Thursday, July 22, 2010

Reason # 4 For Retiring to Costa Rica


1) $600 per month pension from an approved source ‐ or
Investment income of $1,000 per month from an approved source – or
Invest $50,000 to $200,000 in an approved sector of the economy.

Regular, unrestricted residency can be applied for after three years.
The cost to process residency is approximately $870 per family head plus $870 for dependant spouse and $425 per
dependent child.

Residency renewals are usually every year. General conditions for renewal are 4‐6 months/per year residence in Costa Rica, the required amount of monthly income, and renewal cost of $100‐$150.

2) North Americans can stay in Costa Rica legally for up to 3 months. They must then leave for a period of 72 hours,and then can return to the country for another three months. If the three month period is overstayed, a travel agency or ARCR can arrange payment of a small fine and prepare the travel documents required to leave the country for the required 72 hours.

Tourists can own vehicles, property, and businesses and generate income from self employment.

3) There is no income tax on money earned outside of Costa Rica by residents. Personal income taxes are low compared to North America, with many personal expenses deductible from locally earned income. Corporate taxes are also low.

4) Sales tax is about 13%. Import duties are being decreased in Costa Rica in compliance with the GATT agreements as well as a recently signed NAFTA agreement. Vehicle duties are high however, ranging from 50‐90% of the vehicles current value (Blue book rates).
Tourists pay an exit duty of approximately $26.

License plate fees are paid annually for vehicles, and depend upon the value. They are not excessive.

Property taxes are very low in comparison with North America.

5) New residents will be charged import duty on cars and boats at the same rate as would be paid by a resident bring them in. Personal effects and artwork are not taxed. Electronic equipment and appliances will be valued and a duty charged.

For additional information contact Ed Hughes,

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