Search results matching tag 'Finances'

Costa Rica, Playa Hermosa Guanacaste. How Do I use my IRA to Purchase in Costa Rica?

652185 — Sun, 17 Mar 2013 16:54:00 GMT

Hello from Playa Hermosa,

Today is just a beautiful day in Playa Hermosa. The sun is shining, there is a light breeze and the temperatures are in the mid 80’s. God I love living here. Sorry I just had to write it!!

This past week I had the great pleasure of working with some clients, that have already become my friends as this was their fifth trip in the past three years to Costa Rica and more to the point Playa Hermosa, looking for that place to eventually call home. We really hit it off three years ago and have just stayed in touch. Back then they were honest and open and said “we are still 3 years away from making the move”. This trip they are not quite ready to pull the trigger yet, but are very very close. They just need to organize some things back in the California and set some things in motion here. Which I am glad to say I was able to get them started on the items here in Costa Rica to get the ball rolling so they can finally achieve their dreams.

We spent one day looking at the properties they picked from my web page. After they decided on the home that they fell in love with, I recommended that we go ahead and write an offer to tie up the property so they do not lose it to another buyer.

Ok I know what you are thinking “when is he going to get to the meat of this blog”, well hold on and keep reading it is just a few paragraphs down. When I had the purchase sale agreement ready based on what they wanted to offer, I found out that they did not have all the funds readily available to consummate the deal. So thinking on my feet I offered them another solution. USE their IRA!

Most people think that the IRA is just for retirement, and investing in stock, bonds and mutual funds. Most if not all custodial brokerages that handle IRA’s say that you can self-direct your investment. Well this is true and false. They only allow you to direct the investments in the funds and investment vehicles that they offer and other similar brokerages offer. If you ask them “can I purchase investment real estate”, they will again lead you towards a RIF (real estate investment fund) or similar type of investment. This is not what you want is it? You want to purchase the investment property in Costa Rica, for the future growth and rental potential and when you hit the age of retirement and can start pull from your IRA, it could be your future retirement home.

Well there is a way to do it and it is LEGAL by the United States IRS code. (As a side note I am looking into the use of a RSP (retirement savings plan) for my Canadian friends to see if it can be done as well) It is called a truly self-directed IRA. I know I have done it. I actually own part of a mall in Arizona utilizing my IRA. It was a very easy process.

First you will have to roll over your IRA from the custodian company you presently have it with to Equity Trust Company. (See the video below) remember you are not cashing it out, you are ROLLING it over so there will be no tax implications. Then once the funds are in your new account with Equity Trust, you can fill out a form to have them purchase the investment property in Costa Rica. There will be other forms to fill out and legal guidelines and requirements as well that will be discussed with you by one of their investment experts.

So if you ever wondered how you could afford that investment property in Costa Rica, now there is a way.

Just Click below this link to get starter and learn how to use your IRA to invest in Costa Rica.

Self-Directed IRA Overview Video

As always, thanks to my steady followers for stopping by my blog. I hope you enjoy some of my rants, craziness and even some good information, if you want to make a comment just send me an email to jaaechef@gmail.com , my personal email address or post it here. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Single Story For Sale in Playa Hermosa

652185 — Mon, 11 Feb 2013 19:00:00 GMT

[photo:listing:74944455]
Walk to the Beach

• 2,000 sq. ft., 2 bath, 3 bdrm single story - $375,000 USD - Below Owners Cost

Playa Hermosa, Guanacaste - The perfect home just blocks from the beach. Wake up to the sounds of the ocean and the monkeys in the tress while the song birds serenade you. Just a short easy walk and you are enjoying the soft surf of Playa Hermosa, a Certified Blue Flag beach. This lovely ranch style, open floor plan home, perfect for entertaining, features a walk out to a covered patio and large built in pool with cascading waterfall. The Property is nicely landscaped with tropical Palms and flowering shrubs that attract many hummingbirds. The fully fenced yard with automatic opening gates makes it perfect for the owner with dogs or young children. This home is perfect for vacation rentals or for the Retiree Looking for an easy life style.
Three Bedrooms
Two Bathrooms, Master has en suite Bath
Spacious Open Kitchen, Dining and Living Areas
Lots of Counter Space in Kitchen, Great for Chefs
Separate Laundry with Full Size Washer & Dryer
Granite Countertops, Vaulted Ceilings
Solid Wood Cabinets and Doors Throughout
Stainless Steel Appliances included
Mini Split A/C & Ceiling Fans in Every Room
2000 Sq. Ft. of Living Area
15’X30” Built-in Pool w/ Waterfall
1497 Sq. meter lot 1/3rd of an Acre
Double Covered Parking & Storage Room
Fully Fenced w/ Wrought Iron & Automatic Gates
Lush Tropical Flowering Landscaping
Palm, Mango and Citrus Trees
Community Park Land Behind Home
Gated and 24/7 Guarded Community
Paved Roads and Lighted Tennis Court
No Luxury Tax and Low Property Taxes

Being Offered for $375,000

Property information

Costa Rica ranked fifth favorite country for U.S., Canadian retirees

652185 — Sat, 05 Jan 2013 19:23:00 GMT

Hello from Playa Hermosa, Guanacaste,

It is just another perfect day, weather speaking, in the area. I was trolling to local on line newspapers and came across this article that I had to copy and paste and post here. Now most you know that I make a living selling real estate, And some people have commented on some of the things I write as just being plain old “salesman talk” to try to make a sale. Well the truth is, that is not True!!! I write this blog because I really love living here and made the change to have a better more calm lifestyle, in a tropical location, with friendly welcoming locals, that I could afford without having to make a ton of money just to get by as I had in the US.

Back to the real meet of this post. Below is the article stating from a 3^rd part source that Costa Rica still ranks high on the one of the best places to retire to. The sours of the people responding were expats like me that live here. So enough from me and read the below and you can make your own judgment.

Costa Rica ranked fifth favorite country for U.S., Canadian retirees

U.S. expats make up 4.1 percent of the 385,899 foreigners living here.

A study carried out by expat-focused “International Living” magazine shows Costa Rica is among the top five destinations for U.S. and Canada retirees. Its "Annual Retirement Index 2013" listed the 22 best places to retire. Editors analyzed data and information from correspondents in the countries most popular with U.S. and Canadian retirees to compile the results, which were based on a host of categories: cost of living, climate, property prices, healthcare, ease of integration, retirement infrastructure, entertainment and amenities and special benefits for retirees. In the country’s analysis the magazine summarizes Costa Rica’s position as a result of comfort and community. The report cites testimonies from expats who claim that “Costa Rica’s universal healthcare system (which provides world top class -and cheap- services), the nation’s stability, the proximity with the U.S., great climate conditions as well as an active expat community” are some of the main reasons to enjoy living here. Ecuador tops the list followed by Panama, Malaysia and Mexico. Other region's countries that made list were Nicaragua, which ranked 12, Honduras 20 and Belize 21.

Want to see the whole article click this link below if you don’t believe me. http://internationalliving.com/2012/12/the-worlds-top-retirement-havens-in-2013/

So Costa Rica ranked 5^th, the four above it have some good points as well, Now here comes the salesman in me. I have to be honest I have traveled to 2 of 4 countries and God, why would I want to sit on a plane for 20 some hours or more just to get there. Now being a retired chef I would love the cuisine, but hell I can cook that anywhere. Panama is a similar in weather and beauty to Costa Rica but Dam it is humid all the time and I found the locals to have a bit of resentment towards Americans, remember, the US did invade the country 1989. I also found the locals not as nice in Panama as they are in Costa Rica. Ecuador I cannot really talk about as it would not be fair but again a real long flight to get there. Mexico, I have been there many times and that is one of the reasons I came to Costa Rica. The laws here are easier to own property and you can own it fee simple just Like the US and Canada. Oh but when you go to Mexico bring a bullet proof helmet and vest as the drug gangs are totally out of control in that country.

After reading the article take a look around my web page and see if you would like more information on one of the properties that are for sale (Click the link below). You never know we just might end up being neighbors.

As always, thanks for stopping by my blog. I hope you enjoy some of my rants, craziness and even some good information, if you want to make a comment just send me an email to jaaechef@gmail.com , my personal email address or post it here. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Costa Rica, Playa Hermosa Guanacaste. How to Rent Your Vacation Home for $$

652185 — Thu, 03 Jan 2013 18:15:00 GMT

Hello from Sunny Playa Hermosa,

I have to start off this post by saying the weather has been just fantastic the past frew weeks, the high temps have been between the mid-80’s and low- 90’s with a breeze and hardly a cloud in the sky.

As I wrote in my last post about the Christmas week influx of tourist, I mentioned how the high season/dry season is the best time of the year to rent out your Costa Rica condo or home to cover your expense of owning a second property. So below are a few good suggestions.

First off, work with a respected and well known property Management Company that has a good web presence and a track record of being in business for a while. Also make sure they are legally set up to do so, you just do not want to get caught in a 3^rd party mess. You will need this company to be your key contact for the renters when they are utilizing your property, besides if you do not live here who will check in your renters anyway? Also if there are some problems you as the owner don’t want to get the phone call at 10 PM to hear that the toilet won’t flush or the cable is out, now do you? That’s what the property manager is for, trust me, they work hard and earn every penny they make as it is not an easy business since they get it from both sides, the owner and the renter.

Most people looking on line for a rental for vacation will search the internet first; they will usually type in to an internet search engine “Condos or Homes for rent in Costa Rica” and most of the time the top results will be VRBO (vacation rental by owner http://www.vrbo.com ) or Home Away (http://www.homeaway.com) or Flip Key (http://www.flipkey.com ). These are probably the 3 best web sites that are out there and get the most activity. So if your property manager does not offer the service of doing this for you, do it yourself, and of course if the PM company offers this service there will be a cost involved (come on it takes time and effort to do this). If your PM company offers this service take them up on it and let them manage the site for you, trusts me it is a lot easier. Yes there is a cost involved either way to advertise your property, and do really have the time to do it? If yes then I recommend doing it.

Now when you price your property for rent, remember be reasonable with your rental rates, those with better rental rates book more, just like selling real estate the properties priced right sell faster. Also make sure that you have good pictures of the property and the furnishings, believe it or not people really look at these. The more photos you have the better chances you have. Another approach is to make sure that you have nice art work on the walls and nice furniture. If the furnishings look cheap this could be a draw back. When you do the write of your property make sure it is appealing and precise but DO NOT over exaggerate, this will end up getting you poor reviews on the site and steer other potential renters away. Be honest and make sure the unit has all the necessities for a renter to have a relaxing and enjoyable experience. As an example, you claim to have a fully stocked kitchen, but in reality you don’t have a blender or just 1 or 2 pans to cook in or don’t even have a toaster. These are things that can make break a deal. Really No Blender, I actually have seen this! It is Costa Rica, it is the tropics, and vacationers love to make tropical drinks!!! I Know I do!! Fresh sweet Mangos with ice and Costa Rican Rum, Yum!!!!! I think I will have one of these when I am done writing this.

Now what to expect for rent! I know you are probably thinking this. I do not personally do rentals, although I do own a rental unit that I manage myself in Playa Flamingo, I have a VRBO site for this property as well, here is the link, http://www.vrbo.com/426493 You see that I have many photos of the interior as well as the views. Check out the calendar and you will see that I have pretty well booked thru the high season 14 weeks of rentals. This covers all my expenses and even put a bit of extra $ in my pocket. This is the only form of advertising I do.

As I started to mention above, if you utilize the services of a good property management company, without any other advertising, you can expect at least 7-10 weeks of rentals a year. I know you are saying well that’s not lot, well, hence why I recommend either having the PM company to do it for you or do it yourself. The cost is not that much, I pay $750 a year for my VRBO page, if I get one rental off of this site, it has paid for itself and the rest is just gravy. If you price your place correctly in accordance with similar properties in the same location you will do pretty good rentals. Over price it and you will not.

One of the biggest mistakes owners do, is they get too emotional about their property or have unrealistic expectations. I heard one client of mine say “My place is special, I won’t rent it for anything under $2000. per week” Now he wonders why his non ocean view, 2 bedroom condo, with furniture from the Salvation Army, dose not rent and the worst part of it is that he blames the property manager for this. He just does not get it and he calls me complaining! I had to give him a bit of an old fashion New York verbal tongue lashing so he would finally get it, I think it hit home.

One last thing, if you use a PM, take their advice, they know what they are doing and have the experience. Just pick a good one! If you would like information or my recommendations for a good property manager, just send me a note.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Market Update Dec.’12. It has been Busy!! Playa Hermosa seeing an upswing in buyers!

652185 — Wed, 19 Dec 2012 15:19:00 GMT

Hello from Playa Hermosa, Guanacaste.

As usual for this time of the year, the weather has been absolutely perfect, high temperatures in the mid- 80’ sunny and a lite breeze, the nights have been crystal clear with stars shining like a Christmas trees with temperatures in the low 70’s.

Boy I have been busy this week and have not been able to even sit down and write a short blog post. Now this post is not a call to action or a sales ploy, or like you see on some web pages “HURRY UP AND BUY NOW AS THESE PROPERTIES WILL BE GONE FAST”, this post is just to keep some of my loyal readers informed as to the current market trends in the area.

Since the US presidential election is over more and more people are starting to look for that retirement property in the tropics and the warm weather locations in the US may not be affordable to all. It does not matter what their political lean is many people are finally looking to move some cash now while they can and have something for the future. With 60 million baby boomers in the pipe line many are heading here. God I hope not all of them!!

In the past week I have closed 3 sales, (Ok I am going to boast a bit) one was a great home with 7 bedrooms and awesome ocean views listed for $880,000, Where can you find a deal like that, another was a beautiful Ocean View lot listed for $139,000 in a gated guarded community and the third was a lovely 3 bedroom, fully furnished condo in a the best development in Playa del Coco that was listed for $290,000. I also have 5 more deals under contract all closing in the month of January and more prospects in town as I write this.

In the three offices of Re/Max, that I am a part of here in Playa Hermosa ( Tres Amigos), Playa del Coco ( Ocean Village) and Playa Panama ( Prestige Ocean Properties), all the agents are doing just as well and a few even better. So this should give you an idea of how the market is trending. Most sales are $700,000 and down with a majority in the $300,000 range and a few even above the 700K mark. This has been the best year I have seen in the five years I have been here doing real estate. The best part of it is that the buyers now are people that really want to be here, spend lots of time here or retire here to enjoy all the splendor, amenities and services that Costa Rica and especially this region has to offer. These new buyers are unlike the prospectors and the strictly investor type of buyer that were buying everything in site from 2002-2006. That’s not to say there are not deals to be had, and a profit to be made, because there still are some deals for the investor type but the days of buying and flipping in a couple of month are over, not just here but all over the world. If you have intentions of buying to flip, I would have to believe that the investment will need to be sat on for at least 3 years before it could be sold for a profit. In the mean time I would recommend renting it to cover all your expenses and still have a great vacation property to come to. But that all has to do with the world economy and to be honest I do not have a crystal ball to see into the future, nor do the guys that make a living out of it as well. Sorry Fred, not to put you down, but it cannot be a win/win all the time but there are ways to hedge your bets. Let’s face it, that is what investing is, a bet, sometimes you win sometimes you lose, you can’t even trust a bank anymore like when I was a kid, and boy that was a long time ago.

Well I have to sign off, I am meeting another prospect today showing some homes in the $600,000 range and it will be great to watch the sun set from one of the houses that they really liked from the photos I sent them.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Playa Hermosa, Guanacaste, Costa Rica. Deadline to pay Costa Rica income tax is next Monday.

652185 — Tue, 11 Dec 2012 18:21:00 GMT

Hello from “chilly” Peoria, AZ. Yes I am still in the states and for me 50⁰ F is cold. I can’t wait to get back to that warm 88^OF that I am used to.

Anyway in Costa Rica it is time to file your personal income tax if you worked here and made income. This also means if you have an active corporation and have taken in some form of income, you need to file a tax return. Below is a short article for one of the papers. One of the reasons I decided to relocate was the low tax rates. I am not opposed to paying taxes, but I do not like to give 50% of it away especially since most governments’ just waste too much money, not to mention the corruption as well, which I will not go into as it is in every country. I happily pay my CR taxes on time. I utilize a personal accountant to take care of this for me and his fees are unbelievably low. Because of my type of business, real estate broker, I also have to file a form every month. My total expense for my accountant for the whole year is about $800.00 USD which is deductible as well. This even includes his services for putting together a certified CPA profit and loss statement for when I have to file my US taxes. That’s right you read that correctly, even though I do not live in the US any longer I still have to file US tax forms and pay US taxes. The good thing is as an expat I get an exclusion on a good part of the income I make off shore as a expat not living and working in the US.

“Some 400,000 Costa Rican taxpayers have until Monday, Dec. 17, to file and pay mandatory income tax. The deadline was set for Saturday, Dec. 15, but because it is not a business day it was moved to the following Monday. Tax Administration Director Carlos Vargas said the declaration must be submitted by all persons or companies with economic activities conducted in the country from Oct. 1, 2011, to Sept. 30 of this year. Tax Administration officials expect to raise more than ₡755 billion ($1.5 billion). President Laura Chinchilla signed a law that reduced or eliminated, in some cases, payment of income tax on the pensions of some 40,000 retired teachers. It saves retirees an average of ₡65,000 ($130). The new law also benefits some 14,000 workers earning less than ₡615,000 ($1,230) a month, since it states that all people having income below that amount are exempt from paying the tax. Those exceeding the limit must pay between 12 and 16 percent on the excess. To file declarations, taxpayers must download the Finance Ministry’s free EDDI-7 software (Windows only) from their website and complete the forms digitally. Those who do not submit the return on time are subject to fines of up to ₡180,000 ($360).”

All in all, you have to love the tax structure of Costa Rica. Yes it is true, you read about taxes going up in Costa Rica, well this is happening worldwide so you just need to deal with it. There are really only 2 things in this world you have to do once you are born, 1^st pay taxes and 2^nd die. It is a hard cold fact but what can you do about it? You might as well deal with in a nice warm place where the taxes are tolerable and people are great and beauty just abounds.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Playa Hermosa, Guanacaste, Costa Rica. Getting a Costa Rica bank account.

652185 — Tue, 11 Dec 2012 02:36:00 GMT

Hello from Peoria AZ. Yes I wrote that right, I am in the US for a couple of days visiting my parents. It is great to spend time with them but I already miss the tropics and the slower life style and less hectic pace.

I was checking emails and I received one from a prospect I meet over a year ago that I have been guiding and advising on his move to Costa Rica. Below is the part of the email he sent me and he was right I should write about this for more people to understand.

“Hi Joseph, I have been enjoying your postings; very helpful. I will be arriving in CR on April 1st. I have a question which may be a good topic for one of your "info postings" .Your lawyer has offered to help me purchase a used diesel 4X4 when I get there. It will probably take around $15,000 to purchase a reliable vehicle. What I don't quite understand is how I have the money available to purchase a vehicle when I find it and it checks out. I don't want to carry a lot of cash, and I know that there is a $10,000 limit on bringing cash into CR. I also have noticed, though, that checks are not too popular there; even traveler's checks. How do I handle having enough money available on a relatively short notice? I have an account at a Federal Credit Union and was able to use my debit card successfully when we visited last March. Should I carry a lot of cash on me (secured) and use my debit card there to add to it enough to purchase a car, or do I wire the entire car budget to the lawyer to hold for me? I figure that other incoming folks would like to know about this also. Thanks, Dave.

The reality is in order to open a bank account in your personal name you will need to have your residency as a Renter, an Investor, a Retired person or the spouse of a Local citizen. But there is a way around it and I will explain further in this post. Basically you can thank the US government for this problem. Here is an article from the local English newspaper.

“Starting July 1 foreign nationals will no longer be able to use their passports to open bank accounts or transfer funds between banks in Costa Rica. After the beginning of July, foreigners will be required to present the Foreign person Identification Document (DIMEX)—a new identification card that will contain a 12-digit identification number for each cardholder and information about that person’s immigration status. (This is a resident card for foreigners or called a cedula as well, DIMEX stands for DOCUMENTO DE IDENTIDAD MIGRATORIO PARA EXTRANJEROS) Security and Immigration officials announced the new requirements at a press conference at the Ministry of Public Security. Immigration Administration general director, Kathia Rodríguez, said obligatory use of the DIMEX card in banking transactions is an effort to put Costa Rica’s “house in order” in terms of the immigration status of the roughly 382,000 foreign nationals currently in the country. (I happen to one of them) Besides consolidating identification and immigration status in one card, the new requirements will allow security officials to track bank transactions by foreigners in the country—a key step in combating money laundering. It is a way to see “who does what in the banking system,” said Public Security Minister, Mario Zamora. (It is also a way for the US government to keep an eye on it citizens as well)

The DIMEX requirements will bring to the foreign population in Costa Rica the same oversight in financial transactions that Costa Rican citizens have had to follow for years. Ticos must present their cédulas (identification cards) to make banking transactions. Costa Rica is classified as a “major money laundering country” by the United States Department of State in its 2012 International Narcotics Control Strategy Report.

The Immigration Administration will issue DIMEX cards to foreigner residents, temporary residents and students who meet the requirements for residency.

The way around not having your residency and wanting to open a bank account in Costa Rica is to form a Costa Rica Corporation and have the corporation open the bank account. It is a few extra steps and few extra bucks, but it is legal. The Items needed would be the articles of Incorporation, a Personaria Juridica of the corporation (this is form showing the people that have say over the corporation). You will also need a Certification of the shareholders of the corporation from a Costa Rica Notary. Also needed is a letter of good standing from 2 banks made out to the bank you want to open the account in. But Hold on it gets even better. I a copy of each shareholders passport, a water, electric or cable bill from the location of the corporation. And last but not least, whatever the bank employee decides they need as well just for good measure, so they do not get in trouble. This is the part that will most likely make you scream. I know it did me.

But really once you know it, life a lot easier. So you want to open an account? Be smart go in first ask what ALL the requirements are and then go back armed and ready

Then once you get your residency, if you want an account in your personal name you can always do so. And trust me it is a bit easier.

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Playa Hermosa, Guanacaste, Costa Rica. Information you can use! December 1, 2012

652185 — Sat, 01 Dec 2012 20:26:00 GMT

Hello from sunny Playa Hermosa, Guanacaste Costa Rica,

Every month, I scour the English and Spanish local newspapers for information that I feel is important for potential prospects, retirees and vacationers to know about. I write about the good and the Bad. Now some of the articles I have to be honest are plagiarized and re-written to so first language English reader can understand them. Even the English written newspapers, make my written skills look like I am an English Professor, and trust me I barely made it out of High School as I was more interested in pursuing a career as a chef and of course when you and I were at that age, over 30 years ago, there was also a bit of sex, drugs and rock and roll to get in the way!

As usual I tend to digress, sorry it must be the ADD or whatever that disorder is! So after getting news articles about Costa Rica and rewriting them, I send it out in an email to my data base of people that have some interest in Costa Rica. I also send it to previous clients that have purchased and to clients that have sold their property here. I normally send out this email on the 1^st or 2^nd of every month. Well last night I sent it out and I wanted to share a few of the comments I got back from people.

“Hey Joe, Just read your monthly newsletter forwarded from Babs. Wow! Talk about well written! Very informative monthly. If I or anyone I knew were inclined to come to CR, I'd sure send them your way. I don't know about that ending though, even though rare incidents occur, snakes FREAK OUT a lot of people, Me AS WELL”

John from Washington State

Hi Joseph,

That was a terrific newsletter featuring as you say the "Good The Bad and The Ugly". You know what? My enthusiasm for Costa Rica has not been dampened one bit by your truthfulness. If anything, I have even more respect for you and commend you for your honesty. There is no where in the world that can have all the qualities of Fantasy Land in Disneyland without any downside. By the way living in Texas on some land, I kill on average two copperhead snakes each year.

Its totally absurd reading about the health and auto insurance complaints by expats. If they had a gold mine in their back yard, they would complain it was too much trouble to dig out the Yellow Ore. Unfortunately, the more of us that migrate to CR, the more stories your are going to hear. It is also a fact of life that the more of us that move in will cause a need for health care costs and insurance to go up. The good news is you are starting at such an unbelievably low price, it will take many years to rise to anything significant.

I hope you and your wife have a wonderful Christmas and Healthy Prosperous New Year

Best Regards,

Gary

this was a great newsletter Joey full of awesome info.. My favorite line say to the crying expats “If you don’t like it LEAVE”!!!! Hilarious and sooooo true..

Best regards,

Sallyanne

I just want to say Thanks to John, Gary and Sallyanne for sending me a note back, at least I know somebody is reading it and I am not wasting my time. Because if I am wasting my time I could be doing it with a cold Imperial beer and my rear end in a chair on the beach watching all the pretty latin woman walking by J!

If you would like to receive my monthly newsletter in your email account, just send an email to jaaechef@gmail.com requesting so and I will add you to the list. Don’t worry I do not SPAM, I just send out 2 emails a month as I hate spammers to, If all the spam I got ever came true “you just won 500 million Sterling British Pounds, Just send all your contact information” I would not be writing this blog, but that is for another time.

If you are interested in reading my monthly newsletters, rants and rave, just click this link below and it will take right to it.

http://www.costarican-american-connection.com/Costa_Rica_News_Clips/page_2504841.html

http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

So you want to move to Costa Rica and work! Many do but go about it the wrong way!

652185 — Wed, 28 Nov 2012 22:02:00 GMT

Hello fom Playa Hermosa, Guanacaste Costa Rica. I was just asked a question yesterday by a client that wants to relocate to Costa Rica but still needs to work to support their life style, “So can I get a job when I move here”. The answer is Yes and NO! So I dug a little further in to their question with a question. I asked them “do you want to go get a job from some company and be a employee” they replied “well yes”. It was tough to explain to them that they really could not go to work for another employer until they have their full residency in Costa Rica without restrictions and this can take up to five years and also depends on the type of residency they apply for and receive.

Here is a short explanation that I delivered to them: In order to work for another person or a company legally you have to have either your full residency with restrictions or the employer has to sponsor you and apply for a work permit thru the immigration department. Now in order to get the sponsorship the employer needs to prove that you the new employee are not taking a job away from a local that could perform the same job requirement. The employer also has to prove that it is a specialized field or position and that they have already interviewed many local candidates that cannot meet the job requirements. Then once the application has been approved you still cannot legally work until the official work permit is issued. This can take upwards of a year or longer. Now some of you may be thinking “how the heck does he know this and how is he working in Costa Rica”, let me explain this as well and go this this link to learn more about the requirements of Costa Rica residency.

http://www.costarican-american-connection.com/Requirements_to_Retire_In_CR/page_2141941.html

Back in 1999 my wife worked for a major worldwide corporation in the US, (name withheld on purpose), she was offered the opportunity to do an extended work travel assignment to Costa Rica. That’s how we got here in the first place, sorry I thought I would just add that. The assignment was to be for only 3 months, but ended up turning into a 14 month job. Since my wife did not have her residency back then the company had her return back to the US to make sure she did not over stay her 90 days allotment on her passport visa. While back in the US, the legal department of that company applied for the work permit. My wife returned back to Costa Rica after a week to continue the task she was sent there to work on. To make a long story short, 11 months after applying for the work visa, and her assignment was over and completed, she NEVER got the work permit. The funny thing was 2 years later she was asked again if she wanted to do a similar assignment in Costa Rica as her 1 year work visa was just approved and issued by the immigration department of Costa Rica.

As I told this true story to my clients I could see the look of disappointment in their faces. But wait, I made the smile as I explained the way they can legally work in Costa Rica before they have their full residency. So back to the original answer of YES and NO, here is the YES part.

Now before I go any further, I recommend that if you are thinking of this route to take, you better consult with a very good immigration attorney and a good corporate lawyer as well; trust me they are not as expensive as they are in the states, as I did and if you want that contact information send me an email (jaaechef@gmail.com) and I will introduce you. Some types of residency prohibit you from working, period! The way to be able to legally work in Costa Rica before you have your full residency without restrictions is to form a new Costa Rica corporation. As the general manager or owner of the corporation you are allowed to manage the corporation, but you still cannot take a job away from a local person. As an example: Other clients I had wanted to do a Yoga studio when they move here. So they formed a CR corp. found a place to rent, set up the studio to their requirements for a nice yoga center and then hired a local yoga instructor to actually give the classes. They just manage the business. Of course the smart, ethical and legal thing to do is have the corporation activated with the tax administration as a company actively doing business. Make sure that the sales tax is properly collected, and paid to the taxman, as I like to call them. Then every year make sure that corporate tax forms are filed and if you have to pay, pay. This makes it all very legal. You will also have to make sure you are paying the Caja or social security for the employee. Just do not get caught doing the job of a local. I remember one local restaurant owner that has been here for years, just happened to be behind the bar helping out because someone called off sick, and the immigration police walked in and it was not a pretty sight. The great thing about Costa Rica law is that any foreigner can own a CR corporation and this is the loophole in the law that allows you to work. You just have to be smart about it!!

So if you are thinking of coming to Costa Rica to live and get a job, you better do your homework first or you will end up like some of the Expats, that have to scurry and hide when the immigration police show up, and trust me they do 3 times a year.

Oh and by way, I have to admit I was wrong about something. It rained this morning in Playa Hermosa, just a lit drizzle for 15 minutes and not even enough to measure in the rain gauges. So much for tying to do the weekly weather report!!!

As Always, thanks for stopping by my blog. I hope you enjoy some of my rants and craziness, if you want to make a comment just send me an email to jaaechef@gmail.com , my personal email address. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around www.costarica-american-connection.com

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Playa Hermosa, Guanacaste Costa Rica. Luxury Tax Time Again UPDATE and Weather for November 17, 2012

652185 — Sat, 17 Nov 2012 16:56:00 GMT

Hello from gorgeous Playa Hermosa! It is just another great day in paradise!!! Yesterday I wrote about having to meet an engineer concerning the Luxury tax assessments that need to be done by December his year. Well, have some updated information for you. When I meet with the engineer yesterday we were talking about some of the requirements of the past and how the formulas are decided upon. Guillermo informed me that the new formulas have not been set and posted yet by the Tax administration, Hacienda or known by other names as the Costa Rica IRS or the Canadian version of CRA, and he is not sure when they are going to have them ready as he is there 2 to 3 times a week. Well this is very typical Costa Rica; they love to put the cart before the horse. This exact same thing happened 3 years ago when the entire Solidarity Tax (Luxury tax) program was rolled out. The government stated that this new tax had to have an assessment done and presented by December 15^th and if the tax was due, the tax had to be paid by the end of the year. So you can just imagine the confusion and chaos as people scrambled to comply with the new law. The problem was then and again now, they pass a law and then try to fiuqure out how to apply it or set the provisions of the law afterward. Again it is bit Bass Akwards (you know the saying, just swap the B&A).

The only thing Guillermo could do was basically get all the measurement of the home and list the types of material used in construction and fill out the form and just WAIT, so if you read yesterday’s blog and started to freak out if you own property here, DON’T! Welcome come to Costa Rica my friends! This is what life is like in an emerging country. But let me ask you something? Do you deal with stupid or ridiculous laws that make absolutely no sense to you but do to the bureaucrats that write them where you live? I am sure you do, I know I did in Arkansas, Kentucky, New York and how could I ever forget Ohio, hell when I lived there they still had BLUE LAWS for Sunday. But you know what! This is a really great place to deal with the same stupidity because you can always be just like a local and say “PURA VIDA” crack a cold beer and just move on.

Yesterday, Friday, November 16, 2012 Yesterday’s Recap---- Just another great day in paradise. What can say the high temp. for the afternoon reach 87^OF / 30^OC with mostly sunny skies, No rain and relatively moderate humidity of 54%. The Evening was clear and cool with great star gazing. The moon looked really cool setting over the ocean and a big smile slowly disappearing.

The morning low was 70^OF / 21^OC with a relative humidity of 88% under hazy skies. The afternoon high will should reach 89^OF / 31^OC with the humidity starting to fall every day and by December we should daily percentages in the low 40’s.

Today, Saturday, November 17, 2012

Another beautiful morning in Playa Hermosa. God I love waking up early as for me it almost cold, I had to put on a shirt. Don’t laugh; you would be chilly as well after 5 years of living in the tropics when you are used to low temps in mid 70’s and highs in the mid 80’s. The morning low today was 69^OF / 20^OC under clear skies with a relative humidity of 64%. The afternoon high temperature should hit 88^OF /31^OC under mostly sunny clouds. There is as always this time of year a 20% chance of a pop up shower but I doubt it. The Humidity level will drop to about 45% for the day.

As Always, thanks for stopping by my blog spot. I hope you enjoy some of my rants and craziness, if you want to make a comment just send me an email to jaaechef@gmail.com this is my personal address. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around www.costarica-american-connection.com

I look forward to hearing from you! My the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!