China?
Author’s edit: The censorship turned out to be the result of my own t Cybersitter running on my computer to keep the kids in line. My apologies to Scott.
Edited on Sep 02, 2006 06:07
Use David’s directions. Bear left at major Y. When you’re about due north of downtown (use Banco Nacional as a reference-it’s tall) you’ll cross over a bridge. Turn right just after the bridge and get onto the street below going north. This is the road to Tibas. If it’s rush hour, bring pins to stick in your eyes.
If you’ve only been to SJ to get finger printed, I’d take David up on his offer. Driving in San Jose is highly challenging. You’ll fare better if you’ve played a lot of car crash video games. Even so, with all the one-way streets, pedestrian malls, farmer’s markets, etc, there are only a few “easy” (LOL) ways to go, and you have to know them.
