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So here’s what I’m thinkin. I sell my house, move to CR, buy a small resort on the coast somewhere, and retire young. Now my wife is also interested in this idea but she has a wonderful business in No. Calif, so we decided summer in Calif, winter in CR. I’m sure there are many problems with this idea that will be pointed out. Any and all advise will be much appreciated. Thank you. New member 1st post.
I am no expert on either Costa Rica or on business start ups but the first questions that come to mind is (besides the obvious question as to what experience you have in running a resort), have you spent any appreciable time on the Costa Rican coast and do you speak Spanish?
Your idea sounds as exciting and as fun as a month long vacation is Costa Rica. I am just curious as to the practicality of experience that currently backs up the dream.Not an expert by any means, but have some experience in the service industry. Currently my wife and I own a wedding business and provide overnight accomodations at our location. would like to do the same in CR. I speak a little spanish and am not worried about picking it up once there. I’ve traveled extensively just not to CR yet. I guess my question is, is it all that it’s cracked up to be. I mean to people who have been there for a couple of years, do you love it or are you ready to come home. I’ve done a lot of reading on the net about CR and can’t wait to make a visit for the first time.
Edited on Jul 09, 2008 10:18
We’ve been in Costa Rica for three years and love it more than when we got here. We’re headed back to the U.S. the end of August and as the date draws near I wonder more and more if I really want to go. But you must understand that my response is from one who is retired here and not trying to make a living.
If you decide to follow this dream, you’re going to have lots of hurdles to jump. There are personal matters such as your residency status and the restrictions on foreigners working legally here. And there are the business hurdles such as obtaining licenses and permits, etc. We have friends who’ve taken most of a year to establish themselves in a bed and breakfast endeavor, so bring enough to live on while the wheels turn however slowly.
David are you going back to the US to live? Would love to hear more unless it’s to personal of course.
Sorry, Lotus, no such luck. We’re going for just two weeks, to see family and friends and tie up a couple of loose ends in our financial affairs.
I have friends that spend summer and winter in CR, spring and fall in the US. They work in both places and love it. The 3 months on, 3 months off lets them travel as visitors under the 90 day rule. They TRIED to get permanent residency and the rules changed from needing to stay in CR for half the year (which they were) to staying half a year at a time. After 6 years of working on their residency they were thwarted by the system. They may try again when they make a permanent move (if ever).
Its not the paperwork and permits. They are about the same as for a U.S. business (IF you follow all the rules). It is the Tico system that takes a simple process and drags it out for years. And the rules change and are interpreted differently by different people. You need a GOOD Tico lawyer and someone to stand in the cue for you.
The problems that arise start simple. Property theft is very high in Costa Rica. You cannot walk off and leave a place unattended and expect it to still be there when you come back. Give it a year and a whole building will disappear one brick at a time. So, your plan needs to include a full time guard, grounds keeper or housekeeper to keep an eye on things while you are gone. You ALSO need to be sure that you have a contract with whoever this is so that they do not claim squatter’s rights on your property. This can be a minor expense OR a major expense.
And as mentioned, as a guest or even as a permanent resident you cannot legally work in Costa Rica. You CAN manage your own business but you must hire Ticos to do the work. there are lots of shades of grey in this area but if you try to get around hiring Ticos you will be quickly “denounced” and in trouble with the authorities.
So, be it employees working in your business full time or a guard/grounds keeper you will have to have Tico employees of some sort. This is much cheaper and simpler than in the U.S. but there are minimum wages, taxes, mandatory vacation laws. More work for the lawyer and accountant.
Its a great country. I hope to live there on day. . .
I think that guru is correct in most of his advice BUT it is not easy to find a GOOD tico lawyer and when you do, you better keep on top of him to make sure all the paperwork is filed correctly. First thing to remember is that you will be dealing with the Napoleanic Code and not Common Law. Very important. Also, permanent residency in certain cases will allow you to work in CR depending on the conditions of your residency. Guru is correct saying that CR is a great country and I feel qualified to say that after living and WORKING here for 35 years.
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