Aug 2006 residency law changes!
Costa Rica Retirement is a great option for all types of people. Some want out of the rat race. Others love the freedom found here. I love the climate, the scenery, and the attitude of the people.
We recommend that anyone contemplating a move should seriously consider an extended stay, say 6 months, before living in Costa Rica. This includes purchasing property for Costa Rica retirement as well.
A vacation is not enough time to truly determine if you want to live here full time or if you (or your spouse) have a propensity for homesickness.
Pura Vida means "pure life". It is a commonly used term to describe the lifestyle of this beautiful country. This describes what living in Costa Rica is all about.
Before you make your tripRecently, a change was made in Costa Rica policy regarding application for residency which is required for Costa Rica retirement.
An attempt was made to require the request for residency to be initiated before leaving your home country. This rule has been relaxed, I suppose due to non-compliance.
I recommend checking with your Costa Rican consulate in your home country prior to entrance into the country to prevent potential problems regarding retiring in Costa Rica.
Costa Rica Retirement Red Tape
Something I will admit to you right now is that Costa Rica is famous for red tape. Don't expect anything to happen rapidly (or to many peoples expectations efficiently) when dealing with banks, residency, or even most Costa Rican attorneys.
Therefore, we recommend that you find a reputable attorney to help you "distance" yourself from the Costa Rica retirement application paperwork.
Some full time tourists find the application process unnecessary. They are called PT's (perpetual tourists). PT's leave the country and travel to nearby Panama, Nicaragua, or Islas de San Andres (an island owned by Columbia) for a 72 hour vacation and then immediately return to Costa Rica for another 3-6 months.
There have been discussions about cracking down on this behavior. If you intend to stay year round I don't recommend this at all.
It is perfectly acceptable to visit for the allowable 6 months and leave for a "reasonable" period of time but consider the ramifications of having "ultima vez" stamped on your passport while living in Costa Rica. This means "last time".
This stamp is one way that full time visitors not applying for residency but living in Costa Rica are dealt with. Others are expected to pay a "fine" and are exempted from the "ultima vez" ordeal. I will pass on both personally.
Costa Rica has a stable banking system that includes banks with government guaranteed deposits, international banks like ScotiaBank, and private banks (roll the dice). These banks provide accounts in US dollars and colones (Costa Rican currency).
The colon devalues each year when compared to the US dollar. It also pays a larger rate of interest than US dollar accounts. Rates, fees, and service range widely. Government banks do not provide the same level of service you will find at ScotiaBank and some of the International institutions.
It pays to have more than one financial banking relationship for Costa Rica retirement in my humble opinion.
Residente Pensionado - Retired individuals with pensions of $600 per month or more. At least $7,200 USD (or equivalent) must be deposited in a colon account (Costa Rican currency) at the Costa Rican bank of your choice each year.
Many people deposit the required amount at the beginning of the year and then immediately transfer the funds back to a US dollar account within the Costa Rican banking system or elsewhere.
The $600 per month requirement is applicable to single individuals or married couples. This means only one pension is required per family (including children under 18 years old, 25 years old if in school). If this sounds pretty liberal, it is. Most countries are much harder to qualify for residency. This is by far the most popular residency plan.
Pensionado Rentista - If you are not old enough to retire or don't have a pension the requirement under this option is $1000 per month USD or $12,000 per year deposited in colones at the Costa Rican bank of your choice.
This income must come from an investment (certificate of deposit , annuity, etc) that guarantees continued income of at least $1,000 USD per month.
Another way this is accomplished by some is to deposit $60,000 USD in an interest bearing account at a Costa Rican bank and the interest paid on this account is the surety for residency under this option.
Rentista Inversionista - Want to start a business in Costa Rica? This is the plan for you. It requires a $50,000 investment with an approved tourism related business, or $100,000 in a reforestation project, or $150,000 or more in any type of business.
Don't do anything without a good lawyer.
There are con men (and women) in Costa Rica like everywhere else. Reforestation projects are often promoted as great deals when they really aren't (other business types as well!) . Want to be a real estate agent? Presto, you are one in Costa Rica. There is no licensing requirement and everybody is a real estate agent here.
A good lawyer and plenty of research is necessary to purchase an existing business, start your own, or make any kind of purchase at all (It doesn't cost that much to get a lawyer to help you here and it will be the best investment you ever made).
Paperwork requirements - So you want to retire in Costa Rica? What are the paperwork requirements? Well here they are :
1. Some kind of income certification as described above.
2. Certified birth certificate for each resident.
3. Marriage certificate if applicable.
4. Police certificate of good conduct from your home country.
Do this last because good conduct certificates can't be more than 6 months old when you file your paperwork. This document must be taken to a Costa Rican consulate in your home country to verify the validity of the notary and documentation.
5. Several certified copies of your passport are required but this is done in Costa Rica.
6. This isn't a paperwork requirement but residents are required to stay in Costa Rica at least 4 months each year.
If you would like additional information about living in Costa Rica, retirement in Costa Rica, residency, banks, or how to find and select a lawyer feel free to contact us for information.
Costa Rica retirement data updated April 15, 2006.
