Coming to scout but have several questions

[DEBORAH SWEET]

Hello Jason

We are coming on a scouting trip in August. I’ve done a lot of reading in Int. Living and know where we want to look at. But with finding a good place to set down roots there are several questions I can’t find answers to in reading here. So I hope you won’t mind if I list them. First I’m 57 and my significant other is 60. I have been to CR but this will be his first and has concerns about moving (even he likes what he sees).

Obviously from our ages we can’t collect retirement yet. He has his own pool and spa repair business here in AZ. Would he be able to do that down there (I’m sure there are many pools down there and maybe could service to the expats?). As for me I’d like to open a wellness business and trying to figure what area would be best for that? Any recommendations?

But first — can I open a business — I must be a resident correct? And wonder if the business can’t meet the $200,000 requirement. Also I don’t think keeping $60K in a CR bank is very smart investing. Can they consider 60K++ that is invested in gold and metals with Swiss Metals in Panama? I have read many (non-US) banks don’t want anything to do with Americans and depositing in their banks due to the US IRS reporting being such a hassle.

He is a gun collector — would he be able to have his collection in CR. Could he carry a small handgun?

Is the government of CR Socialism? He’s leery that there isn’t any military. Is the government stable? Do you feel safe and confident in their system? Do you see a difference from there to here in the states about your freedoms and rights?

Thank you for any answers and advise

DS

[JASON HOLLAND]

Hi Deborah,

Great to hear from you and great questions. Let me try to help you as best I can.

As far as owning and operating a business, you do not have to residents. You can buy or start a business on a tourist visa. A tourist visa gives you 90 days in the country. This is what you get when you fly in as a tourist or for a scouting trip. No prior paperwork needed. You simply arrive at the airport and they stamp your passport. You do need a return flight out of Costa Rica within 90 days. If you want to renew your tourist visa, you have to leave the country and re-enter. You can fly out or leave and re-enter at the land borders with Panama or Nicaragua. Technically, you could renew your tourist visa as much as you want. But if you plan to live in Costa Rica the best policy is to seek residence.

There are rules with opening a business. Technically, only foreigners who are permanent residents (a category available after you’ve been a temporary resident like pensionado, inversionista, or rentista for three years) are able to work in the business. Prior to that you can only manage the businesses and its Costa Rican employees. Now, that’s the law. But there are some gray areas. There are plenty of expats who have small mom and pop businesses where they do work in their business. This is especially true of those in the wellness field and small service businesses.

There haven’t been any issues with Costa Rican banks not accepting U.S. customers. Whether or not it’s a good investment, I’m not sure. That’s just the requirement. Also, keep in mind that you have to be a resident of Costa Rica (or seeking residency and trying to meet those deposit requirements) to open an account here. I don’t think they would accept gold in Panama to meet that $60,000 requirement. But you might ask Roger Petersen or Rick Philps, who have a law firm here in Costa Rica dealing with expat and immigration matters. They speak at IL events and can be reached here: http://www.plawcr.com.

Only permanent residents are allowed to have firearms. As temporary residents you would not be able to have them. The process of importing them is pretty complicated and they severely restrict the types of firearms you can have even after you become a permanent resident.

Costa Rica is a democratic country with fair elections a lots of healthy political debate. The current government is centrist/left-leaning. The previous government was centrist/right-leaning. The government is stable and the country is stable. Has been for more than half a century.

If anything you have more personal freedom here and there is a more DIY aspect to life here. Very live and let live type of attitude.

[JASON HOLLAND]

Should clarify that no matter what your residence or immigration category, you do need certain permits and licenses to start a business in Costa Rica. For example, you have to register for a tax ID number to pay your business income taxes, you’d need a health permit if you had a restaurant, etc.

You mentioned the $200,000 requirement – that’s for the inversionista category, which calls for that level of investment in a business, commercial activity, or commercial or residential property. But you don’t need to be in this category to start a business. Most expats start businesses at lower levels of investment. You could start a business while in the rentista category no problem.

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