Glen Godlonton

LIBERIA AIRPORT TO RECEIVE 530,000 TOURISTS IN 2010

Glen Godlonton — Wed, 01 Oct 2008 15:28:00 GMT

LIBERIA AIRPORT TO RECEIVE 530,000 TOURISTS IN 2010 , September 1, 2008

More than 530,000 tourists will pass through the Daniel Oduber International Airport in Liberia, Guanacaste in 2010, according to projections made by the Guanacaste Chamber of Tourism (CATURGA), based on statistics gathered from the General Civil Aviation Administration records.

The arrival of tourists through this airport has maintained consistent growth since 2001. From 2001 to 2007 the number of tourists rose 574% going from 70,615 to 405,450.

For the 2008 season, according to estimates from Caturgua, growth will be around 9.5% compared to 2007, which means an increase in some 38,509 tourists.

As for the outlook for 2009 and 2010, the board projects an annual growth of 10%, totaling more than half a million tourists that will come through Daniel Oduber Airport as a gateway to the country.

Background Data on Costa Rica

Glen Godlonton — Wed, 01 Oct 2008 15:21:00 GMT

Background Note: Costa Rica

Swimming in river near San Carlos, Costa Rica, April 11, 2006. [© AP Images]

PROFILE

OFFICIAL NAME:
Republic of Costa Rica

Geography
Area: 51,100 sq. km (19,730 sq. mi.) about the size of the states of Vermont and New Hampshire combined.
Cities: Capital--San Jose (greater metropolitan area pop. 2.1 million, the greater metropolitan area as defined by the Ministry of Planning and Economic Policy includes the cities of Alajuela, Cartago, and Heredia). Other major cities outside the San Jose capital area--Puntarenas, Limon, and Liberia.
Terrain: A rugged, central range separates the eastern and western coastal plains.
Climate: Mild in the central highlands, tropical and subtropical in coastal areas.

People
Nationality: Noun and adjective--Costa Rican(s).
Population (2006): 4.299 million.
Annual growth rate (2006 est.): 1.3%.
Ethnic groups: European and some mestizo 94%, African origin 3%, Chinese 1%, Amerindian 1%, other 1%.
Religion: Roman Catholic 70.5%, Evangelical Protestant 13.8%, other 4.3%, none 11.3%.
Languages: Spanish, with a southwestern Caribbean Creole dialect of English spoken around the Limon area.
Education: Years compulsory--9. Attendance--99% grades 1-6, 71% grades 7-9. Literacy--96%.
Health: Infant mortality rate--9.45/1,000. Life expectancy--men 74.61 yrs., women 79.94 yrs.
Work force (2006 est., 1.866 million; this official estimate excludes Nicaraguans living in Costa Rica legally and illegally): Agriculture--13%; industry--22%; services--64%.

Government
Type: Democratic republic.
Independence: September 15, 1821.
Constitution: November 7, 1949.
Branches: Executive--president (head of government and chief of state) elected for one 4-year term, two vice presidents, Cabinet (22 ministers, two of whom are also vice presidents). Legislative--57-deputy unicameral Legislative Assembly elected at 4-year intervals. Judicial--Supreme Court of Justice (22 magistrates elected by Legislative Assembly for renewable 8-year terms). The offices of the Ombudsman, Comptroller General, and Procurator General assert autonomous oversight of the government.
Subdivisions: Seven provinces, divided into 81 cantons, subdivided into 421 districts.
Political parties: National Liberation Party (PLN), Citizen's Action Party (PAC), Libertarian Movement Party (PML), Social Christian Unity Party (PUSC), and other smaller parties.
Suffrage: Universal and compulsory at age 18.

Economy
GDP (2007): $26.23 billion.
GDP PPP (2006 est.): $52.22 billion.
Inflation (2007 est.): 10.81%.
Real growth rate (2007 est.): 7.3%.
Per capita income (2006): $5,100. (PPP $11,862, 2006 est.)
Unemployment (2007 est.): 4.6%.
Currency: Costa Rica Colon (CRC).
Natural resources: Hydroelectric power, forest products, fisheries products.
Agriculture (8.7% of GDP): Products--bananas, pineapples, coffee, beef, sugar, rice, dairy products, vegetables, fruits and ornamental plants.
Industry (28.9% of GDP): Types--electronic components, food processing, textiles and apparel, construction materials, fertilizer, medical equipment.
Commerce, tourism, and services (62.4% of GDP): Hotels, restaurants, tourist services, banks, and insurance.
Trade (2006 est.): Exports--$8.198 billion: integrated circuits, medical equipment, bananas, pineapples, coffee, melons, ornamental plants, sugar, textiles, electronic components, medical equipment. Major markets--U.S. 38.6%, China 6.8%, Hong Kong 6.4%, Netherlands 6.1%, Guatemala 4.0%. Imports--$11.576 billion: raw materials, consumer goods, capital equipment, petroleum. Major suppliers--U.S. 39.3%, Japan 5.1%, Venezuela 5.0%, Mexico 5.2%, China 4.8%, Ireland 4.5%, Brazil 3.4%.

PEOPLE
Unlike many of their Central American neighbors, present-day Costa Ricans are largely of European rather than mestizo descent; Spain was the primary country of origin. However, an estimated 10% to 15% of the population is Nicaraguan, of fairly recent arrival and primarily of mestizo origin. Descendants of 19th-century Jamaican immigrant workers constitute an English-speaking minority and--at 3% of the population--number about 119,000. Few of the native Indians survived European contact; the indigenous population today numbers about 29,000 or less than 1% of the population.

HISTORY
In 1502, on his fourth and last voyage to the New World, Christopher Columbus made the first European landfall in the area. Settlement of Costa Rica began in 1522. For nearly three centuries, Spain administered the region as part of the Captaincy General of Guatemala under a military governor. The Spanish optimistically called the country "Rich Coast." Finding little gold or other valuable minerals in Costa Rica, however, the Spanish turned to agriculture.

The small landowners' relative poverty, the lack of a large indigenous labor force, the population's ethnic and linguistic homogeneity, and Costa Rica's isolation from the Spanish colonial centers in Mexico and the Andes all contributed to the development of an autonomous and individualistic agrarian society. An egalitarian tradition also arose. This tradition survived the widened class distinctions brought on by the 19th-century introduction of banana and coffee cultivation and consequent accumulations of local wealth.

Costa Rica joined other Central American provinces in 1821 in a joint declaration of independence from Spain. Although the newly independent provinces formed a Federation, border disputes broke out among them, adding to the region's turbulent history and conditions. Costa Rica's northern Guanacaste Province was annexed from Nicaragua in one such regional dispute. In 1838, long after the Central American Federation ceased to function in practice, Costa Rica formally withdrew and proclaimed itself sovereign.

An era of peaceful democracy in Costa Rica began in 1899 with elections considered the first truly free and honest ones in the country's history. This began a trend that continued until today with only two lapses: in 1917-19, Federico Tinoco ruled as a dictator, and, in 1948, Jose Figueres led an armed uprising in the wake of a disputed presidential election.

With more than 2,000 dead, the 44-day civil war resulting from this uprising was the bloodiest event in 20th-century Costa Rican history, but the victorious junta drafted a constitution guaranteeing free elections with universal suffrage and the abolition of the military. Figueres became a national hero, winning the first election under the new constitution in 1953. Since then, Costa Rica has held 14 presidential elections, the latest in 2006.

GOVERNMENT
Costa Rica is a democratic republic with a very strong system of constitutional checks and balances. Executive responsibilities are vested in a president, who is the country's center of power. There also are two vice presidents and a 20-plus member cabinet. The president and 57 Legislative Assembly deputies are elected for 4-year terms. In April 2003, the Costa Rican Constitutional Court annulled a 1969 constitutional reform which had barred presidents from running for reelection. As a result, the law reverted back to the 1949 Constitution, which permits ex-presidents to run for reelection after they have been out of office for two presidential terms, or eight years. Deputies may run for reelection after sitting out one term, or four years. In October 2007, the country ratified the U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) by a slender margin in its first national referendum.

The electoral process is supervised by an independent Supreme Electoral Tribunal--a commission of three principal magistrates and six alternates selected by the Supreme Court of Justice. Judicial power is exercised by the Supreme Court of Justice, composed of 22 magistrates selected for renewable 8-year terms by the Legislative Assembly, and subsidiary courts. A Constitutional Chamber of the Supreme Court (Sala IV), established in 1989, reviews the constitutionality of legislation and executive decrees and all habeas corpus warrants. The next national elections will take place in February 2010.

The offices of the Comptroller General of the Republic, the Solicitor General, and the Ombudsman exercise oversight of the government. The Comptroller General's office has a statutory responsibility to scrutinize all but the smallest public sector contracts and strictly enforces procedural requirements. Along with the Sala IV, these institutions are playing an increasingly prominent role in governing Costa Rica.

There are provincial boundaries for administrative purposes, but no elected provincial officials. Costa Rica held its first mayoral elections in December 2002, whereby mayors were elected to 4-year terms by popular vote through general elections. Prior to 2002, the office of mayor did not exist, and the president of each municipal council was responsible for the administration of his/her municipality. The most recent nationwide mayoral elections took place in December 2006. Autonomous state agencies enjoy considerable operational independence; they include the telecommunications and electrical power monopoly and the state insurance monopoly (all of which will be opened to competition once CAFTA-DR is implemented), the state petroleum refinery, the nationalized commercial banks, and the social security agency. Costa Rica has no military and maintains only domestic police and security forces. A professional Coast Guard was established in 2000.

Principal Government Officials
President--Oscar ARIAS Sanchez
Foreign Minister--Bruno STAGNO Ugarte
Ambassador to the United States--Tomas DUEÑAS Leiva
Ambassador to the Organization of American States--Jose Enrique CASTILLO Barrantes
Ambassador to the United Nations-- Jorge URBINA Ortega

Costa Rica maintains an embassy in the United States at 2114 S Street NW, Washington, DC 20008 (tel. 202-234-2945 and 202-234-2946).

POLITICAL CONDITIONS
Costa Rica has long emphasized the development of democracy and respect for human rights. The country's political system has steadily developed, maintaining democratic institutions and an orderly, constitutional scheme for government succession. Several factors have contributed to this trend, including enlightened leadership, comparative prosperity, flexible class lines, educational opportunities that have created a stable middle class, and high social indicators. Also, because Costa Rica has no armed forces, it has avoided military involvement in political affairs, unlike other countries in the region.

In May 2006, President Oscar Arias of the National Liberation Party (PLN) assumed office, defeating principal rival Ottón Solis of the Civil Action Party by roughly 2% of the vote. Arias listed passage of the CAFTA-DR, along with fiscal reform, infrastructure improvements, improving education, and improving security as primary goals for his presidency. The 57-member unicameral Legislative Assembly has four principal party factions, with the governing party, PLN, having a 25-seat plurality.

ECONOMY
After experiencing 8.8% growth in 2006, the Costa Rican economy settled down to an estimated 7.3% in 2007. Compared with its Central American neighbors, Costa Rica has achieved a high standard of living, with a per capita income of about U.S. $5,800, and an unemployment rate of 4.6%. Consumer price inflation is high but relatively constant at about a 10% annual rate in the last decade. Both the central government and the overall public sector ran fiscal surpluses in 2007.

Implementing CAFTA-DR, passing fiscal reform, pursuing responsible monetary policy, and creating an effective concessions process are the biggest challenges for the country's economic policymakers. Costa Rica ranks 115th out of 175 countries in the World Bank's Doing Business Index. This hampers the flow of investment and resources badly needed to repair and rebuild the country's deteriorated public infrastructure.

Costa Rica's major economic resources are its fertile land and frequent rainfall, its well-educated population, and its location in the Central American isthmus, which provides easy access to North and South American markets and direct ocean access to the European and Asian Continents. One-fourth of Costa Rica's land is dedicated to national forests, often adjoining picturesque beaches, which has made the country a popular destination for affluent retirees and eco-tourists despite increasing crime.

Costa Rica used to be known principally as a producer of bananas and coffee, but pineapples have surpassed coffee as the number two agricultural export. In recent years, Costa Rica has successfully attracted important investments by such companies as Intel Corporation, which employs nearly 2,000 people at its $300 million microprocessor plant; Proctor and Gamble, which employs about 1,200 people in its administrative center for the Western Hemisphere; and Hospira and Baxter Healthcare from the health care products industry. Manufacturing and industry's contribution to GDP overtook agriculture over the course of the 1990s, led by foreign investment in Costa Rica's free trade zone. Well over half of that investment has come from the United States. Dole and Chiquita have a large presence in the banana and pineapple industries. Two-way trade between the U.S. and Costa Rica exceeded $8 billion in 2007.

Costa Rica has oil deposits off its Atlantic Coast, but the Pacheco administration (2002-2006) decided not to develop the deposits for environmental reasons. The country's mountainous terrain and abundant rainfall have permitted the construction of a dozen hydroelectric power plants, making it largely self-sufficient in electricity, but it is completely reliant on imports for liquid fuels. Costa Rica has the potential to become a major electricity exporter if plans for new generating plants and a regional distribution grid are realized. Its mild climate and trade winds make neither heating nor cooling necessary, particularly in the highland cities and towns where some 90% of the population lives.

Costa Rica's public infrastructure has suffered from a lack of maintenance and new investment. Most parts of the country are accessible through an extensive road system of more than 30,000 kilometers, although much of the system has fallen into disrepair. Contamination in rivers, beaches, and aquifers is a matter of rising concern. Just 3.5% of the country's sewage is managed in sewage treatment facilities and the Water and Sewage Institute (AyA) estimates that perhaps 50% of septic systems function. In 2007, Costa Rica experienced nationwide blackouts resulting from a severe dry season (which limited hydroelectric resources) and the state electricity monopoly's inadequate investment in maintenance and capacity increases.

Costa Rica has sought to widen its economic and trade ties within and outside the region. Costa Rica signed a bilateral trade agreement with Mexico in 1994, which was later amended to cover a wider range of products. Costa Rica joined other Central American countries, and the Dominican Republic, in establishing a Trade and Investment Council with the United States in March 1998. Costa Rica has signed trade agreements with Canada, Chile, the Dominican Republic, Mexico, Panama, and several Caribbean Community countries. It began negotiating a regional Central American-EU trade agreement in October 2007. Costa Rica was an active participant in the negotiation of the hemispheric Free Trade Area of the Americas and is active in the Cairns Group, which is pursuing global agricultural trade liberalization within the World Trade Organization.

Costa Rica concluded negotiations with the U.S. to participate in CAFTA-DR in January 2004 but is the only CAFTA-DR partner not to have yet entered the agreement into force. In October 2007, a slender majority of Costa Ricans voted to ratify the agreement, which will enter into force after the Legislative Assembly passes corresponding legislation. Once implemented, CAFTA will partially open the state telecommunications monopoly and substantially open the state-run insurance sector.

FOREIGN RELATIONS
Costa Rica is an active member of the international community and, in 1993, proclaimed its permanent neutrality. Its record on the environment and human rights and advocacy of peaceful settlement of disputes give it a weight in world affairs far beyond its size. The country lobbied aggressively for the establishment of the UN High Commissioner for Human Rights and became the first nation to recognize the jurisdiction of the Inter-American Human Rights Court, based in San Jose. In 2007 Costa Rica was elected for the third time to serve as a non-permanent member of the United Nations Security Council (January 2008-December 2009).

During the tumultuous 1980s, then-President Oscar Arias authored a regional peace plan that served as the basis for the Esquipulas Peace Agreement. Arias' efforts earned him the 1987 Nobel Peace Prize. Subsequent agreements, supported by the United States, led to the Nicaraguan election of 1990 and the end of civil war in Nicaragua. Costa Rica also hosted several rounds of negotiations between the Salvadoran Government and the Farabundo Marti National Liberation Front (FMLN), aiding El Salvador's efforts to emerge from civil war and culminating in that country's 1994 free and fair elections. Costa Rica has been a strong proponent of regional arms limitation agreements. President Arias has publicly supported self-determination in Cuba and expressed concern about eroding democratic institutions in Venezuela. In 2007 Costa Rica established diplomatic ties with China, ending nearly 60 years of diplomatic relations with Taiwan.

U.S.-COSTA RICAN RELATIONS
The United States and Costa Rica have a history of close and friendly relations based on respect for democratic government, human freedoms, free trade, and other shared values. The country generally supports the U.S. in international fora, especially in the areas of democracy and human rights.

The United States is Costa Rica's most important trading partner. The U.S. accounts for almost half of Costa Rica's exports, imports, and tourism, and more than two-thirds of its foreign investment. The two countries share growing concerns for the environment and want to preserve Costa Rica's important tropical resources and prevent environmental degradation. In 2007, the United States reduced Costa Rica's debt in exchange for protection and conservation of Costa Rican forests through a debt for nature swap under the auspices of the Tropical Forest Conservation Act. This is the largest such agreement of its kind to date.

The United States responded to Costa Rica's economic needs in the 1980s with significant economic and development assistance programs. Through provision of more than $1.1 billion in assistance, the U.S. Agency for International Development (USAID) supported Costa Rican efforts to stabilize its economy and broaden and accelerate economic growth through policy reforms and trade liberalization. Assistance initiatives in the 1990s concentrated on democratic policies, modernizing the administration of justice, and sustainable development. Once the country had graduated from most forms of U.S. assistance, the USAID Mission in Costa Rica closed in 1996. However, USAID completed a $9 million project in 2000-01 to support refugees of Hurricane Mitch residing in Costa Rica.

For decades, Peace Corps volunteers have provided technical assistance in the areas of environmental education, natural resources, management, small business development, microfinance, basic business education, urban youth, and community education.

Between 30,000-50,000 private American citizens, including many retirees, reside in the country and more than 700,000 American citizens visit Costa Rica annually. A few vexing expropriation and U.S. citizen investment disputes have hurt Costa Rica's investment climate and have occasionally produced bilateral friction.

The U.S.-Costa Rica Maritime Cooperation Agreement, the first of its kind in Central America, entered into force in late 1999. The agreement, which facilitates cooperation between the Coast Guard of Costa Rica and the U.S. Coast Guard, has resulted in a growing number of narcotics seizures, illegal migrant rescues, illegal fishing seizures, and search-and-rescue missions. Bilateral Costa Rican law enforcement cooperation, particularly against narcotrafficking, has been exemplary.

Principal U.S. Embassy Officials
Ambassador--Peter E. Cianchette
Deputy Chief of Mission--Peter M. Brennan
Political/Economic Counselor--David E. Henifin
Economic Officer--Mark Kissel
Consul General--Paul Birdsall
Management Counselor--Brian Wilson
Public Affairs Counselor--Magda Siekert
Defense Representative--Chief-Commander Mark Camacho, USCG
Commercial Attache--Bryan Smith
Agricultural Attache--Kevin Smith
APHIS--Eric Hoffman
Environmental Hub--Timothy Lattimer
Regional Security Officer--S. Wade DeWitt
Drug Enforcement Administration--Paul Knierim
Peace Corps Director--Terry Grumley
OFDA Director--Tim Callaghan

The U.S. Embassy in Costa Rica is located in Pavas at Boulevard Pavas and Calle 120, San Jose, tel. (506) 519-2000 or (506) 220-3127.

Other Contact Information
U.S. Department of Commerce
Trade Information Center
International Trade Administration
14th and Constitution Avenue, NW
Washington, DC 20320
Tel: 800-USA-TRADE
www.trade.gov

Costa Rican American Chamber of Commerce
c/o Aerocasillas
P.O. Box 025216, Dept 1576
Miami, Florida 33102-5216
Tel: 506-22-0-22-00
Fax: 506-22-0-23-00
Email: Amchamcr@sol.racsa.co.cr

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

Original Article

Costa Rica gets extension on CAFTA

Glen Godlonton — Wed, 01 Oct 2008 15:18:00 GMT

Costa Rica gets extension on CAFTA

By Gillian Gillers
Tico Times Staff | ggillers@ticotimes.net

Costa Rica has three more months to pass legislation required to enter the Central American Free-Trade Agreement with the United States (CAFTA).

The United States, the Dominican Republic and Central American signatory-states have agreed to extend Costa Rica's Oct. 1 deadline for entering the pact.

Casa Presidencial announced the news yesterday afternoon, after Nicaraguan President Daniel Ortega joined his trading partners in signing the extension.

U.S. Secretary of Commerce Carlos Gutierrez, now in Costa Rica with representatives from 10 U.S. businesses, met with President Oscar Arias yesterday.

“I come to reiterate the Bush administration's complete support for Costa Rica's entry into CAFTA,” he said at a press conference. “It's hard to imagine CAFTA without Costa Rica.”

Lawmakers are now working to pass the last of 13 bills required for Costa Rica to enter the treaty. But even this legislation may not meet standards set by the United States Trade Representative (USTR), Gutierrez suggested.

“I'm going to return to Washington with this priority: I want to sit down to talk with the USTR,” he said. “I want to understand if there is a problem or if there is simply a misunderstanding.”

Costa Rica signed CAFTA in May 2004 and ratified the pact in a national referendum last October. But, faced with opposition in the Legislative Assembly, President Arias has twice had to ask trading partners for more time to pass implementing legislation.

Asked how the financial crisis in the U.S. would affect Costa Rica, Gutierrez said, “What could happen …in the short or medium term is a shortage of capital, in which case … investors will have to be much more selective in deciding where to invest.”

view article

How can I get residency in Costa Rica?

Glen Godlonton — Fri, 12 Sep 2008 14:55:00 GMT

Excerpted from Living Abroad in Costa Rica

How can I get residency in Costa Rica?

Immigration policy in Costa Rica is a moving target. In past years there have been proposals to the legislature to change residency requirements, but no major changes have made it into law–yet. Watch this space.

Types of Residency

There are countless types of Costa Rican residency, but for the purposes of the average North American or European,three of these will be of interest:

Pensionado (pensioner),

Rentista (the category has nothing to do with whether you rent or buy your home, and can be loosely translated as "small investor")

Inversionista (large investor).

The three categories mentioned above allow you to, after two years, apply for permanent residency.

Another option is to continue to renew, and renew again, your three-month visa. See Life as a perpetual tourist.

Pensionado (Pensioner)

Most retired people opt for this category, which requires you to prove at least $600 a month in pension income. The income can come from a public source, like the U.S. government, or a private source, like the brokerage house that administers your IRA account. You must document that you will be receiving at least $7,200 a year, and arrange to have the checks deposited to a Costa Rican account, which will be in colones, not dollars. For a married couple, the spouse with less (or no) retirement income is considered a dependent, and a dependent need show no proof of income–they ride free on their partner’s $600.

Pensionados need to spend at least four months in the country a year, though the time need not be contiguous—you could spend January, February, October, and November here, for instance. You can’t work as an employee, but you can own and receive income from a business.

Rentista (Small Investor)

For those who have not yet reached retirement age but have managed to make investments that bring in regular income, the rentista option is an attractive one. You’ll need to prove a monthly income of $1000 (usually a CD or annuity), guaranteed by a banking institution. Another option is to deposit $60,000 ($1000 a month for five years) in a Costa Rican bank, which will authorize you to withdraw $1000 of your money each month. If, after two years of rentista status, you apply for and receive permanent residency, you can withdraw all the money out of the account.

Other details of the rentista category are similar to those of a pensionado: you can own a business but not work as an employee; you need to be in the country for at least four noncontiguous months each year, and dependents, whether spouse or child, enjoy the same immigration status as is awarded to the applicant.

Inversionista (Large Investor)

Although you can legally own and operate any sort of business in Costa Rica even if you only have a tourist visa, an investment of at least $50,000 in a sector the government deems a priority will get you inversionista temporary resident status. Costa Rican officials have declared as priority businesses related to tourism, forestry, and low-income houses. Non-priority reforestation projects will require a $100,000 investment in order to qualify you for inversionista status, and any other business ventures will call for $200,000 or more. Inversionistas must stay in Costa Rica six months out of every year, though as with other categories of temporary residency, the time need not be contiguous.

Life as a perpetual tourist

No paperwork, no job, no muss, no fuss–nice work if you can get it. And it can be that easy, though recent crackdowns have put the fear of expulsion in the hearts of long-term expats who’ve never bothered about renewing visas or getting residency.

A side note: It used to be that people from Canada, the U.S., and Panama could enter and exit Costa Rica without a passport, though they did need some form of identification, like a driver’s license. As of April 30, 2003, however, all visitors to Costa Rica must travel with valid passports with at least three months remaining from the date of entry into Costa Rica.

Here’s how the perpetual tourist thing works. Visitors from Canada, the U.S. and most of Europe don’t need to apply for visas in their home countries but instead receive, upon arrival in Costa Rica, a stamp on their passport authorizing a 90-day stay. When that 90 days is almost up, you leave the country for at least 72 hours–maybe you’ve always wanted the visit the colonial city of Granada in southern Nicaragua, or snorkel at one of the Bocas del Toro islands in northern Panama. After your 3-day vacation, you cross back into Costa Rica, and get another 90-day stamp on your passport. This category of visa is called the B1, or tourist visa.

Some people do this for years, but it’s not an ideal solution. Although not strictly illegal (you’re not overstaying your visa), the practice is considered a little shady by Costa Rican officials–a way of getting around the law.

If you have anything to lose in Costa Rica–a house, a business, a family–this sort of gray-area existence is apt to make you a little bit anxious. Not to mention that leaving the country every three months gets to be tiresome and expensive. Costa Rican officials are becoming more inflexible about enforcing immigration laws. If you get caught with a long-expired visa, you could be deported, and not allowed to return for ten years

More Information

The top ten places to visit in Costa Rica

Glen Godlonton — Fri, 12 Sep 2008 14:51:00 GMT

Where should I go?
The top ten places to visit in Costa Rica.

Please note that this list is organized alphabetically rather than in order of awesomeness. All these places are great in their own way, and there are dozens more I wish I could include. If you want more detailed information, it’s out there. Some of it is in my book, Living Abroad in Costa Rica.

Near Corcovado National Park

Corcovado National Park. An immensely fertile area in the southwest of the country, this park takes up most of the Osa Peninsula, which National Geographic magazine calls "the most biologically intense place on earth." This is Costa Rica's Amazon, a tropical rain forest where tall trees drip vines and lianas, macaws screech, and most of the remaining 250 jaguars in the country prowl. The numbers are staggering: 42,000 hectares of land are protected in the park, which supports 13 distinct habitats and on which 20 feet of rain falls annually. Five hundred kinds of trees thrive here, as do hundreds of species of birds, mammals, and reptiles. Crocodiles lurk in marshy areas, sea turtles lay eggs on deserted beaches, and tapirs pick their way shyly through the trees.

Manuel Antonio National Park. The most popular national park in park-rich Costa Rica, Manuel Antonio is located on the central Pacific coast near the town of Quepos, just a few hours’ drive from San Jose. Beautiful beaches, rambling, mostly flat trails through the jungle, and lots of monkeys and sloths. This area is known to be gay-friendly and cosmopolitan, with many local hotels run by gay expats from North America and Europe.

Monteverde. Go for the cheese, the best in the country and made by descendents of the Alabama Quakers who migrated to this mountain town in 1951. Go for the horseback riding, the hiking, and the local arts and crafts. But most of all, go to see the stunning Monteverde Cloud Forest Reserve, which supports an enormous variety of flora, along with over 400 species of birds, including 30 species of hummingbirds. Birders come for a glimpse of the rare Resplendent Quetzal. Pay for a guide and you’ll learn 78% more than you would touring the reserve on your own. Be prepared for rain.

Surfing Pavones

Montezuma. At the southernmost tip of the Nicoya Peninsula lies funky little Montezuma, an alternative-flavored spot where you can swim, hike to waterfalls, or gorge on excellent vegetarian fare and fresh seafood. Nearby is rugged and pristine Cabo Blanco, founded in 1965 and Costa Rica’s first national park.

Pavones. If you’re a surfer, especially a goofyfoot, this is where you’ll want to go. Located on the southern Pacific coast, Pavones is famous for one of the longest left-breaking waves in the world. Local bad boy author and surfer Alan Weisbecker writes that this point wave is "so fast and long as to be nearly hallucinogenic."

Boys in Puerto Viejo

Puerto Viejo. Another hip, scruffy beach town and surfing hot spot, this time on the less-visited east (Caribbean) coast. Surfers come to try their luck on the famed Salsa Brava wave, which breaks hard and fast onto coral reef. There’s plenty for non-surfers to do, too. Lounge on the beach, nurse a beer, avoid the tweakers, eat spicy Caribbean food (a relief after the bland fare in the rest of the country). Nearby is the Bri Bri-Cabecar Indian reservation (they welcome guests accompanied by a native guide) and the Gandoca-Manzanillo Reserve, one of the less-visited gems of the national park system. From Puerto Viejo many travelers head south, across the border to Panama’s Bocas del Toro islands.

Turtle returning to the sea after laying her eggs on the beach

Tamarindo. Still true to its roots as a haven for surfers and other tattooed nomads, the north Pacific coast town of Tamarindo now also draws a more varied (and ever-larger) crowd, who may not pull all-nighters at the local disco but come to relax on the beach or to take a midnight turtle tour. A 6-foot long, 1000-pound leatherback turtle trundling up the beach to deposit her eggs in the sand is a sight you won’t soon forget.

Tortuguero National Park. No roads lead to this wildlife-rich park on Costa Rica’s Caribbean coast–you have to fly by light plane or take a boat. Giant sea turtles come ashore seasonally to lay their eggs, and the canals are filled with crocodiles, caimans, and even the odd manatee. Herons and egrets lurk at the river's edge, while iguanas sun themselves on the branches of vine-draped trees. Tourists, birders, and fishermen often stay in all-inclusive lodges along the river, but try to make time for nearby Tortuguero, a carless hamlet of 700 where the weather-beaten homes are oriented to the river or lagoon, as buildings elsewhere are oriented to the road.

Café at the Melia Alcazar theater, downtown San Jose

San Jose. I’m not kidding. Aren’t you dying to visit the insect museum, tucked away in the basement of the Music building on the University of Costa Rica campus? How about seeing a Russian film at Sala Garbo, then going for Lebanese food and multi-colored cocktails at Luban? Or a stroll through the Mercado Central–you might run into former President Abel Pacheco, who shows he’s just folks by slurping sopa negra (black bean soup) at one of the bare-bones lunch counters there. Ok, maybe you haven’t felt the urge to do any of these things. But chances are you’ll have time to kill in the capital, since the great majority of international flights touch down and take off from here. Don’t just read a novel in your hotel room–get out and walk the streets.

The River Tabacon runs hot

Volcan Arenal. The Arenal Volcano rises up out of the lush northern plain like a whale breaching the ocean's surface. You can’t always see it (for the drifting mist), but you can always hear it, grumbling deep in its fiery throat and just generally making sure you never forget that although it slept through the colonial and most of the modern era, when it woke in 1968 its eruptions wiped out two towns. Not quite as furious now, it still coughs up smoke and truck-sized cinders daily, and on clear nights you can see red-hot rocks bouncing down the mountain. There's nothing like soaking in hot springs (Tabacón Hot Springs are the best known) at the foot of the volcano, a light cool rain pocking the water, secure in the knowledge that if Arenal blows again like it did in ‘68, you'll have about nine minutes to get out of the danger zone. More Details

Visit to museum in Parque la Sabana is well worth effort

Glen Godlonton — Wed, 03 Sep 2008 21:51:00 GMT

Visit to museum in Parque la Sabana is well worth effort

This month marks the beginning of my 17th year in Costa Rica. Normally I do not note my milestones, except to quietly marvel that I have reached yet another one.

Recently a friend and I visited the MAC. No, not that MAC. The Museo de Arte Costarricense. It is that and more. It is also a history of Costa Rica from the late 19th century to today. Browsing the museum, I experienced again the reasons I moved here.

MAC is celebrating its 30th year of its present location on the east end of Parque la Sabana in the neo-colonial building that once housed the people part of Costa Rica’s first international airport, which it was from 1940 until 1955 when it moved to its present location in Alajuela. The Sabana location remained a local airport until 1975. It was transformed into a museum in 1978, and the runways and remaining land became Sabana park. I call it the “eople’s ark.”

The current exhibition is divided into periods of presidential terms. Each room has a banner with the name of the then-president and his dates in office. I assume the paintings in each room were acquired or produced during that period. In all of the decades of presidents and art, I saw, aside from the conquistadors, only one weapon in one painting. Most of the works, both painting and sculptures are of people or groups of people or typical Costa Rican scenes.

Upstairs in the balcony are some terrific photographs showing the history of airport to museum, and finally, also on the second floor, the large diplomatic room. It is known as “the Gold Room.” It is empty except when local dignities are hosting visiting dignitaries. But the golden murals fill the room. There in bas-relief are the different stages of Costa Rican history from pre-Colombian times to 1940. The carved stucco is painted bronze.

A visit to the museum is well worth your time. For more information other activities of the museum you can call (506) 2222-7155 Ext. 103.

The visit got my friend and me talking about Costa Rica’s devotion to culture and the arts. Theater thrives. Most of the plays are in Spanish, but there is, and has been for over 50 years, the Little Theatre of Costa Rica that has at least four stage productions a year.

Living in Costa Rica

. . .Where the living is good

By Jo Stuart
jostuart@amcostarica.com

There seems always to be music being performed somewhere, whether classical in the Teatro Nacional, tango at the Melico Salazar or in the churches of small communities far from San José. The cultural centers of the various countries with embassies here often have free musical entertainment.

And there’s jazz in the clubs everywhere or big band music — and of course, Latin, salsa, Caribbean and pop. All of it is within the reach of my pocketbook.

Speaking of music. This past week in the United States the Democrats have been holding their convention to elect a president. I’ve been watching most of it. I had my breath taken away by Hillary’s speech, was charmed (and informed) by President Clinton’s words and delivery, touched by Biden, but what brought me to tears was two electric guitars and a harmonica and Melissa Etheridge’s rocking version of “God Bless America." Woven into it were “The Times they are Achanging, “Give Peace a Chance” and the rousing rock chant, “Born in the USA.”

The times they ARE a-changing. Women were given the vote in 1920 in the U.S. This year is the first time a woman was truly a contender as a candidate for president.

Women in Costa Rica didn’t get the vote until 1948. There have been no female presidents in Costa Rica, but there have been and are women vice presidents.

Black history in the U.S. has been as dismal politically and socially, but we have an African-American candidate for president this year. Both Barack Obama and Hillary Clinton would feel comfortable talking to Costa Ricans about giving peace a chance.

Yes, August 2008 marks a number of milestones about which I have strong feelings and will probably remember and celebrate.

Officials Get Into the Maritime Zone

Glen Godlonton — Wed, 03 Sep 2008 21:45:00 GMT

Officials Get Into the Zone

And they are kicking encroachers out of it

By Devon Magee
Special to The Tico Times | editorial@ticotimes.net

PLAYAS DEL COCO, Guanacaste – This Pacific coastal town is setting the tone for an increasingly hard-line stance on Costa Rica's Maritime Zone (ZMT) by finally enforcing laws that govern the country's coastal area and have been, until recently, largely ignored.

Last October, the local municipality began demolishing the undocumented construction – mostly houses and bars – that encroached upon the swath of land 50 meters from the water's edge that is designated as public by the ZMT laws.

Costa Rica has about 1,466 kilometers of coastline governed by 24 different municipalities. Nicoya and Santa Cruz in the northwestern Guanacaste province are two other municipalities that have started to demolish illegal construction in the public maritime areas of their respective coastlines.

“The municipalities hadn't done anything before because there was always a fear about the legal procedures they might have to deal with,” says Katherine Mourelo, the ex-legal adviser for the Municipality of Carrillo, a canton that encompasses Playas del Coco. “We wanted to make sure that we had a project in place for the public zone in order to justify the demolitions.”

The project is a publicly funded pedestrian boulevard that will run the length of the beach – about one kilometer – and will include public gardens, benches, kiosks and lighting.

For now, however, the 50-meter public zone is barren and strewn with the ruins of the past year's demolitions.

“The plans are ready,” says Carlos Cantillo, the mayor of Carrillo. “And they'll begin as soon as the case of the Bar el Ancla is resolved.”

El Ancla de Oro is the only beachfront establishment still standing. An unresolved legal hiccup from 10 years ago has protected its infrastructure, although authorities have stripped its commercial and liquor licenses.

“What we are really lacking is organization,” says Mourelo, talking about the ZMT in general.

The ZMT, established in 1977, designated that the first 50 meters from pleamar ordinaria, approximately a halfway point between the high- and low-tide marks, would be public land, which means absolutely no private construction.

But locals have been building homes, bars and businesses without land titles in the public maritime zone for over half a century.

“I was expecting you for 40 years,” said Adela Gutiérrez when the municipality arrived to her wooden house with an eviction notice.

The municipality is not paying expropriation fees because the land was never privately owned.

“We had been there since the early'60s,” says Cecilia Viquez, co-owner and administrator of Bar El Bohío, a beachside beer drinkers institution that was demolished in October. She says she won't relocate. “I don't have the money, and … where else would I go?”

The next 150 meters inland were designated as concession land and can be built upon. Concessions are granted for a maximum 20 years for specific tourism purposes in accordance with the local zoning plan. A concession holder cannot hold more than one concession, and concessions cannot be sold to private third parties.

These laws, however, have often been ignored. Many municipalities lack zoning plans. Concession holders hold more than one concession, build private homes on concession land and sell concessions.

Gerardo Acuña, the mayor of Parrita in Puntarenas, estimates that concession land in his district sells for between $500,000 and $1 million a hectare, according to the daily La Nación.

“I think that the culmination of this project will be when the law is enforced on the other 150 meters (of the ZMT),” says Kristian Faerron, president of ADECOCO, a development association in Playas del Coco.

An integral zoning plan for the Carrillo coast is in the works. “We are in the process of contracting a company to perform a topographic survey that will allow us to situate every concession and determine the true concession holders. This will allow us to control the 150-meter zone of the canton,” says Cantillo.

“There will be more demolitions,” says Cantillo. “The project aims to clean the 49 kilometers of coastline (in the canton of Carrillo) by the beginning of next year.”

Says Mourelo: “The primary intention of the ZMT laws is to protect the coasts and guarantee that everyone can enjoy the beach. We want Coco to set the example.”

Local Happenings in Jaco Beach

Glen Godlonton — Thu, 29 May 2008 18:34:00 GMT

Local Happenings in Jaco Beach

______________________________________________________________________________________

San Jose highway underway
The highway from San Jose to Caldera is under construction. This $230 million job started construction at the beginning of 2008 and was inaugurated by President Oscar Arias in January. The opening is scheduled for August of 2010 and will reduce drive time to San Jose to under 1 hour.

Beachfront Boardwalk
A group of developers announced plans to build a beachfront boardwalk that will span the frontage of all Jaco Beach. The topography study has been completed of this $3 million dollar project that will get underway shortly. The boardwalk will come complete with public bathrooms at 4 separate areas along the beach.

Municipal Projects
The municipality of Garabito, which includes Jaco Beach, will spend $6.6 million dollars in 2008 according to its budget. Projects include a 25-strong municipal police force that can already be seen on the streets of Jaco and city beautification such as the construction of a city park and amphitheater. Schools are being improved, playgrounds repaired, streets paved and low-income housing projects underway.

Blue Flag

The township of Jaco was awarded with the blue flag ecological award on March 25^th. Recycling, beach cleaning, environmental education and signage by local businesses, hotels, residents, developers and the Garabito municipality helped earn this prestigious award.

Art Festival
Jaco’s first annual art festival kicked off May 24th with a colorful parade down Jaco’s main boulevard complete with dancing and live bands. This weeklong event will showcase the talent of local artists.

Rating System for Specific Locations

Glen Godlonton — Thu, 03 Apr 2008 17:08:00 GMT

Reproduced for International Living Postcard

Visit www.InternationalLiving.com

Dear International Living Reader,

In almost eight years of living and working in Latin America, Suzan and
I have developed a rating system for specific locations.

It’s called The Four Cs, and they are: Comfort, Convenience, Cost, and Culture.

These four categories are rated on a 1-5 scale, with one being the lowest rating and five the highest.

I like the system because it’s not complicated and the categories are self-explanatory and include everything important to me.

Simply put, the cheaper, more convenient, more comfortable, and more culturally rich a location is, the better I like it as a place to live.

What do I mean by culturally rich? Almost certainly something different than you. Likewise for what I find comfortable, what I need in conveniences, and what I like to pay for things…The Four Cs are subjective and are designed to indicate what I personally think about a place. My ratings could be…probably would be…different than your own ratings for a specific location.

And speaking of specific locations, note that this rating system is not designed for entire countries. Hence, San Juan del Sur, Granada, and Managua would all have very different ratings on The Four Cs scale. That doesn’t mean you can’t rate Nicaragua as a whole with The Four Cs…just that the larger the area, the less meaningful the ratings tend to become. Suzan and I rarely rate entire countries anymore…how could you come up with an overall rating for a place as large and varied as Mexico? Even little Belize ranks differently depending on where you go in the country.

All that being said, I’ll explain a bit about what each category includes for me.

Comfort. The largest component of the Comfort rating is climate. Already we’re getting subjective…Suzan likes significantly warmer weather than I do, and weather almost everywhere varies seasonally. But snow and freezing temperatures are out, and lots of sunshine is in.

Also figured into my Comfort rating are: the number of biting insects, the amount of pollution (some places have an almost unbelievable tolerance for exhaust smoke, untreated sewerage, and litter), the physical beauty of the general area, and the ambient noise level. (Believe me, some places are just plain loud…and that can seriously affect your quality of life.)

Convenience. I find that Convenience has a lot to do with infrastructure, so important Convenience questions for me would be…how close is the nearest large airport, and how big a pain in the butt is it to get there and back? Can I drive locally without taking my life in my hands or having to buy new struts and tie rods twice a year? If I can’t, am I constantly at the mercy of surly cab drivers?

How often does the power fail, and how long does it stay down? How difficult is it to set up and pay electricity and telephone accounts?

How far do I have to go to get a decent bottle of wine and some fresh bread and cheese? How many shops do I have to visit to pick up wood screws, duct tape, a crescent wrench, and a garden hose? (In some places I’ve lived, that would take four separate stops…if any of the items were available at all.)

And if I cut myself cleaning the grill, how far do I have to go to get stitches from someone other than a veterinarian or seamstress?

Cost. This category for me is based on comparison with Midwestern U.S. prices, because that’s where I’m from. Your mileage may vary. But first and foremost…are the real estate prices less than I’d pay in the States for a comparable house in a comparable location?

Next, can I eat decent food for less than I can in the States? (This is a tough one, because food in the U.S. is so notoriously plentiful and cheap, but I believe that will change soon…think of wheat, meat, and produce as you would other commodities like steel, cement, and oil, and you’ll see what I mean.) When I find that acceptable bottle of wine, has it been marked up so much with import duties and luxury tax that sobriety becomes more attractive than buying a bottle? If the wine isn’t available, is there cheap beer or a cheap local booze substitute that won’t make me blind?

And, most importantly, can I visit a well-trained doctor for less than I can in the U.S.? (This one is a lock…you can get quality medical care almost anywhere in Latin America for less than in the U.S.)

Culture. I’m not in love with any particular culture…I don’t wish that I were anything but a big white guy, and I don’t run around dressed in local garb (except for guayaberas, the Cuban/Yucatan four-pocket shirt that looks like a barber’s smock and comes close to being the perfect tropical men’s wear).

But I do like interesting music, good local food, and ancient ruins. That’s just me…and in these departments, some places have more appeal for me than others.

And, probably most subjective of all…the locals need to be friendly for a high rating on my Culture scale. Call me a curmudgeon, call me jaded, call me what you will, but some places you go, the locals just aren’t pleasant to be around. That’s just a fact of life, and I know it’s not just me being an insensitive jerk or having a bad day because some places you go, the locals really are genuinely nice and happy folks and you like being with them. You know them when you meet them.

So that’s The Four Cs, and finally, as an example, I’ll use them to rate Playa del Carmen, Mexico.

Comfort = 3 (I’ve been bitten by the local mosquitoes…they’re pros. And it’s hot. And noisy. But the beaches are gorgeous.)

Convenience = 4 (It’s not an easy town to drive in, but it’s a straight shot on good road to the airport, and you can find just about anything you want in town now.)

Cost = 3 (Lots of tourists keep real estate, lodging, and entertainment prices high, but they have some nice grocery and big box stores now that keep the daily cost of living reasonable.)

Culture = 2 (The local culture, whatever it was, is now almost completely submerged by tourists and the businesses that cater to them, at least in the main town.)

There you go…12 out of a possible 20 for Playa del Carmen. If you live there and love it, please don’t write to try and “straighten me out.” You won’t change my mind. And let me add quickly that I could happily live in Playa del Carmen, at least for a while…no place is perfect, and Playa has a lot going for it. But that wouldn’t change my rating or keep me from complaining about things.

Dan Prescher
Publisher, International Living

Visit www.InternationalLiving.com

Pre-think Pre-construction

Glen Godlonton — Sun, 30 Mar 2008 22:57:00 GMT

Pre-think Pre-construction and Dodge Disaster

From International Living Postcards--Sunday Edition

http://www.internationalliving.com Sunday, March 30, 2008

Dear International Living Reader, You’ve probably heard this before, but it bears repeating: Buying into a project or development in the pre-construction phase is risky. I don’t mean it could be risky. It is risky.

A project in the pre-construction phase is precisely what it sounds like…a project where nothing has been built. The British call pre-construction sales “off-plan” sales, perhaps because people are buying pieces of the development directly off the plans…since nothing else exists.

If you’re an international real estate wheeler-dealer, this may be the kind of risk you can handle. You’re in it for the greater returns that come from buying property at the steeply discounted prices offered by some developers in the very early phases of their projects...usually as a way to get enough presales to secure better financing terms from their lenders. And if you are such an international wheeler-dealer, you don’t (hopefully) have all of your international investment eggs in one basket…you’ve spread your risk around a bit among other investments and can afford any potential loss.

But if you’re shopping for a full- or part-time place for yourself, possibly with an eye toward some rental income when you’re not using it, be very careful about pre-construction deals…especially if the transaction you’re thinking about involves a big chunk of your savings or retirement nest egg. When you visit the site of a project in pre-construction, remember that what you see there at the very moment of your visit is precisely what you’re considering buying. If there is nothing there but dirt, then you’re buying nothing but dirt…along with the promise of the developer to build whatever he’s promising to build there.

Don’t get me wrong; I’ve seen some pre-construction deals completed as planned, on time, and on budget. Smart expats have been lucky enough to latch on to deals like this and save considerably over what they’d pay for the same condo or villa at a later stage of development.

But how can you tell which pre-construction deal will pan out and which one won’t? You can’t. That’s why they call it “risk.” Anything can happen at any time, and a developer who tells you otherwise is trying to make a sale. However, there are a few telling qualities of pre-construction developments that can give you a clue as to how they’re going to go. These are completely subjective things that I’ve noticed myself in dealing with real estate developments throughout Latin America. These tidbits aren’t meant for speculators and wheeler-dealers…they’re meant for people who are using their own hard-earned money to get something they’ve always wanted and can’t really afford to lose. So for what it’s worth, here are some tips if you’re looking at a pre-construction development anywhere in the world:

1. Make sure the developer owns the land in the first place. Believe it or not, some developers will take reservations for units or parcels in their planned development before they actually own the land. In fact, that’s what they want your money for…to buy the land. This kind of project can’t even be called “pre-construction.” It’s “pre-reality.” Only wheeler-dealers with nerves of steel need apply.

2. If the developer does own the land, find out how much debt the project has sitting on its back. A project in its very early phases that is heavily financed will probably spend a significant portion of the money it gets from you and other early buyers to service that debt...and debt service comes before roads, sewers, electricity, and your unit. Developers who can prove to your lawyer’s satisfaction that the debt load of their project is low or non-existent get huge gold stars.

3. Don’t buy into a pre-construction project based on projected rental returns. Nobody knows the future, so nobody can tell you what the rental return will be for your unit…if it’s delivered. And if a developer guarantees you a certain rental return for a certain period of time, ask him how he’ll do it. As far as I know, the only way to guarantee a specific amount of rental return without seeing into the future is to arrange to pay it with something other than rent…something like a hidden markup added to your sale price. You’re getting your own money back, possibly from an investment fund from which the developer is earning a little something extra for himself as well.

4. Don’t buy into a pre-construction project based on the eventual presence of a fabulous anchor hotel or resort operator. I’ve heard this from a hundred developers: “I shouldn’t even be telling you this, but just this afternoon we received a letter of understanding with a Four-Star operator--whose name I can’t mention--to build the anchor hotel and spa on the property. Do you know what that will mean for your property value?” Yes, I do. Nothing. A letter of understanding is worth a little less than the paper it’s written on. If I had a dollar for every fabulous four-star hotel deal I’ve heard about that didn’t happen, I could build my own hotel. Until a hotel of any kind is actually under construction on a project, it shouldn’t have any real affect on your property value unless you’re trying to sell your unit to a sucker, which is probably what the developer is trying to ! do to you.

5. Don’t buy into a pre-construction project of detached homes or villas that the developer himself hasn’t had enough faith to build a few spec units on. A couple of model villas/bungalows/town homes or a decent clubhouse already built on a property can be a fair indicator that the developer is in good financial shape, has great backers, or has a well-heeled construction partner. It may also indicate that the developer won’t need to use the money he gets from your sale to build the unit he sold just before yours. That’s about it. There is a whole host of ways that developers will sweeten pre-construction deals for prospective buyers. They’re all designed to reassure you…usually with some kind of cash refund guarantee or collateralization clause that offers land against non-performance of contract--or sometimes with an investment scheme that lets you participate in the future profits--if any--of the development corporation itself in some way. But none of these sweeteners can change the fact that buying pre-construction is buying dirt and a promise. If you go the pre-construction route, try to make sure the promise has something behind it.

Dan Prescher Publisher, International Living Editor's Choice:

Medical Directory of Costa Rica

Glen Godlonton — Sun, 02 Mar 2008 19:48:00 GMT

THIS IS A GREAT REFFERENCE

Costa Rica's most comprehensive online directory of Medical Doctors and Surgeons, Medical Specialists, Dentists, Healthcare Professionals, Alternative Healthcare Providers, Hospitals and Clinics with links to worldwide medical databases and the Internet healthcare information base.

The Website has been created as a public service to the people of the Republic of Costa Rica and those individuals and their families coming here to seek the finest physicians and medical services; treatments and procedures.

CLICK FOR MEDICAL DIRECTORY OF COSTA RICA

Commercial mortgage market faces shortfall

Glen Godlonton — Thu, 31 Jan 2008 15:29:00 GMT

Commercial mortgage market faces shortfall

LORI MCLEOD

Globe and Mail Update

January 30, 2008 at 5:54 PM EST

TORONTO — Canada's $15-billion a year commercial mortgage lending industry has gone from a period of excess supply into a relative drought - one that could leave the market $3-billion to $4-billion short of what borrowers are seeking in 2008.

“We're going to have a problem this year,” Reiner Plessl, director at RBC Dominion Securities Inc.'s real estate group, told attendees at a Queen's University seminar in Toronto.

Bills! How you get 'em and How to pay 'em in Costa Rica

Glen Godlonton — Thu, 08 Nov 2007 01:00:00 GMT

So now you have moved to Costa Rica, and one of the first culture shock items you will encounter has to do with your finances!

Paying bills back "home"

Many people maintain their credit cards from their home country. Also, most folks have other bills that need to be paid regularly like insurance, mortgages, whatever.

For that reason, I strongly urge you to learn how to bank by Internet.

Almost all banks offer bill pay services that actually create and mail a check to your creditor, or will make direct transfers to those accounts. If you are not already doing this, please learn before you get here. Get used to dealing with your bank back home so you can comfortably pay bills when due. Having bills sent here is fine, but can take from a week to a month depending on how you receive mail. You risk late fees and interest charges if they are not paid on time.

Paying your Costa Rica bills

For those of you living in many parts of the world, you are most likely accustomed to receiving your bills by mail. Sometime during the month, or maybe the following month if you're a little short on funds, you write a check and drop it in the mail. No harm.

Boy, are YOU in for a surprise!

As the regular mail service here is not always prompt and because there really is no local mail service to your home, many local bills will arrive delivered by a man driving a motorcycle (moto). Nearly all homes have large steel gates or fences, and a entry door (porton). The delivery guy simply sticks your bill in the porton! Maybe it stays there until you see it... or maybe the wind blows it away... but no matter, it HAS been delivered.

Now let's be optimistic and presume you find it. Then what? That depends on the type of bill. As payment by check is seldom used here except by businesses, you will pay this at a local bank, various pharmacies (farmacias) or perhaps a supermarket (mercado or supermercado). What you had better NOT do is stick it in a desk drawer to pay later! The reason for this is that phones, cell phones, electric, water, and other utilities will be turned OFF if you are more than a few days late! If you are used to being able to "hold off'" for a while, forget it!

So, you decide to go to the bank! Now you be introduced to the next culture shock item. Lines. Unless you are very lucky, when you get to the bank (sometimes a challenge in itself), you will find others paying their bills or doing other banking stuff. Regardless, you could be in for a long wait. This is one of the many tests of whether you will enjoy living here or, as maybe 50% of the people, you will move back to wherever they came from, and make comments like, "Costa Ricans can't do anything efficiently!". Well get used to it, because long lines (filas) are as much part of Costa Rica as are the beaches! Hint! When in a long line, instead of mumbling nasty things, take the opportunity to practice your Spanish. Introduce yourself to others in line. The time will pass much more quickly, you'll pick up learning Spanish a bit faster, you might make a new friend, and you will NOT appear to be just another impatient foreigner!

So is there an alternative? Yes... but with caveats! Many banks offer online bill payment. The bad news is that the best ones (so far) are the State (national) Banks such as Banco Nacional and others and their web site are only in Spanish. The good news is that your bills are will be right there online and you can simply transfer the money to the account of the service vendor.

In fact, many bills are paid in this manner. You could write a check, but then (to be sure they received it), you would have to go to that business and hand them the check and get the receipt. Even less convenient than the supermarket or bank.

Other major bills, mortgage, etc., are often directly deducted from your account.

FOR MORE DETAILS http://www.therealcostarica.com/living_in_costa_rica/banking_paying_bills.html

Moving Cats, Dogs, Birds, and Animal to Costa Rica

Glen Godlonton — Thu, 08 Nov 2007 00:56:00 GMT

Bringing Birds? Click Here

Planning to bring your pets to Costa Rica? Of course you are! They're family too, right? I brought my two cats when I moved to Costa Rica.

Read all of this first to make sure you do it correctly.

As these rules can change, I strongly urge you to contact the Association of Residents of Costa Rica (ARCR), a moving advisor or a relocation specialist no later than three weeks before your move as a safeguard! They will always have the most current info. Note: Often relocation firms outside Costa Rica are not current on laws and enforcement. Costa Rica specialists and moving advisors are usually a better bet.

If you follow these rules and do the final check back with ARCR, you will breeze through customs and immigration without any problems!

Quarantine and info on cats and dogs

Cats and dogs are not quarantined. You walk right through customers and immigration with the proper paperwork. You will need a certificate from your vet, and this form MUST comply with the US Dept of Agriculture format. Your vet should know all about this. Mine did. If he/she doesn't know, get another vet because THIS is critical stuff. Wrong form... no pets or long quarantine. Period!

This paperwork may also need to be validated by the CR embassy in the US nearest you. Currently it does NOT, but at any time and without notice, this can change. Check with ARCR for the current rules.

Shots (except rabies!) must be current within 30 days of transporting the animals. One day over? No pets.

Rabies shots must be over 30 days but less than one year.

You vet will know the immunizations required for shipping pets internationally. If he/she doesn't, get another vet. This sounds cold and it IS. Your vet MUST know this stuff.

MORE INFO VISIT http://www.therealcostarica.com/moving_to_costa_rica/moving_pets.html

Residency in Costa Rica

Glen Godlonton — Thu, 08 Nov 2007 00:49:00 GMT

Residency in Costa Rica

Types of Legal Residency

To live in Costa Rica for an extended period of time, it is required that you qualify for and establish legal residency. If you also want to work in Costa Rica, you will need a form of residency that permits you to do so. Currently the ONLY form of residency that allows you to work in Costa Rica is Permanent Residency.

If you don't pay attention to this, you may well run afoul of immigration (migración). If you are deported, you may not be able to re-enter Costa Rica for as long as twelve years. Stories abound of folks who felt they could ignore the system, Many do and are not caught, others, like Steve, do get caught with serious consequences. Contributor Chris Howard tells the story.

Costa Rica offers several alternatives for legal residency:

a pensionado (pensioner),
a rentista (a foreigner with a guaranteed income), an investor, a relative of a resident, or
if associated while doing a foreign government assignment or an international mission.
representante a person who is an executive of a company doing business in Costa Rica. Many restrictions apply

The pensionado and rentista programs are the easiest method of establishing temporary residency in Costa Rica.

In 1992, the legislature revoked the tax exemption laws that allowed pensionados and rentistas to bring all of their possessions into the country duty free. Under the current law, these groups are no longer exempt and must pay import taxes on their belongings.

To quality for the pensionado status, one must fulfill three basic requirements: (1) prove that one receives at least $600.00 per month from a qualified pension or retirement account or from Social Security, (2) change at least $600.00 per month from dollars into colones, and (3) live in Costa Rica for at least four months out of the year.

In order to quality for rentista status, one must fulfill three similar requirements: (1) prove that one has outside investments that will guarantee $1,000.00 income per month for five years, (2) change at least $1,000.00 a month into colones, and (3) live in Costa Rica for at lease six months out of the year. Neither pensionados nor rentistas pay taxes on money earned outside of Costa Rica. Pensionados and rentistas have restrictions as well as rights in Costa Rica. While either may set up their own business, they may NOT work for anyone else. Individuals of either residency status must first become permanent residents in order to obtain a work permit.

Investor status is granted to those who invest at least $50,000 in special projects such as reforestation, tourism and exports, or who invest at least $200,000 in any other business. The investor must also reside in Costa Rica for at least six months out of the year. If there are no problems, the investor may become a permanent resident in two years.

The two other methods of achieving legal residency are atypical, since both are contingent upon very particular circumstances. The resident as a first-degree relative status is the easiest method, as one need only be closely related to a Costa Rican. One with such status has all of the rights of a Costa Rican save for the right to vote. Another method is employment by a foreign government or an international mission.

One popular question is what happens when you marry a Costa Rican. It is really very simple. Once you marry a Costa Rica, you immediately qualify for PERMANENT RESIDENCY which grants all the rights of a Costa Rican save you may not vote. You may legally work in Costa Rica.

After two years of living IN COUNTRY, you may apply for citizenship. You must also PROVE you lived here, not always simple. Once you apply for this form of residency, the process takes about a year. This may change soon, so always check for current rules.

The interpretation and enforcement of residency laws is constantly changing, often as often as several times per year. I cannot stress enough the need to obtain proper counsel before starting this process! Probably the oldest organization specializing in this is the Association of Residents of Costa Rica (ARCR), but there are several others here in Costa Rica doing the same work.

When choosing someone to assist you, find out their experience, if they are attorneys themselves or hire attorneys, years in business, etc. Get active in users groups to find out (independently) how they did with other clients. Everyone wants a good deal! Costa Rican residency is like brain surgery... perhaps not best to shop for the best deal. There are HUNDREDS of stories of folks who got mired for years in the process simply because they tried to save 100 bucks.

As stated above, rules and enforcement are constantly in flux, and there is just no way I can keep current in this site, so please use this as a guide and hire a competent person to see you through the process.

The common types of residency are shown here. For specialized cases, such as student, work visas, temporary visas, diplomatic or political status, refugees or others, we suggest you consult ARCR.

FOR MORE INFO http://www.therealcostarica.com/residency_costa_rica/costa_rica_residency.html