Introduction
Richard Bexon: Good afternoon, Christina. How you doing?
Cristina Guerrini: I’m great, thank you. How are you?
Richard Bexon: Good, good. It feels weird because again, it feels like you were just on the podcast yesterday, but I think it was episode like 215 and we’re on 227. So that was a couple of months back. But I know there’s been quite a bit of movement in the residency world. So just wanted to kind of give everyone a bit of an update here because I know quite a few people are making investments in Costa Rica and want to use that to get residency.
Cristina Guerrini: Yeah, totally. No, thank you for having me. Again, I know it was not a long time ago, but I think I have very interesting updates and positive ones, which is great compared to the last time.
Post-Election Residency Impact
Richard Bexon: Well, let’s get the positive update in two seconds. But I mean, I just want to get an update. I mean, you know, since US elections, I mean, how has like your workload changed?
Cristina Guerrini: I think it’s too soon to see an impact on my workload.
Richard Bexon: Yep.
Cristina Guerrini: I did notice that most of the expat community representative, at least on social media, did not like the results of the election. So I think it may be. It may impulse more people to get residency here based on what I’ve seen and I’ve seen a lot of concern.
Richard Bexon: Okay. But no major, like flood of inquiries to you or anything yet?
Cristina Guerrini: No, not really. Not really? No. I just noticed, you know, I follow social media and, you know, groups of experts online and that’s what I noticed.
San José Immigration Changes
Richard Bexon: Well, last time that we chatted and I think it was mainly about the investor visa. Investor visa applications were just being rejected left, right and centre. What’s happened since we last spoke?
Cristina Guerrini: There was a big movement against the rejections. I don’t know if you hear me because you froze.
Richard Bexon: Yep, we’re good.
Cristina Guerrini: Yeah. There was a big movement against those rejections and I think it was a productive one. And we’ve seen the results. Very recently, the director of the immigration department resigned. Word by mouth say that it is not that voluntary. But, you know, the former director is already on vacation and the sub director of immigration is currently taking the charge of the former director. And we will see what happens. But what I did notice is that suddenly I was receiving notification. Approved, approved, approved, approved. It was one day, we had 20 cases approved.
Richard Bexon: Wow.
Cristina Guerrini: And it was like me and my team were like, whoa, what’s going on? What happened? So.
Richard Bexon: And were they all investor visas, Christina?
Cristina Guerrini: Many investor visas. That gives me hopes. So I was very worried because investor visas were the category being most affected. But now it seems that things are back on track and they are. You know, I’m not asking for anything, not by the law, you know. You know, all the clients that have been approved had complied with all the requirements, but some of them had been waiting since 2, 20, 21.
Richard Bexon: Wow.
Cristina Guerrini: And I can also tell you that unofficially, I even got, for the first time in 10 years that I’ve been dealing with immigration. I got a call at my mobile number, like, what’s going on? And it was immigration who basically realised that they failed to ask us the right requirements when they notified, like, request from qualification. So now they have a very difficult situation because if they deny the application, it was. It will be their mistake.
Richard Bexon: Yeah.
Cristina Guerrini: But they were saying that they don’t have enough documents to approve the residency. So they’re like, can you just, you know, maybe submit these documents for us? And I’m like, sure, can you send me a written request? And they were like, not really. I’m like, it’s fine. I will submit the document. It’s fine. You know, it’s more referential. But it’s like, I think that behind this there is an intent of immigration to show proof of good faith and that applying for residency is still possible and getting residency is still possible in Costa Rica. So that’s positive.
Richard Bexon: Well, I hope I helped a little bit behind it. I remember once you mentioning something about one of our clients that we work with.
Cristina Guerrini: I lost you again.
Richard Bexon: And then.
Cristina Guerrini: Sorry, could you repeat? I didn’t hear.
Richard Bexon: Yeah, sure. I can hear you perfectly, Christina, Just so you’re aware.
Cristina Guerrini: Okay.
Richard Bexon: But I remember a while back you had messaged me and I reached out to some political contacts that I had, and especially one that was involved in immigration. So. Look, I think it’s. When these things happen is you reach out to your network and put pressure from every single angle because you just don’t know which one’s ever going to work.
Cristina Guerrini: Yeah, I know. I had many clients who were very frustrated and they were like, can you please explain to them that my contribution to this country is essential and that the D. And did I need this for whatever reason? Like, it’s not subjective. You know, there’s a lift of requirements. They have to check the requirements, periods. It’s not that you may be a nicer person than someone else. You deserve it more than someone else. And it’s not that I can. I mean, I did talk with you and the chambers of commerce and other contacts that I have, but not to push a specific case. Yeah, rather, I wanted to. To. To push Towards a solution for everyone, you know?
Richard Bexon: Yep.
Cristina Guerrini: Yeah, well, it’s just a reminder, you know, every time you hear someone telling you like, no, no, it’s not illegal. I’m not bribing anyone. I can just get your case file sold earlier because I did work at immigration or I have contacts. Just pay me this. That’s not legal. Okay. So no can get a case analysed earlier than the other one. So we just need to follow the due process. And every time a client inquires to me about that, I’m like, if you want to do that, I just want to terminate the engagement. I don’t want to have nothing to do with this because I still believe in the due process and the rule of law.
Costa Rica Investor Visa Requirements
Richard Bexon: I agree. Christina, we talked a while back about the investor visas. Like when investing, put it in your own name versus a corporation. Can people still put it in a corporation and get residency today?
Cristina Guerrini: Yes. However, different requirements must be met. So in the past, if you purchase a property through a corporation, you could do so just setting up an inactive corporation with an equity of like $12 or $20 and just purchase the real estate with your personal funds and put it in the name of the corporation. And for immigration purposes, you will need to demonstrate that you own the equity of the corporation or a percentage of the equity enough to reach the threshold of 150k dollars, which is the threshold of the investment. And then you also needed to submit a document on the value of the property, like the documents of the declaration of value of the municipality and showing proof that the taxes are paid up. And very important, even though it’s not written anywhere. But immigration is also asking for proof of the payment of the luxury tax impueso solidario. So if you have a house to which the luxury tax applies, you better submit proof of payment or that may be an issue. Now. What changed now? Can you still purchase a property through a corporation? Yes. However, if you want to apply for a residency as investor, you will no longer be considered an investor in real estate. You will be applying as investor in a corporation. So you will need to show that your corporation as an equity reflecting the investment, not the asset, but the corporation. So the equity must be of at least US$150,000. It must be an active corporation, meaning doing whatever business in Costa Rica, declaring the value of the tax every month. And this is what you need to prove. You no longer have to show that you have this property, which value is blah, blah, blah, the municipality. What matters is the investment which must be stated and certified by a certified public accountant in Costa Rica. So these are. So it changed the requirement. It is still possible. Personally, in the cases that I got approved, I had no one that applied under these new rules. I did have a response to one application under the current rules, which was regrettably denied a few months ago when they were just denying. So I don’t have a positive outcome yet, but I’m confident that we may have more positive outcomes. Outcomes in this type of investments.
Richard Bexon: Okay, but I mean, anyone that had applied, basically using the corporation the other way. There’s some of the ones that are getting approved at the moment.
Cristina Guerrini: Absolutely, yes. Positive. Yes, yes.
Richard Bexon: But any new ones are coming in? I mean, basically, if you’re buying, I don’t know, a house here that you’re going to rent, you need to make sure that the capital of the corporation is above $150,000. You need to register it as an active company with the tax authorities. Active, meaning you need to file your taxes every month, which is a very simple process. If you’ve got no income or expenses, it’s 0. 0. But if you have it as a vacation rental and you have income and you have expenses and taxes, etc. That works as well, basically.
Cristina Guerrini: Exactly. Yes, totally.
Richard Bexon: Okay.
Cristina Guerrini: Or at least that should work, you know.
Richard Bexon: Sure. Yeah, yeah. What’s the quickest and easiest way for people to get residency?
Choosing the Best Residency Path
Cristina Guerrini: Christina, I know you ask this every time we have this podcast. I think I never give you the answer that you’re looking for because there’s no quick and easy way to get residency. But based on what I’ve seen, rentistas have been the quickest over the past two years, and they still are. But finally, we are also receiving approvals of investor residency.
Richard Bexon: Yep.
Cristina Guerrini: Now, what is making a difference in how people are deciding whether to apply under the investor or the rentista category is no longer, you know, a sense of worriness about the new requirements of the investor residency, rather than how much will I have to pay once I become a resident for the caja? Because, as you know, once you become a resident, illegally resident in Costa Rica under whatever category, you have to start paying the caja, you have to enrol in the Social Security system, and you pay the caja on a monthly basis. Now, for rentistas, who are the one that needs to demonstrate a stable, permanent and irrevocable income of $2,500 per month, then they end up paying a caja rate based on that income, and currently they end up paying a little less than US$400. You know, they are charged in colonies, so it’s roughly 180,000 colones per month, so depending on the exchange rate a month. So that’s a lot of money, especially if it’s just for one person or another family. Whereas investors that finally I was able to enrol in the caja again because I finally got approvals, again, they are paying a lower fee because many investors do not have an income in Costa Rica. So they are being charged the lower rate, which is currently 32,000 colones. So there’s a big difference, you know.
Richard Bexon: Yeah.
Cristina Guerrini: In their monthly pay.
Richard Bexon: Yeah, I mean, it’s just. It sounds like the rentista is a lot easier to get with regards to paperwork than having to go through all of the accounting and legal documentation you require for investors. But I suppose it’s like whichever one for you question though. If I go for a rentista and I have dependents, meaning a wife and kids do that, can they apply as dependents, but also that car hack and cover them as well?
Family Considerations for Social Security
Cristina Guerrini: Yes and yes. So if you apply as rentista, only you as principal applicant has to have to demonstrate the income of $25,000 $2,500 per month. And your family, meaning your spouse and children, can apply as your dependent. And they only need to prove the bond to you. They do not need to show to make another rent is the deposit or so they just need to show proof that you’re your family members. And once you have your residency approved and the residency of your family, you as principal will go to the caja and enrol as the principal insured person. And then your family can ask to be included in your coverage at the caja with no without any additional payment being necessary. So if it’s renttista and if it’s 180,000 colones and it’s a family of four or five, then it may be more acceptable, at least in the head of the person you know, to pay that have coverage for the entire family. And if it’s just one person, it may be seen as a lot of money. Yeah, I mean, notice speaking of the Kaha race, that pensionados, which is another category reter, are also very concern when they. When they find out that even though you have just a pension of $1,000, which is the minimum threshold required for retirees, and they may end up paying at least $100 of CAJA rates, which is a lot of money, especially for those who still pay, you know, in the US Social Security or other countries.
Richard Bexon: So that is a big sense though, because anyone that’s going to become a resident here needs to be part of, I suppose the, the society of Costa Rica and helping it, which is the Social Security. Okay, you might not need to use it, that’s fine. But like other people do, like you’re part of this Costa Rican family now and like we all need to pitch in. And it’s not that you just get to choose, you know, when you do and when you don’t, but also is if anything serious happens, you’re covered. So it’s like yeah, you don’t want to be a. But the government doesn’t want you to be a burden and neither do the other people. Hence why you need to pay care.
Cristina Guerrini: Exactly. And honestly, you know, some people ask me but do I really need it and do I need to do that? I’m like, if you are living here, that’s what you need to do. That’s the right way to be an expert here.
Richard Bexon: Correct.
Cristina Guerrini: And contributing to the community. Now of course no one can force you, but you know, I, I do believe it’s the right thing to do. And I think I’ve already mentioned other podcasts. In the moment that I got my residency, I immediately felt part of the country. And I know that there is a lot of discussion about the gentrification problems. And I think as foreigners that are able to choose this country, we have the obligation to not take advantage of this country and make sure we do it the right way, you know, even more then we will do in our home country.
Richard Bexon: 100%. I mean, I feel like we have a little bit more of a blank canvas here to paint on than we do in our own countries. So you know, in our own countries the lines are already drawn and we have to paint within those lines. Here we don’t have that. It’s a much more of an open canvas.
Cristina Guerrini: Exactly. And I have to say even though we had struggle with immigration residency application, I do still consider Costa Rica as a very friendly country towards foreigners. And we have to be thankful and respect this country and the people that are here. And also it is also true, it’s not, you know, that we are also here to cause damage. Even, you know, we, the foreigner community, the foreign investment did help a lot this, this community. So I, I also hope that you know, with education and with the proper information, even locals can accept more foreigners. But if we want that, we need to make the first step. Yeah, I think we have, we are the one with the obligation of the first act and first action. We have to show that we are in Good faith, you know.
When to Avoid Costa Rica Residency
Richard Bexon: I agree, I agree. Why should someone not become a resident of Costa Rica, Cristina?
Cristina Guerrini: Well, response number one, if they are not living here full time and they are here only part of the year, and second time, if they cannot afford Social Security, but again, then they should consider, you know, because again, the right way, if you’re living here on a long term, then you should be contributing with the country. So I know many people are afraid about the caja rate and for some family also, they do not like the fact that once you become a resident and you have children, we are not yet of legal age, you need an exit permit to leave the country.
Richard Bexon: Correct.
Cristina Guerrini: And some people do not like that. Even though honestly, as a mother, I think it’s a great way to protect children against kidnapping. So I’m happy to sign a paper that ensures me that, you know, it’s not that easy to take my children out of the country.
Richard Bexon: Yeah, I remember having to do that. And they were like, did you want, do you and your wife have to be present or you’re okay with either one? And we were like, no, we’re okay with either one. But I mean, there were so many cases of couples like, I don’t know, an American, Costa Rican, and they get divorced or something happens, someone grabs the kids, goes to the States and like that kind of stuff and then it like they never were able to get their kids back to Costa Rica again, like an absolute nightmare. So I completely agree with you, Christina, on that one.
Cristina Guerrini: Yeah. Another important thing to consider is that you can give the permit like to your spouse, you can sign on an exit permit with either parents, but you can change it any moment and you just need to go to immigration, say, I want to change the exit permit. So that’s, that’s very, very simple.
Nosara Real Estate Market Conditions
Richard Bexon: So yeah. How is Nosada real estate like been in 2024, Christina? I mean, how would you compare it to 2023? Is it cooling down?
Cristina Guerrini: I do not think it’s cooling down. It is cooling down compared to the after Covid immediate era. But it’s kind of stable and we’re just getting the high season started, which is when the most of the real estate deal starts. I did notice that there is a big offer and not so many buyers. After Covid, many people bought properties in Azada and they built on them and now all those construction are done because eventually you can build and have that done in Costa Rica. It is possible. But yeah, so there are many offers especially of luxury homes and probably the not so many buyers.
Richard Bexon: Yeah, no, I said to someone the other day when they were looking to buy here, I was like, just remember, you have the power now. Like, it’s a buyer’s market. It’s not a seller’s market anymore. Like, it’s a buyer’s market. We’re starting to see. Yeah, I mean, look, I had a client who made an offer on a, you know, and a house. We reduced the offer by 10. They rejected it, and two months later they came back and said, yeah, you can have it. And the client like, no, I’m not doing it. Like, you know, I mean, that’s how the market has changed. I think there’s a realisation here of we’re going back to what it was like in 2019, where it is a buyer’s market.
Cristina Guerrini: I totally agree with you. Yeah, that’s what I noticed in the Nazar real estate market as well.
Richard Bexon: Hey, I’m, I’m buying, Christina. You know, I bought two bits of land this month. I’ve got one to close next week and one to close the week after. So. Yeah.
Cristina Guerrini: Congratulations.
How Would You Invest $500,000 Inheritance in Costa Rica?
Richard Bexon: Well, thank you. Thank you. Okay, my last question for you, Christina, as I’ve kept you long enough. If you inherited $500,000 and invest and had to invest into a business or cost or real estate in Costa Rica, what would you invest in and why?
Cristina Guerrini: Well, investment. I will probably invest in an area close to Nozada. It may be with that money, if I’m not in a rush, I could just buy a big piece of land and just wait for the market to be, you know, hot. Hotter than it is now and not being a buyer Marxist, and then develop the property or sell it to someone else for development for higher value. If it’s a business, probably still a business in real estate, you know, then I will just buy a few apartments for rentals. Well, with that money, depends on where you’re looking at. It’s not that you can buy so many apartments, but.
Richard Bexon: Well, I mean, for 500,000, where would you do it?
Cristina Guerrini: You could buy in San Jose, for example. That’s a, a very good budget to buy something that you can rent out long term or short term, depending on the areas.
Richard Bexon: Y.
Cristina Guerrini: So, yeah, it’s totally doable, but there are still, you know, you can find for that budget even in Samara, for example. There are options for that, definitely.
Richard Bexon: Well, Christina, it’s been an absolute pleasure having you here on the podcast. Anyone that would like to get in contact with Christina and discuss residency, you can do all of her contact details in the description down below. But thanks very much for your time, Christina.
Cristina Guerrini: Thank you for having me. It’s always a pleasure.
Richard Bexon: Always. Thank you.
Cristina Guerrini: Thank you. Bye.