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When Will Costa Rica Reopen?

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When Will Costa Rica Reopen?

Costa Rica’s borders remain closed, officially through July 30. However, most folks in the know will tell you that borders will probably not reopen then…

When will Costa Rica reopen is anyone’s guess at this point.

And that’s a problem, especially for tourism…

Tourism represents an important chunk of Costa Rica’s overall economy. It is also married to other sectors, especially foreign investment. According to the OECD, around 150,000 ticos are directly employed in tourism. If you add in both direct and indirect employment, that number swells to around 450,000, or 28% of total employment.

Just this week the Costa Rica unemployment rate reached 15.7%, the highest in its history.

Costa Rica has only 12 COVID-19 related deaths. That represents 2 deaths per 1 million in population, which is one of the lowest figures in the world. Compare the U.S. rate of 369 deaths per 1 million.

Nevertheless, cases have been on the increase as of late. Much of that trend seems to be stemming from problems with Costa Rica’s northern border with Nicaragua. No one knows for sure what the real situation is in Nicaragua, but by all accounts, it’s very bad.

The Costa Rica government seems to be willing to allow its vital tourism industry to suffer, if necessary to protect the health of the overall population. The logic of that becomes clearer when one considers that Costa Rica’s health care system does not have the capacity to handle a huge wave of hospitalizations related to COVID-19.

Countries around the world with strong tourism industries are beginning to open back up, albeit cautiously. Check out this article from CNN Travel to see what countries are opening up and to what extent.

You’ll notice, however, that Costa Rica is not on that list.

I am being asked daily by my real estate interested customers, many of whom are considering a move to Costa Rica, when will borders reopen so that they can make their exploratory trips? I don’t know what to tell them.

I recently interviewed Casey Halloran, the founder of Costa Rica Vacations, one of the largest independent tour agencies in the country, for my World Changers Expat Podcast. I asked Casey, when will Costa Rica reopen? He thought the date would be August 1st. However, that interview took place prior to the recent wave of new cases.

Just today, Sunday, June 21, Costa Rica reported 86 new cases. On Friday 119 new cases were reported, the highest daily increase since the very first case was reported on March 6th. The Costa Rica government quickly throttled back on its plan to go into a Phase 3 of relaxing restrictions on economic and other activity. This weekend they imposed the same stringent driving restrictions that we endured during Semana Santa, basically meaning no driving except for emergencies and to buy food.

Health Minister Daniel Salas said that an eventual reopening of Costa Rica to international tourism will be “gradual and controlled”, only allowing visitors from locations with low coronavirus transmission. He did not provide an estimated date on when that could occur.

Does gradual and controlled also mean imminent?

Will folks from the States be allowed in?

What restrictions will be imposed and will those restrictions discourage travel to such an extent as to make an opening meaningless?

I am very concerned about the situation, especially as it relates to tourism. Businesses and workers who have been sidelined by this crisis cannot endure this much longer. Surely the government understands that. Hotel owners in particular are urging the president to open the country back up! In a letter published this week by the Costa Rican Hotel Chamber (CCH), its president, Javier Pacheco, said the hotel sector “can no longer endure” the economic crisis caused by the coronavirus pandemic.

What are the restrictions likely to be imposed once the country does open back up? I believe what might be imposed could be similar to what Iceland has done…

Iceland opened back up on June 15. Travelers have the option to either submit to a COVID-19 test on arrival, provide proof of a recently taken test with a negative result, or agree to a two-week quarantine. A $112 testing charge will be implemented from July 1.

Visitors to Iceland will also be encouraged to download the app, Rakning C-19, designed to help trace the origin of transmissions, which is available in seven languages, including English, Polish, German, French, Spanish and Italian.

I think there is a significant difference between what travelers might be willing to endure who are traveling to Costa Rica to consider it as a place to live, versus those who just want a vacation.

And that doesn’t bode well for the tourism industry, or for the economy of Costa Rica as a whole.

How will this effect the real estate situation?

In my “silver lining post” I predicted that the COVID-19 crisis, coupled with the political and social unrest occurring in the States, would drive demand for Costa Rica real estate. Even though borders remain closed, we realtors are already seeing that prediction come to fruition…

Just in the last week I’ve had two situations where offers that I submitted on behalf of my clients were met with competing offers from other buyers! That rarely occurs, even during the best of times.

I also predicted that real estate that is more closely tied to tourism, especially high-dollar homes in normally high tourist traffic areas (such as Costa Rica’s popular beaches), that are marketed as “income producers”, will face a tougher time selling in this environment.

There will likely be some very good deals coming available, however, especially with tourist properties, such as boutique hotels.

I still believe, perhaps even more strongly, that things will play out exactly as I predicted.

I can only hope, for the good of Costa Rica’s tourism industry and economy as a whole, that Costa Rica can open back up and revive the industry before it’s too late…

The clock is ticking!

P.S. Since this article was written the government has vowed to open up in some form or fashion on August 1, 2020. However, with cases surging in the GAM (San Jose metropolitan area), which is currently completely locked down under an “orange” alert, who knows. There may be only a partial reopening, which does not allow certain countries (with high infection rates) in. The U.S. could very well be on the “out” list. We shall see.

The clock is still ticking…

How to Do Your Costa Rica Deal During COVID-19?

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Costa Rica Deal During COVID-19

We are getting more real estate leads from wannabe expats than ever before. I can only guess it’s due to the upheavals in the U.S., as well as other parts, stemming from the COVID-19 pandemic and, more recently, the George Floyd protests and riots.

So, let’s say that you’ve found the perfect property and you’re ready to pull the trigger and do your Costa Rica deal during COVID-19…

Now, I would never recommend buying something in a foreign country, site unseen, but hey, you’ve got to do what you’ve got to do. Right now it’s impossible to enter Costa Rica as a foreigner and we really don’t know how long it will be that way. And I realize that some of you out there just don’t want to wait any longer. Due to what I’ve seen on the news from back home lately, I can’t really say that I blame you.

There’s also a financial rational in making a move sooner than later. I’ve written about my opinion that when things do open back up, Costa Rica will see an influx of demand that could stabilize, or even lead to higher, real estate prices. Therefore, there is some logic in taking advantage of the uncertainty that still exists with the hope that perhaps it will lead to a better deal and/or better terms.

I’m going to assume that you the buyer are buying the property sight unseen in the scenarios below. The seller might be in Costa Rica, or he or she might not. We’ll cover both of those situations below…

Scenario 1 – Seller in Country – Buyer NOT in Country

If you’re doing your Costa Rica deal during COVID-19 site unseen you will of course want to pay special attention to due diligence. Many realtors are doing “virtual tours” with their buyer clients, trying to give them as close to an actual on-site viewing of the property as is technologically possible.

Things that you won’t be able to see, however, are the surroundings of the property (i.e., neighbors), its specific location, and the access to get to it (dirt road, paved road, 4×4, helicopter?). Hopefully, you have a good agent who will accurately fill you in on all of that, since those are very important considerations.

Perhaps you have seen a property online you like, but aren’t sure if that general location of Costa Rica is the right one for you. Well, in my opinion the “general location” choice is perhaps THE most important decision you’ll make. I would never let a particular property drive that location decision, but rather carefully choose the location first. Only then should you narrow down what specific places within that general location that you like and what properties are the best fit. You might want to check out my 4 C’s of Costa Rica expat living, which offers a simple framework for deciding on location.

If you’ve never been to Costa Rica and just have no idea about location, then my recommendation is wait until you can make that all-important exploratory visit.

OK, so you’re sure about optimum location, you’ve found the perfect property, gone through your due diligence and you are ready to purchase…how do you accomplish that?

Note that as far as “the money” is concerned, the deal would be handled through escrow the same way it would be if all parties were present in Costa Rica. However, that could be different if the parties to the deal agreed to transfer money outside of Costa Rica. Nevertheless, the closing costs, commission, due diligence costs, and any other expenses that would need to be paid in Cost Rica, would have to be transferred to and handled by escrow in Costa Rica.

There are essentially only two ways to do your Costa Rica deal during COVID-19, while not present in Costa Rica. First, you can set up a corporation (or LLC) to take title. Historically, most expats have done this, although more recently, due to the increase in “red tape” surrounding owning a corporation in Costa Rica, some expats have begun opting to take title in their individual names.

However, if you aren’t here and indeed can’t possibly even be here to close, then setting up a corporation will facilitate the transaction. That’s because you can sign a simple document your Costa Rica attorney will prepare called a proxy letter, which authorizes your newly formed Cost Rica corporation to grant a power of attorney to someone in Costa Rica to sign at closing in your stead. The proxy letter need only be notarized by a regular U.S. notary, then scanned and sent to your closing attorney.

In this scenario we are assuming the seller is in Costa Rica. He (or she) will therefore be present at closing to sign…no problem!

What if you just don’t want to set up a corporation to do your Costa Rica deal during COVID-19?

Well, in that case you’ll have to make a trip to the nearest Costa Rica consulate, where you can sign a power of attorney in front of a Costa Rican notary. Your attorney can prepare the document and once prepared you will send it to the consulate of choice in order to set up a meeting. There are only a handful of consulates scattered across the U.S., so this is likely to entail you getting on a plane.

As you can see, the option of setting up a corporation will definitely simplify the situation of you not being able to be present for the closing of your Costa Rica deal during COVID-19.

Scenario 2 – Neither Seller Nor Buyer in Country

As far as the buyer is concerned, the same issues arise as were addressed above. But now we have the added wrinkle of the seller not being present, or even being able to be present, as well…

If the seller has the property in a corporation, then he or she can use the same proxy letter process as was described above. However, if it is not in a corporation, then the “trip to the consulate” option is going to be essential in order to close the deal and record the transaction in the National Registry.

It should be noted that getting a meeting with a consulate can be a time consuming endeavor, especially in the midst of a pandemic. So, be prepared for a potentially lengthy closing process. It is vital to begin work on getting the power of attorney properly executed and returned to Costa Rica, in order to be present at closing, as soon in the purchase process as possible. Don’t leave it for the last minute!

With regards to powers of attorney executed out of country, they have to be returned to Costa Rica in order to be registered and valid for use at closing. Attention to detail is vital. The language of the power must be crystal clear about what powers are granted. I believe it is best to use a special power, which is granted only for a specific purpose, such as to sign at closing. General powers are tricker and problems can arise when the attorney tries to draft a general power, but then limit it by language in the document. If the National Registry deems it unclear, they will refuse to register it and you’ll be right back to square one! There has been a history of fraud associated with the use of powers of attorney in real estate deals in Costa Rica, so any power will be carefully scrutinized by the government before it is allowed to be registered.

Bottom line, it is possible to do your Costa Rica deal during COVID-19 and buy your piece of Costa Rica paradise, even while borders remain closed. However, it pays to know the approaches and the complications that can arise.

Of course, there are nuances of doing your Costa Rica deal during COVID-19 that are not addressed in this short blog post. If you’d like to discuss your particular situation, please don’t hesitate to contact me.

The Costa Rica Health Care System – How is It?

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Costa Rica Health Care System

Like in many countries of the world (the U.S. excluded), the Costa Rica health care system is two-tiered…

A two-tiered system is defined as one in which a government-provided healthcare system provides basic care, with a secondary tier of private care that exists for those who can pay for additional, better quality, and/or faster care.

The Public System

The Costa Rican Social Security Fund, or Caja Costarricense de Seguro Social (as it is known in Spanish), is in charge of the nation’s public health sector. Worker and employer contributions are mandated by law. Residents are also required to make contributions to the Caja.

Public health care services are guaranteed to all residents, including the uninsured. This includes undocumented immigrants as well.

The Costa Rica health care system employs the majority of Costa Rica’s doctors. However, many doctors in the public system maintain private practices as well.

The Costa Rica health care system is generally rated as one of the best in Latin America, as well as in the world at large. However, as with any public system, there are break-downs and one will experience long waiting periods for all but life-saving procedures. Seeing a “specialist” in the public system can be difficult and time-consuming. That’s why many expats opt for private care, especially when it comes to appointments and procedures requiring a specialist.

Private Health Care

In addition to a very respectable public system, Costa Rica has some of the best private health care in Latin America. The main private hospitals in San Jose, primarily CIMA and Clinica Biblica, are top-rated. Larger cities, such as San Isidro de El General, also have good private care.

Private care in Costa Rica, while cheaper than in the U.S., is still not “cheap.” Many expats simply opt to pay out of pocket for procedures. However, health insurance is available, but it will not cover pre-existing conditions. For those, you will have to seek assistance in the public system.

The quality of private health care in Costa Rica has given rise to a robust medical tourism industry. Most tourists seek private medical care in Costa Rica for non-essential, cosmetic, procedures, as well as dental care.

Getting Your Meds in Costa Rica

Many drugs (like birth control pills, high cholesterol medication, migraine medicine, etc.) are available in Costa Rica without a prescription. Common problems can be accurately diagnosed and treated by pharmacists. Most major pharmacies have a doctor on staff. Costa Ricans will often head to the pharmacy first and consult with the pharmacist or doctor on staff, before enduring the waiting lines at the hospital or clinic.

Expats needing to continue taking certain medications think they can simply have the medications shipped to them from back home. However, meds and/or food supplements generally cannot be shipped to Costa Rica by mail or courier, unless you have an import license.

Dental Care in Costa Rica

Costa Rica has become a popular location for medical tourism, especially when it comes to dental care. Most dental procedures, even the most invasive ones, are 1/3 of the cost you will pay in the U.S. There are some very good dentists in the country and not just in San Jose. In almost all high tourist traffic areas you will find good dental care. Here where I live in San Isidro de El General, there is excellent dental care. I have had many friends and family members from the States come visit and have dental procedures completed while here.

My Personal Costa Rica Health Care System Experience

I have thankfully remained relatively healthy for my 20 years in Costa Rica, knock on wood. I am getting older now though, so I shouldn’t remain so confident in not having to get more involved with Costa Rica health care system in the future.

Of course, I have had dental procedures done, both in San Jose and in my current home town of San Isidro de El General. I have never had a bad experience with a Costa Rica dentist. I was not one of those who looked for the cheapest possible option and I don’t recommend you do that either. However, the procedures I have had were far less expensive than what I would’ve paid in the States and I have been very satisfied with the service and results.

I have also had a few emergency room visits to both public and private hospitals. As you might expect, the public hospital emergency rooms I have been to were veritable zoos of chaotic activity. Nevertheless, I remained patient and calm and finally was treated and, of course, lived to write about. Seriously though, I believe that for minor mishaps, the public emergency room visit is the way to go.

I have not maintained any private care insurance since I’ve lived in Costa Rica. My wife and I do pay for pre-paid care with a company called Medi-Smart. However, since we live in San Isidro de El General, about 3 hours from San Jose, and the main providers that are in the Medi-Smart system are all in San Jose, I question its efficacy for us. I will probably be looking into private health insurance soon because, as was stated above, I am not getting any younger.

For private insurance you can go with the national provider, known as INS. However, nowadays there are also many private company options as well.

Of course, probably the best thing about living as an expat in Costa Rica is the ability and the motivation to stay healthy. Eating healthy is certainly no chore in Costa Rica, since virtually every vegetable and fruit known to our planet earth grows here. And the beauty of nature is always beckoning you to get outside, breath the fresh air, and move your body a little!

In short, Costa Rica is indeed a healthy place to live.

I should also point out that Costa Rica’s performance in the recent world-wide pandemic known as COVID-19 has been stellar. Costa Rica has shown the world what putting health above profits is all about and I am proud of them for that!

Costa Rica is Choosing Health Over Economics

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Costa Rica is Choosing Health Over Economics

I recently posted in my other blog my opinion about why the U.S. is failing the COVID-19 test…

By the way, that blog is called Revolutionary Misfit. It’s far more political than this one, which is focused on Costa Rica expat living and real estate investment. Just wanted to give anyone contemplating a visit over there a fair warning…

How about Costa Rica?

Costa Rica is not failing. It’s passing with flying colors and the country is finally beginning to get recognized for that success around the world. As Donald Trump likes to say, Costa Rica is winning!

I won’t post any statistics, since they change moment by moment. But Costa Rica has had more recoveries than new confirmed cases for 3 weeks running. If we can keep this trend up, we’ll have eradicated the virus from our country at a time when it’s still raging in others, especially in the U.S.

I say “we” since I am a newly minted tico, naturalized just last month! Yes, I still retain my U.S. citizenship and I am very concerned with what’s going on in my country of birth.

And with only 6 deaths, Costa Rica has one of the lowest fatality rates in the world, even lower than New Zealand, which seems to be getting all the credit as the world model for how to collectively deal with the coronavirus.

How is Costa Rica doing it?

To put it short, it’s the flip side of what’s going on in the U.S. You see, Costa Rica is choosing health over economics. That should come as no surprise. Most know that Costa Rica doesn’t even have a military, having long ago chosen to invest money that would otherwise go to the military into health and education.

Costa Rica’s decision to choose health over economics was made much to the chagrin of many entrepreneurial expats who are clamoring for the government to open the country up for business, like now!

I would venture a guess that the majority of those expats are from the U.S. and Canada.

Being in the real estate business, I’ll have to confess it was a let down to hear this week that the government extended the restriction on entry into the country by foreigners to June 15. And it could get extended again.

It’s hard for me to sell real estate when my buyer clients can’t visit the country to see the properties they keep asking about online. Online inquiries have been going through the roof. I’m talking record numbers…

I can only suppose it’s due to the fact that almost everyone in the U.S. and Canada is at home starting at computer screens and dreaming of a future in pura vida paradise.

The funny thing is, while I’ve been hearing and reading online a lot of complaining about the government not opening up from gringos, I haven’t been hearing or reading nearly as much of the same from the ticos…

After all, it’s their country and they have been negatively effected, far worse than the gringo expats, most of whom have significantly more resources to weather this storm. And many of whom have already received their $1,200 stimulus checks…

By the way, Costa Rica doesn’t have the ability to send the poorest and most affected anywhere near that kind of money…

And yet, the ticos seem content to stay at home and quarantine in a way that puts those in the U.S. to shame. Most in the U.S. seem already to be suffering from severe cabin fever as their materialistic pursuits have been put on hold for a couple months.

I’ve said it before (and I’ll say it again), there’s just a different attitude towards materialistic pursuit that prevails here. And, again, it is one of the things that drew me here and that has kept me here.

When I first arrived I was the typical hard-charging American capitalist, chasing a buck at the expense of my inner peace and well-being. However, it didn’t take a whole lot of exposure to these strange folks down here, who seemed to be much happier without, for me to gradually come to my senses.

Oh sure, I still grasp for the almighty dollar. After all, my family has to eat. But I’m not nearly as all about making a buck as I once was. And I believe that just might add a few years to my meager existence on this planet.

As the U.S. clamors to open up at a time when new cases and fatality rates are still rising, Costa Rica contemplates a more gradual and cautious approach. The tourism industry, which represents anywhere from 6 to 8% of the total economy, has been completely shut down by this. Many of the tourism assets around the country, specifically the boutique hotels, restaurants, bars, and other touristic attractions, are owned by gringos. I guess that’s why the largest outcry against gradualism is coming from them.

Nevertheless, Costa Rica seems reluctant to take chances with its national health, compared to Donald Trump and many governors throughout the states (especially the republican ones).

Of course, Costa Rica will never be the economic powerhouse that the U.S. is…

And you know what, I don’t think they care to be. They’d rather be healthy and happy…

I guess that really gets at the deeper meaning behind the national motto…pura vida.

And, if truth be told, without your health, all the money in the world won’t mean a damn thing…

The ticos get that in a much deeper way than North Americans seem to have the capacity to grasp.

After posting I came across this BBC interview with President Carlos Alvarado, which I believe bolsters (in spirit) a lot of what I am saying above…

Costa Rica Tourism During COVID-19

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Costa Rica Tourism During COVID-19

I got involved in Costa Rica tourism way back in 2004 when I launched a web site to sell package tours, with hotels, transport and activities included. The web site endeavor eventually became a full-blown agency with an office in San Jose…

There are a couple of things about my experience running a Costa Rica travel agency that are highly relevant to the situation of Costa Rica tourism during COVID-19.

Tourism represents 6 to 7% of Costa Rica’s GDP. It has literally put a number of small Costa Rica communities, like La Fortuna and Manuel Antonio, on the map. These communities survive on tourism in almost every respect. Right now tourism has been grounded to a halt. That situation probably won’t change for months. Costa Rica closed its borders to tourists on March 16 and that’s scheduled to last at least until April 30. And who knows how long it will take before North Americans and Europeans, who make up the bulk of Costa Rica’s tourism, will be willing to run the risk of flying again?

This crisis couldn’t have hit at a worse time. The high season for tourism in Costa Rica coincides with Costa Rica’s summer, or verano, which lasts from the last part of December to the middle of April. I remember back when I was running my agency, which I boot-strapped financially, I would sometimes get into cash-flow trouble when I had a large influx of arrivals and no sales. For instance, in June, July and August we would have a lot of arrivals by families, with kids out of school, but folks really didn’t begin to book for the coming high season until later in the year, around October. So, all the future debt generated from the sales made months before those families arrived would come due. I would often be forced to tap into reserves, along with whatever current cash flow I could eke out, to make ends meet.

Well, that’s sort of what is happening to Costa Rica tourism during COVID-19, but on a scale that’s dramatically worse. The COVID-19 crisis is happening right at the mid-point of the high tourist season. Agencies, hotels and tour operators are having to deal with a massive wave of cancellations and refund demands at a time when sales have completely halted. I am sure most, except for the big boxes, have exhausted reserves trying to handle this situation. Many have resorted to a campaign of begging customers to postpone trips rather than cancel and seek a refund.

In short, it’s a mess…

I recently listened to an episode of the podcast, The Costa Rica Experience, featuring an interview with Casey Halloran, discussing Costa Rica tourism during COVID-19. Casey is one of the founders of Costa Rica Vacations and Namu Travel. Costa Rica Vacations is probably the largest independent agency in the country. They always set the standards I tried to emulate back in the days of running my agency. They are one of the few who were able to compete when big box travel moved into the Costa Rica tourism space. I highly respect Casey. And he is deeply concerned about the situation for tourism in Costa Rica, but also optimistic.

One of his chief concerns is what Costa Rica tourism might look like at the end of this crisis. Who will survive and who won’t? You see, Costa Rica tourism has historically been a story of success by the little guy. By that I mean the small (and tiny) boutique hotels, the rural tourism experiences provided by locals, the locally owned shops, restaurants, and bars, etc., etc. These are what make Costa Rica the truly special experience that it is…well, in conjunction with the incredible flora and fauna. One bright note that Casey is quick to point out, is that the natural attraction of Costa Rica isn’t going anywhere as a result of COVID-19. In fact, due to the absence of humans, the natural part will probably get even better!

I remember that when Costa Rica reached a world-wide level of popularity, I guess around 2012, the big box travel companies began to move onto the scene in a big way. I’d done fairly well the first several years of my business. My web site ranked well in searches related to Costa Rica tourism and travel. Most of my leads came from organic Google searches, which cost me zero once I was able to get my page ranked well enough to appear in them. Then all of a sudden, almost in the blink of an eye, my site just disappeared from those searches. And in its place all I could see were the big boxes, like Expedia, Travelocity, and, well, Casey’s Costa Rica Vacations! In short, my site got kicked by the way-side and my sales evaporated. I was forced to down-size more and more. These days I’m downsized to the point of only offering vacation consulting to the occasional repeat customer or referral.

Granted, what I was basically selling back then was knowledge to folks who wanted info about Costa Rica travel. In those early days you could make a business consolidating that info. Now, not so much. Nowadays, travelers are content to go to a big box site, book a flight, rental car and hotel and just wing it on their own from there. Even though small agencies like mine are pretty much non-existent these days, the small boutique hotel, or the local tour operator in La Fortuna or Manuel Antonio, they’ve still managed to thrive as Costa Rica has become an increasingly popular tourism destination…that is, until COVID-19 came along…

In the midst this crisis, the big box travel companies, like Expedia, Travelocity, etc., etc., are flexing their financial muscles, as the little guys are wondering how they’ll put food on the table tomorrow. It would be a shame to see Costa Rica effectively be turned into Cancun/Cozumel by this crisis, with nothing left but internationally owned big box operators, giant hotels and large/regional tour operators.

But it could happen and Casey sounds that warning…

So, what can be done about it?

Costa Rica is a poor country and there’s only so much the government can do. I believe the answer lies with the millions of Costa Rica lovers out there, maybe like you!

So, I am here to make this plea: as soon as possible book your Costa Rica trip. Show support for the industry by booking with the little guy, the small and independent in-country agency, the small boutique hotels and the local tour operators. The big boxers don’t need your help. They have access to all the money needed to survive this. But the little guys are hurting. And they are the ones that make Costa Rica the special experience that it has been for millions…

So, let’s keep it going…

Please put Costa Rica on your post-crisis travel calendar and book in advance! If you have to postpone, I am sure local operators will be very flexible in giving you all the time needed.

Save Costa Rica tourism during COVID-19 by booking your trip now, or as soon as the airlines start offering viable flight options once again.

And please book with an eye for the small guy!

https://youtu.be/Iqwf5c4Khk8

COVID-19 and Costa Rica Real Estate – A Silver Lining?

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COVID-19 and Costa Rica Real Estate - A Silver Lining?

The COVID-19 pandemic has realtors the country over quaking in their flip-flops. Not so much from fear of contracting the virus, but from fear of never seeing another contract for sale of a property again, or at least not for a while.

And that fear is probably well-founded. Nevertheless, perhaps there’s a COVID-19 and Costa Rica real estate silver lining that’s being missed here…

How so, you ask?

Let me caution you first by saying I am an eternal optimist. There’s a fair degree of hope baked into my analysis. So, take the following opinions with the grain of salt they are due…

One can’t be an entrepreneur for as long as I have (22 years and counting) and not be an optimist, or at least a realistic optimist. And that’s especially true for one who has seen as many dark clouds pass overhead as I have, with dot.com bubbles bursting, twin towers falling, great recessions, and now a freaking pandemic the likes of which hasn’t been experienced since 1918!

Important Note: This COVID-19 and Costa Rica real estate analysis is specific to the “expat real estate market.” It does not necessarily apply to the vacation/rental home market, which operates according to different dynamics and is highly dependent on tourism. Please see caveat lector at end of post!

I don’t know about you (speaking now to my fellow Costa Rica realtors), but most of my clients have been (and I believe will continue to be) retirees. I looked back and verified that just before writing this. For sure, the vast majority of my deals have been with retiree buyer clients.

How will retirees be affected by this crisis? Well, for starters they can’t really lose their jobs, now can they? The thing we keep hearing most about is the “Great Depression” level of unemployment that could result from this crisis, if it keeps dragging on much longer.

Most of my retiree buyers have been from the U.S. or Canada. I’m not going to say anything about Canada, because, heck, I’ve never even been there! But I can tell you that I feel strongly that this crisis is not going to cause U.S. retirees who were contemplating Costa Rica moves before COVID-19 to (permanently) change their minds now. I wrote a post when this whole crisis began stating that this thing will probably only deepen the hostility and political division that exists in the U.S. And from the news reports I’ve been watching and reading about, I’m only more convinced about that.

This morning I read an article by Yuval Noah Harari (the author of Sapiens). Harari believes that this crisis will embolden governments world-wide to create surveillance states. I can easily see what he warns about actually coming to fruition, especially in the U.S. But not here in Costa Rica. Not a chance.

I just really feel that as this crisis drags on and ultimately the post-COVID-19 economic and social reality takes over, many retirees who were contemplating expat moves will be ready to get the hell out of an increasingly ugly situation, socially, politically, and economically.

But will they have the financial means to do so?

That’s a good question. Perhaps not, but I believe enough of them just might. Between February 12 and March 23 of last month, the Dow Jones fell from a high of 29,551 to a low of 18,592, a drop of 10,959 points, or 37% off its high point. That’s scary. However, since then it is back up to 23,719, a recovery of 5,127 points, or roughly 1/2 of the previous losses sustained.

But we are nowhere near the end of this crisis…it only seems to be worsening. So, what does the stock market see that the rest of us don’t?

I read another article about this and what it comes down to is that corporate America is awash with cash. There’s plenty of cash out there and the U.S. government seems intent on increasing it even more, deficits be damned. It seems to be the one thing democrats and republicans have been able to reach agreement on.

One thing that might cause my beloved Costa Rica interested retirees to put on the brakes is if their nest eggs begin to drastically shrink in alarming proportions. That happened in the immediate days of the crisis and I indeed lost deals as a result. But that trend seems to now be reversing and I believe the U.S. government, headed by none other than Donald Trump (who happens to be up for election later this year), will do everything in its power to keep cash pumping in and the market going up.

This crisis is different from the 2008 crash in that it is an artificially imposed economic downturn. In other words, we’re doing it to ourselves, on purpose (to keep millions from getting sick and a percentage of those from dying). The 2008 crash was preceded, and in large part caused, by an underlying collapse in the housing market. That’s not the case this time around. At least so far, the housing market in the U.S. seems to be in OK shape. Now, there is a real risk of another collapse, if we begin to see a rush to dump properties in order to raise cash to meet living expenses, as well as widespread foreclosures, but so far we haven’t. And, again, I believe the U.S. government will do as much to prevent a dreaded housing collapse as they will to prevent one occurring in the stock market.

So, it might just turn out that the precious retirement nest eggs of my potential retiree clients won’t suffer so much as a result of this crisis, or at least not enough to dissuade them from their expat plans.

Now, a lot of this COVID-19 and Costa Rica real estate analysis depends on what happens with the virus here, in Costa Rica. And actually, so far so good. Costa Rica has taken some fairly draconian measures to prevent spread of the virus and those seem to be working. As of this writing we have 558 confirmed cases and 3 deaths. 90% of the cases are in the densely populated area around the capital of San Jose, with the rest of the country so far generally un-infected. If that maintains and Costa Rica is able to escape the threat of country-wide out-of-control infection, then I believe it will be viewed as a safe-haven, all the more attractive to wannabe expats in places that haven’t been so fortunate, like the U.S.

What about the economic effect on Costa Rica?

Well, this is going to hurt tourism, pure and simple. Whether or not that will be short or longer-term damage remains to be seen. Costa Rica has had a travel restriction (denying entry to foreigners) in place since March 16. It was initially imposed through April 12, but that has been extended to April 30. Tourism represents 6 to 7% of Costa Rica’s economy. I hope Costa Rica does as much as it can to save this vital industry, just like the U.S. will do anything it can to save the stock and housing markets.

Property values in Costa Rica will more than likely go down as a result of this. It will be that healthy dose of reality that many sellers of properties in Costa Rica perhaps needed. How far will they go down? That depends on how long this crisis drags on and supply continues to exceed demand. The point that I have made in this post is that, hopefully, we’ll begin to see a turn around in the supply/demand relationship in the near future. I believe in the meantime, there will be good deals out there and sellers are probably going to have to get more creative in offering financing to buyers. This actually could bode well to attract that influx of retirees I am opining about here.

When will this influx of retiree expats from the U.S. begin?

Any serious answer would require a crystal ball that I simply do not possess. However, I believe it could start as early as the second half of 2020. The next few months are going to be tough for us realtors down here, so best to just hunker down and ride it out. Hell, there sure ain’t much these days to spend money on. It pays right now to keep “overhead” to a bare minimum, while we wait for this hopeful influx to begin showing up. I know that I’m already getting a lot of online interest that bolsters the opinions stated herein.

Remember, even though we don’t have clients in country right now, there are plenty of potential clients at home on their computers, dreaming about Costa Rica. So, even though property showings are very light these days (to put it mildly), we can be dangling that carrot of Costa Rica expat bliss on the computer screens getting stared at during these boring stay-at-home days.

COVID-19 and Costa Rica real estate – Caveat Lector: Due to its heavy reliance on the tourism market, the high-price luxury vacation rental home market in Costa Rica may be in for difficult times. It remains to be seen how much ongoing affect COVID-19 will have on people’s willingness to travel unnecessarily. Unless and until a viable vaccine is available, tourism the world over could suffer. However, I don’t believe getting on a plane to start a new expat life can be placed in the same category as “tourism.” This article should be read as applying only to those homes and locations within Costa Rica that are attractive to expats who want to actually live in Costa Rica.

COVID-19 and Costa Rica: Facts & Opinions

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COVID-19 and Costa Rica

There are probably many contemplating an expat move now wondering what will happen with COVID-19 and Costa Rica. I’ve written this post to provide you with the basic facts of the situation down here, as well as a few of my opinions on what this all means going forward…

COVID-19 and Costa Rica – first the facts…

FACT 1: As of March 21, 2020, there are 117 confirmed cases of COVID-19 and 2 deaths. 10 cases have been foreigners and 107 Costa Ricans. 1,190 cases have tested negative and there have been 2 full recoveries. The Ministry of Health is updating these statistics on a daily basis here.

FACT 2: Around 80% of the confirmed cases are in the greater metropolitan area (or GAM, which includes San Jose, Alajuela, Heredia and Cartago). That’s were the largest concentration of population is (around 1/2 of the almost 5 million country population). The areas with the highest concentration of confirmed cases within the GAM are San Jose, Alajuela and Escazu.

FACT 3: There are only 3 confirmed cases in Perez Zeledon. I believe all three are related to travel from abroad and there are no confirmed cases related to community spread.

FACT 4: Costa Rica has closed its borders to non-citizens and non-residents, at least until April 12. The government has also taken “social-distancing” measures, such as limiting the capacity of bars, restaurants, stores, etc. to 50% of normal capacity, closing beaches and national parks, and shutting down scheduled events where large numbers of people would gather.

FACT 5: The first confirmed case was recorded on March 6. Since then the number of cases has been doubling about every 3 days until the period March 20 to 21, when the increase was only 4 confirmed cases, from 113 to 117. It is certainly too early to say whether this indicates a flattening of the new cases curve.

See update video below…

COVID-19 and Costa Rica – my opinions…

OPINION 1: COVID-19 will be devastating for the tourism industry in Costa Rica, at least in the short-term. The government is going to have to step in and help. Tourism represents around 6 to 7% of Costa Rica’s GDP. For this reason, I would imagine the restriction on entry noted above will be lifted as soon as Costa Rica sees a stabilization in the trend of new confirmed cases. The shutting down of an entire industry so vital to Costa Rica’s economy won’t be sustainable, not even in the short-term.

OPINION 2: Real estate, especially the market with foreign buyers, will be negatively affected short-term, since it is impossible to sell properties to buyers when they have essentially been told they can’t come to the country. However, this is more than likely only a temporary situation, as noted above. While I don’t believe the travel restriction represents a long-term threat to the real estate market, the worldwide economic fallout from this pandemic certainly could. That is addressed in more detail below.

OPINION 3: The longer-term trend may be positive as foreign buyers in locations that have been, or are being, more dramatically impacted may look for a safe-haven from the storm. If Costa Rica does emerge from the health threat posed by COVID-19 relatively quickly, then it may well be seen as a safe haven by folks in other areas that aren’t as lucky.

Costa Rica has a few things going for it in this regard. While half the population is in an area of high density, the other half is widely dispersed throughout the countryside. There really are no large population centers outside the GAM. Perez Zeledon is perhaps the second largest and it only has about a 50,000 urban population, with the rest scattered in very small mountain pueblos. Also, Costa Rica has the advantage of being in an area that is generally not susceptible to flu-like viruses. While COVID-19 is certainly not a typical flu, it does seem to be much more prevalent in colder environs.

OPINION 4: A lot will depend on the economic situation in the States and worldwide. Many economists are calling for a depression the likes of which hasn’t been seen since before WWII (note that they said the same thing immediately after the 2008 crash). If something that devastating actually occurs and people simply don’t have the wherewithal to buy real estate in Costa Rica, then of course the market will suffer. This could come in the form of no activity, or a reduced level of activity moving towards less expensive properties. My personal opinion is that it is way too early to make such dire predictions.

This is an economic disaster caused by a health threat, as opposed to an underlying severe economic problem (as was the case in 2008). If the world is successful in stemming the still exponentially rising rate of infection, and/or if a viable vaccine becomes available, I believe economies around the world could bounce back relatively quickly.

OPINION 5: Measures must be taken by federal governments in the States and Canada to ameliorate a potentially disastrous situation. The political and economic fallout from all this could become unbearable for many people. The political division in the States is at levels never seen before, certainly not in my lifetime. Donald Trump’s handling of this disaster, so far, is only making it worse. On top of all that we have a national election looming.

The prospect of deeper division leading to social unrest (or even upheaval) is alarming and very possible. Before this whole COVID-19 shit hit the fan, we realtors were already seeing many of our clients make the move due to the political division and hostility. COVID-19 could very well be the straw that breaks the camel’s back so to speak. And this could bode well for Costa Rica real estate moving forward, as long as folks still have the economic ability to make a move. Sellers of Costa Rica properties may have to become far more flexible and creative in offering financing alternatives to all-cash deals.

I don’t claim to have any “crystal ball” and I’m sure many of my opinions on COVID-19 and Costa Rica will prove to be completely or partially wrong. But it’s what I’m thinking at the moment.

Hope it helps.

For some optimistic (& hopefully uplifting) thoughts on COVID-19, check out the links below…

https://youtu.be/pjZ1uGWfb2c
April 3, 2020 Update

The Costa Rica MLS System – Really?

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The Costa Rica MLS System

My real estate clients often complain about the Costa Rica MLS system, or rather the lack thereof…

But, wait, we do have an MLS system. At least that’s what we longingly call it. It just operates a little (well, a lot) different than what you might be used to…

The typical MLS (or “multiple listing service”) is a database established by cooperating real estate brokers to provide data about properties for sale. Typically, multiple listing services create an electronic database with all of the properties for sale by affiliated brokers, who update it on a regular basis.

Our Costa Rica MLS system isn’t quite that sophisticated. It sort of works like this…

In Costa Rica there are basically two types of listing contracts, or agencies, available to the seller of a piece of property.

One is the open listing…

Open listings were the way things used to be normally done. An open listing contract gives the agent the right to sell, but the seller also retains the right to sell, via his own efforts, or with any other agent or agency he or she chooses. If I have an open listing with a seller, the only way I will generally be paid is if I bring the buyer to the table. If the owner brings the buyer, or if any other agent or agency brings the buyer, I’m out of luck.

Many sellers still think that the open listing is the way to go. However, here’s the rub, or rubs. First, the onus will be on the seller to disseminate the listing to various agents. In other words, he will have to enter into a separate open listing contract with each agent he wants to represent his property.

The other rub is that any agent who does list it stands a good chance of wasting a lot of effort to sell it, only to have it sold out from under him by another agent, or the seller him or herself. So, even though the owner can list the property with as many agents as he wants, none of them are probably going to be willing to spend too much time or money in marketing the property.

The other type of listing contract is the exclusive listing.

In the U.S. virtually all listings are of this variety. Of course, in the U.S. a seller knows that his property will be exposed to all agents in a given area by virtue of the MLS system operating in that area. Here we try to accomplish the same thing for our sellers, but in a much more rudimentary way.

When I go out and take an exclusive listing, it is up to me to disseminate the listing info to other area agents and make sure that they upload my listing onto their marketing platforms. I can only ask them to do it, I can’t force them do it. I can follow up with them to make sure it’s done, but often many of the agents who receive notice of my new exclusive listing either refuse to post it, or just forget to.

The other problem with our non-systematic system, is that if there are changes to the listing, again the onus is on me, as the listing agent, to inform everyone of those changes and make sure they are actually implemented. Again, I can do my best to make sure this happens, but, as you can imagine, things often slip through the cracks.

The above system has its flaws, as you can probably imagine. It’s not at all uncommon to see the same listing displayed on various sites at different prices exactly due to those obvious flaws.

Open listings are generally outside of the “system.” If I take an open listing, I’m not going to share it with other agents, who can simply then go behind me and deal directly with the seller. So, if you see properties floating around that don’t appear on multiple sites, chances are that they are open listings. The good news is that these days, exclusive listings are more the norm.

So, what’s a buyer to do? How can you be sure that simply by looking at my site, you are getting exposed to all the stuff that’s out there, especially given this quirky system we have operating down here?

Well, you can’t be 100% sure. Does that mean you need to contact every realtor in a given area and survey all of their inventory in an attempt to “cover the market.” Sure, you can do that and many buyers do.

In my opinion that’s not entirely necessary, nor advisable…

The purpose of this post is to inform you about how our “system” works, even if not like a well-oiled machine. Nevertheless, we do have a system. You can get a pretty darn good idea about what’s out there by looking at the Coldwell Banker Dominical Realty site, for instance. That doesn’t mean you’ll see “everything” that’s out there, but you’ll see most of it, certainly the really good stuff. And if there is something in particular that you’ve found that you don’t see, all you have to do is let me know and I’ll track it down for you.

What I believe to be a mistake that many buyers make is to try and compensate for our lack of an MLS system by contacting multiple brokers in a given area.

There are a few problems with this approach. For one thing, it’s going to take more work on your part. Why not find a realtor you’re comfortable with and let him do that work for you. You’re also very likely to cause confusion, like when you see a property with one realtor and then see it again with another. Finally, if we know that is how you’re operating in our market, that is, by contacting every Tom, Dick and Harry agent in town, we (meaning me, for instance), are less likely to really want to roll up our sleeves and work really hard for you. It betrays a depressing lack of loyalty, if you know what I mean.

You can read this post as a suggestion of how to operate within the Costa Rica MLS system. Now, I’m speaking specifically about my area of the southern zone. I’m not completely sure how things operate in other well-established markets, like Manuel Antonio or Tamarindo, for instance. But I believe it is very similar to what is described above.

Happy house hunting in Costa Rica!

Best Places to Invest in Perez Zeledon

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Invest in Perez Zeledon

Perez Zeledon is a cantón (or county) in the southern zone of Costa Rica. It is probably best known for its principle city, San Isidro de El General. However, the ticos that live in this area will almost always tell you that they live in Perez, as opposed to San Isidro.

The valley where San Isidro de El General is located is flanked by two mountain ranges. To the east, the towering Talamances overlook the valley and city below. These are the highest mountains in the country, including Costa Rica’s highest peak, Chirripo. To the west you have the small, but still majestic, coastal range, known as the Fila Costeña, or Fila Brunqueña.

The majority of the population of Perez Zeledon live in tiny mountain pueblos that dot those mountain ranges, with the rest living in urban areas in or close to the city. The total population of the county is estimated at around 200,000, with the urban area of San Isidro estimated at around 50,000.

In this post I wanted to provide my answer to the frequent question of best places to invest in Perez Zeledon.

I believe the following deserve your consideration…

Quebradas/Miravalles

This one is near and dear since I’ve been living here for the last 5 years. This area gets high marks for its convenient location to town (about 5 minutes in a car, or you can walk it in about 40 to 50), altitude (around 900 meters, offering a near-perfect micro-climate), and the pristine river that runs through the village. You hardly even need a car in Quebradas as there are two bus lines that offer transportation just about whenever needed. There is also a nature reserve with hiking trails and waterfalls. The town is a nice mix of both ticos and North Americans. You can chat with both at the popular watering hole, known as Pelos. Miravalles is just above Quebradas and offers sweeping valley views and even cooler temps.

Pueblos of Rivas

Above the main town of Rivas there are numerous mountain pueblos, like Chimirol, Canaan, Herradura, and San Gerardo that offer rugged and scenic mountain living. This is the most touristic area of Perez Zeledon, since the trail-head to Chirripo (Costa Rica’s highest mountain) begins in San Gerardo de Rivas. Flowing through the area are gorgeous rivers like Rio Chirripo and Rio Blanco. There are also quite a few tourist attractions, including some really nice lodges, restaurants, nature reserves, a butterfly sanctuary, and more.

Santa Elena/Quizarra

This is an up and coming area that offers still off-the-beaten-path living with dramatic views and a great micro-climate. There is an established residential community called Vistas de Chirripo where you’ll find gorgeous homes built by North Americans from Canada and the U.S. There’s also the Rise Costa Rica community, which in the future will offer home sites and sustainable living options. Currently Rise is home to the Kinkara wellness glamping resort. Quizarra is also a popular area. They are now paving the road running through Quizarra all the way to the AltaGracia resort. This will make properties in that area more accessible and investing there even more popular.

Pueblos of Cajon

Like Rivas the district of Cajon offers some interesting options. In Santa Teresa de Cajon you’ll find the AltaGracia 5-star resort. This resort was recently acquired by the same company that owns the Four Seasons resort in Guanacaste. It was already known as one of the nicest resorts in Central America and its stock will only go up with this acquisition. Not too long ago I sold a gorgeous property in the area of San Francisco de Cajon that has now become the Synergida Luxury Resort for Transformational Retreats. This is a sprawling luxury property featuring over 30,000 square feet of living space on well over 100 acres of scenic hillside. It is a one-of-a-kind property. All this is making the region of Cajon a hot one in Perez Zeledon.

Pedregoso

Located to the northwest of the city, this is a picturesque pueblo, famous for being the home of Keylor Navas, a Costa Rica futbol legend. Pedregoso is surrounded by rolling green hills that offer scenic mountain living options. It is also about as close to town as Quebradas (5 minutes by car), offering that convenience as well.

La Amistad/Platanares

This area is a little off–the-beaten-path as well, but definitely worth a mention. One of my star listings is in this area in the pueblo of San Carlos de La Amistad. The districts of La Amistad and Platanares are located in the Fila Costeña range. There’s actually a road that will take you to the beach, ending in Uvita. I drove this route recently and the road had been greatly improved, making it a fairly easy and very scenic trek (in a 4×4, of course). This route may eventually become the alternative paved route to the heavily traveled San Isidro – Dominical road (otherwise known as Highway 243). This area has some secret waterfall attractions, like one of my favorites, Catarata Margarita.

La Palma

La Palma is the first pueblo you come to on Route 243 headed out of San Isidro to the beach. I lived there when I first moved to the area. It is super convenient to the city and also to the beach. The Pacuar River flows through and features some of my favorite secret swimming holes in the canton. Also very convenient is the La Palma gas station that opened a few years ago, making it unnecessary to drive clear across town to fill up for a beach run. La Palma is a place where you can live down on a river, or up with altitude and a view. And it definitely has that strong convenience factor going for it.

Tinamastes/Platanillo

Many probably do not realize that both these towns are in the canton of Perez Zeledon. They are along the paved road that leads from San Isidro down to Playa Dominical. The first and higher of the two is Tinamastes. In my opinion, Tinamastes is one of the prettiest little towns I know of in Costa Rica. Standing out is the majestic and vertical Tinamastes ridge, which they say was formed when tectonic plates collided and pushed the land up into this incredible formation. The ridge is home to the highest waterfall in Costa Rica, Catarata Diamante, which stands at 200 meters (over 600 feet)! Tinamastes is also home to the popular Tuesday farmer’s market. The higher elevations of Tinamastes, being shrouded in clouds most afternoons and evenings, do tend to get an inordinate amount of almost year-round rain.

Just down the hill, on the way to the beach, is Platanillo. This area is popular since it is a bit closer to the beach (also making it hotter). The drive from Platanillo down to Playa Dominical is only about 15 to 20 minutes. Even so, you do get some altitude and cooler temps there. It is another quaint, charming, and scenic little mountain town. Nearby are the popular waterfall tourist attractions of Nauyaca and Eco-Chontales.

There you have it, my run-down of the best places to invest in Perez Zeledon. Granted there are many others I am not mentioning that are certainly worth a look. But these are the highlights, in my humble opinion.

Perez Zeledon Trivia…

  • The canton covers an area of 1,905.51 square kilometers (735.72 square miles), making it the seventh largest of the 81 cantons in the country.
  • Perez Zeledon was also the location of significant battles during the Costa Rican Civil War. The most notable battle was the Battle of San Isidro de El General, which was carried out at around 6:30 a.m., when 200 government forces engaged the revolutionaries at the city’s central plaza. The battle was won by José Figueres Ferrer and his revolutionary forces, which secured the southern pacific region of Costa Rica in rebel hands.

Costa Rica Residency – Obtaining Your Police Record

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Costa Rica Residency

After ten years of permanent Costa Rica residency (as well as marriage to a tica), this year I decided to become a citizen. I figured since I’ll be buried here, I might as well have the right to vote!

Granted, becoming a naturalized citizen is a bit different than getting a residency. Naturalization is a process that involves the TSE, or the Tribunal Supremo de Elecciones, as opposed to the Costa Rica immigration office.

Nevertheless, it is similar in the respect of needing to obtain a U.S. police record. The process of obtaining one of those that can be used for immigration or naturalization purposes in Costa Rica has long been a source of great frustration and confusion for expats.

These days, for purposes of Costa Rica residency or naturalization, they are asking for a national (or FBI) record, as opposed to one from your State of residence. I obtained mine earlier this year using the Outlier Legal Service in San Jose. I thought that was the best way, without having to actually make a trip to the U.S. Their service was good and I have no complaints, except for the fact that it’s damn expensive. To obtain the record, with the apostille affixed by the State Department, cost me $400. Then I had to pay another $100, or so, for the translation. So, all in all, I was out around $500 just to get this record.

I could have used Outlier for my birth certificate as well, but decided to use a cheaper channel. The problem for me came that by the time I submitted the documents, the police record was about 3 months and 10 days old. They told me at the TSE office that everything was fine. However, a few months later I received an email asking me to submit a new police record, since the one initially submitted had expired. And they only gave me a month to do it!

I immediately called Outlier to see what they could do for me. They offered me $100 off on doing the process all over again, to receive the exact same document, since not enough time has passed for me to get into the type of trouble that would add anything to it!

I decided to try another route and that is the real purpose for this post…

I need to tell you that I used to be a lawyer in another life. And I have a former law school classmate who’d served a stint as a U.S. Attorney. I thought to myself, surely he can help me. He’s now in private practice. I contacted him and he put me in touch with a private investigator he thought could help me. The P.I. simply sent me a link with instructions on how to get the record directly from the FBI.

I printed out the necessary forms from that link. I got an appointment with the police department here in Perez Zeledon for my fingerprints, using the official FBI form that I’d printed out. With that I sent the entire package by DHL to the FBI. They also had a form I could use to pay with a credit card. The charge was $18.

One thing I wasn’t sure about was getting the apostille affixed. That’s the only way the document would be legal for Costa Rica residency, or in my case, naturalization. The instructions from the link, which mind you are from the State Department, stated that if you are using the record for something like naturalization (i.e. for use by someone living out of country), and you made the request directly to the FBI, the State Department would affix the apostille, no extra charge. At least that was the way I read them. I asked the P.I. and he thought the same.

So, I included a cover letter stating the purposes of the request, along with a copy of my Costa Rica residency card. So far, I’m out a little less than $60 for the $18 FBI charge for the record, along with the $40 I paid to send it DHL.

I tracked the package and it did indeed make its way to the FBI headquarters in West Virginia. I waited patiently to see if they actually charged my card for the fee and they did! I sort of take it on faith that the charging of the card is a good sign.

I maintain a service here in Perez Zeledon with Aeropost. That gives me, for free, access to a P.O. Box in Miami. Once a letter or package reaches my Miami address, they immediately send it DHL to Costa Rica. So, I put that Miami address on the FBI form. I’m still waiting to get it back. The cost of the return trip will be another $40, more or less.

So, if all goes well I should shortly have my new record. I’ll have to get it translated again. I will certainly ask the girl in San Jose who did it the first time to cut me a break, since she can basically just use the former translation with a few edits.

I’ll be out around $100 total for obtaining the new record (not including translation cost). That’s a heck of a lot better than paying Outlier $300, or $400 less the $100 discount they offered. I just wish I’d known I could do it this way, relatively pain-free, the first go-round

I’ve seen numerous comments posted about obtaining a police record for Costa Rica residency on various Facebook groups. Some say you have to make the trip back to the States to get it done. Others highly recommend the Outlier service. Well, I thought I’d share my experience to let you know of a potentially much cheaper way.

Granted, I don’t have the record in hand just yet. I will update this post in the near future to let readers know the end result. However, as of now I am expecting it to be positive!

Oh, and by the way, the TSE did give me an extension to re-submit the document, since there was no way in hell that could ever happen within the month they originally gave me.

Oh, and another by the way, the expiration of documents submitted to the TSE is different than for those submitted to Immigration for Costa Rica residency. With the TSE it’s only 3 months, whereas it seems that it’s 6 months when dealing with immigration. That was a source of great confusion when I initially submitted and the reason everyone was saying that I was fine.

I wasn’t, but hopefully will be shortly!

Stay tuned…

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