Properties in Costa Rica Blog

While browsing the storefronts of Quepos/Manuel Antonio the other day, I saw this Hurricane History Map in an office window. What caught my attention was how Costa Rica was completely free of any direct hurricane/tropical storm trajectories. People ask us if we get hit by hurricanes, and now it’s nice to have a chart showing just how ideally located Costa Rica is, especially on the Pacific side. Clearly, the vast majority of tropical storms and hurricanes are born in the oceans to the west and especially
the east of Costa Rica, and then almost always track north. In recent years, only Hurricane Cesar and Hurricane Mitch (1996 and 1998, respectively) traveled all the way across the Central America landmass.

However, even though Costa Rica is Hurricane-free Zone, it still feels the effects of heavy rainfall from time to time.

During the hurricane season, June 1st – Nov. 30th, Costa Rica will occasionally feel the effects of these major hydro-meteorological events. Tropical storms are more common than hurricanes in Costa Rica, and it is important to note that heavy rain isn’t the same as heavy rain AND 100+ mph winds!

According to this NASA webpage, “Tropical cyclones are like giant engines that use warm, moist air as fuel. That is why they form only over warm ocean waters near the equator.” The small towns in our area (e.g., Dominical, Uvita and Ojochal) are located at approximately nine degrees north of the equator. The benefit of being at this latitude, and on the Pacific side of Costa Rica, is the wind is significantly lighter than along the Caribbean storm corridor where hurricane winds can rip off your roof. I suppose that’s why the famous Portuguese explorer Ferdinand Magellan called the Pacific Ocean, Tepre Pacificum or “Peaceful Sea”.

What Does This Mean For Pacific Zone Residents and Investors?

Light winds aside, we do experience heavy rain and flooding from time to time in Costa Rica. In some cases, the spiraling arms of a hurricane can reach over 300 miles from the eye of the storm. When there’s a storm over Nicaragua, we feel the effects of it. We know a few clients and residents who have lost portions of their property to landslides and flooding. The question is are there precautions property owners can take to ensure their piece of Costa Rica real estate doesn’t flood or slide down the hill? The answer is most likely, and here’s a brief summary–

EROSION- Lots should not have large cuts (red dirt) exposed above the building site. During my first year here, I rented a house with a hill eroding behind it. Needless to say, landslides are not fun and VERY dangerous.

RAINWATER MANAGEMENT- Check out the rainwater management on and around the property. Make sure the water is being channeled properly, specifically away from the building area. This may require the installation of canals and culverts in some cases.

SOIL TEST- Get a soil test before purchasing property on a steep hill or with creeks or rivers running through the property. It usually costs the buyer $200-$300, but it could save you thousands.

RETAINING WALLS- Add gaviones (aka- secured rock baskets) or a retaining wall to exposed hillsides to hold the land before the rainy season. Another very common preventative measure is securing green mesh or netting (known as, cerran in Costa Rica) to hillside and planting deep rooting plants in regular intervals across the face of it.

As one couple in the Uvita area found out, there are specific things you DO NOT want to do when constructing your dream home. They purchased an ocean view property that wasn’t quite large enough to fit the building footprint, so they hired a backhoe and cut into an already steep hillside directly behind their home. Construction was nearing completion, and then the heavy rains came. The water saturated the hillside, and BAM, the landslide brought 3 feet of mud through the house, an event both heart-breaking and expensive. It is my understanding that poor water management above the property also played a role in the event.

In summary, be careful. If buying of a second home in the Caribbean is on your radar, keep the above Hurricane History Map in mind. If you have already been to Costa Rica and love the ‘pura vida’ lifestyle and investment opportunities, choose your property wisely. Selecting a property based solely on price can be a mistake that ends up costing you a lot more in the end.

by Rod Martin

There are many questions first time Buyers in Costa Rica may have and these are some of the most common we experience. This guide of Frequently Asked Questions will help first time Buyers become informed of the Buying Process and different aspects of owning property in Costa Rica.

What is the procedure to buy a Costa Rica property?

First: After you have found the right property with your Real Estate agent, have them submit an Offer to the Seller or the Seller’s listing agent in order to agree upon the sales price and terms of the deal. Second: Take this Offer to your Costa Rica attorney for them to write up the formal Sale Purchase Agreement or Offer to Purchase Agreement. This document is legally binding, registered, clearly states all conditions necessary for the conveyance of the deed, sets a time frame for Due Diligence, and a date for closing; thus officially taking the property off the market. It is also typical for the Buyer to send a deposit at the time of mutual signing of this agreement. Third: The period of Due Diligence, which is the complete legal research of the property to insure there are no liens, contingencies, legal issues, and that it has absolute fee simple title. If the property is being sold with an existing company, then the research of the company for any legal contingencies will also be completed during Due Diligence. Fourth: Closing or conveyance of the deed occurs before a Notary Public, who will register the property under the new company or owner. Alternatively, if the property is being purchased with an existing company, then the shares of the company are transferred at this time by a Shares Transfer Agreement. In this case the Notary Public will make the corresponding changes to the company’s ownership in the National Registry. Fifth: Declaring the property before the corresponding Municipality for property tax purposes by filling out a simple form and presenting it along with the some other documents either yourself or through your attorney.

Can I acquire a property under my personal name, even being a foreigner?

Yes, however, it is more common and recommended to acquire the property through a corporation in order to separate potential personal liabilities, facilitate the closing procedure, and allow for easier transfer to relatives in case of casualty. The Costa Rica holding company will also make it easier to obtain services such as electricity and cell phones, as well as, opening a bank account.

Exception: A foreigner can only own up to 49% of the concession rights for a Concession Property within the Maritime Terrestrial Zone (MTZ).

If I live outside of Costa Rice, do I need to be present to sign for the conveyance of the deed at closing?

This is not specifically necessary and can be executed through a Power of Attorney for a third party that you trust. This Power of Attorney can be very specific to solely the purchase and signing the closing document of the property in question. Another option that is costly and timely is DHL or FedEx the documents and signing them in front of a licensed Notary Public at your nearest Costa Rica Consulate. Considering the cost of the shipping and if the nearest Costa Rica Consulate is in another part of the country; then it can be more affordable to fly down and sign for yourself.

What are the taxes, legal fees, and closing expenses included in the purchase of property in Costa Rica?

Every property acquisition in Costa Rica has to pay the following National Registry Fees: Registry: 5 colones per every 1,000 colones of purchase price; Municipal: 2 colones per every 1,000 colones of purchase price; Fiscal: a maximum of 625 colones; Bar Association: a maximum of 10,000 colones; Archive: 20 colones. The Transfer Tax of 1.5% must be paid to the National Registry if the property is transferred from one owner to another. If a property is sold with an existing company and only the shares of the company are transferred, then this Transfer Tax does not apply. These costs are often split by the Buyer and the Seller.

Legal Fees for the purchase of property in Costa Rica are 1% to 2% depending on the sales price, complexity of the transaction, and the allotted time spent by the attorney on the deal. Additional legal costs may include the formation of a Costa Rica holding company of around $500 to $600 USD; drafting of any supplementary contracts or Seller Financing Agreements and registering of such contracts; and translation of contracts into your native language. The Buyer and Seller typically pat for the separate attorneys. If one attorney is used by both Buyer and Seller, then some for these legal fees can be split. However, the Buyer is usually solely responsible for starting a new company, any contracts for Seller Financing (if needed) and registration of those contracts, and translations if the Seller is Spanish speaking.

Other Fees may include topographer fees if you choose to re-mark the boundaries of the property; and any extra investigation you may choose to execute such as; soil tests. These items are typically paid by the Buyer.

A total property transaction costs about 4% of the property value and this can vary more depending on the amount of Due Diligence needed and less if the property is being sold with a current company.

How can I transfer funds for a property acquisition from my home country?

This can be accomplished by international wire transfer and the funds can be received by a recognized escrow company dedicated to protect funds and provide escrow services in Costa Rica. Direct wire transfer from the Buyer to the Seller can be done in certain cases, but should be done almost simultaneously as closing signatures; as many Sellers may not feel comfortable signing the closing documents until receiving a bank confirmation that the wire transfer has been completed.

Where and how are properties registered in Costa Rica?

All titled properties are registered in the “Registro Naccional” or National Registry located in Zapote, San Jose, Costa Rica. There are satellite offices of the “Registro” around the country in larger cities. This is a public record that anyone can research the owner of a property and any leans, loans, transformations, or damages against the said property. In order to transfer a registered property the recorded owner must appear before a Notary Public in order to grant a public conveyance of the property, which then must be presented and recorded in the National Registry. All registered properties have a folio real number (i.e. 6-123456-000) of which the first number represents the province where it is located, the second refers to the specific folio property number, and the third to the property rights as in number of owners (000 means only one owner).

Exceptions: (1) Concession property located in the Maritime Terrestrial Zone (MTZ); which is the 200 meters from the median high tide mark on both Pacific and Caribbean coasts. The first 50 meters is public zone and free for the public to enjoy, where as the remaining 150 meters is the restricted zone where concession property can be granted by the local municipality. Although there can be titled property with the MTZ, it is very rare and may have been titled since before the MTZ was put in place; but should be carefully investigated by your Costa Rica attorney to insure the validity and legality of the title. Concession property is registered in different section of the National Registry called the Concession Registry and has an independent registration number. Concession property is typically used for tourism and if this type of property is a consideration, then it is highly recommended your attorney review the concession and feasibility of your plans for the property before pursuing it further. (2) There are also Possession Properties, which are untitled and are not registered in the National Registry. These properties can obtain title through a lengthy process and if they comply with certain requirements; one of which is a minimum possession of 10 years. These types of properties are the most risky and professional legal counsel is needed in this situation to advise if receiving title is possible before even considering such a property.

How can I check the status of a property in Costa Rica?

Go to the following website of the National Registry: http://www.rnpdigital.com/index.htm where anyone can check the status of a property. Go to “Sistema de Certificaciones y Consultas Gratuitas” on the top left side of the webpage. A new tab will open and then first time users will have to go to “Registrarse por Primera Vez” in the top left hand portion of the page. After filling out the form you will receive an email and click on the link and enter your user email and password on the left hand side under “Ingreso para Usuarios Registrados”. Then go to “Consultas Gratuitas” on the left hand side and next you will see a list of all the types of “Consultas” you can do for “Bienes Immuebles” (Real Estate). To obtain a certified property report click on “Consulta por Numera de Finca”. After this, you will have to enter the number of the property’s province or “Provincia” (first number of the Folio Real number on the Plano), the folio real number of the property (middle numbers of the Folio Real number on the plano), and the number of the property right “dereccho” (which is the last 3 digits of the Folio Real number on the Plano). Once you enter the said information click on the “Consultar” (consult) button. A certificate with all the information of the property will appear on the screen.

How much are property taxes and other taxes associated with owning property in Costa Rica?

Property Taxes are 0.25% of the registered property value and are paid to the local Municipality for where the property is located. These taxes are paid every 3 months or can be paid in full for the year in advance. For example a $100,000 USD property pays $250 USD per year in Property Tax.

Corporation Tax is a fairly new tax passed in 2012 and is a fixed fee of $180 USD for inactive corporations and $360 USD for active corporations. Most properties are held be an inactive corporation and this tax is paid to the “Ministerio de Hacienda”.

Luxury Tax is tax levied against luxury homes valued over approximately $200,000 USD and is also paid to the “Ministerio de Hacienda”. This tax is around $2,500 and can be more depending on the registered value of the home.

Please feel free to contact us for any additional questions you may have about purchasing property in Costa Rica. We have created a valuable network of contacts over our many years of experience in Costa Rica Real Estate such as; lawyers, architects, builders, topographers, accounts, property managers, and more;

“The world is a book and those who do not travel read only one page.” – St. Augustine

Costa Rica means “Rich Coast” and no doubt, those who have had the opportunity to travel here would agree it has left the pages of their lives filled with enriching experiences. With two very different coasts along the Pacific Ocean and the Caribbean, divided by the Central Valley and mountain ranges, the landscape is undeniably diverse. For those who have been searching for a somewhat untouched area, where they can still find all the living essentials, the Southern Pacific Zone is just that.

This region is known as Bahia Ballena or the Costa Ballena, which means “Whale Coast”, and has steadily grown to become the hottest destination in Costa Rica. It is distinguished by rainforest clothed mountains, which dramatically rise from the Pacific, the glowing red and orange sunset ocean views, and the flourishing wildlife. Stretching a 65 mile span from Quepos/Manuel Antonio to Palmar Norte this area defines diversity. The series of towns located within this coastal span are each filled with their own unique character and have their own compelling reasons to visit.

• Dominical: Set along the beach, this laidback town marks the beginning of the mountains-to-the-sea topography. Known for having the most consistent surf break in Costa Rica it is a surfer’s mecca, hosting competitions throughout the year. The easy-going atmosphere is infectious to all who visit and it is home to popular restaurants, artisan shops and a lively nightlife. Nearby nature reserves, waterfalls and river activities are additional draws to the town. If you are looking to be walking distance to the beach, Dominical is the top choice.

• Uvita: This seaside town is known for the Whale’s Tail sand bar and rock formation within the Marino Ballena National Marine Park. The park sees the yearly migration of humpback whales and is home to the annual Whales and Dolphins Festival. Uvita is the commercial and social center for this coastal stretch, with services such as banks, medical, dental, legal, grocery and restaurants. The weekly farmers market is a local enjoyment for both tourists and expats. The hidden beauty of Uvita includes pristine beaches, refreshing waterfalls, dynamic diving and snorkeling, adventure tours and horseback riding, all with a stunning rainforest backdrop.

• Ojochal: This sleepy town is best known for its world class restaurants, offering International cuisines such as French, South Asian, Italian, German and Mediterranean. Offering basic necessities, this small community has become the top choice for quiet living. The nearby Tortuga Reserve focuses on the conservation of sea turtles which nest along the beaches of Playa Tortuga. Within this tropical setting you will find stunning sunset views, unique waterfalls and wildlife not commonly seen elsewhere.

The pristine jungle framed beaches which dot the Southern Pacific are the highlight of the area. From the secluded coves of Dominicalito and the mile long stretch of Playa Hermosa, to the undiscovered Playa Arco and the low tide caves of Playa Ventanas, the picturesque surroundings appear to have been frozen in time, untouched by civilization. The Costa Ballena is also a corridor for wildlife. Nature reserves and conservation will continue to assist the wildlife population to thrive and allow for regular enjoyment of the areas native species.

Thanks to the newly completed Costanera highway, what was once a bumpy, five hour marathon from San Jose is now a smooth and enjoyable trip. The proposed International Airport in the Palmar/Sierpe area, approximately 40 minutes south of Uvita, will allow more options for travel to the area.

It is undeniable that the natural beauty that is the Costa Ballena is enriching to the mind and soul. The amenities offered, the expat community, the friendly local people and the slow pace of life, make it an enjoyable place to visit and live. Now is the time to lose yourself in the pages of the Costa Ballena.

by Rod Martin

Pavones is a little outpost of a town located on the far Southern Pacific coast of Costa Rica. A place not on the way to somewhere else, but a final destination where you will find what others are searching for. It is about as far away from San Jose and the tourist destinations of the Northern Pacific beach towns as you can go. Not only is it far away in distance, but also in the pace, the abundant nature, the friendly people and the sense of freedom that comes from being far removed from the stresses and strains of the modern world. Famous for it’s world class left hand surf break, which is one of the longest waves on the planet, Pavones attracts an eclectic group of young people from around the globe dreaming of riding that perfect wave and hopefully of getting a photo of it to share with their friends before going back to their jobs, families or college.

In addition to the amazing surf, Pavones offers an abundance of outdoor activities for those inclined to venture out and explore. With miles upon miles of pristine coastline with volcanic sand beaches and ancient lava outcrops dotting the shores, one will feel as if they have been transported to another world where only they and the occasional sea bird exist. A true sense of tranquility and peace prevails and usually after being here only a couple of days most people realize that they have achieved a state of relaxation that they have not felt in years.

Pavones is growing, albeit slowly. With the arrival of regular telephone service about 4 years ago, and now with high speed internet, we are connected to the world like never before. With the technology, Pavones has become more visible and is attracting more visitors and folks looking for a peaceful place to have a vacation or retirement home. Locally you will find many different kinds of dining cuisines to choose from. We have several Italian restaurants, Vegetarian restaurants, Seafood Restaurants, Typical Costa Rican Cuisine, American Style Restaurants, Mediterranean and more. With several grocery stores, hardware stores, a bakery, fresh fish market, regular visits by fruit and vegetable vendors and being only an hour drive from the international shopping district at the Panama border, you can find what you are looking for with ease.

On a daily basis, the hardest thing to decide is whether you want to go for a stroll along the beach, swim in the crystal clear waters of the Rio Claro, hike into the mountains to see the wildlife, ride a horse along a deserted shore, swim in the ocean, take a kayak adventure, hang out in the pueblo and socialize with the locals and tourists, or just stay home and swing in a hammock as you watch the grass growing under the tropical sun.

It is always said that the road less traveled by is the one where the most adventure lies and that is true about Pavones. The path to Pavones is a little longer and a little bumpier, and when folks arrive they are always happy to be here, but once the time comes to pack up your bags and say goodbye to the new friends you have made and the Pure Lifestyle that you have re-discovered, for some reason the road going out seems a little bit longer than it did coming in.

By Bobby Nielsen

Editor’s Note: Todays post was written by Josh Linnes, an american expat living in Costa Rica. He writes for Viva Tropical and is the founder of property investment company Emerging Terrains. You can reach him on Google+. With its gorgeous beaches, tropical climate, and exotic wildlife, Costa Rica has been attracting expats searching for a little piece of paradise for years now. While it’s true that a significant portion of expats are childless couples and retirees, more and more expat families are moving down to see what life in Costa Rica is all about. So once the decision to pack up and move down to Costa Rica is made, where should expats look to find that perfect family community?

Costa Rica is an amazing country with tons of biodiversity and natural attractions, friendly local people, safe for retirees and families, and real estate opportunities for any level investor.  Many come to Costa Rica with romantic dreams and grandiose plans of how they will live the rest of their life in tropical paradise stress free on the beach or a mountain retreat.  However, some common mistakes can lead to frustration and disillusionment of this idyllic dream and for some, result in returning to their country of origin.  This blog will discuss some of those mistakes and how to avoid them in order to truly enjoy the “Pura Vida” lifestyle.

Buyer Beware – There are many buyers that come to Costa Rica and think they can purchase a home or property on their own and do not need to use a realtor.  There are tons of “Se Vende” or “For Sale” signs everywhere and it is not hard to find many property options, however, it is not easy to find quality property options.  Basically anyone can try and sell their property by placing a sign on it or having their brother or uncle try and sell it for them, but many do not understand the legality and usability of their own property.  By using a qualified and experienced broker you can quickly filter through a lot of properties that are just plain undesirable and start to view properties that work for your specific goals.  Many factors can change the actual usability of a property for example: set backs from rivers, creeks, and springs can make building where you planned impossible and if there is no other place to build on that property, then it is not worth purchasing.  Also minimum property sizes on a private road can vary in different Cantons of the country, so having someone that knows these details is an invaluable asset.  Make sure you realtor or broker has experience in their local area, legal and other useful contacts, and at the very least has taken the course offered by the national real estate association; Camara Costarricense de Corredores de Bienes Raices (CCCBR).

Not in Kansas Anymore – This goes without saying, but many people assume everything here will be just like in the States, Canada, or Europe.  Well surprise it is not!  Although Costa Rica is developing and now has many amenities it did not have even a few years ago, it is still not a “get whatever you want when you want it” society.  People used to this type of immediate service and availability can be in for a rude awakening.  Everything takes longer here and especially real estate transactions where the “Rigistro” or National Registry is involved processing papers and building permits from the local Municipality take longer as well.  It is not just buying land or a home, it can be anything and a common example I like to use is just going to the hardware store.  In the U.S. you go to Home Depot or Lowes, everything is well marked and you can usually find what you want without any help, grab it, and go check out.  Here not so fast…. you need to get someone to help you and sometimes even take a number if it is crowded, then they gather your items and write up a “factura” or bill and sometimes can even pass you on to someone else for this.  Then you have to go to another employee at the register or “caja” and pay your bill.  Meanwhile another person is packing up your items and then you have to go show them your receipt and retrieve the items you paid for.  If there is a word in Spanish for efficiency it is not used in the Costa Rican vocabulary often.  Rather than dwell and complain about the differences it is better to learn patience and embrace them as part of life in a new culture.

Lost in Translation – Costa Rica is obviously a Spanish speaking country, but many locals speak some English and a person can get by on vacation with virtually no Spanish.  However, once you live here full time it is best to learn some Spanish for daily interactions.  Many full time residents to not even bother learning basic phrases and expect everyone to know some English; which in tourism areas may work, but in local towns and more rural areas knowing some Spanish will help tremendously.  Also local people respect the effort of trying to learn their language and will commonly try and help out with pronunciation or vocabulary.  Many times they will want to try out their English while you try out your Spanish.  Whether you take a course once moving here or practice at home with an online course, it will pay off in everyday interactions and help you integrate with the local community.

Jumping In – Another common mistake buyers make is moving too fast.  They fall in love with this country while on vacation, go home and sell everything, and make the plunge.  This can work out for a few, but most people should take their time and rent a home here first or make numerous extended visits to make sure Costa Rica is the right move for them.  At least research first and consider carefully the differences of life in a foreign country vs what you are used to.  This is a huge lifetime decision and a substantial financial investment, so making the right decision is vital.  Renting in a various areas to see which part of the country you like the best is a good idea, maybe different climates too like next to the beach or in the mountains.   Most of our clients we work with through the research stage and for a couple trips before they purchase.  We can also help in finding vacation and long term rental homes for any amount of time.  Whether it is your first or fifteenth trip we can help you through the process, and will work with you as long as it takes to make the right decision for you.

How Hard Can it Be – Many buyers think they will find the perfect piece of land and build their dream home easily and quickly and move right in.  Well, not so fast…. the building process here takes much longer and just getting the proper permits can take well over 3 months.  If you are not going to be here during construction than an English speaking builder/contractor is highly recommended in order to ensure everything goes to plan and can provide you with constant and accurate updates of the building process.  If you are planning on being here during construction it is still worth considering a professional contractor that knows the in and outs of building here, is well connected with local architects, engineers, and the local municipality for permitting, has knowledge of the best supply stores, and has a crew that has worked together many times before.  Another good idea is to build a small caretaker home or guest apartment first in order to have a place to live while you build a larger main house. Building a home anywhere from scratch is stressful enough, why not make it as unproblematic as possible by hiring a professional.

Patience is a Virtue – Basically most mistakes and frustration come from lack of patience.  This is a hard learned skill and toke me some time after moving here to achieve any resemblance of patience.  I was a very impatient person over 7 years ago and wanted immediate results for anything and everything.  That had to change in order for me to truly appreciate this country, the people, culture, and customs.  Still would not say I have fully obtained it and still find myself sometimes screaming on the inside “HURRY UP!” while waiting at a bank or I.C.E. office and my number has a long way from getting called.  But it is a constant learning process and you just have to really stop and smell the roses, or thousands of different types of flowers in this case.

For more local tips and advice you can contact me

by Joshua Kanter

Costa Rica has been a favorite destination for tourists, retirees, and second home owners for many years.  It is perfectly safe to travel and live here full time in this country.  Of course you have to use caution in certain areas of the San Jose due to crime concerns and use common sense to avoid petty theft when travelling with cash, passports, and electronics throughout the country.  In tourism areas there is always petty theft of thieves breaking into cars and taking wallets, cameras, and cell phones or snatching an unattended bag in a crowded public place.  In the capital city of San Jose crime is of greater concern and many home owners have bars on their windows and live in gated communities with 24 hour security.

I have lived here for over 7 years and been traveling here since 1998, over 14 years.  I have not ever felt unsafe or threatened.  Crime rates have increased during this time, but out where we live in the rural area around Dominical it is not as much a concern as in other areas.  There is also the C.A.P. (Crime Awareness & Prevention) on Crime of Costa Rica that was founded in Playa Dominical. They have taken many steps to reduce crime in the area and have even installed cameras at many local area establishments and near the beach.  Below are tips from C.A.P. on how to travel safely around the country.

1.        During your stay here use caution when contacting unknown people.
2.        When swimming or playing in the ocean, make sure someone is watching your valuables.
3.        Use caution when visiting remote locations or isolated beaches.
4.        When in restaurants, markets, or other public areas NEVER leave your valuables unattended.
5.        When you travel by car, always lock the doors, and never leave your personal items in sight.
6.        When staying in hotels use the safety boxes to keep cash, jewels and documents protected.
7.        Lock doors and windows in your place of lodging.
8.        Keep a photocopy of all documents/passports in order to facilitate the retrieval of any lost item.
9.        Don’t be a victim.  Be aware of your surroundings and know WHERE you are at all times.
10.      Do not wear valuable jewelry that can draw attention to you.
11.      In the city carry small backpacks in front of you.
12.      Stay alert if someone approaches or pushes you, or you feel that you are being followed. Notify the nearest police officer or walk into the nearest public establishment.
13.      To exchange money only use banks or authorized exchange windows.  You will need your passport for all bank transactions.
14.      Use ATM’s that are located in public and well lit areas.  Avoid help from strangers.  Withdraw, count your money, and put it away before leaving.
15.      If traveling by bus keep all carry-ons in your possession.  Verify you have all items before departing bus.
16.      In the event of an emergency always call 911 first.  Ask for an English speaking operator.  Identify your local police station and/or town.
17.      If during your travels you feel lost or experience any difficulties you can call 800-TURISMO.

Costa Rica is a safe and peaceful country with the exception of a few bad apples.  As long as you follow these suggestions above you should have a fun vacation or be able to live here tranquilly.  If you are interested in donating funds towards preventing crime, then visit the C.A.P. on Crime website for more information.

by Joshua Kanter

Labor in Costa Rica is very affordable compared to the U.S., Canada, or Europe and many ex-pats employ a full or part time gardener and house cleaner.  Since the jungle grows so fast around here, a gardener can keep the property and the landscaping maintained.  Same for a finished home, having some help cleaning windows, sweeping, mopping, and more helps maintain its beauty.  After all most people move to Costa Rica to relax, not do house and yard work.

The salary of a full time worker is modest and about $100 to $150 per week depending on how long they have worked for you.  If you are paying minimum wage, then there is a mandatory increase every 6 months. If you are paying above minimum wage, then you can give raises when you please.  Most all Costa Ricans are very hard and honest workers and although there can be a bad apple from time to time, my experiences have been mostly positive.

The employer is required to pay the equivalent of social security and health insurance to the “Caja Costariccencse de Seguro Social” or commonly called the “Caja”.   This is every month and for a full time minimum wage employee runs about $130 per month.  Even part time employees should be covered, but for a pro-rated the monthly fee.   The “Caja” gives each “patron” or boss a slip of paper each month to give their employees.  This paper is what they would take to the hospital if they get sick or anyone in their family gets sick, and provides proof of insurance.

All employees should also have the equivalent of Worker’s Compensation Insurance through “Instituto Nacional de Seguros” or “I.N.S.”  A worker’s comp policy is about $120 to $200 per year depending on the type of work and hours performed.   This covers any injury incurred while on the job and will pay their salary if they are incapacitated for an extended period of time.

Another option if you only need a part time employee and hire a ‘contract worker’ and they will be responsible for their own private insurance and worker’s comp policy.  The salary can be per day and slightly higher to cover this added expense for the worker. However, many employees just pocket this extra money and go uninsured, which is why it is recommended to pay the insurance and policy for part time and full time employees alike.

If you do not live in Costa Rica full time you may consider a professional property management company like ours and set up a specific schedule for workers as needed on your property or home.  Our team of gardeners and house cleaners all have their proper insurance and worker’s comp policies in place, and you just pay per day of work.  Even if you live in Costa Rica and do not want the hassle of paying monthly and yearly insurances, then we can handle it all for you and provide a custom cleaning and maintenance schedule to fit your needs!

by Joshua Kanter

The cost of living in Costa Rica is a popular topic among those considering it as a retirement location or for those moving down with their family.  Everyone wants to know how far their Dollar or Euro can stretch; which depends a lot on your life style.  If you have an affluent lifestyle where you are from, you will also have that type of lifestyle here, just for a bit less.  If you can live modestly using mostly local products, then you can save a lot.  More importantly no matter what your spending habits are, the quality of life here is so much more than anything I experienced in the U.S. with beautiful natural scenery, pristine beaches, clean rivers and waterfalls, fresh fruits and vegetables, locally caught fish, and the “Pura Vida” laid back lifestyle.  In this Blog I will attempt to portray some common expenses that the average retiree or person living in Costa Rica can expect.

Food and Entertainment

Food products and restaurants can be much less than the States or Europe and by how much really depends on how you live.  If you eat out a lot and buy American or European imported food items it can be expensive by Costa Rica standards.  However, if you buy local fruits and veggies at farmer’s markets and local food products at the supermarket it can be much cheaper.  Also there are local restaurants called “Sodas” that have a daily “Casado” for $5 to $7; which is a typical dish of rice and beans, a salad, usually another side, and a choice of fish, thin steak, chicken, or pork.  Even at high end elegant restaurants the prices are less than the same quality restaurant in a big city back home.

Entertainment is also more affordable whether going out to the movies, a bar and night club, or even attending a play (mostly in San Jose).  Although beers and drinks can be expensive, they are still less than what you are used to at a night club or bar.  Many beachside bars around here offer a drink special for happy hour and to watch the sunset.  Also there is tons of free daytime entertainment from hiking in the jungle to surfing or strolling local beaches.   Plus once you are a local you can receive discounts on the tour activities such as: zip-lining, rafting, sport fishing, and more.

Health Care

Health care, even private health care is much cheaper here.  When my wife gave birth to our last daughter it was around $3,500 for the C-section with doctor’s fees, medicine, and 1 night stay at the private clinic all included.  Dental care is much more affordable, as well as, minor and even major surgeries.  Medical Tourism is a becoming a very popular trend in Costa Rica with World-Class medical facilities like CIMA, Clinica Biblia, or Hospital Catolica in San Jose.  More and more foreigners are coming to have plastic surgery, dental implants, and all types of joint and even back surgery at a fraction of the cost.  Then the patient can recover in a lush tropical resort close by and be attended to their every need.

Services

Services like house cleaning, gardeners, and cooks are also very affordable at $2 to $4 per hour.  You can afford to have a full time employee in order to spend less time on household chores and more time enjoying life in paradise.

Imported Items

Cars and electronics like TV’s and cell phones are all much more here because of import taxes associated with them.  Diesel and gas at $5.50 to $7 per gallon respectively, along with car maintenance will be one of (if not) your biggest expenses here.  The mechanics are reasonable and parts are comparable in price, but there is more wear and tear on vehicles here depending where you live and what kind of road access it has.   A good 4×4 SUV or truck is the way to go and most people prefer diesel engines for better fuel efficiency and price at the pump.

Taxes

Property taxes are 0.25% of the registered property value, so for example a $100,000 house or property pays $250 per year in property tax.  There is a fairly new luxury home tax for homes over $200k and that is about $2,500 to $3,000 per year.  Additionally a new annual corporation tax implemented in 2012 is equal to approximately $180 for inactive corporations and $360 for active corporations.  There is currently no capital gains tax in Costa Rica; which is beneficial when selling personal property investments.

Costa Rica and specifically the Dominical area is a great option to retire or raise a family.  The lower cost of living and much higher quality of life make this a place to truly consider for your next full time or part time residence!!

Written by Joshua Kanter, Agent with Properties in Dominical

The weather in Costa Rica is warm and tropical all year round and depending on which part of the country to visit the climate can vary in temperature, annual rain fall, and humidity.  The Guanacaste in the North can be really dry at times and gets winds every March; where as the Central Valley can be cool in the high elevation mountain areas around San Jose.  No matter where you are though there are only two seasons: the dry season and the rainy season.  In this blog we will discuss the typical weather patterns of the Southern Zone and the Costa Ballena area.

The Dry Season

Our dry season typically begins in late November or early December and lasts until May, when the afternoon showers begin to return.  Although we can still get an occasional rain storm in the dry season it is usually sunny days and starlight nights.  I have even seen it go over a month with no rain before, which is rare.  The dry season is also known as the high season for tourism and many visitors come for the holidays of Christmas and New Year’s and during the week of Easter; which here is called Samana Santa.  March is the height of the dry season and a good time to experience the area at its hottest and driest time.  Even in March we are blessed that this tropical jungle never turns brown and keeps its lush green foliage year round.   Many tourists decide to visit in the dry season in order to enjoy the beaches and adventure tours without much chance of rain.  However, the rainy season can be a great time to visit as well and there is plenty of sunshine too.

The Rainy Season

Also known as the green season (even though it is always green around here), the rainy season usually starts at the end of May and goes through most of November.  It is a common misconception that it just rains all the time in the Dominical area during the rainy season.  Typically the day starts out sunny until about mid day or even later and then begins to cloud up leading to an afternoon or evening shower.  Sometimes it can drizzle most of the night or there can a shorter sustained heavy down pour.  September and October are the rainiest months and during that time you can experience a few days straight of grey clouds and off and on drizzle to steady rain.  In July we usually receive a mini-summer of about 2 weeks of dry season type weather.  Although the daytime temperature does not vary much between seasons, it can be slightly cooler during the rainy season and the afternoon showers cool everything off for the evening and rest of the night.  Also the rainy season is the best time to plant and you can basically take cuttings of most any plant, stick it in the ground, and wait for it to grow.  As far as adventure tours for visitors, you can enjoy zip-lining, hiking, fishing, ATV riding most of the day and not to mention white-water rafting is much better in the rainy season due to higher river levels and more intense rapids.  Plus for surfers there tends to be bigger waves and more frequent swells in the rainy season.

No matter when you plan a trip to Costa Rica you will have lots of fun and experiences of a lifetime.  If you are considering buying property and living here part or full time it is always a good idea to visit during the hottest and wettest times of the year before you make your decision.

*** Written by Joshua Kanter