Banking

[LYNN BOURBEAU]

Hi

once you move to Costa Rica, is it better to get a bank affiliated with US banks or get a Costa Rica bank?

[JASON HOLLAND- COUNTRY EXPERT]

Hi Lynn,

If you plan to live full time in Costa Rica, it’s best to get a local bank account. It makes things like buying property or a car, paying local service providers and utility bills, and withdrawing larger amounts of cash much easier. You can do all of that with your U.S. bank account but it’s more of a hassle. Keep in mind you can always keep your U.S. bank account active.

Citibank is one CR bank I know affiliate with a U.S. company.

[JIM URICK]

Was wondering which CR banks are the largest and most stable?  Also, would like to have one not affiliated with a US bank, so as to maintain some privacy.  Has anyone carried large amounts of cash into the country?  Is it a problem at immigration if they see a lot of U.S. dollars in your baggage? Under $10,000.  Thanks.

 

Jim Urick

 

 

[JASON HOLLAND- COUNTRY EXPERT]

Hi Jim,

The two large national banks, Banco Nacional and Banco de Costa Rica, you could say are the most stable – they’re the only ones that have their deposits insured by the govt. Private banks are also available, including Scotiabank (affiliated with Canadian company), Davidienda – a Colombian bank (formerly HSBC), and Banco Popular – from Spain, I believe.

Not sure about cash and immigration, although the limit you can bring in at one time is $10,000. I don’t believe you have to report anything up to that amount.

[THOMAS MERGENS]

Jim,

You may want to read up on a US law called FATCA. It essentially requires that international banks like those in CR MUST report the existence of deposits held, and income gained, by any US Citizen. So you’re not going to get any level of banking privacy by choosing a non-US bank.

See this link – http://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

[MIKE KAPLAN]

Hi there,
What documents are needed to open a bank account in CR?

[JASON HOLLAND]

A new rule enacted last year requires that you be a legal resident (temporary or permanent) of Costa Rica. So you’ll need your Costa Rican “green card,” known as a cedula. You also need a passport. After that the requirements are a bit different for every bank. But in general you need a utility bill from your home (owned or rented) in Costa Rica, and letters of recommendation (one from your bank back home and one from your accountant in CR, a lawyer, or a current customer). Sometimes banks also want to see proof of where your income comes from – they’re cracking down on money laundering.

[MIKE KAPLAN]

Thanks Jason

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