Nice Place Costa Rica by Alan and Gyda Weeks

Retirement Haven for Canadians

Escape the bitter, cold winters and hot, muggy summers. Live in our central valley without heating or air conditioning. Hike in lush mountain forests or explore lowland jungle canals and view plentiful wildlife, birds and butterflies. Or, simply observe nature from your patio or garden. Enjoy beaches, fishing, surfing and golf. Leave the Canadian tax system behind and “grow your nestegg” relatively tax free. Come and meet interesting people and enjoy an active social and cultural life. Costa Rica offers all this and more!

Considering a move to Costa Rica?

Looking north over the central valley from the weeks’s terrace

We recommend that anyone contemplating a move to Costa Rica, or any foreign country for that matter, first spend time as a tourist. The longer the stay the better. You can remain in Costa Rica on a tourist visa for up to three months at a time. With a driver’s licence from Canada and a passport you can legally drive. During your visit, try to get a feel for what day-to-day life is like. Learn first-hand that a different culture means different responses to different situations. Explore the country and experience the different microclimates before deciding where you feel most comfortable.

Costa Rica is a Spanish speaking country. Outside the tourist areas there is not much English spoken, but the Costa Ricans (Ticos) are a warm and friendly people, very willing to help. To learn Spanish, there are many schools offering complete immersion courses or private lessons. And, of course, practice is the key.

Although foreign residents and tourist can own property in Costa Rica, legal residency is required in order to live here permanently. There are several options available to prospective residents, and we recommend that you review these with a lawyer who specializes in immigration. There are houses, condos and apartments available for rent in most areas of the country. Location dictates lot values and, hence, housing prices — whether buying or building. Although homes are well constructed, housing prices can be high relative to many places. Rental accommodations, too, can be pricey, varying from US$300 to US$1800 per month, depending on location and type. Automobile prices and repair costs are relatively expensive in Costa Rica. While visiting, check around for prices on the type of car you would prefer. Many people ship their own cars from home, so look into the cost of shipping, taxes and import duties. Most of the roads in Costa Rica are in only fair condition, with an ample supply of potholes, although the government is making progress to improve this situation. In the meantime, this may influence your choice of vehicle.

At the present time, if you own a house and car and have no debts, a couple can live comfortably on US$1,500 to US$2,500 per month, depending on their lifestyle. Personal services such as a maid, gardener or beauty parlour are very reasonable — many foreigners take greater advantage of these services here than they would have at home. Property taxes are generally lower in Costa Rica than in North America. There is no tax on foreign pensions or other income generated outside of Costa Rica, but taxes are payable on net income generated in Costa Rica. There is a 13 per cent sales tax on goods and services, such as restaurants, hotels and entertainment.

If you are considering retiring in Costa Rica, it may be unwise to count on earning a living or being able to substantially supplement your income once here. From our observation, many expatriates have found it frustrating and costly trying to make money from businesses with a high fixed investment, or from real estate, where limited resale value can make for difficulties. Nonetheless, many people with portable skills are operating successful service businesses. We highly recommend that people “put a padlock on their wallets,” research thoroughly, and be extra cautious before investing.

Whether you are purchasing a car or house, or investing in anything else, it is advisable to exercise even more caution than you normally would, especially if you don’t understand Spanish. Get recommendations for good lawyers or other professionals from the Association of Residents of Costa Rica, from fellow Canadians or from other residents, and be sure to understand thoroughly all of the terms and conditions before making a deposit or committing yourself. Like most places in the world, Costa Rica is a “Buyer Beware” society.

Another important consideration when leaving Canada for any destination is the need to acquire good health insurance coverage, either global or local, depending on the extent of your travel expectations. All insurance programs limit coverage of prior medical conditions, so enroll early for the best lifetime coverage. Costa Rica has both public and private health care systems, and there is group insurance available for local coverage only. Private clinics, doctors, specialists and laboratories are quickly accessed and modestly priced compared to North America. Overall, health care is rated as good in Costa Rica. There are also reasonably priced dentists and periodontists who provide quality services.

Costa Rica is a beautiful and peaceful country. The army was abolished in 1948 and the people, in general, are warm-hearted and kind. The weather is warm, there is lots of sunshine and the pace of life is more relaxed than in North America.

However, Costa Rica is a developing country and, of course, it has some “warts,” including pollution, traffic congestion, inexperienced drivers and litter. Many of the worst problems can be avoided by minimizing trips into downtown San Jose. There is ample petty theft here, as in many parts of the world, but little vandalism. Most homes and developments are designed with security in mind.

Personal safety, however, is less of a problem here than in many other places, including the U.S. Exercise sense when parking your car; lock it and don’t leave valuables inside or in the trunk. When walking down the street, don’t wear expensive, flashy jewellery; leave it at home in a safe place.

Ultimately, your ability to adapt and approach life with a relaxed attitude will probably govern your degree of happiness and satisfaction with life in Costa Rica.

For further information, we recommend the following Web sites:

• Residents Association of Costa Rica <www.amerispan.con/crce>
• Tico Times (English weekly newspaper) <www.ticotimes.net>
• “Exploring Costa Rica” <www.ticotimes.co.cr>
  

---

Back to CRA Magazine