COSTA RICA NEWS AND VIEWS!
| "Costa Rican Beachfronts Entice U.S. Buyers"
| "MOPT Encourages Carpooling"
| "Tensions rise over Costa Rican-Nicaraguan border dispute"
| "Chinchilla Asks Obama and Clinton For Support With Nicaragua Conflict"
| "Constitutional Court Rejects Appeal To Ban US Navy"
| "IRA Transactions - What to Watch out For"
| "Costa Rica for its stability"
| "Cedula Renewal"
| "Why Costa Rica scores well"
Costa Rican Beachfronts Entice U.S. Buyers
U.S. expats are eyeing dropping prices on Costa Rican beachfront property as a place to enjoy their retirements in an area that affords a low cost of living and beautiful views with top-flight health care. Real estate analysts note that waterfront properties in the Central American country are selling for between 30%-50% lower than they have been in the last 10 years, due in part because many investors who bought into the market anticipating profitable turnarounds got surprised by the global financial crisis and its ripple effects.
In the right spots, Costa Rica's beaches make smart buys today for Americans shopping for good-value retirement and vacation homes.
Prices on beachfront properties along certain stretches of Costa Rica's coast have tumbled. It means a window of opportunity has opened there for Americans anxious to "rescue their retirements" by looking for dollar-stretching opportunities overseas.
The latest research from overseas retirement specialists, International Living, shows that in some areas of Costa Rica today, prices are 30% less than at any time in the last 10 years. In pockets along the Gold Coast prices are down as much as 50%.
"This is big news for anyone looking for a part-time retreat or a permanent beachfront home in a country, where the cost of living is low and the health care is first class," said International Living's Dan Prescher.
Prescher, along with fellow International Living editor, Suzan Haskins, traveled hundreds of miles around Costa Rica to report on the effect of the global real estate market's collapse on prices, and to meet the expats who have benefited.
Among them are Ben and Jill Hill, originally from California, and their son Daren McBratney. Today they run a yoga spa in the Costa Rican beach town of Nosara.
"When we saw the market falling apart in the U.S. we just said it was time to make the move. Our only stumbling block was making the personal decision. Once we did there really wasn't any more hesitation or hurdles. And as you can see, things worked out pretty well," Jill told International Living.
Papagayo in the northwestern corner of Costa Rica's Guanacaste province was the heart of the country's real estate action a few years ago. But the International Living team recently found a certain number of properties standing empty and idle-their owners willing to either sell at a discount or, instead, rent at practically the cost of upkeep, just to have someone there.
At 58-years old, retirees Andy and Fran Browne were living in North Carolina when they ran the numbers and found they could take advantage of this window of opportunity to rent long-term in Costa Rica.
"We're using our nest egg for a long-term vacation strategy. Instead of buying a house right now, we have the luxury of renting without tying ourselves down to a piece of property, and use that same amount over the next 15 to 20 years to do what we really want…vacation and explore," said Andy.
"Every person we spoke to in Costa Rica says this is the time to strike. Previously, some individuals bought in the market here hoping to flip their properties and make a quick buck. Today, they're ready to deal. So are the developers who remain solvent but are stuck with lots of unsold inventory," said Haskins.
Commenting on the findings, International Living executive editor, Jennifer Stevens said: "Costa Rica is just one of the overseas locations where a growing number of people are finding the affordable retirement and quality of life they want, but can't have in the U.S. And with 1,100 miles of the most beautiful sun-drenched shorelines in the Western Hemisphere, Costa Rica is definitely one of the most attractive options.
This article was republished with permission from International Living.
MOPT Encourages Carpooling
Costa Rican Spanish, which has already borrowed many words from English (most are technical), is about to gain another one: carpooling.
The Ministry of Transport (MOPT) has relaxed the restriction prohibiting circulation of autos in the heart of San Jose one day per week between 6 a.m. and 7 p.m. Which day is determined by the last number of the vehicle license plate but cars containing four or more persons are exempt.
The traffic regulation stemmed from the time in the Pacheco Administration (2002-2006) when petroleum process shot through the roof. In order to protect its balance of payments, MOPT put the measure into place.
The main object was to reduce traffic jams in downtown San Jose, when cars crawl along in stop and go streams, their idling engines using fuel. But the plan also reduced air pollution and driver frustration and remained in place when petroleum prices returned to some semblance of normality.
That was not the only government innovation of that time. The government revived the moribund nationalize railways system, INCOFER, creating the wildly successful commuter service between the capital and outlying areas such as Heredia and Belen. From adversity comes invention.
Later, the Arias administration instituted a special bus lane on the General Canas Highway. MOPT chief Francisco Jimenez said, however, that the plan to extend the circulation restriction of vehicles outside the congested downtown San Jose zone has been scrapped when it was found to have no effect on traffic in those areas.
Tensions rise over Costa Rican-Nicaraguan border dispute
Costa Rica is attempting to create an armed conflict with neighboring Nicaragua, Nicaraguan Army spokesman Juan Morales said citing counterintelligence information.
Relations between the two countries became tense in November when the Nicaraguan military began widening the waterway in the San Juan River Delta and began establishing a military camp on the disputed Calero Island, in particular a small island called Harbor Head to the east of Calero.
"According to our counterintelligence information, the Costa Rican side is planning to attack [Nicaraguan] security forces guarding the border. In order to do this, [Costa Rica] has trained a special group which will be dressed in Nicaraguan military uniforms. In this way the Costa Rican government is attempting to blame hostilities on Nicaragua," Morales said on Monday.
The Costa Rican government officially announced earlier that it was building additional helicopter pads and roads on the border with Nicaragua.
The territorial dispute between the two Latin American countries dates back to 1850. In 1858, the Canas-Jerez Treaty established that Nicaragua is the rightful owner of the San Juan River, but Costa Rica retained the right to use it for commercial navigation.
Calero Island with a total land area of 151.6 square kilometers (58.5 sq. miles) is internationally recognized as Costa Rican territory.
Costa Rica does not have an army.
Chinchilla Asks Obama and Clinton For Support With Nicaragua Conflict
A Constitutional Court ruling allows US navy ships to enter Costa Rican waters in a joint antidrug operations with the Costa Rican Coast Guard, under the Joint Maritime Agreement in effect since 1999.
The agreement permits the United States to enter Costa Rica's waters and ports preapproved every six months by the Costa Rican legislature.
The agreement, similar to other agreements the United States has with other Central American countries, allows Costa Rica's legislature to approve or reject which ships have permission to enter and dock.
The approval or rejection occurs every January 1 and July 1.
The approval of US ships has caused controversy as the US provides a list of all possible ships that will dock in Costa Rica, causing some to believe an invasion by US naval ships and personnel.
The court challenge to the latest approval was led by former first lady and legislator, Gloria Bejarano , along with legislators Luis Fishma, Rodolfo Sotomayer and Walter Cespedes.
Bejarano is the wife of former president Rafael Ángel Calderón Fournier.
The group said the approval was unconstitutional, same as the agreement, arguing that it expired in 2009, as it was originally approved for only a period of 10 years.
The Constitutional Court ruling came Christmas Eve, the judges saying that the appeal was "without cause", paving the way for the US ships to continue their operations.
During December a group of legislators were invited aboard the USS Doyle that was docked in the port of Golfito to take on fuel and supplies, leaving behind some us$3 million dollars to the local economy.
Constitutional Court Rejects Appeal To Ban US Navy
A Constitutional Court ruling allows US navy ships to enter Costa Rican waters in a joint antidrug operations with the Costa Rican Coast Guard, under the Joint Maritime Agreement in effect since 1999.
The agreement permits the United States to enter Costa Rica's waters and ports preapproved every six months by the Costa Rican legislature.
The agreement, similar to other agreements the United States has with other Central American countries, allows Costa Rica's legislature to approve or reject which ships have permission to enter and dock.
The approval or rejection occurs every January 1 and July 1.
The approval of US ships has caused controversy as the US provides a list of all possible ships that will dock in Costa Rica, causing some to believe an invasion by US naval ships and personnel.
The court challenge to the latest approval was led by former first lady and legislator, Gloria Bejarano , along with legislators Luis Fishma, Rodolfo Sotomayer and Walter Cespedes.
Bejarano is the wife of former president Rafael Ángel Calderón Fournier.
The group said the approval was unconstitutional, same as the agreement, arguing that it expired in 2009, as it was originally approved for only a period of 10 years.
The Constitutional Court ruling came Christmas Eve, the judges saying that the appeal was "without cause", paving the way for the US ships to continue their operations.
During December a group of legislators were invited aboard the USS Doyle that was docked in the port of Golfito to take on fuel and supplies, leaving behind some us$3 million dollars to the local economy.
IRA Transactions: What to Watch out For in Self Directed
What to Watch out For in Self Directed IRA Transactions:
Considering investing in real estate with your IRA? Sounds great and there are a number of companies who actively promote real estate investing through a "Self Directed IRA". For a fee, you can roll over an existing IRA or 401k from a previous employer and gain control over how your funds are invested. The problem as I have seen it, many of these companies do not adequately explain the rules that go along with investing through a "Self Direct IRA". I am referring to prohibited transactions?
Section 408 and 4975 of the Internal Revenue Code explain everything the IRA must be aware of when dealing with his own IRA. To save you the time of looking up these code sections I will lay out the gist of the rules in English. Here we go.
Certain transactions with an IRA account are prohibited if a "disqualified person" is involved in the transaction.
Disqualified persons include the IRA owner, certain family members, any other fiduciary and certain service providers (among others).
Prohibited transactions include the following:
-- a transfer of plan income or assets to, or use of them by or for the benefit of, a disqualified person;
-- any act of a fiduciary by which plan income or assets are used for his or her own interest;
-- the receipt of consideration by a fiduciary for his or her own account from any party dealing with the plan in a transaction that involves plan income or assets;
-- the sale, exchange, or lease of property between a plan and a disqualified person;
-- lending money or extending credit between a plan and a disqualified person; and
-- furnishing goods, services, or facilities between a plan and a disqualified person.
-- If a prohibited transaction occurs,
the IRA ceases to be an IRA as of the first day of the tax year in which the transaction took place.
I often see the potential for prohibited transactions when an IRA owner works on the property owned by the IRA or becomes to involved in facilitating an IRA transaction. These problems typically arise because the IRA Owner can not or does not want to wait for the IRA trustee to handle the transaction on behalf of the IRA owner. A solution offered by many Self Directed IRA companies is for the IRA owner to establish a "Checkbook IRA" i.e., set up an LLC that is wholly owned by your IRA but managed by the IRA owner. The Checkbook LLC attempts to solve the "I need to get this deal done ASAP" problem because the IRA owner is in control of the LLC and can enter into transactions on its behalf without involving the IRA trustee.
I bring this to your attention because despite the nature of the transaction, the prohibited transaction rules still apply and the IRA owner must tread carefully lest he risk disqualifying his IRA. Next week I will discuss an alternative to the "Self Directed IRA".
"Costa Rica: For decades has stood out for its stability"
For decades Costa Rica has stood out for its stability and has benefited from the most developed welfare system in the region.
It has no standing army, and its citizens enjoy one of the highest life expectancy levels in the Western hemisphere and better living standards than their war-torn neighbours.
OVERVIEW: Traditionally dependent on coffee, banana and beef exports, Costa Rica has diversified its economy. The opening of a large computer chip plant in the late 1990s was a fillip to the economy, but its fortunes have been subject to the fluctuating world demand for microchips.
Tourism is Costa Rica's main source of foreign exchange. Its tropical forests are home to a profusion of flora and fauna, including 1,000 species of orchid and 850 species of birds, such as macaws and toucans.
The Caribbean coast with its swamps and sandy beaches is also a big draw. But Costa Rica is trying to shake off its reputation as a destination for sex tourists.
While relatively free of crime, Costa Rica has been used as a transit point for South American cocaine and there have been allegations that drug-tainted money has found its way into the coffers of the two main political parties.
Once dubbed the "Switzerland of Central America", the country's self-image was badly shaken in 2004 when allegations of high-level corruption led to two former presidents being imprisoned on graft charges.
FACTS:
Full name: Republic of Costa Rica
Population: 4.6 million (UN, 2009)
Capital: San Jose
Area: 51,100 sq km (19,730 sq miles)
Major languages: Spanish (official), English
Major religion: Christianity
Life expectancy: 76 years (men), 81 years (women) (UN)
Monetary unit: 1 Costa Rican colon = 100 centimos
Main exports: Coffee, bananas, sugar, textiles, electronic components, electricity
GNI per capita: US$6,060 (World Bank, 2008)
Internet domain: .cr
International dialling code: +506
LEADERS
President: Laura Chinchilla
Laura Chinchilla won a landslide victory in February 2010 to become the country's first woman to be elected president. She took up office in May 2010.
Ms Chinchilla is a career politician who was born into a political family and served as public safety minister, congressional deputy and most recently as vice president and justice minister in the cabinet of her predecessor, Nobel peace laureate President Oscar Arias.
She promised to continue Arias's moderate free-market policies and expand Costa Rica's web of free trade agreements. She has also backed liberalization of Costa Rica's state-controlled electricity and telecommunications sectors.
Married with a teenage son, Ms Chinchilla is a social conservative, opposing gay marriage, abortion and any change to Roman Catholicism's position as the state religion. Supporters regaled her with rosaries during her campaign, including one she wears constantly for good luck.
During her election campaign she promised to boost education spending as well as increase funding for law enforcement and create an anti-drug czar to oversee the growing struggle against drug smugglers who are using Costa Rica as a transit route.
The election of Ms Chinchilla follows an increasingly common trend in many Latin American countries: Nicaragua, Panama, Chile and Argentina have all elected women as presidents.
In the simultaneous parliamentary polls, Ms Chinchilla's centrist National Liberation Party failed to win a majority in the 57-member Congress, making the forging of alliances a necessity.
"Dialogue has to become a permanent instrument for the exercise of power," Ms Chinchilla commented after her victory.
Cedula Renewal:Immigration appointments
If you live in Costa Rica and have a legal status also called, Cedula de Residencia, you know that there is an expiration date on it and it must be renewed, so if it is your time, this is what you need to do:
1. Phone immigration at 900-1234567 (your telephone most be authorize to call 900 numbers) the cost for the phone call is around 155 (colones) per minute and it will be charge to your telephone bill.
2. Immigration will give you an appointment, some time for the next month, after you made the appointment. Write down the date and the code number they provide and save it (it is important that you present the code when you go to the appointment)
3. Before you go to your appointment, you need to deposit $58 at Banco Costa Rica (BCR), Account No. 242480-0, the $58 is for a two-year renewal. (You get a two-year renewal if you have been a Resident more than five years.)
4. If your cedula of residecy expired and you still have the green book, it will coast you $123 to renew it for 2 years. Yur book will be replaced by a plastic cedula, similar to the costarrican one. Deposit is made at BCR (Banco de Costa Rica).
5. For the appointment, you must bring:
- The BCR Deposit receipt.
- Your Cedula de Residencia.
- A writing with your name, Cedula Number, residence address in Costa Rica, and phone number. (to up date your file).
- Valid Passport.
- Certification of Pention or Orden Patronal if you work in the country.
- Oja de delincuencia (Police Record).
- I believe those who are renewed for only one year will Deposit less at BCR, but you'll find that out when you phone.
Happiness Index. Why Costa Rica scores well
Costa Rica - green and happy?
Whatever the outcome of the presidential elections on Sunday, one thing seems certain. The country will continue to break the mould.
Central America is a region still associated with coups and civil strife, but Costa Rica has no army. It was abolished in 1949.
Successive governments have poured money into books, not bullets. Not even the recent threat of the Mexican drugs war spilling over has led to calls for the army's return.
It was also the first developing country to state its aim of being carbon neutral (by 2021), in part through the mass planting of trees.
Official figures suggest that it has bucked the trend of losing its forests: more than half its territory is now covered in trees, compared to 20% in the 1980s.
And then there's Costa Rica's reputation for being one of the happiest and greenest countries in the world. It regularly appears top - or near the top - of international surveys. It is usually the only developing country to do so.
The 2010 Environmental Performance Index was published last month by experts at Yale and Columbia Universities. Using 10 categories and 25 different measurements, Costa Rica was placed third out of 163 countries, up from fifth two years ago.
Only Iceland and Switzerland outperformed it. The UK came 14th, the US 61st.
"Things aren't perfect in Costa Rica," Christine Kim from Yale University told the BBC.
"But basically the country does care about the environment. Other governments shove it down towards the bottom of their priorities."
The latest version of the Happy Planet Index compiled by the New Economics Foundation (NEF), placed Costa Rica on top of every country in the world. It makes an explicit link between happiness and the environment, and combines three key variables - what people say about their life satisfaction, their longevity and their ecological footprint.
Well-Being Tourism: All is set for The Latin American Conference
ALL IS SET FOR THE LATIN AMERICAN CONFERENCE ON HEALTH AND WELL-BEING TOURISM
More than 450 health service operators will meet in San Jose
Eleven Latin American countries will be there to represent their private and public sectors
Costa Rica will be the first country to bring together some 450 health service operators from more than 15 American countries. The first Global Medicine and Well-being Congress in the region will be held on the 26th, 27th, and 28th of April at the Hotel Ramada Herradura Convention Center in San Jose.
This event will bring together companies from the medical and tourism sectors, in addition to key decision makers, like insurance companies, self-insured businesses, and potential industry investors.
The public as well as the private sector will have representatives at the conference, coming from Venezuela, Argentina, Colombia, Ecuador, Mexico, United States, Canada, Cuba, Panama, El Salvador and Guatemala.
The conventions goals include bringing attention to the various medical tourism services that are offered throughout the region, pointing out especially the high-quality customer service that Latin American health service centers provide. Likewise, the conference will provide time to share experiences as well as proposals to increase the competitiveness of the Latin American region in this field.
Some of the events activities will include conferences, business meetings, and hospital and medical center visits. The event will also host business networking where providers from the region will have the opportunity to negotiate directly with buyers, mainly from the US and Canada. The organization has already signed up more than 100 buyers including Aflac Insurance, Coloniel Insurance, EMEX Benefit Systems, Colonial Medical, n Health, Pacific General Underwriters, and others.
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