Courtesy of the ARCR

Below is a list of questions often asked by people who are considering moving to Costa Rica.

1. What is required to obtain legal residency? Can I meet these requirements? What is the cost? How often does residency have to be renewed, what are the conditions of renewal and what is the cost? 
Residency Requirements (see Chapter 6 for specific information): $600 per month pension from an approved source: or investment income of $1,000 per month from an approved source - orInvest between $50,000 and $200,000 in an approved sector of the economy.Regular, unrestricted residency can be applied for after two years on one of the above plans. The cost to process residency is approximately $870 per family head plus $425 for dependent spouse and $195 per dependant child. Residency renewals are usually every other year. General conditions for renewal are four months residence in Costa Rica, that the required amount of monthly income was changed into Costa Rican currency or that the terms of the investor residency are met. Renewal cost is $150 to $200.

2. What is required to visit, or while you are waiting for residency (visas, length of stay permitted, restrictions on residents on visa or in tourist or temporary resident categories)?
North Americans can stay in Costa Rica legally for up to three months. They must then leave for a period of 72 hours, and 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 and businesses and generate income from self- employment.

3. What is the political situation (dictatorship, democracy, monarchy, etc.) ?
Costa Rica is a very democratic republic, headed by a president who is in power for one four-year term. Ministers are appointed and there is an elected Congress. There has been no military since 1948, when it was constitutionally banned.

4. How stable is the country (history of coups, potential for future unrest)?
Costa Rica has a history of stable government that 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 that such a situation could not occur again.

5. Weather Do you like 4 seasons? Hot weather? Temperate all year? Snow?
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 that go months without rain, and areas where it rains daily. The average temperature in the Central Valley is ideal, with evenings of 17 to 18 Celsius and days averaging 25 to 28 Celsius year-round. The dry season is usually from the end of November until past Easter. The amount of rain in the 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.

6. Income taxes Are you taxed on income brought into the country? Are you allowed to earn income in the country? If yes, how is it taxed?
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.

 7. Other taxes (sales taxes, import duties, exit taxes, vehicle taxes, property taxes, etc.) 
• Sales tax — 13 percent
• Import duties are being decreased in Costa Rica in compliance with the GATT agreements. Duties are high however, ranging from 50 to 90 percent of the vehicle’s current value (blue book rates).
• 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.

8. How much will it cost in fees, duties and taxes to bring your personal possessions into the country? (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. Personal effects and artwork are not taxed. Electronic equipment and appliances will be valued and a duty charged.

9. Rental property - (rental rates, laws protecting tenants, 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 reasons other than non-payment of rent or illegal activities.

10. Purchase of property - (property value, taxes, restrictions on foreign ownership, purchase taxes, legal and registration fees, laws about foreign property owners, history of government respect for these laws, expropriation laws, squatters rights. If you are going to build: building regulations, how are local construction companies, is there any guarantee on construction once finished, what are construction costs?) 
Property prices vary from area to area. There is a computerized central registry system similar to that in 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 percent 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 $500 to $1,000 per square meter ($50-$100 per square foot) to build (2006). The contractor is responsible for defects in construction for five years.

11. Communications - (Are there reliable phone and fax lines, cellular phones, connections to Internet and other computer communication services, are there local newspapers, radio and TV in a language you understand? Is there cable TV or is satellite TV available?) 
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 has become widespread. There are several Spanish language and one English- language daily newspaper, 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 DirectTV are readily available.

12. Transportation - (How are the roads? Are flights available to places you wish to go? How are the bus, train, ferry services? How costly is it to travel to and from your chosen country to frequent destinations to bring in or visit family, business interests, etc.) 
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, United States, 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 United States is about $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 José.

13. What time zone is your proposed country of residence in compared to areas with which you may want to be in frequent telephone communication, such as where there are family or business interests? 
Costa Rica is within 2 hours of most North American cities for time zone. There is no daylight saving time, so it varies seasonally.

14. Shopping - (Would you have a choice of items you wish to purchase to compare prices? In case of malfunction, are parts and service available locally? {Appliances, electronics, photographic equipment, computers, vehicles, furniture and fixtures, etc.}. Is computer software support and repair service available?)
Most things are offered for sale in and around San José, much less so in the rest of the country. The Central Valley boasts many large, enclosed malls and there is little one could want that is not readily available at competitive prices. There is a wide range of warranty, service and repair companies to choose from. Computer software sales and services are common, as are hardware repair facilities. There is a duty-free zone in Golfito in the southwest of the country, where everyone is permitted to purchase up to $600 in goods from some 80 stores at low prices twice a year.

15. Are the types of food to which you are accustomed readily available, both in restaurants and markets? 
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 usually more expensive, 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.

16. If you have hobbies, are clubs, supplies and assistance available?
Almost all hobbies are represented by clubs and suppliers locally.

17. What cultural activities are available (Art, music, theater, etc.)?
There is an excellent symphony orchestra, several live theaters and many local or visiting musical, dance and entertainment groups. There is an active art community and several galleries.

18. What entertainment is available (sports, cinemas, night clubs, dancing, fiestas, etc.)? 
Fútbol (soccer) is the most popular local sport. Every region, no matter how small, has a soccer field. There are dozens of cinemas, and most films are in English with Spanish sub-titles. San José never sleeps, with a large number of night clubs, discos, bars, casinos and dance halls. Fiestas are popular and frequent throughout Costa Rica.

19. What recreational facilities are available (golf courses, tennis, health clubs, recreation centers, other participatory sports)?
There are many recreation and health centers, private and public, and 18- and nine-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.

20. Will your 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.

21. If you like the beach, are good beaches available? What is the water temperature? 
There are hundreds of miles of world-class sandy beaches in various colors. The ocean temperature is warm — well over 80 F — year-round. Surfing is world-famous.

22. What is the situation with poisonous growth, insects, snakes, dangerous animals? 
There are few dangerous animals. There are several varieties of poisonous snakes, but they are not usually seen. Insects are few in the Central Valley, more on the coast and in the rain forest.

23. What is the violent crime rate? Sneaky crime (theft, car and house break-ins)? What support can be expected from the police department? How helpful are the police to local residents and foreign residents? 
Violent crime is low. In the San José area, break-ins of unoccupied cars and buildings are common, and care is necessary. The police do not differ in their treatment of foreigners and citizens. Generally the police will not come to a break-in until the victim goes to their office and files a report.

24. How do the local residents treat foreign visitors and residents?
Costa Ricans are a very welcoming and friendly people who welcome foreigners.

25. What are the local investment opportunities? Is there any consumer or investment protection legislation for investors? What return can you expect on investments? 
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 percent annually. Private and national banks have savings accounts with interest rates in the two to four percent 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.

26. Is the banking system safe and reliable? Can they transfer funds and convert foreign currency checks, drafts and transfers? Are checking, savings and other accounts you may need available to foreigners? Is there banking confidentiality? Exchange controls? Can money brought into the country be taken back out again? 
There are four national (government owned) and about 23 private banks operating in Costa Rica, including Citibank from the United States and Scotiabank 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 United States 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.

27. Are good lawyers, accountants, investment advisors and other professionals available? 
There is a wide variety of professionals available in all fields. Lawyer-client relations are protected by confidentiality laws. Many of the major international accounting firms have offices in Costa Rica.

28. How is the health care system? Are there diseases that are dangerous to foreigners, and if so does the local health care system address the problem? What is the quality of hospitals, doctors, dentists? What is the availability of specialists? How is the ambulance service? Is dentistry up to the standards you are used to? 
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 percent of wages paid, and the employee contributing 9 percent. There is also private medical insurance, through the state owned insurance monopoly, which is inexpensive and covers 80 percent of medical costs. 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 and 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.

29. How is sanitation? Can you drink the water? Do restaurants have good sanitation standards? Are pasteurized milk and dairy products available? Do meat, fish and vegetable markets have satisfactory sanitary standards? 
Water can be drunk from the tap throughout Costa Rica. Sanitary standards are very high for a third-world country. Pasteurized milk and dairy products are normal everywhere.

30. How is the education system? If you have children, are good private schools available in the language in which you would like them educated? What is the school year? 
There is a free education system for all, through high school. The official literacy rate is over 93 percent. 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.

31. If you are interested in having domestic staff, what is the cost of cooks, housekeepers, gardeners, etc.? 
The current cost for domestic staff is about $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 are provided.

32. What legislation is there to protect foreign residents? What rights do foreign residents have in comparison to citizens? What is the government’s past record in respecting the rights of foreign citizens? 
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

33. What natural dangers are there (hurricanes, tornadoes, typhoons, volcanoes, earthquakes, droughts, floods)?
Costa Rica is in an earthquake zone. While there are many recorded earthquakes per year, only about half a dozen can be felt. There are no hurricanes, but heavy rainsmay cause flooding. There are several active volcanoes, the most active of which is Arenal. It erupts almost continuously, without causing damage. Loss of life and damage have been caused by volcanic eruptions in the past.

34. Where does the country stand environmentally? What are the environmental issues? What is the history in dealing with environmental concerns? 
Costa Rica, in comparison with other third world countries, is very environmentally conscious. Twenty-seven percent of the area of the country has national park or protected reserve status, the 50 meters above the high-tide-line is public property and cannot be privately owned or developed and the next 150 meters inland in approximately 85 percent 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 residences. 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, more than 200 types of hardwood tree,1,500 varieties of orchids and so on.

35. 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 paved roads, power, water and park land, 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 been to encourage business to take jobs 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 earthquake 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.

36. Can pets be brought to the country?
Pets can be brought to Costa Rica. A veterinary certificate is required. Ask the ARCR office for more details on how we can assist you.