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Getting your books and filings up to date, even if you’ve missed a deadline or two, is no big deal (for your accountant). The big deal comes if a tax agent from the Ministerio de Hacienda knocks on your door and demands to see your books. These are essentially surprise audits, and they happen all the time to business establishments. Probably pretty unlikely for an unknown S.A. who’s only asset is a house though. Still, you’ll sleep better if you know your accountant is handling it all.
I believe these books must remain at the “casa matriz”, or business headquarters (i.e. your house) at all times. Keep using your computer software to keep track of everything. Your accountant can work off the reports to get the data necessary for updating the physical books.
It’s hard to imagine that an S.A. established to hold a residential property could be inactive. Even if it’s vacant for a whole year, you’ve still got expenses – taxes, electric, phone, water, lawn care, fixing the damage done after break-ins…
Edited on Jan 15, 2007 05:11
Now that everyone has let it all out, here’s my two colones worth. In the initial post Marcia stated that, in regard to violent crime, “Costa Rica is no different than the rest of the world.”
Happily, I beg to differ. Theft and burglary are rampant and endemic throughout the country. But the chances of becoming a victim of a violent crime are extremely low, as long as you don’t make yourself a target.
Costa Rica has spawned a very non-violent culture. You can see evidence of this every day.
There is no road rage as we know it. Oh, sure, they’ll honk and yell, but on the second turn around the traffic circle they’ll wave and laugh, not pull out a gun.
Hostage situations are met with patient negotiation by police, not SWAT teams ready to “take out the perps”. Read about how they dealt with the take-over of the Supreme Court building and the Nicaraguan embassy in the 80’s, both of which ended bloodlessly, and you’ll realize that we Gringos, and Nicas (Nicaraguans) as well, would have busted in with guns blazing on the 2nd day.
The vast majority of murders are either crimes of passion or drug deals gone bad.
The very language that is spoken on the streets attests to the gentle nature of Ticos. In New York a common greeting might be “screw you”. In CR, it’s “pura vida”, “tuanis”, “Cómo está su mamá?”
What other country do you know of where the national army was abolished by the very General that led it?
Reagan perpetuated the war in Nicaragua. Oscar Arias won the Nobel Peace Prize for helping to end it, and influenced the neighboring country of Panama to abolish their army as well.
Yes, violent crime has gotten much worse since the end of the war in Nicaragua (it was very, very low prior to that – we reap what we sow), and it is true that the CR police and courts have not been very effective in dealing with this new reality. In a way this is due to the high level of corruption, with pay-offs to protect mafiosos and drug dealers, as well as under-the-tables visas which allow low-lifes entree into a country that’s “easy pickins”. But one must remember that violent crime makes such big headlines precisely because it was so low historically. And thankfully, there has been much recent progress, both in enforcement as well as battling corruption.
Costa Rica IS different, and that’s why we love it. Don’t make yourself a target, and you have no reason to fear for your safety in this very non-violent country.
Just keep an eye peeled on your personal effects, and don’t try to eat those really big bananas.
Airlines are generally lenient with regard to luggage limits, unless the flight is fully booked and space & weight become critical issues.
Sounds like you’ve done your homework. When you find out how much the taxes will be on the trailer, I’d love to know what percentage of the value it comes to.
Yes. In addition to filing at least annually (depending on the type of business), you must be sure to keep your books in order (and I don’t mean on the computer, I mean written PROPERLY in black ink pen in the official books you got stamped by the government when you created the S.A.). An accountant can handle all of thus for you at a small cost. I highly recommend you find someone immediately, as the penalties of non-compliance can be severe.
The magic word is “patas” (contacts). Everything costs less if you have them. However, Vagasknite’s warning about the risks involved of trying to cut corners is valid. Every now and then border officials are fired and/or arrested for taking bribes, and sometimes the “validations” they may stamp in your passport may not be sufficient. In other words, the paper trail you have as a result of cheating may not be proper, resulting in difficulties upon trying to leave the country. You see, if you come in with a vehicle, you can’t leave unless you have it with you, or you prove that taxes are fully paid. If there is an irregularity, you may rue the day you tried to get around the regs.
Ticos, and particularly Tico business people, have lots of patas, and understand the required paper trail. Gringos, particularly those “just off the boat”, have no patas, or use ones they don’t know very well, and are not sufficiently versed with the system to insure that the correct process is followed.
Tico car importers know the system upside down and inside out. They also have brothers/sisters/cousins/aunts/uncles etc. who work in customs. A gringo will never be able to compete, so why try?
Regarding bringing down the truck, Mediatica’s not the first one to bring down a Toyota only to find that there’s a difference between the cars Toyota sells in Latin America. Now she’s stuck with a car that can’t be serviced, and has a reduced value as a result.
All in all, it just doesn’t pay to bring in a car. It’s a colossal waste of time, a huge hassle, a service risk, and a financial loser.
Now you’re talking about a camper??? In addition to Vegasknite’s warnings, consider this:
Breaking into a camper is pretty easy, and since it’ll be the only one there, that makes it the prime target wherever you go. Furthermore, since it’s purely a luxury vehicle, you’d also be giving social justification for the burglar to feel better about.
Import taxes are particularly high on luxury items.
It’s very humid at higher altitudes, and salty by the beach. Within 2-3 years I predict it’ll become a rust bucket.
Guillermo, I don’t know what the taxes would be, but if I were you I’d think twice about bringing that car in. There is very little support for American cars there, and the resale value will be reduced as well. I think you’re better off selling it and buying a car once you’re there. You won’t have to pay for shipping, wait for it to be delivered, go through customs, etc., and you’ll be able to drive a car made for that particular market.
Many dog owners in CR train them to not eat food offered by strangers. This prevents poisoning (a common way burglars neutralize them). I’m told all you need to do is have different strangers offer food laced with cayenne pepper to them every once in a while until they learn.
Deb, When Gringos come through airport customs, they are usually just waved through, especially if it’s busy. Sometimes you are randomly chosen for a look see, and if you bring in extra baggage, expect to be scrutinized. Unless you’re bringing in diamonds, the worst that will happen is they’ll stamp “bonificación” in your passport which states that you received an import tax exemption for $500 worth of articles (whether it’s more or less valuable than that doesn’t matter, although it’s helpful to estimate the value of the items you’re bringing in at $500). You get the same exemption whenever you enter the country, as long as the time between bonificaciones is 6 months or longer.
Regarding pricing for policies, it’s been a while, and I don’t know what the costs are currently. However, the website for the INS is:
It’s in Spanish of course, but you can click right through to all the agents, as well as their email adresses.
Chimbo,
Health insurance in Costa Rica is like the Model T. It comes in any color you want, as long as it’s black. Actually it’s better than that, call it black and gray.
There’s the CAJA, the state “social security” system which provides free health care for all employees, and there’s the INS, the state insurance monopoly, which offers insurance plans for health, property, auto, life, etc. I doubt they have more than one major medical plan, but I may be wrong. You might have to choose between two.
Then there are the international plans from private companies outside CR.
Health care in CR is very good. The CAJA system does require long waits though.
These are the main courses. I’m sure others will chime in to tell you how they each taste. Please note that the country is in the process of opening up its markets. Ins, Recope and Ice (the state insurance, energy and communications monopolies, respectively), may loosen their grip on these markets in the near future as part of CAFTA.
Paying private clinics and hospitals for the small stuff, while having a major medical policy in your pocket, sounds like the right way to go for you. Even when I was part of the CAJA system, I still paid private health care facilities for the small things because I wasn’t willing to wait. The low cost of these services was well worth it. When we had our 2nd child, we went through the CAJA at Hospital Mexico. I figured they couldn’t make us wait in that case. My wife said the care was excellent. The only problem was they asked her the name of the newborn right after labor. Through the drug-induced haze and shock of birth, she got it wrong. Too late though, it’s etched in stone in the National Registry from that point on.
When you’re in Limón look for someone on the side of the road selling guanabana. It’s out of this world. If you want to know where cashews come from, buy a marañon. Better to make juice with this – it’s taste is too strong straight. If you’re very adventurous, you might also try a zapote or an anona, but these fruits are extremely rich as well to eat straight.
Figure 20% more for employee-related costs, including aguinaldo and caja. In the U.S. I’d say 30% more, so in spite of any horror stories you might hear about the governmentally mandated costs of employing someone in CR, it’s actually less onorous than in the U.S. (not to mention the low wage – 59,593 colones monthly is only $115.00 – I’d be much more generous than minimum wage myself).
I’m amazed that GMAC would let you take it to CR. I take back what I said. Sounds like you made the right decision though.
Good luck!
Given that this is a stand-alone home, live-in help is an absolute must. Not just for gardening and maid service, but for security as well.
Since you’ve created an S.A. (corporation), you probably also have an accountant to handle the books and filing requirements (if not, you’ll need one). He/she can also help with the payroll checks and the Caja, although this is less complicated than keeping the S.A. in order.
You’ll also want an attorney to draft the employee contract, particularly as it relates to their live-in status to insure that they can’t squat.
I don’t know of any agencies that assist in finding domestic help, but I do believe they exist. While there are a lot of good Nicaraguans around that could probably do a great job for you, they’re riskier because it’s harder to get a decent background check for them, and it would be difficult to find them if anything were to happen (i.e. theft). A nice Tico couple is preferable in this respect, as you can meet their family.
The minimum wage for domestic help (maid) is 59,593 colones monthly, plus meals, (http://www.oit.or.cr/oit/papers/sal_cr02.shtml). Again, this does not contemplate living quarters. Gardeners and guards may have a different minimum wage, but it’s probably not that different.
