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Hey Scott…
I guess you got the same thing out of the story as I did. It’s an issue that will be determined in time… but I don’t see other countries allowing the US courts to mendle in their issues. As I said… getting a judgement in the states is easy… collecting is MUCH more difficult… and in this case… having the assests in another country… and having a case that was heard in the US by a REAL REACH of jurisdiction…..makes it even more so!
As for the concern about the owners having income coming from the states (pensions and such)… I don’t see that as being an issue. The S.A…. just as a corporation (entity) in the states… shields the owners from liability. I can’t see even the US courts trying to make that case! And if they do…. it might be better if the defendants offer the plantiff another boat ride…. REAL far out in the ocean!
Hi Jennylynn…
Read my prior posting and if you have a question you can ask a follow up… I’m not a lawyer… but I see your question as pretty straight forward… as for residency… the first question is what type of residency are you going to apply for. Some simple on line research will provide the basics for each… then see which you qualify for…
There are three basic types… I’ll use english terms to make it simple for explaination purposes. They are 1.Investor 2.Pension 3.Renter
Each is a bit different… so here’s basic idea of each…
1. Investor… requires that you start or invest in a business… not just start a S.A. (Corp)… it requires REAL cash investment… the numbers are big… $100,000+/- depending on the type of business… the government has targeted areas of business development that requires less… some require more. There are lists available breaking down the types of businesses and the required investment. Hiring some locals to build your dream house in CR will NOT meet this standard.
2. Pension… Offered to retired folks that have a steady source of retirement income that must exceed amounts set by the government. The pension must be verified and normally must be secured. The amount are resonable and up for change currently. If you’re not a retiree or on social security… this isn’t an option.
3. Renter… Requires a large CASH deposit be placed in a CR bank and a set amount drawn each month… the amount is also up for change and is required for each family member… it is set up for a 5 year draw. Unless you have some real money… this is not for you…
This is the MOST basic of explanations… everything is subject to change and the current rules are in the middle of one such change… the amounts might change a bit… but the basics will most likely remain the same.
The simple question you have before you is… if you’re not a retiree getting a secured pension…. do you have $100,000+ to apply for one of the other residency options?
I hope this helps… I know it’s a basic explaination and does not cover all the issues… that’s what a good immigration attorney is for!
Hey Scott
I know we don’t do the legal advice thing here…. but… if you read the article (I haven’t seen the legal documents)… the issue is not that the owners of the S.A. are US citizens that creates the jursidictional tie that the courts are using to hear the case.
The court (at the pleading of the lawyers) are trying to show a “relationship” between the S.A. and the US… in this case… they had at one time apparently… Had a PO box in the states, attended a seminar, had a bank account, enjoyed word of mouth recommendations, and had otherwise promoted their business in the states. The judge even brings in the fact that the incident happened on the high seas in a boat made in the US… so apparently the US court feel they have dominion over all the worlds oceans! It doesn’t appear that the courts took the citizenship of the owners of the S.A. at all… as it should be… the lawyers went after the S.A. and IT’S ties to the US.
All pretty thin if you ask me try to show they were a US business that should be subjected to the US (in)justice system. Using this kind of logic they have applied here… ANY business ANYWHERE in the world would be subject to the US courts if you try hard enough! I don’t think ANY country wants or needs that!
A good lawyer working for these guys should be able to get this kicked… but it takes time and money. A better approach would be to be sure that the assets are fully mortgaged or otherwise “spoken” for… when there’s no equity there’s not much for the lawyers to go after… and since in a personal injury case like this lawyers work on a percentage… they’d drop this case in a minute… too much work, not a big payday! They got a free ride so far… a default judegement for filing some paperwork and paying a small fee… NOW it’s going to be work and cost big bucks!
The error here is doing nothing in the first place THEN responding… the owners of the boat would have been better off NOT replying to the suit at all… now it’s costing money! I could go on and on about the angles here… but time will settle this one.
Let’s see what people think about this issue… it should be an interesting chat….
Hey Scott…
I read that article in AM Costa Rica this week… let’s see what happens next… getting a judgement in the US is easy… lot’s of bottom feeding lawyers working the system… the tough part is collecting. I’d have to say the US lawyers had a pretty easy time of it so far… a default judgement because the defendants didn’t reply was easy! And how did the demand of $75,000 become $800,000+? I’m not sure that CR is going to be very interested in bringing this kind of US justice system to their shores.
In the states… getting the judgement is easy… collecting takes work… and with the assets in CR… we’ll see how well the lawyers do when they have to WORK in CR to get their payday!
Edited on May 06, 2007 13:22
Edited on May 06, 2007 19:47
Dear Diego,
Got wrapped up in work and was unable to place my guess… but the “funky” cars things gave it away for me too! Of course it Cuba… post Fidel and company I’m assuming!
I’m sure there’s going to be great change… and the potential for profit for thoses willing to take the risk. The island is ripe… but with any change… there will be much pain. The welfare state that Fidel has run will be in for some BIG changes… and the mindset of the people will need to be changed. And all this will take time. Cuba is a beautiful place, the people are resourceful and hard working… but with 40 years of the current government policies as the only thing many Cubans know… it’s going to be a VERY interesting transistion… I wish you luck my friend!
I think we’ve fallen a bit off topic…. let’s get back on point. First off the question was in reference to the relationship between forming an S.A. and it’s use in obtaining residency… the answer is quite simple. THERE IS NONE. The only residency status associated with business would be the investor status which requires financial INVESTMENT in a business. The amounts and types of business are questions a good attorney would have to field. Forming an S.A. cost about $300… not nearly enough to buy residency.
As for the need or lack of need to obtain residency to operate a business. That’s an issue up to the person taking that risk. No doubt the CR government has been quite easy on the issue. That may or may not change. Time will tell. Better to do things the right way and not worry about potential selective enforcement should you run afoul of the system.
As for the issue of going to jail for unjust laws… how is it that we for a minute see the residency and immagration laws of Costa Rica, which include several options, as unjust? And for those thinking they will be “protesting” their “right” to break them from a jail cell… think about it for a minute… more likely you’ll be put on a plane for home and told not to come back… It’s difficult to run a business as a PT… imagine how hard it is via e-mail and the phone!
All points well taken Diego. As much as I agree I find that doing things the right way is usually best. I don’t see CR cracking down on “good” PT’s… as with any law I’m sure it will be selectively enforced and used in situations when needed.
As for the issue of CR’s future and it’s role in the world… I’d like to think that it’s got more of a chance at a longer run than 5 years… but what is your exit strategy? Where are we running off to next?
I think the real danger is the uncontrol growth in Jaco (and other areas of Costa Rica) and the long term impact it will have on the social, economic, and enviornmental issues we’ve all been talking about in this forum.
Growth is good.. it creates jobs and wealth when properly control. We’re starting to see the effects of the growth CR has been enjoying… and it’s not like these issues haven’t been raised before. Scott posted some information about the current electrical issues… they were forcasted years ago… and the water and sewage issues are well documented as well.
Time will be the real judge of how well the growth in CR has been managed… but by that time however… the changes needed to repair the damage done to the country and the people will cost MUCH more than the efforts to head off the problems before they occur.
We see the goverment trying a $150 million “fix” for the current electrical issues… and that’s a DROP IN THE BUCKET! It’s time for the central goverment to take a more active role in addressing Costa Rica’s future. The efforts of the past were wonderful…(Wind/Solar/Hydro) but those moves are now being over shadowed by the current needs (and future needs) of Costa Rica’s growth.
Edited on Apr 30, 2007 14:13
Hey Scott… I’d have to agree with you big time… I’d hate to see someone (in this case a couple with a dream) get hurt. I think the very fact that they came to this forum looking for advice speaks volumes about them… I’m sure they want to do it the right way with the best information, imput, and advice possible to see their dream become a reality.
I’ve already given my view… and I’m not one to trash someone elses dream… I know many people have offered opinions on possible options on buying or renting a business… but from what I can see… none have addressed ALL the issues (Investment/Living Expenses/Residency) in one posting with the capital available.
As for the PT issue… no doubt change will come… and people will still be operating under the radar in CR… but folks that seek advice as this couple has are normally much more intelligent and want to do things the right way!
I wish them luck and hope that the information offered helps them make their dream a reality… if not now… at some time in the future!
Edited on Apr 29, 2007 20:26
Just hold onto your receipts for anything you purchase in the US or elsewhere to bring to CR… and above ALL be POLITE if they ask you about it at the customs (x-ray) screenings in the luggage area. There is a dollar limit (about $500 I think) which you won’t hit if you’re smart… I’ve never had to declare or use my allowance. I’ve brought TONS of stuff in… ceiling fans… tools… and even a dehumidifier (took it apart and had it in three different suit cases!)… no problem ever!
Just a tip… but if you’re arriving at SJO… get on the line with the middle age male “screener”… he usually has on headphones (ipod) and spends very little time looking at the screen. I’ve been asked only once about the ceiling fans… I nicely told them they were for my home, showed a reciept, and smiled… they waved me through!
I’d guess if they think you’re bringing in commercial goods for resale you’ll have a bigger problem… for 99% of the other stuff… it’s not going to be a problem… more likely the THUGS at TSA will steal from you prior to your bags getting on the plane!
I read a funny letter to the editor on AM Costa Rica a while back about a guy from NY who had problems with bringing in baseball caps… for a “boys” party for him and a bunch of guys… he got nasty… demanded someone that spoke english…demanded a supervisor… and as you guessed… he had a VERY bad experience.
A smile goes a LONG way… I tell everyone that visits CR… getting nasty and raising your voice is like slapping someone…
Hey Hooven…. that makes two of us! I know we can’t stop some of the runaway growth… but if half the folks investing in CR care about our tico friends we’ll see a CR that we can all enjoy for a long time! The current problems are a wake up… my hope is Oscar takes it to heart and addresses these problems… even if it slows growth a bit.
Best Of luck…
I don’t think anyone was saying Jaco wasn’t a good “investment” Hooven… the point that the “cost” of that investment and the effect it was having on the area and the people. Are you planning on living in Jaco at some point or is it just an “investment”?
Hey Esteban,
It sounds like you really are on top of things… that’s great! Take an active role in your community and be sure that the needs of your friends and neighbors are ALWAYS looked after! Ticos are intelligent and hard working… and the economic boom has many good things… and some bad! Keep Jaco a place that both ticos and gringos can afford!
There’s no doubt there are many people out there looking to make quick money with no real concern for the local folks… I think we can agree on that!
Hi Esteban… No I’ not in the real estate business… my wife and I own a home in CR and some other real estate in different parts of the country… we’re not in the business nor do we flip property… I’m a buy and hold guy. I don’t have anything to gain (or lose) with my observations about real estate. We have many Tico friends of all backgrounds and enjoy seeing them do well. We enjoy them as freinds and family… and above all enjoy calling them our neighbors. And we listen when they talk.
I understand your opinion about Jaco… and I’m glad that it is bringing jobs to the ticos in the area. Jaco is an example of what is going on in many beach areas of CR. Properties being flipped by investors with NO real interest in the area or the people. Much like the real estate market in the US. And when the music stops and the market runs out of gas… what then?
The real problem is balancing the development and economic gains with the social and enviormental problems. Water, sewage, and now… electrical problems are what I’m addressing. The idea of limiting investors from outside CR won’t work… but CR must make this growth problem an issue. People have always complained about the roads in CR… now where hearing about water and sewage problems while we sit in the dark without electric. Is that what you wish to trade for the jobs this growth creates?
In the southern area in the OSA region I believe they have placed a freeze on new approvals… trying to catch up and look at the overall picture with delvelopment. When you have developers pushing projects without proper approvals figuring it’s easier to deal with being caught… or using the arguement “but we’re bring jobs to the people” defense… you have a problem. Just as in the US… developers, investors, and real estate people pushed the market… strip malls everywhere… all in the name of jobs and growth… but one has to wonder about their intent… think about it… they have a vested interest… they want the profit… if their actions destroy an area… and it’s people… do they really care… NOT ONE MINUTE… they’re gone… profit taken… on to another “project”
I have to ask Esteban… are you really a Tico… or are you a gringo in the real estate business? Seems your writing has improved much and it’s odd that a tico would be on a CR board talking about these issues?
I’d love to see Jaco become another South Beach with only the good things for all… but chances are that when their done “developing” the area and flipping the condos until they all sell for $500,000+… not many of the folks buying there will have any interest in you and the other ticos that built the area… your usefulness will have been used up… it’s a funny thin about people with big money…. they very rarely have folks around them without…
To each his own…
No arguement from me Esteban… as I said the two fellows I met up in Arenal were in Jaco for the work… and that’s great. The problems I mentioned are what THEY saw in the area. And YES… it does improve the quality of life for the Tico’s in Jaco… but when the price of everything go up as much as real estate… do you REALLY think that my Tico friends will be able to live in the area? I’d like to think they could… but let’s be real! They won’t be able to buy a house, rent a home… or be anything other than low paid employees in a resort… that’s NOT what most of use want for our tico neighbors. When we price out or friends and neighbors… we lose the true beauty of CR!
The LARGE gap between the have’s and have not’s is what causes people to steal and deal drugs… and I’m sure that even YOU would agree that the gap is getting larger and larger in areas like Jaco!
As for development… I know it’s a fact of life… but I think eveyone would agree that it’s out of control in many areas of CR… so much so that the government is trying to get a handle on it before it leads to further social and enviormental problems.
The current electrial problems are an example… CR, up until very recently, was a NET exporter of electric… and now… they can’t keep the lights on in CR! And the water and sewage problems are another problem we’ll all be dealing with VERY shortly!
I hope that clears things up a bit!
Edited on Apr 27, 2007 19:23
