Moving to Costa Rica for good come January

Just beware that CAJA premiums have increased dramatically, more for Rentistas than Pensionados.  One couple had their premiums increased to over $700. per month, but it was most likely due to the amount of pension they reported, they've now left Costa Rica.

slowrunner1 wrote:

I moved to Southern Costa Rica in October 2013.  I'm in the process of obtaining Rentista residency with the help of the Association of Residents of Costa Rica office in San isidro del General.  In the meantime I'm renting  a small one bedroom house in the San Rafael Barrio in the hills of San Isidro del General.  Before moving to Costa Rica I purchased a 1/2 acre lot in the newly forming  Permaculture  community - Serenity Gardens Eco Village(SGEV).  I thought I'd build a small house in SGEV, however, unable to negotiate a price to build a model home with the Developer's recommended Builder, I'm now considering selling my land and continuing to rent.

I'm curious - if you don't mind revealing - what you pay for rent and how big it is; ie is it a 2-3 br home or just a cabin or?

Wow! 700 buck a month from CAJA? What was their reported pension? do you know? For a rentista there is no pension reporting. You have to draw $2500 per month and show you have two years worth of usable funds in a bank account. Does Caja use the 2500 as the basis for their charge? Yikes your really scaring me.

Hello Gene99!,

In order to help you to speak freely with other members, i have created a new thread with your post on the Costa Rica forum.

Thanks

Priscilla 

At this time, a Rentista who is under 55 is required to pay approx $480 per month....and cannot claim any 'living expenses'.
CAJA does use your $2500 to base their premium on. and you do know that a further $60k must be deposited, after the first two years to allow for the second round of $2500 for your monthly living expenses for  next two years?

It's a small one bedroom house, but it's mostly brick with a tin roof and false ceiling in the living room.  I wouldn't characterize it as a cabin.   Compared to California the rent is inexpensive.  I pay $300 without utilities.   I have a Tico shower so there isn't a hot water tank.  The floors have beautiful brown tile.  It even has a covered attached  garage but I don't have a car.   The view is magnificent!   A 180 degree view of the City from my terrace.

According to James Rainey, who runs the ARCR office in San Isidro del General, he thinks my Caha payment would be around $225 U.S. Dollars.   He also believes, when I turn sixty-five, I can convert to a pensionado residency and renegotiate my payment to the Caja.  I'm not sure what happens after two years when my Rentista Residency comes up for renewal but I think  I would only have to deposit $2500 for the next 6-12 months in a Costa Rican Savings Bank before I will receive permanent residency.

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Caja rule on foreign spouses upsets many expats
Some expats are unhappy because they feel the state health provider has thrown them a financial curve.

Foreign residents must affiliate with the Caja Costarricense de Seguro Social whether they want to use the health services or not. But in the last month, the Caja has declined to allow spouses to join as part of a family package.

Instead, spouses must apply for voluntary coverage on their own and pay based on their income.

Further infuriating expats, this rule seems only to apply to foreigners.

Great Sunrise Enterprises, S.A. noted on its Web site Nov. 10 that the Dirección General de Migración would enforce a paragraph of the 2010 immigration law as of Dec. 1.

read all article at amcostarica.com/

slowrunner1, I don't think you can 'convert' part way through your Residency. At least I wouldn't suggest that you count on doing so...without the expense of hiring a lawyer to do it for you.
Yes, your payments as a rentista, should be about $225, although the rates may rise again, in the new year, as it did last year. You can only apply for permanent residency, after completing 3 years as a temporary resident, then you can make an application for PR, but it seems to be taking a year to get it, and so, your second deposit of $60K covers this '2 years scenario'. You should get  better deal once a permanent resident. At least, this was our experience as 'Rentistas'.

Hello Gene99 - I have no idea why they received such a high CAJA joint premium.  I was told that each case is judged differently.  If you can show your living expenses are higher (medication etc.), the agent interviewing you will provide a smaller premium.  All I know is that rates have dramatically increased for many foreigners, and yet Pensionados who have been in the country for years are only paying about $150. per month.

It is well known that every CAJA office does not use or apply the same rules when deciding who pays what...

Article yesterday on amcostarica regarding changes at CAJA that are not sitting well with residents.

It might be best to go with a private insurance operation like Puba.  Those with status are also now required to have a Corportation and pay about $500. per year.  The Costa Rican government is attempting to get more out of foreigners "as they think we are all wealthy".

Edward1958, can you please explain this statement "Those with status are also now required to have a Corportation and pay about $500. per year".

It was brought to my attention that those with status who own real estate or businesses in Costa Rica will be required to have a Corporation, and that the yearly cost of operating that Corporation would be in the area of $500.  Things are starting to tighten up on foreigners, especially those who rent out their homes to vacationers and fail to report the rent as earned income.  There is a university group in San Jose called (Costa Rica not 4 sale) in English.  That group is continually pressuring government to get more money out of Gringos, I guess that's where the luxury home tax came from.  You may have noticed that the first few kw of electrical power used is cheap, and then it skyrockets suddenly for the remaining kw to get more money out of those who use AC "gringos".  The country is hungry for money, and many foreigners are flaunting their riches, so we can expect this type of thing to continue.

Edward, I don't think your information is correct, at least at this time.
While Costa Rica imposes an annual tax on corporations it is not mandatory when purchasing real estate that it goes into an SA or corporation. If in a S.A. annual 'taxes' are approx $200 per year for an inactive SA or approx $400 per year for an active, which may be advisable if the home was to be a rented.

Is your property in a S.A?

Hello Kohlerias, you could be correct, this was only information provided to me.  I've stayed clear of residency and Corporations for now, even if it means paying a bit more for medical coverage.  The future in Costa Rica should be quite interesting, as massive numbers of American's are expected to flee to this country once the New World Order comes into affect, which should be when the US dollar finally collapses.  https://www.youtube.com/watch?v=8TcMC7ZQ_6w

slowrunner1 wrote:

It's a small one bedroom house, but it's mostly brick with a tin roof and false ceiling in the living room.  I wouldn't characterize it as a cabin.   Compared to California the rent is inexpensive.  I pay $300 without utilities.   I have a Tico shower so there isn't a hot water tank.  The floors have beautiful brown tile.  It even has a covered attached  garage but I don't have a car.   The view is magnificent!   A 180 degree view of the City from my terrace.

Thanks for the info. That's about what I would expect for renting a Tico style home. But glad to see the price isn't higher than what I'd expect!