Current Immigration Challenges in Costa Rica
Richard: Good morning, Christina. How you doing?
Cristina: I’m good, thank you. Good morning. How are you?
Richard: Very good, thank you. I just flew in from Guanacaste, so I know you’re up in Nozada, right?
Cristina: Yeah, I’m in San Jose at the moment, but yeah, usually in Nozada.
Richard: Awesome, awesome. Well, Christina, again, thanks very much for taking the time to join us on the podcast. My first question that I always like to ask in the podcast is just to give anyone listening here. It’s kind of just an update of kind of what’s happening here in Costa Rica. I mean, there’s been quite a bit of volatility in western markets, you know, politically volatile as well. I mean, but what are you seeing happening here in Costa Rica and in particular like is your workload over the past couple of months increases? It slowed down. Like, what are you seeing?
Cristina: I’ve seen less real estate transactions for luxury properties and more smaller real estate transactions and more atypical real estate transaction, like people trying to purchase a property through a 99 year lease agreement rather than a purchase agreement.
Richard: Okay, well, let’s get to that 99 year lease thing in a moment. But I mean from again, you guys deal with a lot of residency as well. I mean, how have residency applications just the volume, have you seen it slow down? Is it still pretty, pretty good though? I mean, what’s happening on that on that front?
Christina: I have less clients applying for the residency for many reasons. One, the big, the main one is that now there is a tourist visa of six months and most of the foreigner don’t spend a lot more than that in Costa Rica usually are here like for the high season. So they’re saying, why will I apply for the residency if I can just come and be here on a tourist visa and I don’t have to pay the caja and everything. Another reason why they are not applying for residency is high caja rates like Rentista right now can end up paying almost US$400 in monthly payments for the Social Security in Costa Rica.
Richard: That’s a lot.
Cristina: That’s a lot. Yes. And I’ve also seen many rejections from immigration to residency application. And unfortunately what I’ve noticed, and not just me, but many law firms, if not all the law firms that deal with immigration, we are kind of joining forces because immigration is implementing a new rule where they give a response to residence application with resolution that they call, not that they say you cannot appeal the Resolution. And they are just denying many, many residency applications for fake reason. I will say, and I hope immigration doesn’t take against me, but they’re saying, oh, no, sorry, the investment is not approved. And I have clients that submit like a certificate issued by a certified public accountant who has public faith in Costa Rica, demonstrating investment, which is a requirement of the law. And then they have the notary public stating that they own the corporation in which the money was invested. And immigration just saying, no, that’s not enough. And of course they shouldn’t do that because, you know, we have a notary public and public accountant say that, and that’s what the law requires. So unfortunately, immigration is kind of changing the law without following the due process. You know, the Costa Rican government invests a lot of efforts in implementing Law 9996 to attract foreign investors. And the way it is being implemented is totally different. And this is really a shame.
Why Immigration Applications Are Being Rejected
Richard: Yeah, I mean, I, I completely agree here. I mean, it’s just, you know, I mean, government, it doesn’t matter whether it’s here or any type of the world, are very, you know, square, I would say, and you know, can’t think outside the box sometimes. But. Or make decisions based on one hand that affects the others. Like there’s a tax decision or a corporate decision that then impacts immigration. You know, as we, as we saw my, you know, somebody asked me yesterday, one of one of my clients was like, rich, why is this happening? Is it that Costa Rica doesn’t want investors anymore?
Cristina: I’ve had this question asked to me so many times, I cannot count. I don’t think so. That would be very stupid. I don’t think what immigration is doing reflects the policies of the government.
Richard: Okay.
Cristina: I think it simply reflects the struggle of an institution that has been overwhelmed for years with so many applications and not enough people to deal with that.
Richard: Okay. Yeah, so they’re just basically rejecting stuff just not to have the work like, or, or someone saying, hey, you need clear this backlog. And they’re just clearing it that way.
Cristina: Exactly. You know, the backlog. They created a special task force and they may also probably they were not really equipped. So they create a draft resolution and they say, okay, let’s this deny. And I had clients who were denied because allegedly their corporation was not up to date with the taxes, except it was. So now we have to appeal and the clients have to wait for at least a year. Well, hopefully not more than a year. But to give you numbers, there, there are being like 80 appeals per week against resolution issued by immigration and there are even Supreme Court abias corpus submitted for certain cases.
Richard: Yeah, I mean, I think that immigration has really kicked over the hornet’s nest. I mean, like with normal folk like me. But when you start playing with lawyers, I mean, you’re now into their game and. Yeah, exactly. I think it’s a. It’s a very different game that they’re.
Cristina: Yeah. I have a very professional lawyer that is in charge of our immigrant department, immigration department, and she’s very persistent and very persuasive as well. And she’s doing a great job. But still that’s not enough. So we really joined force it with other law firms and immigration especially that have been doing this for like 40 years. And they’re like, we all have to work together or we will never find a solution. And even chambers of commerce are acting procomer seen that they are all demanding meetings with immigration. So that. Because this is really a unique situation that I hope is going to end soon.
Richard: I mean, you need to get to the president somehow. Right. And have him. Yeah. Respond to this. But I mean, you know, I think a lot of people here like hearing this on the investor residency. I’m sure a few people listening are going to be like, oh, does that mean that again, I shouldn’t go this way of, you know, getting residency in Costa? I mean, what is the easiest way to get residency and cheapest way to do it?
Best Current Residency Options
Cristina: It does not exist.
Richard: Okay.
Cristina: If you ask me, there is no easy or cheap way to get residency. Well, I mean, what I notice is that the rentista category, where you have to demonstrate a permanent, stable and irrevocable income of US$2,500 per month is the one that is being approved in most of the cases.
Richard: You mean. So they have to have $2,500 a month coming in or they can put $60,000 into a.
Cristina: Exactly right. It is strange. So in the practice, banks allow you to deposit US$60,000 as a condition for them to issue the letter, the letter required by immigration. But if you ask Immigration, Immigration will say, no, US$60,000 not enough. Because that’s to, you know, if not you just put 60k and you get them back. But in the practice, it is what the bank allows you to do. So we have to be careful because the letter must have the exact. The letter issued by the bank to show proof of the income must have the exact wording requested by immigration authorities.
Richard: And are banks doing that In Costa Rica, though, If you put $60,000 they are doing that.
Cristina: Yes, many of them. I’m using Lafize Bank, I’m using bcr, and Scotiabank also has the program.
Richard: And I mean, basically, if you have that two and a half thousand coming in, because it’s literally of like, look, you’re giving $60,000 to the bank. They’re going to give you two and a half thousand dollars a year. With that, you get the letter, you still get your 60,000 back at the end of two years, and then you basically have to reapply again by putting 60, and then after a certain amount of years, you can move to permanent residency where you don’t need to do that anymore.
Cristina: Right, exactly. Exactly. The downside is the CAJA rate.
Richard: I was about to say, what is the Caja rate? Because you’re paying Cajon two and a half thousand dollars a month. Right.
Cristina: It’s. It’s. Now it’s a little less because of the exchange rate. I think we just enroll a client to the CAJA under the RENTISA program, and he ended up paying 175,000 colones, which is a little over US$350, which the thing is, if you consider this applies to the principal applicant, and if he has family members, they can all be included with no additional charge. So if it’s a family of four, like, it was okay at the end of the day, it’s not too bad. If it’s just an individual, then of course it’s a lot of money.
Costa Rica Healthcare System Reality
Richard: Well, I’d say yes and no. I mean, it’s no different than probably private medical insurance. Christina, to be honest with you. You know, I had a client the other day who’s kids. She was like, my kid has a rash on my body. I’m here in San Jose. They live down in Ohachao. And I was like, well, go to the hospital de ninos. I’m like, you pay into the car. How? Go and use it. So she went to hospitality in ninos and she was like, rich, this is amazing. And I said, well, watch. It’s amazing. She was like. We were attended within under an hour. I had my medical start my, my. Basically the prescription within five minutes. And I had no bill. Like, it was spectacular.
Cristina: So, yeah, I have to say, you know, public health care can be amazing in Costa Rica. I’ve had amazing experience, but I also had terrible experiences.
Richard: Yeah.
Cristina: On my skin and on my.
Richard: I think with kids, though, it can be very good though, right?
Cristina: Depends. So I have one kid with cleft lips and. Cleft palate.
Richard: Yep.
Christina: And the the. That is not that department of the Hospital de Ninos of the Not Developed. So he had surgeries in Italy and many other children from here are going to the U.S. okay.
Richard: Okay. So.
Cristina: But of course there, there can be exceptions. And definitely I will say that public health care, especially for children is good, but still, I always recommend having a private injury.
Richard: Yeah. And I mean, there’s so many options now with like MediSmart and all these kind of things as well, where you pay like, you know, like 20 bucks a month and also get access to, you know, doctors and everything where you pay really low rates and stuff, so.
Cristina: Exactly. And the other thing that I try to, to communicate to my fellow expert, because at the end of the day, I’m an expert myself, is, you know, we have the luxury of being able to choose this beautiful country to live and relocate. Is good to contribute with the country. You’re saying the car. You’re helping the country, you’re helping other people with low resources to get health care.
Richard: Yeah, I mean, I have to pay every single month for myself, you know, and also all of the employees that we have here in the business. It’s painful, but it’s kind of. I call it the tax of living, you know, in Costa Rica.
Cristina: Exactly, exactly.
Nosara Real Estate Market Update
Richard: I mean, what’s happening in the Nosada market at the moment? You’ve mentioned kind of just there that like the luxury. Luxury end is not as active, but like have transactions slowed down dramatically. Are they still happening? What’s selling, what’s not? I mean, give us an idea, Christina.
Cristina: Yeah, so they are. They are still selling. The Nozada market is still hot, but probably since the prices are very high in Zara compared to other regions of Costa Rica now. And we. With what is going on in the US and other countries, probably they’re not selling too much as they did after Covid. And I’ve seen more people are buying houses in the past. I will. I noticed many people were buying land to develop.
Richard: Yep.
Cristina: And now people are more like, no, I just went home to. Because many people are already here. So they just want a place to live. Nosara has new developments that are new condominiums. And those are pretty hot, I will say. And that was a whole discussion between the community because of course, there’s no water resources. At least that’s what people are afraid of. You know, the developer especially I’m referring to become Nozada, a very famous project. And they did. They did well and industrial well and everything. So I’ve noticed that. So I’ve noticed Many people still investing in Nozada for income. So people that purchase like an apartment in the. In a condominium as to make revenue through rentals. And Nozada has. Is facing certain challenges because of the lack of the plan regulator and because of the, you know, land, maritime. Land maritime zone restriction. The Ocean Refugee is also being revised in terms of boundaries. There is a big administrative warning affecting I think over 100 properties in Nozada.
Richard: Wow.
Cristina: And the process is on hold while SYNAC reviews the boundaries of the Ocean Oil Wildlife Refuge. And just yesterday I had a client reach out to me that is interested in a property in the landmark in zone. And I told him and he said, you know, the seller told me there are no risk. And I’m like, well, yes, there are.
Richard: Yeah.
Cristina: And so it’s very delicate and. But Nozada is still a hot place. It’s still an amazing place to be. They are paving the roads between the Samarga station and Garza, which is a big news also.
Richard: Wow.
Cristina: My home is right on that road. I’m like, yes, finally. So that is a great news and that is going to have a good impact on many people of the area. So I think it’s good. It is still developing. There is also big discussion in Samara because I’m also very close to Samara. There is a new project that got the environmental feasibility in Samara.
Environmental Concerns and Development Controversies
Richard: I saw that. Yeah. But there was also some talk of that, that it got it too quickly.
Cristina: And like, yeah, it got the environmental visibility like in a little over a.
Richard: Week, which is not normal.
Cristina: No, no. I, I’m like, I’ve read on it. I don’t have much more information than the public one, but I will be very, very surprised if that goes to an end because it’s a seven towers project of 10 like floors. I think it’s like. And I’m like, there’s not so many people, you know, there’s not a high demand for. To justify that.
Richard: Well, I don’t know. I mean, I think there could be, you know, I mean, especially, you know, just because there’s not that. I mean, look, I think it would be a, you know, a pimple on the face of Samada. Like it doesn’t have sense of place there. I mean, if you want to do that, do it in Hako. Like it already has it in mammal. Antonio. You know, the local residents got that easeless project stopped. You know, they were about to do like, I think it was 20 story towers there, but they took down some of the rainforest to do it and got it stopped, you know, and that was kind of, I think the preface for the head of. I think it was mine eye or something or sinak being like being removed because of. Yeah, but I think that that’s where Costa Rica is at the moment, is that balance between development and protection of natural resources. There’s just so much money sloshing around at the moment and I think we’re only getting started. Christina. I’ve said this to everyone. They think I’m mad when I’m like, look guys, we’re just getting started. Like go to Hawaii, go to Mexico. Like Costa Rica is only just getting started. But it’s going to be that here, here. What I typically find is it’s not the government that’s regulating itself, it’s the people then regulate. Like, you know, men, I. And those things. When they see projects that aren’t right, they go, we’re going after these guys. So they, they hire environmental lawyers and they get stuff stopped if it hasn’t been done properly.
Christina: Yeah, I just hope, you know, I hope it gets stopped and I hope we get stopped before damage is done. You know, see three towers and then there.
Richard: Yeah, we, yeah, we don’t want another sonesta like in Hako when you drive in.
Christina: Exactly, exactly.
Future Outlook for Costa Rica
Richard: I mean, what do you think the next year holds? I mean, in your crystal ball that you’ve got there, Christina? I think what, what do you think next year holds for Costa Rica?
Cristina: I think, I hope there will be more transparency on new developments and more protection of the environment, which is good. Honestly, it’s good. I think we will con probably the real estate market will be, you know, stable. And I, I do hope there’s going to be a big changes in at immigration, so they must find a different solution. So my hope is that after this crisis that we’re facing, we’re gonna have the light at the end of the tunnel. We’re going to really see, you know, a proper, structured due process and reasonable timing to respond to the application. So I hope that will be the case.
Richard: Well, look, I think if there’s one thing we know about the current president is like, he has no issue making enemies and forcing stuff through. I mean, that’s kind of been, you know, it very much goes against, I think Costa Rican’s, you know, more humble, passive, you know, way of living. I mean, the current president is not humble and he’s not passive by any means. Which sometimes to get stuff done you need, you know, it’s, it’s just gets very difficult Sometimes. But yeah, hopefully he will be listening to this podcast, Don Rodrigo, and will then, you know, walk into immigration and tell everybody basically how to do it. So I’ll keep my fingers crossed for you on that one, Christina.
Cristina: Thank you.
Advice for Plan B Relocation to Costa Rica
Richard: What advice would you give to someone that wants to make Costa Rica kind of their plan B again? You know, with a lot of volatility, I would say, politically, you know, throughout the world, Costa Rica is kind of seen of a bit of a mecca of like, you know, nothing really kind of happens here. And I, you know, I always explain to people of like, look, nothing ever happens here because no party really ever has a majority. So, you know, in order to get stuff passed, it takes a lot of people to agree to something, which is not easy. But, I mean, what advice would you have for someone looking to make Costa Rica their plan B?
Cristina: The most important thing is to have the right ally, the right professional assisting you can be, you know, a law firm that you trust. And if you’re gonna build someone like you that helps you develop the project overseas, that and everything. But you must be very colorful. You. You cannot just enter this country and do it things the way you’re used to and you know how to. Because that’s not going to work. You must find someone local that is trustworthy. That. That’s my biggest advice and what I tell my clients when they are investing in the country and they’re like, oh, well, but now what do I do for immigration? Do I put it in my name or my corporate, my corporation name? What do I do? And I’m like, your goal should be to protect the assets. Don’t worry about immigration. We will find a solution on an immigration standpoint. But your goal is to protect the assets. So think about what is best for you and how you want to protect the asset, and then we will find a solution for immigration.
Richard: That’s great advice. That’s great advice. Well, Christina, my last question for you is that I love to ask everyone, if you inherited $500,000 and you had to invest it into a business or real estate in Costa Rica, what would you invest it in?
Investment Recommendations
Cristina: Why I will still invest in the real estate market, not Nazara, because US$500, not enough to make a big investment in Nozada, but other areas and probably like a rental income, where would you invest?
Richard: Christine, I know everybody, you know, I always try and push people on. On this just because, again, a lot of people listening here, you know, like outside Noada, that means, you know, the rest of Costa Rica. So I mean, which areas would you. Yeah.
Christina: Not to go too far. OST is develop.
Richard: Yep.
Cristina: And properties there are seeing their value increase. So it could be a good place to invest.
Richard: Okay.
Christina: So probably the area or there is. Well, I can in between Nozada and Samara there, that whole Barco Quebrado area and everything. And now that they are paving the road, that the value of those properties going to go up.
Richard: I agree. I agree. Well, Christina, it’s been an absolute pleasure. Have you on the podcast, as always, anyone that wants to get in contact with you. I’ll put all your contact details in the description down below. But thanks very much for your time, Christina.
Cristina: Thank you. It was my pleasure.
Richard: No worries. Bye.
