What is required to visit Costa Rica?
Make sure your passport is longer then 6 months to expiry.
North Americans can stay in Costa Rica legally for up to 3 months. They must then leave for a period of 72 hours then can then return to the country for another three months. If the three-month period is overstayed, a travel agency can arrange payment of a small fine and prepare the travel documents required to leave the country for the required 72 hours. Tourists can own vehicles, property, and businesses and generate income from self-employment.
Can foreigners own property in Costa Rica?
By law, any individual, national or foreign, may legally own land in Costa-Rica. Nonetheless, for legal and economical reasons, it is recommended that the purchase of real estate be performed through a Costa-Rican anonymous corporation.
The advantages of having land registered under an anonymous corporation rather than in an individual's name are the following:
An anonymous corporation, as the name indicates, provides a measure of privacy to its owner(s), making it difficult for others to obtain information about who owns the shares of the Corporation, providing the discretion which many foreign investors desire.
You achieve a reduction of personal liabilities by having your assets registered under individual Costa-Rican corporations.
How are the properties registered?
The properties we offer are duly registered at the Costa Rican Public Record Office and land transfers (sales) are granted through a public deed. To achieve this, the transaction is recorded by a Costa Rican Notary Public who inserts the title transfer in his Protocol (numbered ledger). A Notary Public is a licensed Attorney at Law who is endowed with "public trust" and has the right to validate and legalize all contracts and deeds. The purchase deed is presented by the Notary to be duly registered in the public records.
Our properties are then registered in the Costa Rican Land Registry Office, where each individual lot has its own registry number. The deed to the property allows you to request the exploitation right of any mineral and lumber resource found on the site from the Costa-Rican government. It also guarantees you sole rights of who has access to and over the property.
What are the building regulations?
Within our developments we require that you to build a minimum of 1000 square feet and maintain the standards of our building criteria. Building codes are similar to Canada and the USA, blue prints must be approved by the Costa Rica College of Architects, and electrical plans approved by an electrical engineer. Ministry of Heath, a work site Insurance policy and local Municipality approval is also needed.
What is Costa Rica's political situation?
Costa Rica is a very democratic republic, headed by a president who is in power for one 4-year term. He cannot run for a second term. Ministers are appointed and there is an elected congress. There has been no army since 1949 when it was banned constitutionally.
What is the political situation of the country?
Costa Rica has a history of stable government, which stretches back to when the country was founded. It had one brief civil war in 1948, when a president wanted a second term in power. At this time a new constitution was drawn to ensure such a situation could not occur again.
What is Costa Rica's weather like?
Weather in Costa Rica is largely a matter or choice, unless someone is looking for snow. There is none, even on the 13,000-foot high mountains. It varies from hot coastal lowlands, where rainfall varies according to location and season, to very cool mountainous regions. There are plains, which go months without rain, and areas where it rains daily. The average temperature in the Central Valley is ideal, with evenings of 17 - 18 C and days averaging 25 - 28 C year round. The dry season is usually from the end of November until past Easter. The amount of rain in rainy season depends on the climate zone, with heaviest rains usually in October. Rainfall is usually in the afternoon, if it is going to rain.
Are there income taxes?
There is no income tax on money earned outside of Costa Rica by residents. Personal income taxes are low compared to North America, with many personal expenses deductible from locally earned income. Corporate taxes are also low.
Are there other taxes? (Sales taxes, import duties, exit taxes, vehicle taxes, property taxes, etc.)
Other taxes: Sales Tax - 13%
Import duties are being decreased in Costa Rica in compliance with the GATT agreements. The principal exception is new vehicles, on which duty is about 40%.
Tourists pay an exit duty of approximately $17, while residents pay more.
License plate fees are paid annually for vehicles, and depend upon the value. They are not excessive.
Property taxes are very low in comparison with North America.
How much will it cost in fees, duties and taxes to bring in personal possessions? (Cars, boats, appliances, electronic equipment, personal effects, artwork, etc.)
New residents will be charged import duty on cars and boats at the same rate as would be paid by a resident bring them in. Personal effects and artwork are not taxed. Electronic equipment and appliances will be valued and a duty charged.
Can I rent property to live there? (Rental rates, lease laws, rental taxes)
Rental rates depend on the area. Any rental agreement is assumed to be for three years, during which time the landlord may not raise the rent. Lease contracts are honored by the courts provided they are drawn according to the law of rentals. Landlords may not evict tenants for other than non-payment of rent or illegal activities.
What is the 'purchase of property' and 'building regulations' like?
Property prices vary from area to area. There is a computerized central registry system similar to North America, and lawyers or others, such as the ARCR, who subscribe to the service can search title from their office computers. Foreign residents and non-residents have the same property ownership rights as citizens, with the exception of leasing land from the municipality and purchasing land close to the frontiers. Registration, taxes and legal fees will be approximately 5.5% of the declared value of the land on purchase. The government has an excellent history of respecting foreign ownership of land. Construction is less costly than usually found in North America. A finished luxury house currently would cost about $65-$75 per sq. ft. to build. (Est. 2002) The contractor is responsible for defects in construction for 5 years.
Are there reliable phone and fax lines, cellular phones, Internet connection and other communications?
Costa Rica has a state owned Hydro/telephone Company. Phone installation can be slow, but once installed they function well. Touch-tone international dialing for phone and fax is in place, as is a well-developed cellular system. Costs are competitive. Internet was introduced in 1995 and use is becoming widespread. There are several Spanish newspapers one English daily, two English and one German language weekly, and various magazines. Foreign newspapers can be purchased readily. There are several Spanish language television stations, and different cable TV companies offering English language channels. Satellite TV dishes and Direct TV are readily available.
How is the transportation? Are flights available to places you wish to go?
Costa Rican roads are in generally poor condition. Potholes are common, and an endless chain of patching is underway. Air service from Costa Rica is well developed, with many direct flights daily to Mexico, USA, Central and South America, and also direct flights to Europe (Italy, Spain, Germany, England, Holland), Canada and Cuba. Average return airfare to a destination in the USA would be $550. Bus service is excellent, frequent and inexpensive. Deluxe buses are operated on many runs with air conditioning and video movies. There is no passenger train service except for commuter trains near San Jose.
What time zone is Costa Rica in?
Costa Rica is within 2 hours of most North American cities for time zone. There is no daylight saving time, so it varies seasonally.
What is the shopping like?
Most things are offered for sale in and around San Jose, much less so in the rest of the country. The Central Valley boasts many large, enclosed malls. Everything, which one could want, is readily available at competitive prices. There is a wide range of warrantee, service and repair companies to choose from. Computer software sales and service is common, as are hardware repair facilities. There is a duty free zone in 'Golfito' in the South West of the country, where everyone is permitted to purchase up to $600 in goods from some 80 stores at low prices twice a year.
What types of food are available?
There are thousands of restaurants in the Central Valley offering cuisine from most countries of the world. Giant supermarkets offer most familiar items. Items imported from North America are more expensive usually, however many familiar name brands are manufactured in Central America and the prices are reasonable. Also, many items will be available inexpensively from local manufactures with as good or better quality than the brand name you are used to.
For hobbies, are there clubs, supplies and assistance available? Clubs and suppliers represent almost all hobbies locally.
What cultural activities are available?
There are many excellent symphony orchestras, several live theaters, and many local or visiting musicals, dance and entertainment groups. There is an active art community and several galleries.
What entertainment is available?
Football (soccer) is the most popular local sport. Every region, no matter how small, has a football field. There are dozens of cinemas, and most films are in English with Spanish sub-titles. San Jose never sleeps, with a large number of nightclubs, discos, bars, casinos and dance halls. Fiestas are popular and frequent throughout Costa Rica.
What recreational facilities are available?
There are many recreation and health centers, private and public, and 18 and 9 hole golf courses. Many courses are under construction by various resort developers. Tennis and basketball are popular. Whitewater rafting, kayaking, horseback riding, water sports, hiking, bicycling and many other sports are popular and well provided for.
Will my appliances, electronics and electrical equipment work on the available power
supply?
Costa Rica has 110-115 Volt electricity and the NTSA television system as in North America.
What are the beaches like? What is the water temperature?
There are hundreds of miles of world class sand beaches in various colors. The ocean temperature is warm - well over 80 F - year round. Surfing is world famous.
What is the situation with poisonous plants, insects, snakes, and dangerous animals?
There are few dangerous animals. There are several varieties of poisonous snakes, but are not usually seen. Insects are few in the Central Valley, more on the coast and in rain forest.
What is the crime rate like? How helpful are the police to local residents and foreign residents?
Violent crime is low. In the San Jose area break-ins of unoccupied cars and buildings are common, and care is necessary. The police do not differ in their treatment of foreigners or citizens. Generally the police will not come to a break-in until the victim goes to their office and files a report. In more remote areas the crime rate is almost non-existent.
How do the local residents treat foreign visitors and residents?
Costa Ricans are a very welcoming and friendly people who welcome foreigners.
What are the local investment opportunities?
There are two stock markets in Costa Rica, and all banks issue Certificates of Investment (as do many private companies and licensed finance companies). OPAB's are available (similar to money market funds) and yield about 5% annually. Private and national banks have savings accounts with interest rates in the 2-4% range. Mortgages, investments in private companies and investments in stock, bond and commodity markets outside of Costa Rica are easily arranged through local investment brokers. There is no consumer protection legislation.
Is the banking system safe and reliable? Is there banking confidentiality? Can money brought into the country be taken back out again?
There are 4 national (government owned) and about 23 private banks operating in Costa Rica, including Citibank from the USA and the 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, although 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.
Are good lawyers, accountants and other professionals available?
There are a wide variety of professional people available in all fields. Lawyer-client relations are protected by confidentiality laws. Many of the major international accounting firms have offices in Costa Rica.
How is the health care system? What is the quality of hospitals, doctors and dentists?
The health care system is excellent. There is a plan for citizens and residents who have work permits covering medical care, hospitalization and prescription drugs. Citizens are also covered for dental care. This is funded by employers contributing 22% of wages paid, and the employee contributing 9%. There is also private medical insurance, through the state owned insurance monopoly, which is inexpensive and covers 80% of medical costs. For those who wish, medical services and hospitals are available on a "pay as you go" system for those without medical insurance. Medical care costs are very low compared to North America. Hospitals regularly do high tech operations such as heart & organ transplants. There are many specialists in Costa Rica, and doctors have their home phone numbers in the yellow pages for emergencies. There is an ambulance service in almost every town in the country, operated by the Red Cross. There is also a wide choice in dental care. No special shots are required to come to Costa Rica.
Can you drink the water? Are pasteurized milk and dairy products available?
Water can be drunk from the tap throughout Costa Rica. Sanitary standards are very high. Pasteurized milk and dairy products are normal everywhere.
How is the education system? Are good private schools available in other languages?
There is a free education system for all, through high school. The official literacy rate is over 95%. There are many universities and technical training schools. Many university students have their tuition paid by grants. English is taught in the public school system but the main language is Spanish. There are excellent bilingual and trilingual schools available with a principal language of English, French or German. Some schools are on the North American school year.
What is the cost of having domestic staff?
The current cost for domestic staff is $1.00 per hour. This will vary if second language ability is required, and may be dependent upon specific conditions, such as whether room and board area provided.
What legislation is there to protect foreign residents?
Foreign residents are protected by the constitution, and have most of the rights of citizens. The record of the government historically has been excellent in honoring these rights. They do not have the right to:
Vote or participate in political activities.
Work for wages without a permit.
Own land close to national borders.
What natural dangers are there? (Hurricanes, tornadoes, typhoons, volcanoes, earthquakes, droughts, floods)
While there are many recorded earthquakes per year, only about half a dozen can be felt. There are no hurricanes, but heavy rains may cause flooding. There are several active volcanoes, the most active of which is Arenal. It erupts almost continuously, without causing damage. There has been loss of life and damage caused by volcanic eruptions in the past.
Where does the country stand environmentally?
Costa Rica, in comparison with other third world countries, is very environmentally conscious. Approximately 27% of the area of the country is in national park or protected reserve, the 50 meters above high tide is public property and cannot be privately owned or developed and the next 150 meters inland in approximately 85% of the country is owned by the local municipality and cannot be sold. This land can be leased from the municipality for approved projects or residence. There are strict environmental guidelines in place for all developments and mining activity. Logging is closely monitored. Most international ecological groups are represented in Costa Rica, so even where the government overlooks an infringement of the environmental laws, the legal mechanisms are in place for concerned organizations or individuals to halt development with cause. Coastal construction is limited to low rise buildings. Attempts are being made to address pollution in rivers and streams, and vehicle emissions are now being tested to keep them within set standards. There are many privately funded research facilities, as may be expected in a country with more bird and insect species than all of North America, over hundreds of types of hardwood trees, over 1000 varieties of orchids and so on.
Is there controlled growth and well-managed development?
Development is planned to a certain extent, although in much of the country private land can be used as the owner wishes. Subdivisions must meet government standards, including roads, power, water and parkland and they must be maintained by the developer for several years after being sold out. Free zones and industrial areas are well defined, and government policy has encouraged businesses to take job-providing factories to the villages to allow people to travel short distances to work and to slow the spread of large cities. All construction must meet strict standards. Most industry in Costa Rica is of a non-polluting type.
Examples would be electronics, pharmaceuticals and clothing manufacturing. Agriculture is still the largest export sector, led by traditional bananas and coffee, but with non-traditional items such as ferns, flowers and tropical plants gaining rapidly. Huge refrigerated facilities are in place to encourage new agricultural exports.
Can pets be brought to the country?
Pets can be brought to Costa Rica. A veterinary certificate is required.
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