Relocation Trends and Political Factors
Richard: Good afternoon, Anna. How you doing?
Anna: I’m doing wonderful, Richard. Thank you for having me.
Richard: No worries. It’s always a pleasure to have you here on the park podcast. I know we work together, but it’s always good to get out there and share information on Costa Rica being a plan B relocating and also investing here. So I know you’re a wealth of knowledge. You spend a lot of time with clients, have helped a lot of people move purchased properties here, and just kind of just making sure they do the right thing when it comes to Costa Rica. So thanks for taking your time.
Anna: Thank you for having me.
Richard: No worries. My first question that I always love to ask Anna is just, you know, with a lot of volatility in markets and I would say politics in the Western world, I mean, what impact is that having on, you know, inquiries about relocating, moving to Costa Rica and investing in Costa Rica?
Anna: I think it. Because of the situation. I think the situation has changed since the last time we spoke. I believe that the political instability and the uncertainty in the US Right now, and also Canada, I have to say, is getting a lot of people nervous and really considering moving. So they always think Costa Rica is a great option because they’ve heard wonderful things about it, political stability most of all, and of course, the weather. But, yes, I would say, Richard, that our inquiries have grown quite a bit based on wanting to get to a safer, more stable reality, for sure.
Richard: And I mean, do you. I mean, if you were to. Not that you have a, you know, a crystal ball here. I mean, how do you think that’s going to change? Do you think it’s going to increase as we get towards the end of the year and move into 2025, or do you think it’s going to kind of taper off a little bit?
Anna: No, I actually feel like it’s going to increase, especially since what’s happened in the last week.
Richard: Y.
Anna: You know, I think that people are now not just scared about, you know, maybe not loving the candidates and I’m sorry, being very specifically talking about the U.S. yep. I think that because there are so many wars now going on, like openly going on, where the US Is somehow involved and could be more involved in the future. A couple of school shootings and mall shootings in the last month really, you know, have, I think, made the situation even. Even more unstable.
Richard: Yeah.
Anna: And more uncertain. And what I feel is that people are just really rushing to. To. To make a good plan, you know, to have a plan B. A lot of the questions that I get are for people who have never even been to Costa Rica. So what’s happening in the next couple of months is a lot of people are visiting now, like before the election. Like, I have probably five, six clients coming in October just to see the country. They want us to show, show them, you know, the different areas and just have a more, you know, clear idea of every, you know, the reality of Costa Rica, but also, like, for them to start making plans to move next year.
Security Concerns and Local Realities
Richard: Someone had a concern, which is that again, there was a New York Times article the other day about like, Costa Rica becoming a potential, like narco state or something, I think was the word used. I mean, you’re a Costa Rican, you live here, so do I. But I mean, what’s, what’s your opinion on that?
Anna: I think that Costa Rica continues to really, to fight, you know, against the drug cartels and the drug trafficking happening in our, in our, within our borders. But I think it is a concern. I believe that it is very localized though. And for most people, for most of us who live in this beautiful country, we don’t really are part of it or in the middle of it in any way. Unless we would be located, we would choose to move to locations where, you know, we know that drug groups are operating.
Richard: Yeah.
Anna: I had a call from a client the other day and he was so excited about this little cabin that he wanted to rent. And when I looked at the location, I said, sir, please don’t. I know that the price sounds amazing and the surroundings are beautiful, but this is an area that, you know, is known for drug. A drug group being installed there. So please don’t even, don’t even think about it. So, yes, it is very avoidable, but it is something that I know that the government, you know, is constantly working on and dealing with because, because of our location, you know, we’re between South America and North America. And we used to be so nice and sort of naive, and now Costa Rica has like, really toughened up and become actually like super alert to any drug trafficking. And also like money loan.
Richard: Yeah.
Anna: That’s why sometimes, you know, the banks, you know, expats, sometimes are like, wow, it’s so hard to open a bank account. Like, well, you know, we’ve had our bad experiences and now, you know, banks are super careful about making sure that everything is done properly and by the law.
Richard: Yeah, I mean, I agree on it being very localized. I mean, typically the port towns, Puntarenas, Le Mon area, you know, I mean, it has Got into other areas, but really not. And again, you know, I agree, as long as you’re not looking for it. I mean, there’s definitely been a bit of an increase in it, you know, over the past couple of, you know, I would say past year, but I mean, from what I understand is that, you know, Costa Rica captured some of the heads of the, you know, of these gangs. And what that did was left a vacuum, vacuum of power. And then, you know, that’s that vacuum of power that’s trying to be, you know, kind of filled there. And unfortunately, you know, thank God it hasn’t spilled over into the majority of the areas where I would say expats and tourists are, etc, you know, between themselves. But I definitely know the government is doing everything that they can and directing resources, you know, to its police. Yeah, I mean, you know, we even have, you know, the US Coast Guard come through here every so often as well. They’re awol. So.
Anna: Yeah, the, the DEA works very closely with the Costa Rican government, always has, and continues to do more every day. I think that the coastal areas just like, open up to, you know, having the opportunity to do boats and helicopters. But if you go to the Golfo, say, you know, the South Pacific, close to Confito, you see the police, you know, all the time they’re around, you can see them. You, like you’re in the water and like, look, there’s a helicopter from the police. They’re always really on top of it, so. Because they know that if they let go a little bit, they will take advantage of it.
What to Know About Living in Costa Rica
Richard: You’d mentioned that, Anna, that look, there’s a lot of people looking to come here for the first time, and potentially they’re looking for a plan B. I mean, what are the things that people should understand about living here?
Anna: Well, I think that Costa Rica is a great option for most people that want to live in a peaceful setting. We have great weather. We have. The most amazing thing we have is amazing people. But also I think that our infrastructure, especially in the coastal areas where most expats want to move to, has improved so much. And I mean, you know, just the international airport in Guanacaste has changed everything, but also just the schools, you know, that are now available. Like, you see that, you know, now, now there’s five, six great schools on the coast in most of the coasts. And so, you know, international schools. So very good, wonderful setting. You, you see Hospital Metropolitano, for example, which is, you know, connected to MediSmart, which is one of the health insurance companies. Insurance Companies. It’s all over now. You, you know, there’s a hospital in Jaco, in, in Guanacaste, close to Flamingo. Then there’s another one in Quepos. There’s, you know, you see it all over now. I mean, you see the infrastructure sort of adapting to the needs, you know, and the demand for it as more and more expats have moved to Costa Rica. I spoke with a client yesterday, had the most, you know, wonderful conversation because, you know, everything I said, his, his smile just got so big, you know, it’s like, yeah, you know, if you live. He was thinking about Escassu or Santana, which is in the city. And every time I said, you know, yeah, the beach is only like an hour and a half away, he was, big smile, you know, but there’s also like, all the main hospitals are here and, you know, theater and movies and concerts and all kinds of cool stuff. Big smile. I think that also the, the fact that he has a quite a, a very good monthly pension also allows him to feel comfortable. Because I said, you know, Costa Rica is not as, you know, the prices is not, not as low as other Central American countries and there is a reason for it. Right? Our import tax is much higher. We protect our local producers much more. And, and we’re proud of it. You know, it is, it is what it is. You know, we can’t be perfect. We can’t fit into this perfect image that it’s going to be wonderful, beautiful, stable, and also cheap. We’re not cheap, but we are a great value. That’s that’s all I can say. So. Yeah, I just think that, that, you know, it’s, it’s very easy to adapt to a very good quality of life in Costa Rica. The weather and the people and the infrastructure and the beauty, of course.
Challenges of Living in Costa Rica
Richard: I mean, look, I mean, that sounds great, but, you know, I’m sure some people listening are like, okay, what’s the downside? What is some other stuff that people need to understand about moving to Costa Rica?
Anna: Well, I mean, I think that as the reality is that, you know, we also deal with bureaucracy, right? I mean, the doing, getting anything done takes a little bit longer than, than in the, in their country of, of in the US or in Canada or even, even in Europe. You know, it’s just, it’s, it’s the reality of a country that is still developing. You know, we’re still a developing country. Not, you know, not as, you know, like the aid, for example, the USAID program decided that Costa Rica was not a developed country anymore ever since like 20 years ago. But I believe that there are areas that, that they still cover, you know, because our areas that are still, you know, having its challenges and, and, and it, it is a process. But I think that as a country, infrastructure, I think, you know, road infrastructure is, is complicated. You know, the city, the traffic is real here where I live, you know, and, and you just kind of get, learn how to organize and pick and choose the times when you, you know, get out of the house if you can. If you work, if you have to go to an office during rush hour, then you know, it’s a little bit, you just have to give yourself a little bit more time. But I also think that, you know, it’s, it’s for Costa Ricans, Richard. It’s, it’s not easy as well. You know, like we, we struggle with, with making ends meet because it’s expensive. It’s an expensive country.
Richard: Yeah.
Anna: But there are tips and tricks. I always share it with my clients. You know, farmers market, you know, just be very good about getting great butcher shop to get your protein and just going to the supermarket for those little bits of things that are still missing from, from, from your, from your list. But basically just splurge on going out to eat and imported products as much as your budget allows. But I believe that, that you know, transport, I think infrastructure for me is one of the big things like the road infrastructure. I hear a lot of expats going, wow, it took me five hours to go from San Jose to Guanacaste. I’m like, yeah, that’s what it takes. They’re fixing the road, it’s getting better. But what I do is I travel, you know, at 3am in the morning.
Richard: Yeah.
Anna: So I mean we all fly.
Richard: It takes 35, 40 minutes.
Anna: Yeah. You figure out a way to, to, to make it work for you and you know, and, and it’s just, it is what it is. But I think that Costa Rica is on always improving and that’s what’s exciting.
Richard: About, I think it’s slow but steady. I always say that Costa Rica, like we don’t have this volatility that you know, a lot of worlds have or like in Panama that they saw this massive growth. You know, Costa Rica is just slow and steady, which is what I like, I like that stuff. Maybe the infrastructure is not perfect here because then it takes so long to do stuff here. Only good ideas get done. I mean, I say that because you have to be passionate like about doing things. I say that as a developer Myself of, like, if you’re not passionate about what you do, you just give up at the red tape. Like, it’s. It’s not a place to make a quick buck. It’s not a place that you can come in and just do whatever you want. Like, there are restrictions in certain areas, and because of the infrastructure, it restricts certain projects as well, which is good because it keeps it that boutique, that organicness, you know, that. That we all love Costa Rica for.
Anna: Absolutely. And also I think that it’s very important when you’re developing or building, where you want to build or develop anything. You know, the environmental laws in Costa Rica exist.
Richard: Yeah.
Anna: And so I think that. I think the country has been very good about protecting, you know, the water source and. And also just making sure that primary forests are not affected, you know, So I, I think it’s a process that takes a little bit of time. Unfortunately, not as fast as we would like. But I think that as we grow and develop more, because the country really has taken off since COVID just because there’s just been so much demand, I think that it, it. Everything that’s been happening, it’s actually positive. It’s the country trying to, like, you know, get up to speed with what’s. What’s really happening. And I also see that very much in the immigration department, they were really stuck because they had so many requests for residency that they keep making little changes, like, every couple of months. The immigration lawyer that I usually recommend that we work with, she keeps updating me because. Just little things that they change, but I think it’s all with a very good intention of making things move and flow.
Residency, Pets, and Vehicles
Richard: Yeah. Well, it’s funny you say that, though, but, like, they’ve just been actually rejecting quite a bunch of investor residency stuff recently, but we’ll see that. But like, on that topic of residency, I mean, do people need residency to move here?
Anna: Not at all. Not at all. Especially when you don’t. When it’s your first visit, like when you don’t know Costa Rica.
Richard: Right.
Anna: So, and we’ve said this in other podcasts, I think it’s always the best. If you’ve never been to Costa Rica, it’s always the best idea is to rent first. And you don’t need to go through the residency process when you’re renting or when you’re just really settling down and trying to understand what it’s like to live here. You just get a tourist visa. You get a tourist stamp when you come in. And you. And so, you know, this Gives them time to, to really understand, you know, and settle in a place or maybe move to another area and also change, you know, sort of experience a different location and community. And all they need to do is before their stamp, you know, exceeds the time that was given to them, they just need to do a border run. A lot of expats in different communities get together and do it, you know, go have lunch on the other side, either Panama or Nicaragua, and then they come back in.
Richard: I mean, they get it.
Anna: So I know it sounds easy, but it is.
Richard: They get it for six months. And I think that their driver’s license now is for six months as well. It used to be for three months, now six. So they just go across the border and come back in and they’re fine.
Anna: Yeah, it used to have to be, remember, 72 hours.
Richard: Yeah.
Anna: To be 72 hours outside of Costa Rica. Not any. Not anymore.
Richard: I think if you want to, like, really live here and open bank account accounts and have ease of, like, doing business, meaning if you have any interest of doing business or anything here, like, it’s always good to get residency. I mean, personally, you know, I’m citizen of the UK and also a citizen of Costa Rica. Like, it’s kind of cool going with two passports. Personally, residency is great as well, because when you arrive, if you’re a resident here, you don’t need to go down the tourist style. You go straight down the other one and you’re straight through. Like that’s a benefit for it. But like opening bank accounts, getting electricity at home, paying bills, all that stuff becomes a lot easier. It’s not impossible to do. It’s like a tourist. But it’s a lot easier to do when you’re a resident here.
Anna: Absolutely, absolutely, yes. And that’s why I was sort of saying, you know, for those people who are just starting in Costa Rica who are not sure if they want to stay or even purchase to live here, then for sure, for a longer, longer term. So, yeah, I think that there are different, different situations for each family. What I do with clients who are serious about moving down is I put them in contact with the immigration lawyer. I think that conversation is very healthy because every situation is unique and so they get to have this. Just really explore with the immigration lawyer all the options that she will recommend depending on what it is that they want to do. Not a lot of people say that they want to open up a business, but this is something that I always tell the lawyer, I say, hey, recommend it to them. Know, make sure that this is part of the conversation because a lot of expats then decide to open a business. So eventually. So it’s like, hey, you know, think about, make sure that you, you guys have this conversation. Put it, make sure you include it in. So.
Richard: And there’s ways that you can still not have residency here, you can still have a business and work in it as a shareholder and pay yourself, etc. It’s just. Life becomes easier when you’re resident here. But. And a lot of people, you know, always ask, well, often ask about, hey, I want to bring my vehicle down or bring my animals here. I mean, how is that easy to do? I mean, there’s nothing easy, but like, is it possible?
Anna: I think, I think bringing your animal is quite easy. Y. You might have to do a little, you know, research on the airline, the right airline that is, you know, where you need to fly, fly to so that you can catch the airline that will come in and allow you to bring your dog in the cabin. But it is possible. And I mean, most expats do it, so it, it is. There are a couple of options of private flights for, for your, for your pets. And if you can’t afford it, that’s a great option. But most people just, you know, just rearrange their, their flights so that they can go to a city in the US where they can fly from. You know, from that city, there is a direct flight to Costa Rica with that dog in, in the cabin.
Richard: What about vehicles, if people want to bring their vehicles?
Anna: Well, it very much depends on the vehicle. I just spoke to a couple of clients this week wondering about it and wanting to actually drive the car down. So I said, well, first, yeah, so here I always get them in touch with Paolo Arias, which is our very good friend. He’s a relocation expert and he deals with shipping. And so I say, I always say have a conversation with him again because there’s many different, you know, levels of information and decision, you know, elements that will help you make the right decision. I think that bringing in a car can be a hassle. Rich paperwork can be a hassle. It can be a little bit expensive. So it depends. It depends very much. Somebody said the other day that they want to bring in their Tesla, like, okay, let me, let me put you in touch with Paolo because, you know, it might be crazy or it might be a good idea, depending on as.
Richard: Cost, import, tax time. You’ve got to get it then to declar and yeah, I mean, run around, get a bunch of paperwork and people can do that. For you, it’s just, you know, yeah, it takes time.
Anna: Yeah, it takes time. I also think, Richard, buying a car here is a really good idea because if you, if you understand the, the reality of Costa Rican roads, I think, you know, you’ll see very quickly that in Costa Rica, Japanese brands are the best. Toyota, Nissan, Subaru and Mitsubishi are the best options just because it’s going to be easy. First of all, they’re going to maintain their value the best. But also it’s going to be easier to get parts and the mechanics are going to be, most of them can fix all the Japanese cars and they’re strong and they’re sturdy and they will take on any mountain. So I think that’s the best way to go. And we help our clients either buy a used car or a brand new car. I have two clients now that want a brand new, blooming, beautiful, shiny car. I’m like, well, good for you. If you can afford it, go for it.
Richard: I mean, look, I think a lot of people that are relocating here sell an asset or like they’re looking for a slower life and, and like, they wouldn’t do it in the States, they’ve never done it. But like down here they’re like, look, I want to kind of enjoy life a little bit more. And if that enjoying life is buying a brand new car, go for it. I mean, you know, two years ago I bought a brand new car. The good thing about it is, you know, where it’s coming from, like how it’s been treated, etc. I mean, from an investment point of view, terrible. Like the depreciation, insane. But I mean, you know, if we all made decisions just based on, from an investment point of view, you know, I don’t know whether we get much done.
Anna: Richard. I also bought a new car, but because, because I wanted to have great maintenance. I wanted to not have to deal with thinking about, you know, a used car having some issues that I can’t see at the beginning. I just, I wanted that feeling of, you know, being confident that the car was in absolute perfect shape. So it all depends and how much.
Costa Rica Living Costs
Richard: Do you think you need to live comfortably in Costa Rica?
Anna: I would say live comfort. So it very much depends on the area. Richard? Yep. I’ve been talking to clients who have a, you know, a more, let’s say a smaller budget. So they’re telling me, you know, I don’t want to spend over, not even over a thousand bucks for rent. So how can I, where can I find a long term rental? And I Always say, well, okay, yeah, sure. There are communities mountainous, San Ramon, Grecia, even Atenas. Sometimes you can find something like that. If you want to go to Tamarindo, it’s going to be hard to find, you know, a place under a thousand dollars. So you can find it, but it’s just probably not. Yeah, so, so the coast is, is usually more expensive. But also in San Jose, you know, you can find like I live in, where I pay, you know, my, my hoa. I mean I don’t, I own my home, but my HOA is $350. I mean it’s, it’s significant. But people who rent from owners in this condo are paying $1,300, $1,500 for a three bedroom. You know, it’s a, it’s a nice house. So I think it’s very doable. You know, in San Jose you have a lot of options. So I think between 1200 and 1500 is a good budget for San Jose, you know, for this city.
Richard: Right, right.
Anna: I think that.
Richard: Yeah, no, go ahead. Sorry, you were about to say the beaches. I think.
Anna: So I, I think that together with the rest of the, of the expenses, I would say between 1800 and 2500, I would say the sweet spot is probably 2200.
Richard: Yeah.
Anna: I say, you know, this, this will allow you to go out to eat every once in a while, go out, you know, do your thing, you know, maybe rent a car if you don’t own a car every once in a while just to go and travel, you know, around the country for a weekend here and there. So I mean, I, I think that it is, it is quite, quite possible. But we can also help you find locations where you’re going to be able to do a lower budget. We got a lot of. Sorry. Or higher budget.
Richard: I mean people sometimes, you know, I mean, can have, they can live in like the high end communities here and it’s going to cost them four or $5,000, you know, just in rent if they really wanted to. But I mean these are very high end communities.
Anna: Yes. And you know, and we get, we get families. I mean, you know, John, he, he, he had a very healthy, you know, monthly amount for a rental, but he’s here with his family, so then it makes sense. Right. And they’re going to be here and they’re, you know, the kids are in school, so, so I think that also his situation is different. He’s looking to live here for, for good. A lot of people just come and rent. Older people mostly they just they just want to come and rent for a couple of years and see if they really like it, if they fit, if there it’s a match and then either continue renting, they don’t necessarily need to purchase or just purchase something and then install themselves for sure, you know, settle themselves down here.
Investment Recommendations in Costa Rica
Richard: I know my last question for you is I’ve kept you long enough. If you inherited $500,000 and you had to invest it in the business or real estate in Costa Rica, what would you invest it in and why? And you can’t say give it to me.
Anna: Well, Richard, I, I have to say I continue to be very excited about Papagayo and Playa del Coco area. So I would definitely go and find maybe buy a condo there, you know, something a little older but with a beautiful location, remodel it and, and turn it into a short term rental. I think I’m really excited about that area. It’s not, you know, there’s a lot of like five star resorts going up and it sounds like it’s a very rich area. But I think that what’s coming for Playa del Coco, which is like a more you know, down to earth location for mere Mortons, that it’s more local.
Richard: Yeah, yeah.
Anna: And I also think that there’s a lot of opportunities that are going to come up with services and infrastructure in general needs to you know, really, really raise up to, to deal with what’s happening the development in the area. So I think it’s exciting. I am kind of really obsessed also with this development called Montemar, a beautiful new development. It’s just lots on a mountain overlooking the ocean and I think the prices at this time because it’s still not, not completely ready to build are very interesting, very exciting. So I’m taking a couple.
Richard: How much are those lots Anna and how big are they?
Anna: You can buy a lot between from there’s there are prices from $80,000 to. They’re usually like between 2500 and 3500 square meters. Yep. And yeah you can start at 80,000 and go all the way up to 500,000 for the really amazing views. But I, you know that we have a client who purchased there. She got an amazing price, Richard. In just one year the price has increased quite a bit. So even if she just wanted to sell the lot now she’ll, she’ll make a little bit of money but I know she’s planning on building and so yeah, so I’ll be there with, with clients in November who want to purchase, purchase a lot and they’re willing to wait, you know, whatever the. The year or year and a half that we still need to then build, you know, their dream home there.
Richard: Well, Anna, thank you very much for taking the time. It’s been absolute pleasure having you here on the podcast. I’ll put all of your contact details down in the description, but you have a great day.
Anna: Thank you. Thank you, Rich. You, too.
Richard: Bye.
Anna: You said.
