Driver's license

[LYNN BOURBEAU]

Hi..

we are considering moving to Costa Rica in the fall.  our plan is to live there about 7 months out of the year and the other 5 months in th US.  Do we have to give up our US license to drive in Costa Rica?  I have so many questions to ask..

thanks for the info..

[JASON HOLLAND- COUNTRY EXPERT]

Hi Lynn,

You can use your U.S. driver’s license no problem in Costa Rica, whether you rent a car or buy one of your own. You should always have your passport with you as well when driving.

Keep in mind that if you plan to be in CR for seven months that a tourist visa only lasts 90 days. So you would have to leave the country three times during your stay, even if it was only a couple of days to nearby Panama or Nicaragua. So you might consider getting residency in CR to avoid that hassle. You can see a rundown of residency options here:

https://internationalliving.com/countries/costa-rica/visa/

 

[LYNN BOURBEAU]

Thank you Jason.  You’re very informative .   What are your thoughts on bringing a car from the states vs buying one there? And the same with bringing an on/off road motorcycle vs buying one there? Do you think the import taxes to bring theses item in is worth it vs the cost of buying new in CR?

[JASON HOLLAND- COUNTRY EXPERT]

Hi Lynn,

Bringing a car vs buying one in CR. That’s a great question. One that really depends on your personal situation. But I can give you some guidelines.

First, bringing a car. The cost of transportation itself is pretty inexpensive, about $1,000 if you can get it to the boat in Miami. Keep in mind that it’ll be hard to find parts for a vintage car, so that’s probably not a good match for CR. Asian imports do the best in CR, with the most qualified mechanics and available parts throughout the country. American cars do okay in that area as well. For Euro makes and models, you might have issues.

Now what type of car you need in CR depends on where you live. In most areas, a sedan is perfectly fine. But if you are in a remote, rural, jungle, or mountain area where the roads are rough, it’s a good idea to get an SUV, maybe even 4wd.

As far as taxes and fees, they are high and unfortunately foreign residents are on the hook – tax free importation of a vehicle is no longer a perk of residency. Older cars pay a higher rate. If your car is six years or older, you’ll pay up to 79% of its value in taxes. Three years or less, 52%, and between four and five, it’s 63%.

As you can see it can be pricey. The alternative is to buy here. (Keep in mind that depending on where you live you might not even need a car. Cheap buses and taxis are everywhere, with rental cars for longer trips.)

As a luxury item, cars are expensive, even used. Usually close to double of what you’d pay in the U.S. I saw a 96 Rav4 for sale for $8,000 recently, to give you an idea.

Most expats recommending not buying a car that’s been on Costa Rican roads for too long, the bumps can put on a lot of wear and tear. There are many used car dealerships in and around the capital, San Jose. Many of those cars are from auction in the U.S. Check the Carfax history for any damage to the vehicle. You can also find cars online CRAutos.com is a good spot to check. And local expats are a good source of great deals. The good news is that mechanics are cheap.

About your motorcycles, I would recommend bringing them down. You can stick those in a shipping container with your other household goods. They’ll be taxed but nothing like your car.

 

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