1. Legal guidance – Buyers should use a real estate company or their own attorney to guide them through the legal process. Costa Rica’s legal system varies from most countries. Buyers must contract a trusted attorney to do the due diligence necessary. Make sure there is no impending tax burdens on the property, zoning, among other things that could affect title or future construction.

2. Get familiar with Costa Rica – Don’t get swallowed up by the beauty. Often times tourists fall in love with the incredible scenery and charming people, but forget that real life is not a permanent vacation. Don’t forget about bills, work, cultural differences. It is a good idea to live in an area before you make a purchase, even if it is for a couple weeks or a month.

3. Research the area thoroughly – Think about your needs. Do you want modern conveniences like Internet, cable TV and air conditioning? Or would you prefer to live in the middle of rain forest with wild animals looking in your window? Costa Rica has a wide variety of climates, from the more dry “pampas” of Guanacaste to the alpine forests of Heredia. Don’t forget about the tropical Caribbean coast. Once you decide the type of climate you like make sure you can find a place that has what’s important to you. Do you like to surf or shop in large malls? Is there a grocery store nearby? What about a bank? If you are looking to go into full immersion, maybe living in a place with very few foreigners is a good idea?

4. Compare and contrast – Once you’ve seen numerous properties, make a check list of the pros and cons of each one. Carefully consider all factors like the quality of the construction and surrounding neighborhoods.Make a list of must have things and other things that you desire, but can live without.

5. Once you’ve made a purchase, get involved with the culture – One of the most important aspects of living in another country is immersing yourself in the culture. Costa Ricans are generally very welcoming and like to teach others about their local culture and expressions. Spend time learning Spanish. It will help you a great deal. Live like a Tico!

Click on the link to view thousands of properties in Costa Rica

By Patrick Connelly

The Costa Rican government recently proposed several new measures in regards to immigration that could severely change the retiree and expat situation. Their aim, in theory, is to dually combat the large influx of mainly Nicaraguan migrant workers as well as the increasing stream of North American moving to the country. With the proposed increase in monetary qualifications for both prospective rentistas and pensioners, many would-be North American expats may be turned off by such a move, particularly in the current financial environment.

The Costa Rican immigration authority, Migracíon, has recently been quoted as saying that the immigration situation in the country is “out of control” and that stricter requirements are desperately needed. In response, the government has proposed to increase immigration requirements for pensioners from $600 a month to $2000 a month, while rentistas face an increase from $1000/month to $5000/month. Basically, to qualify for Costa Rican residency you will have be able to prove that your pension or monthly income equals or exceeds the amount for whichever category you fall into, rentista or pensioner.

In light of these astronomical increases, it is clearly evident that potential retirees and expats could get hosed on this one. According to the U.S. Social Security Administration, the average pensioner in the U.S. receives around $1100 a month, far below the prescribed requirement. And, as the U.S. has one of the highest pension averages in the world, these requirements would have a worldwide effect; for example, Canada – a major contributor to the Costa Rican expat and retiree scene – has an average of around $700 a month.

The government in San Jose continues to claim that these requirements are “easily attainable”, which, from their point of view, is understandable. Milk the cow. If a steady cash flow continues to arrive via North America, it is not surprising that a government would try to keep pressing to see what the ceiling is; that is merely good business. However, in this case it would appear as if the proposed requirements far and away exceed any rationality.

And therein lies the silver lining in this possible four car pileup of increased immigration requirements. This is not an isolated incident; in fact, as recently as 2004 a similar bill was introduced. Met with immediate uproar from the expat community, it failed to pass into law. Recently, when informed that the average U.S. pensioner receives $900 less than the desired requirement, a Costa Rican assembly member was unaware of these figures. Now, this could be a simple mistake on part of the Costa Rican government or an attempt to slide one past the North American community; either way, it poses potentially serious problems for would-be expats in Costa Rica. However, the government recognizes the importance of the expat and retiree communities and the income it brings in, and will certainly proceed with caution as to not disrupt such a vital part of the economy. Certainly a situation worth monitoring in the coming months.

Click on the link to read more analysis on how expats are affected by Costa Rican immigration laws

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By Patrick Connelly

Recently, legislation proposed by the Costa Rican government to dramatically increase the income requirements to become a CR resident have caused quite a stir within the expat and retiree population, and rightfully so. This is no miniscule rise by a few percentage points to boost the bottom line; these increases, including a five hundred percent increase in rentista income requirements, are not only unfeasible but also send out the wrong message. Has Costa Rica, the longtime destination for North American retirees and expats, hit the crest of the wave and no longer wants its gringo neighbors to keep moving southward?

Of course not. It is unrealistic that the government would – or could – sacrifice such a vital stream of revenue. For better or worse, the Costa Rican economy is largely based on the influx of outside dollars; to suddenly pass regulations that significantly inhibit this flow of money would be economic suicide. But that is what these new regulations would seemingly do. Pensioner requirements for residency are slated to increase from six hundred dollars to two thousand, or a mere nine hundred dollars more than the average U.S. pension. Those falling into the rentista category face similar changes, with requirements increasing from one thousand dollars a month to five thousand.

So what has caused this sudden shift in immigration policy? The government in San Jose says that the main reason is national security; with an ever increasing population of Nicaraguan migrant workers, Costa Rica is desperate to get the immigration situation under control before significant social problems arise. Which is a completely understandable goal, given the increased attention both Costa Rica and the U.S. have given to the drug trade on the coasts.

But if security is really the issue here, the government seems to be targeting the wrong crowd, and at the same time sending a negative message to established expats and retirees. If foreigners who cannot meet the proposed requirements – which, according to the U.S. Social Security Administration, would be most people outside of the super-rich – are deemed security risks by the Costa Rican government, what does that make those who made the move to the Central American country under the existing requirements? Are they a perceived security risk? Intentional or not, it is certainly a strange message coming from an usually meek-sounding government.

Costa Rica, of course, is a sovereign country and free to create and tinker with its policies as it sees fit. But the manner in which the government is trying to pass this legislature is flawed. First of all, the requirement increases are simply too great to be feasible, especially in today’s economic climate and with favorable living conditions developing in other countries in the region. If the core reason is money, then slight residency requirement increases would be met with far less opposition and still garner the same outcome: increased revenue.

Additionally, the Costa Rican government has been surprisingly blind to the long term economic consequences of hiked-up residency requirements. Regardless of their status, from expat to retiree, foreigners living abroad inevitably create job opportunity and revenue for the local population. It is similar to what the Detroit automakers are experiencing; close down a Ford factory, and the damage trickles down far past the auto factory workers, all the way to the company that supplies the nuts that go on the wheels. Significantly interrupting the expat and retiree flow will have the same negative effects, from construction labor to lumber and concrete to housekeeping jobs to the small local businesses where North Americans spend their hard earned dollars.

Foreign investments, another major vein of cash flow into Costa Rica, will also be pinched if these requirements are put into practice. Many in the expat community claim that outside investments will all but dry up; however, this seems a bit extreme. Nevertheless, a negative perception of the country stemming from an immigration policy that is practically impossible to obtain for the average retiree would inevitably have adverse effects on foreign investments.

There is nothing wrong, xenophobic, or mean-spirited about a country wanting to control its borders with a tight fist. It is simply good, responsible governing. But there are better ways to handle such a situation, ones that ruffle less feathers yet still accomplish the initial goals. Hopefully for the Costa Rican government, known for its centralism and level-headedness, a revamped version of the proposed legislation will come about that can satisfy both the Costa Rican people and the valuable expat and retiree community, all of which together have a strong and long-lasting relationship.

Read more about the state of Costa Rican immigration here

Article written by Jisel Perilla

Contributing writer to Latinworld.com

What Kind of Residency Visa do I Qualify for?

This is one of the first things you’ll have to find out if you’re thinking about making a permanent move to Panama. The good news is that it’s pretty easy to obtain permanent residency in Panama, so long as you’re a retiree with a formal monthly pension or you’ve got at least $160,000 to invest. If you’re low on funds or looking for work on your own, you may be out of luck – at least technically. The Panamanian government does everything possible to make sure that jobs in Panama go to Panamanians, so unless you have a very special skill or are sponsored by a large multinational, you may have to go a less official route. Keep in mind that immigration and visa laws have a tendency to change quickly, so it’s best to seek legal counsel as soon as you start thinking about relocating to Panama.

The following are the most common visas sought by foreigners relocating in Panama:

If you’re retired…

The Turista Pensionado Visa is available to those receiving at least a $1,000 (up from $500) monthly pension from a verifiable source. There’s no expiration date on this visa, but you’ll have to check in with the Immigration Department once a year to demonstrate that you’re still receiving a pension. If you received your pension in a lump sum and aren’t receiving monthly payments, you can obtain a Rentista Retirado Visa. You’ll just have to deposit your funds, in a 5-year CD at the Banco Nacional de Panama and be earning returns of at least $2,000 monthly (up from $750) In order to retain residency status, the CD must be renewed every five years.

If you’re an investor…

Panama provides a very friendly environment for those looking to go into business. The provisional two year Inversionista Visa requires an initial investment of at least $160,000 and the hiring of at least five full-time Panamanian employees. The visa must be renewed at least three times every two years before it becomes permanent and provides a path for obtaining Panamanian nationality. The Inversionista de Pequeña Empresa Visa (Small Business Investor Visa) was recently eliminated.

If you’re not retired, not an investor but independently wealthy…

You may qualify for the Solvencia Económica Propia (Person of Means) Visa. You must deposit at least $300,000 to be left in a bank for three years. You can also apply $300,000 toward the purchase of mortgage-free property or do a combination of both. This visa can become permanent after an initial renewal, so long as your economic situation remains unchanged. The Solvenica Económica Propia also provides a path to Panamanian nationality.

If you don’t meet any of the above categories…

Relocating to Panama and obtaining permanent residency will be a bit more difficult if not impossible, unless you marry a Panamanian. As an American, Canadian or European man, you’ll find this is pretty easy to do in Panama!

If marriage doesn’t interest you, however, there is an unofficial way to move to Panama. American, Canadian, and most European citizens are legally entitled to stay in Panama for up to 90 days without a visa, so many expatriates simply cross over into Costa Rica or explore Central America every three months. You’ll have to remain abroad for at least 72 hours before reentering Panama. This is an at-your-risk “permanent tourist” option, but I’ve heard of many people who have lived like for months and even years. As far as I can tell, the government doesn’t seem to mind as long as you’re not trying to take jobs from Panamanians.

Another option is to teach English. Private schools are always looking for ESL teachers, and they seem to prefer American and Canadian candidates. Likely, you’ll be required to provide evidence of a Bachelor’s degree, TEFL certification and teaching experience. If you wish to remain in Panama for more than a year, you may be able to renegotiate your contract with your employer. Keep in mind however, that teachers in Panama usually only make between $600-$1,000 a month, so you won’t be living large by any means.

In order to apply for a visa and residency status you’ll have to talk to a Panamanian lawyer. If a law office’s rates seem too good to be true, they probably are. Ask around for a reputable firm before you get the process started. I haven’t found the Panamanian embassy to be particularly helpful, but they do have a bit of investor and retirement information on line. My Panama Lawyer is an informative, unofficial relocation blog and is a good place to keep up with Panama’s frequently changing visa and residency requirements. You can also find a few other visa/residency options here.