• Longevity • Costa Rica Residency Status • Budgeting

Costa Rica is truly a country of the world! Due to proximity, climate, ecology and government, Costa Rica attracts visitors, second-home buyers and retirees from all over the globe. The increasingly diverse population of newcomers from Europe, and North and South America, integrate easily with the local Costa Ricans – or “Ticos” as they call themselves. The Ticos exhibit a welcoming attitude towards foreigners, and their laws are very foreigner-friendly. In the vast majority of case, foreigners have the same rights when it comes to owning Costa Rica real estate properties as locals, and legal residents have access to the social medical system.

Americans, Canadians, Germans, Swiss, Italians, French, Chinese and others have long enjoyed life in Costa Rica with family and friends. Many relocated prior to retirement – in most cases establishing their own businesses or working as consultants or contractors to Costa Rican companies. However, now that Costa Rica has vastly improved its infrastructure and accessibility, it is attracting a growing number of individuals seeking to retire in peaceful country with great weather, fabulous beaches, and direct flights so that it is easy for them to visit with family and friends.

Longevity

Moreover, it seems that the “Pura Vida” or “Pure Life” motto of the Ticos, with its relaxed and eco-conscious lifestyle, is more than just appealing to people of all ages. It appears to be healthier as well. In a recent NBC News article, demographer Dan Buettner (http://abcnews.go.com/Technology/LivingLonger/story?id=2805247&page=1 revealed that residents on the Nicoya Peninsula of Costa Rica (where the Gold Coast beaches of Flamingo and Tamarindo are located) live to the age of 100 four times more frequently as men in the United States, despite the fact that their medical costs are only about 7% as much.

For this reason, Buettner labels the Nicoya Peninsula a “blue zone” where a multitude of factors interact to facilitate longevity and health. Residents enjoy fresh tropical fruit, vegetables and fish, a wonderful dry climate with lots of sunshine, and year round access to outdoor physical activity. Pura Vida indeed!

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Costa Rica Residency Status

First, let us state that following is for informational purposes only. The process for residency can be reviewed or changed by the Costa Rican government at any time, and you should consult a Costa Rican attorney for the most detailed and up-to-date information regarding Residency Status. That being said, here are a few guidelines to help you to understand different categories of Residency in Costa Rica.

Pensionado

·Required to stay in country for a minimum of 4 months/year
·Must prove US$600/month income from a permanent pension or retirement fund
·Able to claim spouse and dependants under the age of 18
·Able to own a company and collect income
·Not able to work as an employee

Rentista Residency

·Required to stay in country for a minimum of 6 months/year
·Must prove US$1000/month income for at least 5 years, guaranteed by a bank or financial institution – OR – a US$60,000 deposit in an approved, national Costa Rican bank.
·Requires income for dependents
·Able to claim spouse for an additional US$1000/month, and dependents under the age of 18 for an additional $500/month
·Able to own a company and collect income
·Not able to work as an employee

Investor

·Required to remain in country at least 6 months/year
·Must make an investment of US$200,000 in a business/project
·Not able to claim spouse and dependents under the age of 18
·Able to receive income from the project
·Able to own a company and collect income

Representante Residency Program

·Required to remain in country at least 6 months/year
·Must be a director of a company meeting specific requirements, such a employing a minimum number of local employees as established by Costa Rican labour law, with financial requirements certified by a Public Accountant
·Not able to claim spouse and dependents under the age of 18
·Able to receive income from the company
·Able to own a company and collect income

Permanent Residency

·Required to visit Costa Rica at least once per year
·Must have first degree relative status with a Costa Rican Citizen (via marriage to citizen or having a Costa Rican child) – OR - Able to apply after three years in another status
·Not able to claim spouse or dependents under the age of 18
·Able to work as an employee
·Able to own a company and collect income

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Budgeting

Moving to a foreign country can have many advantages (please see our Longevity section above, and also our Lifestyle section). However, there are usually changes to routine that must be accepted. We recommend that anyone considering a move to Costa Rica visit at least once and make a serious effort to live for a week or two as a resident and not as a tourist. Stay in a condo or home rather than a hotel and engage in normal residential activities such as grocery shopping, cooking and doing laundry. (The good news is that you likely won’t need to clean, since cleaning service in Costa Rica is very affordable!) Visit the clubs, gyms, golf courses, churches and other organizations that you would like to be a part of.

During this period, keep track of your expenses and budget your daily cost of living. We use US$2000/month as a touchstone for a couple who wants to live well and who own their own condo/home and car. Most individuals who have relocated also budget for one trip per year to their home country to visit family and friends. As mentioned previously, this is becoming more cost-effective and convenient every year due to direct flights to the Liberia international airport from all over the world.

If you have more questions about Retiring in Costa Rica, please contact one of our real estate professionals at RE/MAX Ocean Heights. We would be more than happy to answer any of your inquiries about Costa Rica real estate and living in Costa Rica. Pura Vida!

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