Costa Rica Forum: U.S. expats living offshore; New law for rentistas and pensioners

Veröffentlicht im Costa Rica Forum

• Sol Lifestyles

  28 Apr 2009, 14:27

  U.S. expats living offshore; New law for rentistas and pensioners

  Retirement in Costa Rica; New law for rentistas and pensioners
  Affect on Panama? Belize? Nicaragua?

  The current law regarding foreign retirees or pensioners moving to and living in Costa Rica is:

  The retiree must show proof that their pension or passive monthly income streams from a "reputable" pension source are at least $600 U.S. Dollars a month. The 600 dollar a month minimum includes moving down with your spouse as well as any underage children. This law has been in place for around 38 years (since 1971).

  Costa Rica living will be much harder if new law is passed
  One of the first principles of this bill is to raise the pension minimum fro $600 to $2000. The anticipated law was designed corrective and retroactive. This means that those who chose to retire to Costa Rica that are currently living in country will be unable to renew their retirement visa and will be forced to leave the country regardless of how long they have lived in Costa Rica. (if they are affected by this more than 300% increase!) Where we stand today, this bill, affectionately known as Bill No. 16.954, has not been passed. This has many people who are invested in Costa Rica real estate concerned. The value of Costa Rican real estate has been driven by investment from the US. Passing this bill will immediately discourage investment in Costa Rica’s property will certainly negatively affect the economy, but it will provide opportunity for countries like Panama, Nicaragua and Belize.

  What can we expect from Costa Rica property values?
  As with the rest of the world economy, Costa Rica is seeing declines in real estate values over the short run. Long run, Costa Rica's real estate economy has been booming, fueled by foreign capital. Foreign interest: expats, investors, retirees and pensioners interested in living and retiring in Costa Rica have been the main driver for demand and price in the Costa Rican real estate industry in the past three decades.

  If this bill becomes law, much of the demand for real estate will drop as expats and retirees are exempt from inclusion in Costa Rica. Demand for property in Costa Rica will take a hit on the retroactive side of the bill as well. Those who own property in Costa Rica who fall on the wrong side of this legislation will be forced to leave.

  Where we stand today, the market has suffered on speculation of the proposed bill along. With neighboring Latin American and Caribbean countries offering substitute products with climate, culture and lifestyle, Costa Rica will surely suffer if this bill is enacted. Panama, Nicaragua and Belize are offering enticing programs for expatriates and retirees looking for a tropical retirement in paradise.

  To learn more about retirement and living abroad in Latin America from those who have already made the move, visit http://www.sollifestyles.com.

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• Gunther Gorny antwortete Sol Lifestyles

  28 Apr 2009, 20:09

  New Law

  Certainly you understand that will cause many pensionados to move there capital elsewhere in Central America.
  Perhaps the Arias government will re-evaluate this new legislation that is proposed.
  I myself will be in retirement mode within the next few years and certainly will look elsewhere for what is best for me.
  A world crisis and new legislation proposed by the legislative body in CR.
  That is preposterous.
  Many of my friends were also looking into securing a retirement place somewhere in Central America.
  I guess they will be looking elsewhere other then CR.
  More bang for your money when other countries offer enticing packages for the coming baby-boomers who will be retiring shortly.

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