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Relocating to Costa Rica:
Visiting Costa Rica
We recommend that you
come to Costa Rica as a tourist before you make a commitment to buy Costa
Rica real estate property and move here. Spending a couple of weeks in Costa
Rica is a good way to see whether you could imagine yourself living here before
you make a Costa Rica real estate investment. North Americans can stay in
Costa Rica on a tourist visa for up to three months. Following the three-month
period, they must then leave the country for 72 hours and can then return to the
country for another three months.
1. Residency Information
Foreigners planning on
buying real estate in Costa Rica and moving here long-term will want to
obtain residency, and there are several different options.
Three main types of
residency obtained by foreigners are:
• pensionado (pensioner)
• rentista (renter) and
• inversionista (investor)
Under these types of residency, you can claim
spouses, children and dependents. Children between the ages of 18 and 25 can
also be claimed as dependents if they are enrolled in a university.
These are the
requirements for obtaining residency:
1. Prove a certain
income (for pensionado and rentista residency)
Pensionado:
Must prove minimum income US $600 (or equivalent) per month from a qualified
retirement plan or pension source, such as a government pension.
Rentista: Must
prove income from an investment such as a certificate of deposit or annuity that
will generate income of at least US $1,000 per month (US $ 12,000 per year). An
approved financial institution in a foreign country or Costa Rica must guarantee
in writing that:
1. You hold
sufficient funds in a stable and permanent account to provide an income of $US
1,000 per month for at least five years of your residency.
2. If the
financial conditions above change, the financial institution agrees to notify
the Instituto Costarricence de Turismo (Costa Rican Tourism Institute).
3. The monthly
income will be sent to the rentista resident in Costa Rica.
4. Qualifying
funds are in the name of the applicant.
5. For rentista residency, you must prove your continuing income every five
years.
Inversionista:
•Invest at least US
$50,000 with an approved organization in a field such as tourism or export
businesses; US $100,000 in a reforestation project; or US 200,000 in another
type of business.
•Visit Costa Rica at
least once per year.
Permanent
residency:
After two years of
pensionada, rentista or inversionista status, application can be made
for permanent residency in Costa Rica. This is usually unrestricted, and working
is permitted.
To apply to become a
permanent resident, the following rules apply:
1. Citizens of
Spain can apply for permanent residency right away.
2. Permanent
residents must visit Costa Rica at least once each year.
3. $US 300 must
be deposited with the government of Costa Rica as a guarantee.
First Degree
Relative Status:
You may apply for
permanent residency if you have first-degree family members who are Costa Rican
citizens (parents, siblings, spouses, children) who are citizens of Costa Rica
or if you marry a Costa Rican.
Required Documents
These documents are
required to apply for all types of residency in Costa Rica:
1. Police
certificate of Good Conduct from your last place of residency. Valid
for six months. Required for applicant, spouse and any children ages 18-25.
2. Birth
certificate. Required for applicant, spouse and all dependent children (up
to 18 years old or up to 25 if he/she is a university student).
3. Marriage
certificate (if spouse wishes residency). Proof of divorce is not needed.
For Pensionado
residency, the following is required:
• Proof
of a pension of at least US $600/month stating that it is for life, and that it
will be paid in Costa Rica. For pensions from the US Social Security System or
Canada Pension, it is easier to obtain the certification at the US or Canadian
Embassy in Costa Rica. You must provide them proof of your pension. Pensions
from other government agencies (all countries) must have a letter stating that
the pension is paid by the government. Pensions from other institutions must
have a statement verifying the type of institution paying the pension.
**All the above
residency documents (other than those obtained in Costa Rica) must be:
•Notarized by a local
notary public if they do not have an official government seal. If in doubt about
the need to have it notarized, check with the local Costa Rican consulate. With
notarization, your signature must not appear in the notarization of the
document.
•Authenticated by the
Costa Rican consul in the country where the document was issued. A Costa Rican
consulate will charge US $40 for authentication of each document. They must
affix stamps worth that amount to collect the money. If they do not have the
stamps, the ARCR can buy them in Costa Rica on your behalf.
Other requirements
for both Pensionado and Rentista types of residency:
1. Income must
be changed into colones at a government bank or an approved private bank in
Costa Rica. Pensionado: US $7,200 per year
Rentista: US
%12,000 per year
Must submit proof once a year.
2. Must live in
Costa Rica for a minimum of four months each year and submit proof once a year.
3. Renewal of
residency identification card (carnet) every two years. The government of Costa
Rica charges a US$100 tax for each renewed identification card.
4. You and your
dependents cannot earn a salary or supplant a Costa Rican in a work situation.
You can own and operate a business and pay yourself and/or make investments.
Translation of
Documents for Residency
Translations from
other languages into Spanish have to be either done by the Costa Rican consulate
in the country where the document was issued or here in Costa Rica by an
“official” translator for another language to Spanish. Translation from the
original language to English is not accepted by the Costa Rican government.
2. Cost of Living
As in any country, how
much you spend to live in Costa Rica depends on the type of lifestyle you lead.
But whatever your lifestyle, it is cheaper to live in Costa Rica than in the
U.S. For example, a couple who lives relatively frugally, taking buses and taxis
instead of having a car, can live on $1,000 a month. Having a car or larger home
will require more ($2,000 per month or more, depending on spending).
Fortunately, utilities
such as power, water and telephone are relatively cheap in Costa Rica. For
example, the monthly power bill for a family of four is only about $20 per
month. Property taxes are also significantly less than in the U.S.
Having a car will up
the cost of living, as gas prices have soared recently.
Locally-produced food,
such as vegetables, fruits, rice and beans are very cheap. However, exported
goods can get pricey. The same goes for household products and toiletries.
Restaurants, hotels
and other entertainment venues are generally a good deal cheaper than in the
States. A meal at a nice restaurant with wine runs around $10. Note that prices
are higher in tourist areas.
3. Driving
You can legally drive
in Costa Rica with your U.S. driver’s license and can also obtain a Costa Rican
drivers license, which is necessary if you’re staying for an extended period of
time.
In some areas, roads
are poorly maintained and can be very narrow and windy, making getting around a
slow process. On highways and secondary roads the speed limit is 60 kph., unless
otherwise indicated. In urban areas, the speed limit is 40 kph, unless otherwise
indicated.
The speed limit around school zones and in front of hospitals and clinics is 25
kph. Driving around San José can be hectic as there are many one-way streets and
drivers don’t always follow traffic signs and lights. Parking can also be a
hassle. It may be easier and less-stressful to get around San Jose by taxi and
bus at first.
Driving out from San
José to the coast, there are two-lane highways which are easier to navigate,
though drivers should still beware of anything from slow-moving produce trucks
to cows and horses in the road and always use caution.
To import a car, new
residents will be charged an import duty.
License plate fees are
paid annually for vehicles and depend on the car’s value.
4. Health Care
Costa Rica has great
health care. In fact, a 1995 World Health Organization report placed Costa Rica
third in life expectancy, behind Japan and France. Most of Costa Rica’s doctors
trained outside of the country, and many are bilingual. Some people who move to
Costa Rica find patient care even better than in the U.S. Doctors tend to take
their time to provide more individualized care.
In terms of health
insurance in Costa Rica, there are a few different options for foreigners. Those
who have financial interest to protect will want to choose an international
insurance company that can guarantee a minimum of $5,000,000 lifetime coverage
available anywhere in the world. Look for a reputable company with a long
history of protecting individuals without cancellation or restrictions on
renewal.
The Caja Costarricense
de Seguro Social (CCSS) is Costa Rica’s social security system that provides
health services to Costa Rican citizens and also applies to any foreign resident
or visitor. CCSS has a government-sponsored network of 29 hospitals and more
than 250 clinics throughout the country. Foreigners can join CCSS by paying a
small monthly fee, based on income. Prices for treatments are generally way
below those of the U.S. For example, a private office visit to almost any
medical specialist costs around $30.
CCSS has some
drawbacks, however. Costa Rican hospitals tend to be overburdened and backed up.
CCSS only pays for public hospitals on their registry, leaving individuals to
pay out of their own pockets if they go to a private hospital.
Health insurance can
also be purchased from the State monopoly, Instituto de Seguro Nacional (INS).
Their plans are valid with over 200 affiliated doctors, hospitals, labs and
pharmacies in the private sector. Unfortunately, the largest INS Medical policy
only provides $17,000 protection, which would fall short of protecting you in
case of major illness.
5. Banks
There are four national, government-owned banks and
about 23 private banks operating in Costa Rica, including Citibank, from the
U.S. and Bank of Nova Scotia, from Canada. All deposits in national banks are
guaranteed without limit by the government of Costa Rica. Banking is both safe
and reliable; however, the national banks can be bureaucratic. Checking, savings
and investment services are available from all of them.
It is also possible to operate accounts in the USA or
elsewhere through Costa Rican private banks. Banking in Costa Rica is protected
by secrecy legislation. Foreigners may have bank accounts. There are no exchange
controls or restrictions on removing funds from the country.
6. Schools
If you’re planning to
bring your children to Costa Rica when you relocate, you can rest assured that
you will find quality schools for them. Foreigners are entitled to public
schooling in Costa Rica. Compared to other Central American countries, Costa
Rica has an excellent public education system; in fact, Costa Ricans pride
themselves on their quality of public education. However, these schools may
often be overcrowded. And for children who don’t write and speak Spanish
fluently, public schooling is not an option, as classes are given completely in
Spanish.
Fortunately, there are
both bilingual and English, American-style schools to choose from. Country Day
School, an American school in the Escazú neighborhood of San José, is popular
among expatriate families and known for its high standards.
Tuition for Country
Day School for the 2005-06 school year was as follows:
Registration fee:
$1000
Tuition, Kindergarten:
$6,221/year
Tuition, Grades 1-12:
$8,426/year.
7. Crime
Violent crime rates in
Costa Rica are low, however, break-ins of cars and buildings and pick-pocketing
is common, especially in the San José area.
Extra caution should always be taken when securing your car and home and
when walking around the city. If you are particularly worried about security or
have valuable possessions, you may want to consider living in a gated community
with a security guard who monitors the property.
8. Pets
Pets can be brought
into Costa Rica as long as they have a health certificate from a veterinarian
showing that they are free of fleas, worms and rabies and that they have all
necessary vaccinations. All airlines will also require this certificate, and it
must be issued at least ten days before the departure date. There are many
veterinarians in Costa Rica, especially in the San José
area.
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