Eight Tips for Relocating to Costa Rica

If you are thinking about becoming a resident in Costa Rica here are the answers to the top eight questions foreigners ask when considering moving to this little bit of paradise long or short term.

Opening a Bank Account

Opening a bank account for Costa Rica residents is fairly easy. Citibank and Scotiabank both have branches here as do other international banks. There is also the local state sponsored bank. Banks work in both Colones, the local currency, as well as dollars. Some banks also offer Euros. While there is more paperwork involved in opening an account it is still fairly straight forward for foreign residents. The benefits of a state-owned bank include guaranteed deposits and an extensive network of branches and ATMs. You will need to present your DIMEX card, the identity card provided to all foreigners living in Costa Rica, make a minimum deposit, provide proof of residence through a utility bill, and proof of income. U.S. citizens will also need to complete several tax forms and documentation to inform the IRS you are opening an offshore bank account.

Importing Cars or Pets

Bringing a car into Costa Rica can be done for $1000 or less. Pets require a letter not more than two weeks old from date of entry into the country verifying that the pet is in good health and does not have any diseases and it up to date on required vaccines.

Healthcare

Foreign residents can get healthcare either through the government run universal healthcare system or through the private system. Either way costs are significantly lower than in the U.S. by a ⅓ to ⅕ what you’d pay for in the U.S. depending on the treatment.

Purchasing Property

Foreigners can easily purchase property in Costa Rica, and the friendly laws toward foreign buyers makes it one of the main attractive features for many residents. When purchasing a property in Costa Rica, you will benefit from working with a realtor who is familiar with the area and nuances as well as an attorney to assist you with the contracts and legal paperwork. Look for referrals.

Income Taxes

U.S. citizens must continue to pay income taxes. The US taxes on worldwide income, and Costa Rica will tax you on the income you make in the country. Depending on your situation you may have to pay taxes to both Costa Rica and the US. Seek out the counsel of any experienced tax accountant.

Dollars

Dollars are widely used in Costa Rica and you can also easily exchange dollars for the local currency, Colones. In short, you can use either currency here fairly easily.

Cell Phone

You can get a prepaid phone and card or swap out your sim card with one from a local service provider. It’s a fairly straight-forward process. Most people prefer to switch sim cards especially iPhone users.

Network with Expats

A benefit for North Americans traveling here for extended periods of time or moving here permanently is there is already a well established expat community here. It’s a valuable resource for exchanging information as well as getting support and forming friendships. Overall when it comes to moving to a foreign country, for North Americans, it’s fairly easy to assimilate and settle in Costa Rica.

Costa Rica is a warm, hospitable country with a laid back vibe and government policies are foreigner friendly for those choosing to relocate to this happy country. Follow the recommended tips when moving to Costa Rica, and your transition will be fairly smooth.