“Honey, let’s buy a home in Costa Rica.” Sounds like a fabulous thing to here from your spouse, but someone has to be practical right? It’s Central America. It’s in the jungle. It’s hammocks, bungalows and beer. Ok, doesn’t sound all bad, but buying a home. What about healthcare, taxes, immigration, safety, travel, work, finances and a whole array of other reasonable concerns? If you’re the spouse wanting the move, let us help you out with the logistical side in the debate.
Healthcare is obviously important whether you are elderly and retiring or young and fit with kids or adrenaline filled activity seekers. Not to worry, you will be in good hands. The U.N. has listed Cost Rica’s public medical care in the top 20 in the world and the World Health Organization regularly places the country’s residents amongst the longest life expectancy worldwide. It is widely accepted that they have the best medical facilities and treatments in all of Latin America and can safely and efficiently meet all your medical needs. Both the private sector and public health care is available to locals and foreigners alike. Within the private branch, many accept insurance policies from around the world, and most of the private facilities are located in and around San Jose, the capital of Costa Rica. If you don’t have insurance, all hospitals accept cash and most accept credit card. Don’t let this alarm you. Prices for treatment are well below the cost in the U.S. and most are very affordable. Even the prices of medication can be up to 50% less or more. So don’t let medical conditions be a concern.
When it comes to taxes, nothing really changes. All foreign income is exempt from taxes within the country; this includes your retirement income. Only money earned within Costa Rica from sources in the country is taxed and the numbers are fairly low. There is a monthly tax based on salary of 10-25% depending on the business and the amount earned. As for property tax, there is a transfer of property tax owed by the purchaser at the time of purchase in the amount of 1.5% of the value of real estate. Yearly property tax is more of a formality than a bill. Homes are valued by the government not by the home, and it is always appraised significantly lower than its true value. Once the government has placed a “value” on your home, you owe .25% tax on that value once a year. You can pay it quarterly or annually in February. There will be an import tax on everything you bring into the country for your new home, but it will be valued as used goods and a reasonable levy will be placed. As for sales tax on a daily basis within Costa Rica, all products have a 13% tax on them. So as for taxes, it’s very amiable.
Immigration is a hot word in society today, but Costa Rica is very welcoming and does not require U.S. citizens or Canadians to have a visa. They simply stamp a valid passport, and you are good for three months. If you only have a vacation home, this may be sufficient. If you are looking at retirement, you need to apply for residency. This is not difficult either. Start the forms in your home consulate and prove that you have a minimum retirement monthly income of $1000. If you do not have a monthly pension, you can also show bank statements with a minimum monthly balance of $2500 for the last two years. Two other high end options are to deposit $60,000 into a Costa Rican bank or make a $200,000 investment in the country. Take your pick.
Once you’ve arrived, are you safe? This is always an interesting question. Would you describe L.A., Chicago or N.Y.C as safe? Probably, but a foreign country seems to drudge up bias, fear and numerous horror movies filmed abroad. Bring the question to reality. Small towns are like all small towns, low crime and some petty theft. Big cities are like all big cities, moderate crime and some dark corners you shouldn’t visit. As a whole, yes the country is safe. Be smart here just as you are at home. If you don’t need it, don’t carry it. Lock your doors, activate your car alarm and if the locals don’t wander there, neither should you. Costa Rica is not on any crime advisory, so it comes down to common sense.
So now you can move right? But how? Major airlines fly into Costa Rica every day. There are three international airports spanning across the country. One is located in San Jose in the center, one is in Limon on the Caribbean side and the third is on the northern pacific coast between Playa Hermosa and Liberia. Once you’ve arrived, you can rent a vehicle to get to your destination. As for driving around the country, there are some points on safety. You can drive there with a valid driver’s license from your home country and a valid tourist stamp. Make a copy of your passport and the stamp, so you do not have to have your passport on you at all times. Stay very alert and drive defensively. There is not a lot of courtesy on the roads, and within the cities, traffic can be ridiculous. Avoid rush hours, don’t take long, dark untraveled roads at night, keep your valuables out of site and away from open windows and basically drive as if you were at home and extremely aware. And no matter what, do not drink and drive!
If retirement isn’t an option just yet, working in Costa Rica can be. You will have to follow all the work visa laws and start the process in your home country, but it is done all the time. If your job is still in your home country, travelling back and forth can be done rather easily. The best set up is to work online or from your computer. This way you can sit on your patio with the view of your choice and click away stress free. Don’t get in a daily grind rut. People make money in extraordinary, and very legal, ways all over the world without sitting in a cubicle. Technology may not be as fast as it is stateside, but it is reliable and available.
Finally, what about your finances? There are international banks all over the country with names you trust like Citibank and Scotiabank. There are also state banks in local areas that can help you. If you are not applying for residency, you can continue using your home bank and withdrawing via the ATMs. Dollars are used quite frequently, but the exchange rate within businesses can vary. If you are making the move, wait until you get your residency ID card and you can choose a bank for your needs. It’s like moving anywhere else, you will need formal ID, proof of address, an opening deposit and a good deal of patience. This is the world of finance, just breathe.
Now you are equipped to battle the questions and opposition from friends, family or even those you’re trying to convince to make the leap with you. Sure there will be challenges and adaptations will need to be made, but the reward for a life in Costa Rica is well worth the hurdles to get there.