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No, after two years, you/he would have to deposit a further $60K. These two deposits provides the ‘source’ of his ‘income’ of $2500 a month. After approx 5 years, you should have applied and received Permanent Residency, and hence pay lower CAJA premiums. As a [i]Pensionado [/i]you must show a guaranteed pension of at least $1000 after taxes, for your living expenses…at least at this time, but I think this will rise as will CAJA premiums.
Information on your financial income is not required for Permanent Residency
I still [b]strongly[/b][i][/i] suggest you rent for an extended period before purchasing anything as it is very easy to buy but very difficult to sell. Many are ‘stuck’ here as they can’t sell their property.I am confused. The money that is deposited is returned back to us with interest right? The Banks don’t keep that money.
I can show a pension of at least $1000/month but will they use that number or the actual number as the basis for CAJA?
Yes, your CAJA premium will be based on the declared pension that you have used for your [i]Pensionado[/i] residency application. Realize that most expats prefer to use private facilities and choose not to use CAJA although it is mandatory for Residency, so either have a private policy or pay ‘as they go’.
No, the deposited funds are used for [u]his[/u] income and living expenses, but he doesn’t [u]have[/u] to use it. It is in a laddered CD with a very low interest rate.If you haven’t yet been to Costa Rica, I suggest you do so, before making a move.
*Just noticed your additional post where you mentioned both applying as Rentistas. This would require you [u]both[/u] pay approx $240 each and every month for your CAJA premiums for 4 years until you have gained Permanent residency.
Going with private doctors may be ok but I am concerned about serious health issues. A private policy would certainly break my bank as I have priced international insurance for Mexico. Not affordable either.
Do you know what their rates are? I saw 7.1% online but that wouldn’t be considered low.
We did go back in 2013 to CR. We stayed 2 weeks. Beautiful country, aside from the severe poverty in the central valley.
So what is this 4 year requirement? You basically have 4 years to figure out if you want to go permanent or not? I doubt folks stay as rentistas forever. I can swing the $480/month, but I am unsure what that number will be (aside from any increases, etc) once we go permanent. Given the wages there I don’t think regular folk pay $240/month.
You have been most helpful!
Thank you
chrisThe rates you mention are probably based on colones not dollars in a private bank. You are [u]not[/u][u][/u] going to get that on your Rentista CD so possibly in the 2-3% range…but remember that $2500 are being transferred to another account, every month
You won’t be ‘regular folk’ and a PR your premium [u]may[/u] be approx. $120 each a month.It is said that most expats return ‘home’ within 3-4 years.
I am taking costaricafinca’s words to heart more and more. I keep thinking of my health and needs as being static/unchanging but that’s obviously not the case. I will retire early, travel a lot and rent for a year or two in CR before making a big decision. It is cheaper to live in CR than it is here in the US and I would not expect to live as I do in the US, but what if I can’t see my son as much by virtue of living in CR, or have to worry about getting my animals back and forth, etc. I just crave a more beautiful and simple life surrounded by nature and simplicity. If I can’t get Doritoes, a certain wine, who cares? But, until I live it, I can’t know what it’s really liketo live in CR. I’m always worried about those folks who just do research and decide to move to CR without having really spent much time at all there. We are going to Bali, Thailand and Cambodia for Xmas this year. Maybe I’ll spend my first five years of retirement just travelling to beautiful inexpensive places and then decide what to do:)
[quote=”costaricafinca”]No, after two years, you/he would have to deposit a further $60K. These two deposits provides the ‘source’ of his ‘income’ of $2500 a month. After approx 5 years, you should have applied and received Permanent Residency, and hence pay lower CAJA premiums. As a [i]Pensionado [/i]you must show a guaranteed pension of at least $1000 after taxes, for your living expenses…at least at this time, but I think this will rise as will CAJA premiums.
Information on your financial income is not required for Permanent Residency
I still [b]strongly[/b][i][/i] suggest you rent for an extended period before purchasing anything as it is very easy to buy but very difficult to sell. Many are ‘stuck’ here as they can’t sell their property.[/quote]Bringing in your personal belongings or even an automobile will make your eyes pop out because of the taxation. Just keep that in mind.[/quote]
I just thought I’d mention something about shipping a 40 foot container. I have written about it before and promised to “tell all” after the deed is done, but that probably won’t be until next year. Anyway, the cheapest quote we got was roughly a little over $9000. This includes the customs duty, and we will not be shipping a car. Everyone else quoted at least $2000 more, and not all companies included the customs duty. Our container will ship from the East coast of the U.S. I forget which port he said it will leave from, but we live near Philadelphia.
Lilian, one of the most common reasons of those returning ‘home’ is missing their family. Going back on vacation is harder when you have a variety of animals and require someone to take care of them ‘like you do’ is not so easy.
We have been here for nearly 15 years, and our ‘kids’ are beginning to telling us [i]”…we think it is time you came home …[/i]”:roll:
[quote=”costaricafinca”]Lilian, one of the most common reasons of those returning ‘home’ is missing their family. Going back on vacation is harder when you have a variety of animals and require someone to take care of them ‘like you do’ is not so easy.
We have been here for nearly 15 years, and our ‘kids’ are beginning to telling us [i]”…we think it is time you came home …[/i]”:roll:
[/quote]We have a 77 year old friend who lives on the Nicoya peninsula. She and her husband moved there over 35 years ago. He died 2 years ago, so, of course, her children want her to return to the States. She is refusing to do so, and I am convinced she will live out the rest of her days in CR.
[quote=”CHERYLJK”]
I just thought I’d mention something about shipping a 40 foot container. I have written about it before and promised to “tell all” after the deed is done, but that probably won’t be until next year. Anyway, the cheapest quote we got was roughly a little over $9000. This includes the customs duty, and we will not be shipping a car. Everyone else quoted at least $2000 more, and not all companies included the customs duty. Our container will ship from the East coast of the U.S. I forget which port he said it will leave from, but we live near Philadelphia.[/quote]That’s sounds high compared to what I have been hearing from recent arrivals.
If you haven’t talked to him yet, it may be worth contacting Mike at http://www.shippingcr.com
his email is info@shippingcr.comHe is moving friends from Dallas within next few weeks and they are very happy with his service and price.
I use him for “package shipments” and have been very pleased.
[quote=”CHERYLJK”]
I just thought I’d mention something about shipping a 40 foot container. I have written about it before and promised to “tell all” after the deed is done, but that probably won’t be until next year. Anyway, the cheapest quote we got was roughly a little over $9000. This includes the customs duty, and we will not be shipping a car. Everyone else quoted at least $2000 more, and not all companies included the customs duty. Our container will ship from the East coast of the U.S. I forget which port he said it will leave from, but we live near Philadelphia.[/quote]That’s sounds high compared to what I have been hearing from recent arrivals.
If you haven’t talked to him yet, it may be worth contacting Mike at http://www.shippingcr.com
his email is info@shippingcr.comHe is moving friends from Dallas within next few weeks and they are very happy with his service and price.
I use him for “package shipments” and have been very pleased.
Lillian:
I LOVED living in Costa Rica for three years and was so sad to leave. That said, you need to know that the cost of living in Costa Rica has been seriously on the rise for many years. I believe that ten years ago it really was fairly cheap to live there.
We lived a modest life there and when I returned to the States (Tucson), I discovered that my cost of living was actually about the same (or maybe only slightly more) than the cost of living in Costa Rica. Plus, the CAJA rates seem to be really on the rise for newcomer expats.
We considered building a home and had great meetings with a wonderful Costa Rican architect Gloriana Meija (Dott Architecture) who has done several wonderful houses for expats on a real budget. I have been in construction all my life and I think that realistically you should plan on spending somewhere in the $120-130 sq. foot range for new construction. Do NOT use wood! Lots of other great choices that wouldn’t give a single woman extra hours of maintenance.
I think that your idea to do lots of travel to wonderful places (including some stints in Costa Rica) is probably a great idea. You could continue to be in your son’s life, perhaps volunteer in some wonderful projects around the the world and really get a feel for your heart’s desire in your new, retired life.
Good luck, Sue
For good or bad, I don’t have much family in the US. My mom was a Dane and we have no family in the US. I don’t have much family in the US at all. A sister I’m not close with. My only real family is my son who loves CR as much as I do and he’s still a young peep. I can float his expenses there for a couple years while he decides what he wants to do with college. Flying RT from Costa Rica to the US isn’t that expensive. For as many times as he can come to me, or I go to the US, I’ll be able to afford it. I don’t want to pick some state to live in in the US and then my son is busy with his own life anyway. I have to live my dreams and have enough money to go see him and pay for him to come see me as much as I’d like. Once I leave the Chicago area, I will never come back to this cold. That would be depressing for me.
What I have to figure out is how to design the home I’d like to live in, and then to figure out how close to live to others. I’d like to find a somewhat academic, artistic community. That’ll the the real tough one;)
[quote=”costaricafinca”]Lilian, one of the most common reasons of those returning ‘home’ is missing their family. Going back on vacation is harder when you have a variety of animals and require someone to take care of them ‘like you do’ is not so easy.
We have been here for nearly 15 years, and our ‘kids’ are beginning to telling us [i]”…we think it is time you came home …[/i]”:roll:
[/quote]Hi Sue,
Thanks for your ideas:) Upper end of $120-$130 per square foot to build, including or not including land and septic. Still for $195K, I could get 3 bedrooms and 2 bathrooms. I want that with a pool and a fenced piece of property to keep my animals safe:)
[quote=”sueandchris”]Lillian:
I LOVED living in Costa Rica for three years and was so sad to leave. That said, you need to know that the cost of living in Costa Rica has been seriously on the rise for many years. I believe that ten years ago it really was fairly cheap to live there.
We lived a modest life there and when I returned to the States (Tucson), I discovered that my cost of living was actually about the same (or maybe only slightly more) than the cost of living in Costa Rica. Plus, the CAJA rates seem to be really on the rise for newcomer expats.
We considered building a home and had great meetings with a wonderful Costa Rican architect Gloriana Meija (Dott Architecture) who has done several wonderful houses for expats on a real budget. I have been in construction all my life and I think that realistically you should plan on spending somewhere in the $120-130 sq. foot range for new construction. Do NOT use wood! Lots of other great choices that wouldn’t give a single woman extra hours of maintenance.
I think that your idea to do lots of travel to wonderful places (including some stints in Costa Rica) is probably a great idea. You could continue to be in your son’s life, perhaps volunteer in some wonderful projects around the the world and really get a feel for your heart’s desire in your new, retired life.
Good luck, Sue[/quote]
Hi there, I may have some answers for you as well
1)
Building is a good idea. You design your house to your own taste and for you own very personal needs. Building cost for high quality construction here at Lake Arenal run around $ 85 per square foot, but also depends on design and style (Curly Spanish style with lots of wood accents would be more expensive than Straight minimalistic Contemporary). Building a septic system is part of the building process. You can buy land with water and electric at lot line, or “raw land” where you pay for improvements (can be part of building process). Price differences between improved land and raw land are quite large and most times installing power/water is not that expensive (if the next electric pole is not a mile away).2) If you find the perfect home on the perfect property at a reasonable price, then yes you will be better off. You save time by not building and not starting the landscaping from scratch.
3) Land value YES does count ! We have build 2 homes for a client and helped him gather all the paperwork for his residency as an investor. The total property value (land plus completed construction) was included in the value. An important part is that the property is registered at the real value at the local Municipality (where you pay your property taxes) because they will provide the statement.
4) Legally, yes and yes.
5) If you comply with one of the requirements for residency then yes. If your investment (land and house) is above the $ 200.000 you are considered “inversionista”, or if your monthly social security check is over $ 1000 you are considered “pensionado”. Or if your son finds a girlfriend and they have a baby……….
6) Let me know when you are ready to rent, buy and build at Lake Arenal 😀
Have a nice day
Elisabeth[quote=”lillianwickram”]I am working toward retirement in CR and have a few questions. I’ve read 15 pages worth of forum boards and am not finding quite the answers I need, so I am posting.
1 – I have been looking at multiple property sites and find that many properties are “too” North American for me and some tico style houses may not be quite enough. I want something rustic but pretty, lots of natural woods, etc., probably about 1500 square feet. If I consider building, I’m estimating building costs of $100 per square foot, plus property cost. I would look for a property that already has electric and septic or some water system already in place.
2 – Or might I be better off buying an already existing home for around $200K and just work to renovate it to my liking? Am I right in my understanding that $200K is the number?
3 – I would work toward residency and understand an investment in property of around $200K is what is needed as a good start. I did read in the forum here that I build a house, land costs do not count toward the $200K. Does that sound right?
4 – And until I’m a resident, I need to travel in and out of Costa Rica every three months? So this could include visits to Nicaragua, Panama and the US? I expect to have my son with me for a couple years and he will be 18 so the same is required of him?
5 – If I have $ to last me 15-16 years (assuming I have no debt and my house in Costa Rica is paid for), plus gain social security well before that, am I wrong in assuming I’ll be ok with residency with enough passage of time?
6 – I’ve been to CR five times and will go back again by the end of the year. My plan is to choose my three favorite places and then live in each of them for three months, then choose the one I most like and spend another 6-9 months before buying property/a home. I’ll rent during this time. Any thoughts on this?
Thanks so much
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