Properties in Costa Rica Blog

Costa Rica is an amazing country with tons of biodiversity and natural attractions, friendly local people, safe for retirees and families, and real estate opportunities for any level investor.  Many come to Costa Rica with romantic dreams and grandiose plans of how they will live the rest of their life in tropical paradise stress free on the beach or a mountain retreat.  However, some common mistakes can lead to frustration and disillusionment of this idyllic dream and for some, result in returning to their country of origin.  This blog will discuss some of those mistakes and how to avoid them in order to truly enjoy the “Pura Vida” lifestyle.

Buyer Beware – There are many buyers that come to Costa Rica and think they can purchase a home or property on their own and do not need to use a realtor.  There are tons of “Se Vende” or “For Sale” signs everywhere and it is not hard to find many property options, however, it is not easy to find quality property options.  Basically anyone can try and sell their property by placing a sign on it or having their brother or uncle try and sell it for them, but many do not understand the legality and usability of their own property.  By using a qualified and experienced broker you can quickly filter through a lot of properties that are just plain undesirable and start to view properties that work for your specific goals.  Many factors can change the actual usability of a property for example: set backs from rivers, creeks, and springs can make building where you planned impossible and if there is no other place to build on that property, then it is not worth purchasing.  Also minimum property sizes on a private road can vary in different Cantons of the country, so having someone that knows these details is an invaluable asset.  Make sure you realtor or broker has experience in their local area, legal and other useful contacts, and at the very least has taken the course offered by the national real estate association; Camara Costarricense de Corredores de Bienes Raices (CCCBR).

Not in Kansas Anymore – This goes without saying, but many people assume everything here will be just like in the States, Canada, or Europe.  Well surprise it is not!  Although Costa Rica is developing and now has many amenities it did not have even a few years ago, it is still not a “get whatever you want when you want it” society.  People used to this type of immediate service and availability can be in for a rude awakening.  Everything takes longer here and especially real estate transactions where the “Rigistro” or National Registry is involved processing papers and building permits from the local Municipality take longer as well.  It is not just buying land or a home, it can be anything and a common example I like to use is just going to the hardware store.  In the U.S. you go to Home Depot or Lowes, everything is well marked and you can usually find what you want without any help, grab it, and go check out.  Here not so fast…. you need to get someone to help you and sometimes even take a number if it is crowded, then they gather your items and write up a “factura” or bill and sometimes can even pass you on to someone else for this.  Then you have to go to another employee at the register or “caja” and pay your bill.  Meanwhile another person is packing up your items and then you have to go show them your receipt and retrieve the items you paid for.  If there is a word in Spanish for efficiency it is not used in the Costa Rican vocabulary often.  Rather than dwell and complain about the differences it is better to learn patience and embrace them as part of life in a new culture.

Lost in Translation – Costa Rica is obviously a Spanish speaking country, but many locals speak some English and a person can get by on vacation with virtually no Spanish.  However, once you live here full time it is best to learn some Spanish for daily interactions.  Many full time residents to not even bother learning basic phrases and expect everyone to know some English; which in tourism areas may work, but in local towns and more rural areas knowing some Spanish will help tremendously.  Also local people respect the effort of trying to learn their language and will commonly try and help out with pronunciation or vocabulary.  Many times they will want to try out their English while you try out your Spanish.  Whether you take a course once moving here or practice at home with an online course, it will pay off in everyday interactions and help you integrate with the local community.

Jumping In – Another common mistake buyers make is moving too fast.  They fall in love with this country while on vacation, go home and sell everything, and make the plunge.  This can work out for a few, but most people should take their time and rent a home here first or make numerous extended visits to make sure Costa Rica is the right move for them.  At least research first and consider carefully the differences of life in a foreign country vs what you are used to.  This is a huge lifetime decision and a substantial financial investment, so making the right decision is vital.  Renting in a various areas to see which part of the country you like the best is a good idea, maybe different climates too like next to the beach or in the mountains.   Most of our clients we work with through the research stage and for a couple trips before they purchase.  We can also help in finding vacation and long term rental homes for any amount of time.  Whether it is your first or fifteenth trip we can help you through the process, and will work with you as long as it takes to make the right decision for you.

How Hard Can it Be – Many buyers think they will find the perfect piece of land and build their dream home easily and quickly and move right in.  Well, not so fast…. the building process here takes much longer and just getting the proper permits can take well over 3 months.  If you are not going to be here during construction than an English speaking builder/contractor is highly recommended in order to ensure everything goes to plan and can provide you with constant and accurate updates of the building process.  If you are planning on being here during construction it is still worth considering a professional contractor that knows the in and outs of building here, is well connected with local architects, engineers, and the local municipality for permitting, has knowledge of the best supply stores, and has a crew that has worked together many times before.  Another good idea is to build a small caretaker home or guest apartment first in order to have a place to live while you build a larger main house. Building a home anywhere from scratch is stressful enough, why not make it as unproblematic as possible by hiring a professional.

Patience is a Virtue – Basically most mistakes and frustration come from lack of patience.  This is a hard learned skill and toke me some time after moving here to achieve any resemblance of patience.  I was a very impatient person over 7 years ago and wanted immediate results for anything and everything.  That had to change in order for me to truly appreciate this country, the people, culture, and customs.  Still would not say I have fully obtained it and still find myself sometimes screaming on the inside “HURRY UP!” while waiting at a bank or I.C.E. office and my number has a long way from getting called.  But it is a constant learning process and you just have to really stop and smell the roses, or thousands of different types of flowers in this case.

For more local tips and advice you can contact me

by Joshua Kanter

Costa Rica has been a favorite destination for tourists, retirees, and second home owners for many years.  It is perfectly safe to travel and live here full time in this country.  Of course you have to use caution in certain areas of the San Jose due to crime concerns and use common sense to avoid petty theft when travelling with cash, passports, and electronics throughout the country.  In tourism areas there is always petty theft of thieves breaking into cars and taking wallets, cameras, and cell phones or snatching an unattended bag in a crowded public place.  In the capital city of San Jose crime is of greater concern and many home owners have bars on their windows and live in gated communities with 24 hour security.

I have lived here for over 7 years and been traveling here since 1998, over 14 years.  I have not ever felt unsafe or threatened.  Crime rates have increased during this time, but out where we live in the rural area around Dominical it is not as much a concern as in other areas.  There is also the C.A.P. (Crime Awareness & Prevention) on Crime of Costa Rica that was founded in Playa Dominical. They have taken many steps to reduce crime in the area and have even installed cameras at many local area establishments and near the beach.  Below are tips from C.A.P. on how to travel safely around the country.

1.        During your stay here use caution when contacting unknown people.
2.        When swimming or playing in the ocean, make sure someone is watching your valuables.
3.        Use caution when visiting remote locations or isolated beaches.
4.        When in restaurants, markets, or other public areas NEVER leave your valuables unattended.
5.        When you travel by car, always lock the doors, and never leave your personal items in sight.
6.        When staying in hotels use the safety boxes to keep cash, jewels and documents protected.
7.        Lock doors and windows in your place of lodging.
8.        Keep a photocopy of all documents/passports in order to facilitate the retrieval of any lost item.
9.        Don’t be a victim.  Be aware of your surroundings and know WHERE you are at all times.
10.      Do not wear valuable jewelry that can draw attention to you.
11.      In the city carry small backpacks in front of you.
12.      Stay alert if someone approaches or pushes you, or you feel that you are being followed. Notify the nearest police officer or walk into the nearest public establishment.
13.      To exchange money only use banks or authorized exchange windows.  You will need your passport for all bank transactions.
14.      Use ATM’s that are located in public and well lit areas.  Avoid help from strangers.  Withdraw, count your money, and put it away before leaving.
15.      If traveling by bus keep all carry-ons in your possession.  Verify you have all items before departing bus.
16.      In the event of an emergency always call 911 first.  Ask for an English speaking operator.  Identify your local police station and/or town.
17.      If during your travels you feel lost or experience any difficulties you can call 800-TURISMO.

Costa Rica is a safe and peaceful country with the exception of a few bad apples.  As long as you follow these suggestions above you should have a fun vacation or be able to live here tranquilly.  If you are interested in donating funds towards preventing crime, then visit the C.A.P. on Crime website for more information.

by Joshua Kanter

Labor in Costa Rica is very affordable compared to the U.S., Canada, or Europe and many ex-pats employ a full or part time gardener and house cleaner.  Since the jungle grows so fast around here, a gardener can keep the property and the landscaping maintained.  Same for a finished home, having some help cleaning windows, sweeping, mopping, and more helps maintain its beauty.  After all most people move to Costa Rica to relax, not do house and yard work.

The salary of a full time worker is modest and about $100 to $150 per week depending on how long they have worked for you.  If you are paying minimum wage, then there is a mandatory increase every 6 months. If you are paying above minimum wage, then you can give raises when you please.  Most all Costa Ricans are very hard and honest workers and although there can be a bad apple from time to time, my experiences have been mostly positive.

The employer is required to pay the equivalent of social security and health insurance to the “Caja Costariccencse de Seguro Social” or commonly called the “Caja”.   This is every month and for a full time minimum wage employee runs about $130 per month.  Even part time employees should be covered, but for a pro-rated the monthly fee.   The “Caja” gives each “patron” or boss a slip of paper each month to give their employees.  This paper is what they would take to the hospital if they get sick or anyone in their family gets sick, and provides proof of insurance.

All employees should also have the equivalent of Worker’s Compensation Insurance through “Instituto Nacional de Seguros” or “I.N.S.”  A worker’s comp policy is about $120 to $200 per year depending on the type of work and hours performed.   This covers any injury incurred while on the job and will pay their salary if they are incapacitated for an extended period of time.

Another option if you only need a part time employee and hire a ‘contract worker’ and they will be responsible for their own private insurance and worker’s comp policy.  The salary can be per day and slightly higher to cover this added expense for the worker. However, many employees just pocket this extra money and go uninsured, which is why it is recommended to pay the insurance and policy for part time and full time employees alike.

If you do not live in Costa Rica full time you may consider a professional property management company like ours and set up a specific schedule for workers as needed on your property or home.  Our team of gardeners and house cleaners all have their proper insurance and worker’s comp policies in place, and you just pay per day of work.  Even if you live in Costa Rica and do not want the hassle of paying monthly and yearly insurances, then we can handle it all for you and provide a custom cleaning and maintenance schedule to fit your needs!

by Joshua Kanter

The cost of living in Costa Rica is a popular topic among those considering it as a retirement location or for those moving down with their family.  Everyone wants to know how far their Dollar or Euro can stretch; which depends a lot on your life style.  If you have an affluent lifestyle where you are from, you will also have that type of lifestyle here, just for a bit less.  If you can live modestly using mostly local products, then you can save a lot.  More importantly no matter what your spending habits are, the quality of life here is so much more than anything I experienced in the U.S. with beautiful natural scenery, pristine beaches, clean rivers and waterfalls, fresh fruits and vegetables, locally caught fish, and the “Pura Vida” laid back lifestyle.  In this Blog I will attempt to portray some common expenses that the average retiree or person living in Costa Rica can expect.

Food and Entertainment

Food products and restaurants can be much less than the States or Europe and by how much really depends on how you live.  If you eat out a lot and buy American or European imported food items it can be expensive by Costa Rica standards.  However, if you buy local fruits and veggies at farmer’s markets and local food products at the supermarket it can be much cheaper.  Also there are local restaurants called “Sodas” that have a daily “Casado” for $5 to $7; which is a typical dish of rice and beans, a salad, usually another side, and a choice of fish, thin steak, chicken, or pork.  Even at high end elegant restaurants the prices are less than the same quality restaurant in a big city back home.

Entertainment is also more affordable whether going out to the movies, a bar and night club, or even attending a play (mostly in San Jose).  Although beers and drinks can be expensive, they are still less than what you are used to at a night club or bar.  Many beachside bars around here offer a drink special for happy hour and to watch the sunset.  Also there is tons of free daytime entertainment from hiking in the jungle to surfing or strolling local beaches.   Plus once you are a local you can receive discounts on the tour activities such as: zip-lining, rafting, sport fishing, and more.

Health Care

Health care, even private health care is much cheaper here.  When my wife gave birth to our last daughter it was around $3,500 for the C-section with doctor’s fees, medicine, and 1 night stay at the private clinic all included.  Dental care is much more affordable, as well as, minor and even major surgeries.  Medical Tourism is a becoming a very popular trend in Costa Rica with World-Class medical facilities like CIMA, Clinica Biblia, or Hospital Catolica in San Jose.  More and more foreigners are coming to have plastic surgery, dental implants, and all types of joint and even back surgery at a fraction of the cost.  Then the patient can recover in a lush tropical resort close by and be attended to their every need.

Services

Services like house cleaning, gardeners, and cooks are also very affordable at $2 to $4 per hour.  You can afford to have a full time employee in order to spend less time on household chores and more time enjoying life in paradise.

Imported Items

Cars and electronics like TV’s and cell phones are all much more here because of import taxes associated with them.  Diesel and gas at $5.50 to $7 per gallon respectively, along with car maintenance will be one of (if not) your biggest expenses here.  The mechanics are reasonable and parts are comparable in price, but there is more wear and tear on vehicles here depending where you live and what kind of road access it has.   A good 4×4 SUV or truck is the way to go and most people prefer diesel engines for better fuel efficiency and price at the pump.

Taxes

Property taxes are 0.25% of the registered property value, so for example a $100,000 house or property pays $250 per year in property tax.  There is a fairly new luxury home tax for homes over $200k and that is about $2,500 to $3,000 per year.  Additionally a new annual corporation tax implemented in 2012 is equal to approximately $180 for inactive corporations and $360 for active corporations.  There is currently no capital gains tax in Costa Rica; which is beneficial when selling personal property investments.

Costa Rica and specifically the Dominical area is a great option to retire or raise a family.  The lower cost of living and much higher quality of life make this a place to truly consider for your next full time or part time residence!!

Written by Joshua Kanter, Agent with Properties in Dominical

The weather in Costa Rica is warm and tropical all year round and depending on which part of the country to visit the climate can vary in temperature, annual rain fall, and humidity.  The Guanacaste in the North can be really dry at times and gets winds every March; where as the Central Valley can be cool in the high elevation mountain areas around San Jose.  No matter where you are though there are only two seasons: the dry season and the rainy season.  In this blog we will discuss the typical weather patterns of the Southern Zone and the Costa Ballena area.

The Dry Season

Our dry season typically begins in late November or early December and lasts until May, when the afternoon showers begin to return.  Although we can still get an occasional rain storm in the dry season it is usually sunny days and starlight nights.  I have even seen it go over a month with no rain before, which is rare.  The dry season is also known as the high season for tourism and many visitors come for the holidays of Christmas and New Year’s and during the week of Easter; which here is called Samana Santa.  March is the height of the dry season and a good time to experience the area at its hottest and driest time.  Even in March we are blessed that this tropical jungle never turns brown and keeps its lush green foliage year round.   Many tourists decide to visit in the dry season in order to enjoy the beaches and adventure tours without much chance of rain.  However, the rainy season can be a great time to visit as well and there is plenty of sunshine too.

The Rainy Season

Also known as the green season (even though it is always green around here), the rainy season usually starts at the end of May and goes through most of November.  It is a common misconception that it just rains all the time in the Dominical area during the rainy season.  Typically the day starts out sunny until about mid day or even later and then begins to cloud up leading to an afternoon or evening shower.  Sometimes it can drizzle most of the night or there can a shorter sustained heavy down pour.  September and October are the rainiest months and during that time you can experience a few days straight of grey clouds and off and on drizzle to steady rain.  In July we usually receive a mini-summer of about 2 weeks of dry season type weather.  Although the daytime temperature does not vary much between seasons, it can be slightly cooler during the rainy season and the afternoon showers cool everything off for the evening and rest of the night.  Also the rainy season is the best time to plant and you can basically take cuttings of most any plant, stick it in the ground, and wait for it to grow.  As far as adventure tours for visitors, you can enjoy zip-lining, hiking, fishing, ATV riding most of the day and not to mention white-water rafting is much better in the rainy season due to higher river levels and more intense rapids.  Plus for surfers there tends to be bigger waves and more frequent swells in the rainy season.

No matter when you plan a trip to Costa Rica you will have lots of fun and experiences of a lifetime.  If you are considering buying property and living here part or full time it is always a good idea to visit during the hottest and wettest times of the year before you make your decision.

*** Written by Joshua Kanter

Costa Rica is one of the top Surfing destinations in the world. Thousands flock to its beautiful rich coast every year to take advantage of prime breaks. Playa Hermosa just South of the city of Jaco is a popular destination for many surfers. But did you know that the area from Dominical to Pavones boasts some of the best surf and untouched beaches in Costa Rica?

The surfer town of Dominical has grown to become a affordable stop on anyone’s surfing
tour. Known as the most consistent surf spot in Costa Rica, Dominical is a must stop on any experienced surfers trip. Note that this beach is not at a beginner level, the high tides are powerful and the currents strong and low tide is shallow! Dominical is not recommended for swimming and never leave anything of value in your car.

Many surfers have relocated to the Dominical area and now call it home. This has drawn
attention to the town and brought a number of surf events to its beaches. In May 2012
Dominical hosted the 4th circuit of the Copa Quicksilver Olympus 2012 National Tour. One important difference at Dominical is that the beach has lifeguards, which the community have worked hard to keep over the years! Annually there is a local surf competition to raise funds for the lifeguards as well as other fundraising events. To find out more about supporting these hard working guys visit www.dominicallifeguards.org, you can also find daily surf reports for Dominical Beach here!

A short 2 km drive South of Dominical brings you to the cove of Dominicalito Beach. Dominicalito is a great place for beginner level surfers. The cove is rocky, so high tide is best for surfing since one doesn’t have to battle past the rocks. Dominical Surf Adventures surf school about lessons and tours! The point at Dominicalito provides advanced surfers with taller walls at low to mid tide with SSW swells, waves break on a shallow rock ledge. Dominicalito is a stunning cove to enjoy at low tide, with beautiful rock formations and perfect sunset views.

10 km South of Dominical brings you to Playa Hermosa, not to be confused with Playa Hermosa South of Jaco. Hermosa is a 2km long stretch of palm tree lined beach and serves as a great surf spot for beginner to intermediate surfing. Beginners can take best advantage of mid to high tide.

Advanced surfers usually group at the North end near the point. It remains a favorite among those living in the area. The beach has ample parking and usually remains a safe option. Playa Hermosa is a must stop for any South Pacific trip to Costa Rica; uncrowded, clean, beautiful, what more could you ask for?

The town of Uvita is home to the Marino Ballena National park, host of the famous Whale’s Tail sand bar. This coastal town has grown to provide all the basic services and necessities one might need, along with boasting some of the most beautiful beaches! With calm snorkeling and whale watching boat tours, it is a must stop. At Chaman beach one can find some of the best beginner surf in the area during mid to high tide. High tide is also prime for intermediate surfers who want to experience a tranquilo surf. There is ample parking, though again you do not want to leave anything of value in your car. The Flutterby House Hostel is nearby and provides cheap backpacker accommodations. Don’t forget to visit Playa Ballena where the Whale’s Tail is located for a beautiful beach destination, there you can also snorkel and walk the sand bar at low tide. Visit www.enuvita.com for more information on businesses in the area.

10 km South of Uvita is Playa Arco. This is best accessed at Villas Leonor restaurant
(purchasing of a meal is required). Arco is practically untouched and is never crowded. The surf is good for beginner. Another 3 km brings you to Playa Ventanas. Seeming like something out of Jurassic Park movie, this beautiful cove beach is a great beginner surf spot. The waves are best from low to mid for learners. Ventanas means “windows”, visit the 2 caves to the North of the cove, at low tide you can walk through them. Parking is located on the property adjacent to the beach, a $1 fee per person is charged for access. Again, do not leave anything valuable in your vehicle.

150 km South of Uvita is the small town of Pavones – it is the hidden gem of surfing in Costa Rica. This is surfers paradise! www.crsurf.com says this about Pavones “One of the longest lefts in the world. With a double overhead southwest swell it can break for 600-700 meters, two minute rides. When there is no swell, it can go flat, with surf maybe waist high with a rising tide. Best tide is around high tide so the wave breaks in deeper water and one can make more sections. At low tide there are lots of slippery barnacled cobblestones to walk over to get to the wave. Can get very crowded with over 100 surfers on it when it is good. And many of them are locals so give respect and wait for the right peak to take off on. The drift also helps to spread out the lineup.”. Pavones itself is undeveloped, there is no bank in the town, so bring necessities and cash with you. If you are a advanced surfer, Pavones is sure to find a place in your heart, as it has for many!

There are also a number of other surf spots located along this section of Costa Rica. Playa
Matapalo, Rio Terraba, Punta Banco, to name a few more.

The South Pacific zone of Costa Rica is a rich coast. Rich with wildlife, waterfalls, jungle,
untouched beaches and some of the best surf in the world. You do not want to miss out on this stretch of Surfer Paradise!

by Zoe Longworth

Well, the votes have been cast and counted…and now the results are in!  No, not for this year’s Academy Awards, but rather for the annual list of top retirement havens compiled each year by International Living.  As usual, Costa Rica has found itself near the top of the list.

Coming in at #5, Costa Rica was lauded in the article as being politically stable, conveniently close to the US, and as having high-quality, affordable health care.  The article cites expats who are enrolled in Costa Rica’s “Caja” or universal healthcare system, who give high marks to local doctors and medical facilities.

And of course Costa Rica’s famously large and welcoming expat community also got International Living’s stamp of approval.  Many expats here list the sense of community, and the huge number of groups and activities geared towards foreigners, as motivation for choosing Costa Rica for retirement.  There are groups for bird-watching, politics, wine-tasting, newcomers, animal welfare enthusiasts, community service, expats under 30, creative writing, and many, many more.   With so many diverse groups to join, it’s easy for newcomers to make new friends and connections.

For the full list of International Living’s choices for retirement havens, read the entire article

Costa Rica lists number 10th in The most positive country of the world, this is different from the Happiest People on earth, according to a survey this new parameters is different from the other one.

“Gallup measured positive emotions in 148 countries and areas in 2011 using five questions. These questions ask people whether they experienced a lot of enjoyment the day before the survey and whether they felt respected, well-rested, laughed and smiled a lot, and did or learned something interesting.

The average percentage of respondents worldwide who said “yes” to these five questions reflects a relatively upbeat world. Gallup found that 85% of adults worldwide felt treated with respect all day, 72% smiled and laughed a lot, 73% felt enjoyment a lot of the day, and 72% felt well-rested. The only emotion that less than half of people worldwide reported experiencing was getting to learn or do something interesting the previous day, at 43%. Despite many global challenges, people worldwide are experiencing many positive emotions.”

Higher income does not necessarily mean higher well being so with that said …One more reason to live in Costa Rica

Expecting change and hopes of better living and learning.. a possible opportunity for a change…

Enjoy the rest of the year and have a happy, happy and very positive New Year!!!!!!

Some information on how to pay the Luxury Home Tax

The impuesto solidario, is approaching The due date is January 16, The Tax Administration will provide at their:  website dgt.hacienda.go.cr, the details of each Tax’s pending and how to pay it on a bank. The percentage to pay depends on the value of the property and the Tax percent ranks from from 0.24 to 0.55.

They will have not only to pay and interest calculated from the due date, but they will be on a list of delinquents on their website.

On their page, you will find theSo hurry and pay your taxes….