Archive for August, 2016

How to open a Costa Rica bank account

Written by Michael Simons on . Posted in Costa Rica Living, Costa Rica Service Providers, EX PATS in Costa Rica, FAQ's

Before answering the question of how to open a Costa Rica bank account, another question should be answered: “Do you NEED to open a bank account in Costa Rica? And that depends on what you are doing in Costa Rica.

Banco Nacional, a place to open a Costa Rica bank account

You do NOT need to open a bank account to buy a property in paradise. All transactions are done using a reputable law firm and a third party escrow, like Secure Title Latin America. They will set up an escrow account specifically for your transaction and insure that the closing takes place before your funds are distributed to the seller.

Costa Rica is a very safe place to put your money and their banks are considered some of the strongest in the world. So your money is very secure in a financial institution in this country. But they are also very opposed to money laundering, drug dealings or tax evasion, and they have implemented many rules and regulations to guard against those types of transactions. So be prepared to show lots of paperwork to substantiate WHERE your funds have come from and HOW you have obtained them. In order to open a Costa Rica bank account, you will need to provide the following documentation:

What are Closing Costs?

Written by Michael Simons on . Posted in Buying and Selling Property in Costa Rica, FAQ's, Homes, Investing in Costa Rica, Tres Amigos Realty

What are Costa Rica closing costs?

In Costa Rica, all closings are handled by a law firm, with a government authorized third party escrow, such as Secure Title Costa Rica. The fees are generally much higher than you would see in the USA or Canada, but surely nothing that will scare you away from a purchase.

The reason for this is simple. The government of Costa Rica, like any government, must collect taxes in order to survive. Most Costa Ricans live in the same house their entire lives. They are not like North Americans, who might buy and sell many properties in their lifetimes. It is very common for Costa Ricans to still live with their parents, even as adults. And many properties are given from the parents to their children for free. A farmer might subdivide his large property and give small sections to each of his children to build a house on. In the USA and Canada, there are many ways to collect taxes to keep the country moving.   Capital gains taxes in the USA are some of the highest in the world. There is also an inheritance tax and unfortunately a death tax. You have very high property taxes in most states, and also many additional taxes: School taxes, road taxes, garbage taxes, State taxes. It never seems to end.

August 2016
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