Where to Retire in Costa Rica Pt. I
Snap out of it! Before you can turn that dream into reality you have some work to do!
I don’t think anyone can just wake up in the morning and decide they want to retire in Costa Rica any more than they can decide to fly to the moon. In fact, sometimes I think flying to the moon is easier. Planning to retire ANYWHERE takes time. My best advice to you would be to visit the Costa Rica first. Granted you’re going to see the country different through the eyes of a “tourist’ rather than that of a “resident”, but you have to start somewhere. Visit and try to stay as long as possible. It’s the only way to get a realistic taste of what it’s like.
Depending on your country of origin, you can travel around Costa Rica with a tourist visa for up to three months. With a driver’s license from your home country and your passport, you can legally drive.
At the present time, if you own a house and car and have no debts, you can live well on US$1,500 per month, including maid and gardener services. Foreign residents or tourists can buy or rent homes, condos, and property in Costa Rica.
Property taxes are generally lower in Costa Rica than in North America and many other countries. As a foreign resident, you will not pay income taxes on foreign pensions or income generated outside of Costa Rica, but you may have to pay taxes on income generated in Costa Rica.
O-k, enough generalities. In order to obtain residency in Costa Rica you are required to have three documents:
1. Police Certificate of Good Conduct from your last place of residency. Valid for 6 months. Required for applicant, spouse, and any children aged 18 to 25.
2. Birth Certificate. Required for applicant, spouse, and all dependent children (up to 18 years old or up to 25 if a university student – proof of enrollment is required).
3. Income Certificate for Pensionado. The pensionados is 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. Demonstrate you have direct-deposit as well. For pensions from the U.S. Social Security or Canada Pension, it is easier to obtain the certification at the U.S. or Canadian Embassy in Costa Rica. (You must provide them with proof of your pension.)
O-k, now that you have those documents they need to be notarized and authenticated by the Costa Rican consulate which will affix each document with official stamps that will run you about $40.00 per document.
General information about your new home:
– Physical presence in Costa Rica for a minimum of 4 months each year
– Renewal of residency identification card (carnet) every two years. The government of Costa Rica charges a US$100 tax for each renewed identification card.
– 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 or ARCR 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, businesses and generate income from self employment.
– 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 and there is little which one could want which is not 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.
– 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.
O-k. It’s one thing to retire and it’s another thing to become a resident. If you become a resident your benefits are a lot greater to include education and medical coverage for you and your family. It’s also a bit more expensive to become a resident but you’ll understand why in our next article.
In the meantime, the hands-down, best resource for anyone planning on retiring to Costa Rica is the Association of Residents of Costa Rica. Still going strong after 20 years, the ARCR has assisted those living in Costa Rica and those considering moving here.
Whew! Hey, maybe after all this, you can start looking at specific areas in which to live!
