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[quote=”rosiemaji”]You can not bring more than $10,000 with you when you travel to Costa Rica even if it is in the form of a check. It is the aggregate of cash and checks that must not be more than $10,000. Your transaction should be done by wire transfer from your US bank to a bank in Costa Rica. Even 8 checks in the amount of $8,000 each would total more than $10,000 and you risk confiscation of the checks. A wire transfer of more than $10,000 will be reported to the federal government but you have a legitimate reason for the transfer (ie. you are purchasing property). The wire transfer will only take a few days to clear to your seller whereas any check (even a certified one) will take 21 days to become available in Costa Rica. Even though the $40,000 transfer will be reported to the Fed, they will not do anything about it (unless you have certain outstanding debts to the government) because that amount, even though it is significant to you, is small change to the federal government. Now, if you sent a $40,000 wire transfer every week, they might begin to take notice. The approximate $50 wire transfer fee is small compared to the total amount of money transferred and it protects you from tons of possible legal problems if you do otherwise.[/quote]
The rules require reporting it… they don’t prohibit it. I’ve transported both cash and negotiable instruments in excess of the $10,000 threshold several times in the past without issue. Unless the rules changed within the last year the form and an answer for the use of the funds is all you need. I’ve used the wire transfer route as well on one purchase but if you don’t have a bank account in CR you’re sending your money to someone else (attorney, broker, or seller) before you actually close on the property…. a bit uncomfortable depending on your level of trust and the amounts involved.
I also transported metals (silver) in January without issue although the reporting requirements are lower ($2,500) and required a different form. Once again… no issues… paperwork completed… and an answer when questioned by authorities on both ends of my trip to CR.
[quote=”puravidatexan”]I need information this morning. If I bring a Certified or Cashier’s check ($40,000) to Costa Rica in a few days–will that be considered cash? I don’t want to risk confiscation. My seller asked for 5 checks of $8K each, but that seems to not be any different to me.[/quote]
Seems to be covered under the “negotiable instrument” section of the rules…. I’m assuming you’re concerned about the declaration of travel with more than $10,000. The other question becomes WHY is the seller requesting payment in such a way… seems HE might be attempting to avoid the radar either on transporting the sale proceeds or depositing the funds in the bank… it’s called a “structured deposit” (aka Smurfing) to avoid the banking rules requiring reporting of deposits over $10k.
Be safe (rather than sorry)… fill out the form. Have a copy of your sales agreement just incase someone ask what the money is being used for. Shouldn’t be a problem on your end… the seller however sounds as if he might be trying to avoid some type of attention.
Keep in mind breaking the $40,000 into 5 $8,000 checks might bring unneeded questions and suspicion as to YOUR intended use of the money which appears to be completely legitimate.
[quote=”sweikert925″][quote=”waggoner41″]While the exchange rate dropped from 596 to 493 we experienced inflation of 5% to 7%. Tico workers income rose at about 1% to 2% at the same time yet they experienced the same rate of inflation as expats did.[/quote]
Excellent point which should be obvious. But since it apparently isn’t to some, it should also be pointed out that you live in CR full time and no one who doesn’t should dare argue with someone who does.[/quote]Argue…. that’s funny… how about debate? Or perhaps if we are going to attempt to discredit those that don’t live in CR fulltime we should completely IGNORE the imput of those that have only vacationed in CR… have no investment in CR, have never purchased real estate there, have never paid taxes there, have never opened or maintained a bank account there, have never had or paid a utility bill there, have never had to deal with any government entity there, have never had to hire a worker there, have only seen the country in the seat of a bus operated by someone else, and have never had to negotiate the price on the purchase of any product beyond lunch and a cup of coffee?
Sounds fair doesn’t it? We can create a whole system of assigning credibility and importance to each posting… and as you might guess… that leaves your imput pretty far down on the scale of value and importance! LOL
Good morning Sunshine! Have a great day at work! 🙂
[quote=”waggoner41″][quote=”Imxploring”]Les…. I think you’re mistaken if you don’t believe that prices in CR (priced in local currency) will not be adjusted upwards (inflated) to make up for the rise in the dollar (exchange rate).[/quote]
While the exchange rate dropped from 596 to 493 we experienced inflation of 5% to 7%. Tico workers income rose at about 1% to 2% at the same time yet they experienced the same rate of inflation as expats did.
Why do you assume that prices rise simply to gouge expats when the Ticos get hit just as hard or harder. The Tico family that lives with us pays the same prices that I do.
Inflation is worldwide and has been a fact of life for generations. When you can tell me that Costa Rica is the only country that is experiencing inflation we can argue the point.[/quote]
Hey Les… I don’t recall saying that increasing prices as a result of the exchange rate fluctuation were directed solely at expats as part of some dastardly plot. That concept is the basis of “gringo pricing” an unofficial individual program many expats are subjected to on a local basis! LOL
Of course inflation and product price fluctuations impact our Tico neighbors as well! And for those (you know who you are) that don’t believe that the current exchange rate (dollar rise) will result in a rise in prices because of some theoretical economic principal or injection of logic…. consider this. The BCCR is taking steps to stabilize the rate through the purchase and sale of currency on the markets and released the following statement…
“Violent variations in the exchange rate leads to sharp movements in prices, costs, and income, increasing the degree of uncertainty about these and other variables, which is detrimental to the wellbeing of Costa Rican society.”
Seems they believe a rising dollar will have an impact on prices (inflation). In many cases prices are “sticky”… that being when they rise because of some short term localized event they tend to be quite slow to retreat… if they do so at all!
What makes CR unique and perhaps more vulnerable to this problem is the parallel use in daily (right down to that local mom and pop soda) commerce of their own currency as well as the dollar.
[quote=”davidd”]imxploring
MATE !!!! PLEASE dont mention anything about CHILE.. for the love of god man.
This may be my next move.. and we dont want to give sweikert any ideas..
let him believe what he wants to believe..
living here will cure him of that soon enough
[quote=”sweikert925″][quote=”Imxploring”]CR is really not for you.[/quote]
So because you are an expert – not only on everything having to do with Costa Rica but also what is in my best interests – I apparently have to reconsider my decision to relocate to CR.Sorry. Isn’t gonna happen.
However if you prefer I no longer respond to any of your posts I can easily do that and maybe you should do the same for mine.[/quote][/quote]
Sorry…. Perhaps Argentina…. they need a man of common sense and logic! I was going to recommend Venezuela but the utopian socialist plan down there isn’t working out as our friend might think it would… might be too big a shock to his system!
[quote=”sweikert925″][quote=”Imxploring”]CR is really not for you.[/quote]
So because you are an expert – not only on everything having to do with Costa Rica but also what is in my best interests – I apparently have to reconsider my decision to relocate to CR.Sorry. Isn’t gonna happen.
However if you prefer I no longer respond to any of your posts I can easily do that and maybe you should do the same for mine.[/quote]
Thanks Steve…. your reply just won me $10!!!
Pura Vida…. 4 more Imperials!
[quote=”sweikert925″][quote=”Imxploring”]only one of us is not relying on an internet search to make our point.[/quote]
On this particular subject neither one of us is using an internet search to make our points. One of us is using simple logic and common sense and the other isn’t.[/quote]Welcome to Costa Rica Steve… where logic and common sense will no doubt shorten your stay and make it a much more uncomfortable one.
As you’ve apparently joined this board to obtain information for your possible relocation to CR you might be best served to listen and LEARN something from those of us that have ACTUAL experience in CR… or you can (as I suspect you will) continue to attempt to educate the rest of us on your internet based knowledge of the logical utopian society you believe exist in the US and Costa Rica. Like it or not… that’s not reality Steve.
You seem to want to dispute, debate, and discredit the personal experiences that folks share here that you should be learning from. That’s a shame… but I figure that trait is too deeply ingrained in you at this point to change.
Do yourself a favor (truly) and a bigger one for all those you might encounter in CR and look elsewhere to relocate…. CR is really not for you.
Enough said my friend… feel free to reply… but I think most (if not everyone) reading your reply will see it for what it is…. that deeply engrained need on your part to get in the last word and educate the rest of us on a topic (CR) which you have very little personal knowledge of.
Pura Vida Steve…. I hear Chile is very nice! 🙂
[quote=”sweikert925″]So let me see if I have this right.
You believe that all Ticos try to squeeze more money out of Gringos by practicing “Gringo pricing” but when you came time to pick up your furniture and got hit with the additional 10% you believed unconditionally the stated reason the furniture maker gave you. Because at the point that the agreement was reached the furniture maker apparently stopped all attempts at squeezing more money out of you. LOL
Did you actually check the exchange rates to see if they had gone up in that 3 month period between your price agreement and your taking delivery? If not, how do you know the exchange rate changed to the furniture maker’s disadvantage? It may have gone the other way.
Any Ticos that keep their money in $ would be wise to do so, in my opinion, since the exchange rate has historically favored the dollar. According to comments by you made previously though, they are in for a rude shock since you believe that the US economy is on the verge of a meltdown and that the dollar’s value will sooner or later plunge in value.[/quote]
Come now Steve…. once again PERSONAL experience in CR compared to internet research and theoretical beliefs on how things SHOULD work! I guess we could have one heck of a debate on the difference between a supply and demand pricing system as compared to the whole futures pricing scheme the world seems based on. 🙂
Once again my furniture maker SPECIFICALLY cited the exchange rate… the gringo pricing was no doubt already built into the price we had agreed on. BTW…. I still felt the price was fair and I don’t have a problem paying more for quality. As you witnessed yourself furniture in CR is a fantastic bargain even with some gringo pricing adjustment. The exchange rate had in fact changed during the three months as it had continually until the BCCR implemented their “banding” policy of exchange rates.
As for holding dollars… the world seems to be of the same mindset… but as has been the case with EVERY fiat currency in history… eventually they all return to their true value… ZERO.
We can continue the debate… but let’s be very clear…. it’s reality vs theory…. only one of us is not relying on an internet search to make our point. 😉
[quote=”Scott”]Aaah!
Now I understand …
In that case I woe you an apology – Sorry!
Which authorities are you referring to? And for what?
Does anybody know where Raymond Cruz can be found?
Scott
[/quote]No doubt another CR “developer” who’s only accomplishment is another dirt road to no where with little number signs for the lots that people overpaid for!
Chances are that’s not even his real name. Google won’t help… time for a PI…. but even after finding this guy the chance of recovery is slim to none… just ask all those Paragon Properties owners!
[quote=”sweikert925″][quote=”Imxploring”]Nice info Steve…. but the reality is that if a store merchant sells a widget today (whether it’s imported or locally produced) and the replacement or restocking cost goes up [b]as it will with the increased exchange rate[/b]…. the new item will cost you more.[/quote]
Why would it be more if the item is not imported? Your comment assumes that exchange rate changes automatically increase costs for everything and while they may for some things, they also may not for others. Apparently you didn’t find my explanation of the connection between inflation and exchange rate changes persuasive. How so?That furniture salesman MAY have had a good reason to tack on an additional cost if some of his costs went up, or he may have guessed that YOU automatically assumed that an exchange rate increase justified a price rise. If the latter then he was apparently correct. Aren’t you the guy who is constantly going on about how Ticos are all guilty of Gringo pricing?[/quote]
Once again Steve… personal experience on my part compared to theoretical logic on yours. No insult intended my friend. And as for my furniture maker… he specifically cited the exchange rate as the difference in the price.
We had fixed the price when I commissioned the order… so there was no gringo pricing in play. If there was he added that when we agreed on the price!! 🙂
As I said previously…. the interchangeable nature of the dollar and colone in CR may explain the divergence from normal economic theory you have pointed to… but the reality as I’ve cited does exist and will no doubt result from the recent exchange rate change.
Another point or issue that may be relevant to this issue is that many Ticos I know like to hold their money in dollars.
BTW…. I’m not sure where that world exchange rate is coming from… but on the ground in CR, in the banks, and most importantly in the stores… the current dollar/colone exchange rate is a MUCH different story!
[quote=”sweikert925″][quote=”Imxploring”]I think you’re mistaken if you don’t believe that prices in CR (priced in local currency) will not be adjusted upwards (inflated) to make up for the rise in the dollar (exchange rate).[/quote]
Only those goods and services which have part of their prices based on foreign sourced components. American automobile prices will go up if the colon gets cheaper, prices of wood furniture made by Costa Ricans from Costa Rican wood will not. Locally grown food won’t, imported food from the US will.[quote=”Imxploring”]The exchange rate (dollar rise) will result in inflation in local prices (colonies).[/quote]
As a categorical statement, that isn’t true. If a nation had absolutely [b]NO[/b] goods and services that were imported from country X then an exchange rate decrease against X’s currency would cause [b]NO[/b] inflationary pressure.
If [b]100%[/b] of their goods and services were imported from X it would increase the price of [b]EVERYTHING[/b].
If [b]SOME[/b] of their goods and services were imported from X then it would have [b]SOME[/b] effect.[url=http://www.xe.com/currencycharts/?from=ARS&to=CRC&view=5Y]Here[/url] is a chart showing the value of the Argentine peso against the colon. The peso has lost more than half its value over the past 5 years against the CRC so why didn’t that cause downward inflationary pressure in CR? Well maybe it did, a tiny bit, but only to the extent that Costa Rica imports goods from Argentina.
As of 2012, Costa Rica’s imports came primarily from these countries:
US 46.2%, Mexico 6.4%, Japan 6.1%, China 5.8%
So of the $16.75 billion imported in 2012, 46.2% came from the US and therefore only about that percentage of imported goods would be affected by a change in the CRC-USD exchange rate.http://www.indexmundi.com/costa_rica/economy_profile.html
CR’s GDP for 2012 is about $45 billion, and $16.75 (37%) billion in imported goods. So with about 46% of that coming from the US, a 10% rise in the value of the dollar might have a small inflationary impact, but not that great. 10% of 46.2% of 37% is about 1.7%.[/quote]
Nice info Steve…. but the reality is that if a store merchant sells a widget today (whether it’s imported or locally produced) and the replacement or restocking cost goes up as it will with the increased exchange rate…. the new item will cost you more.
The fact that the dollar and colonie are basically interchangeable in daily commerce in CR is both a blessing and a curse. For those with dollar based incomes it’s not painful right now. For those with incomes based on local currency…. not so much.
I remember a few years back… I custom ordered some furniture from a local craftsmen… with a delivery date for my next visit to CR three months later. This was during a period when the dollar was constantly rising against the colonie. When it came time for delivery he wanted 10% more because of the currency exchange difference. Fortunately we had set the price in colonies and it was in my favor. I did give him a little “bonus” for the quality of his work… but refused to renegotiate the price on the exchange rate!
Keep in mind this was a sole proprietor working out of his garage with local materials. All businesses in CR are aware of the difference the exchange rate has on local prices… and they will adjust (inflate) accordingly! So no matter what you might think economic theory tells you… prices in CR based currency will reflect the exchange rate difference!
[quote=”waggoner41″]The Costa Rican exchange rate has absolutely nothing to do with the rate of inflation.
The Banco Central de Costa Rica sets a floor and a ceiling on the rates of exchange. As noted in the article below, last October the Central Bank raised the ceiling to 800.5 colons to the dollar but the floor remains at 500.
[url=http://insidecostarica.com/2013/10/08/central-bank-raises-exchange-rate-ceiling-dollars-%C2%A2800/]New exchange rate ceiling[/url]I am amazed that the exchange rate has risen as rapidly as it has but the chances that it will get above 600 is just about zero. This morning we got 549.3 to the dollar..
[/quote]Les…. I think you’re mistaken if you don’t believe that prices in CR (priced in local currency) will not be adjusted upwards (inflated) to make up for the rise in the dollar (exchange rate).
It’s one of those questions… which came first… the chicken or the egg.
The exchange rate (dollar rise) will result in inflation in local prices (colonies).
The ability to use either currency (without first converting) in CR is a big advantage to those that have their income or assets in dollars.
[quote=”davidd”]sweikert925
every time I stick my head in for a quick peek in here.. and sure enough its sweikert and his continous mental masturbation of various topics costa rica related lol
I will peek again next month and see what topics he is debating
keep in mind all this is on some company’s time that is paying him a salary to be productive..
which is typical
onward!!! [quote]
An insurance company I believe… you know the business model there…. Make promises, collect premiums, find a way not to pay claims…. gotta love capitalism! 😉
Sorry Steve couldn’t resist… After lawyers insurance companies are on my list of entities that I see as the root of a good amount of the evil that exist in this world.
[quote=”sweikert925″]Have neither of you ever been a victim of crime?[/quote]
Happy to report no…. well other than the larceny that takes place against my paycheck before I get what’s left! But I’m working on preventing that too! 😀
[quote=”Scott”]I have too many corporations for a variety of online and offline businesses and like most people in Costa Rica, I have not yet paid this (IMHO outrageous) tax…
If you have not paid the tax and have bank accounts in the name of the corporation, it might be a good idea to remove whatever cash and/or investments you have in those accounts just in case they decide to make an “example” out of you.
Scott
[/quote]
Good advice since we don’t know how far they will be going to collect these fees. After the recent CAJA “adjustments” it’s obvious they seem to care very little about the economic impact such fees will be inflicting on CR.
Unfortunately for some of us the leverage they can use requires we pay and hope to avoid the radar for potential problems. Nothing underhanded or illegal… just part of the cost of enjoying the many good things CR has to offer…. unfortunately they are slowly making that balance tip in favor of looking elsewhere.
