Month: July 2022

Everything You Need To Know About The Digital Nomad Law in Costa Rica

One year ago, the Legislative Assembly of Costa Rica approved the “Digital Nomad Law” but never got around to the regulations. Thankfully on July 4th, 2022, President Rodrigo Chaves approved the regulations of the “Digital Nomad Law” to finally start attracting digital nomads/remote workers to come to Costa Rica! The good news is, the visa process is much simpler than initially proposed.

Digital nomad office space

Costa Rica has recently become one of the most popular travel destinations in the world! Which comes as no surprise since the weather is incredible, there is a low crime rate, beautiful beaches, high speed internet, and state-of-the-art healthcare. What’s not to love?

Now that many folks have the luxury of having a remote job. Why just travel to Costa Rica, when now you can make it home. If you can work anywhere, then you might as well be sitting in an ocean view home or a walk to the beach condo!

View of the ocean from my digital nomad office

So what are the requirements to be eligible to become a digital nomad in Costa Rica?

  • You must have proof that you are receiving a stable income of no less than $3,000 per month, when traveling alone. If you have a family that you are bringing along, the monthly income must be a stable $4,000.
  • You must provide proof of health insurance for the whole duration of your stay in Costa Rica. If you are bringing your family, all members must be covered as well.
  • The income cannot be generated inside Costa Rica. The company must be registered outside of Costa Rica. The Immigration Authority has a list of remote jobs allowed.
  • You must make a one-time payment for being allowed to stay as a Digital Nomad/Remote Worker and this amount will be determined by the Directorate of Immigration.
  • Once the migratory condition is granted, you will be authorized to enter and there will be a 3 month processing period for the migratory accreditation document. You will have to attend a face-to-face appointment with an immigration official to complete the process.

Becoming a digital nomad in Costa Rica does not give you a residency. Instead you are granted the ability to stay in Costa Rica up to one year, with the possibility of extending it for another year. This law has authorized a new migratory category of non-resident and is strictly for digital nomads/remote workers.

What are the perks?

  • The income received from abroad by digital nomads will receive a total exemption from Costa Rican income tax.
  • Digital nomads will be exempt from paying all taxes on the importation of the following items: a basic personal computer, telecommunications equipment, or any other similar equipment necessary to fulfill the tasks of their job.
  • Driver’s license from the digital nomads country of origin will be valid for the purposes of driving in Costa Rica, as long as the license is in good standing.
  • Digital nomads may open savings accounts in Costa Rican banks.

Out of all the 45 countries that have similar laws in place, Costa Rica is by far one of the easiest places to apply! Immigration is even making the process 100% online and hopes to have the platform working next month. So what are you waiting for? Grab your laptop and enjoy the ocean view! You never know you may end up deciding to stay for good and own your own piece of paradise.

Are You Ready To Buy In Costa Rica?

Your heart may be set on buying a property in Costa Rica but are you truly ready or qualified? Below are a few things to keep in mind before taking the leap. It’s critical to know all the details so you can make your dreams an actual reality.  

Luxury ocean view home in Costa Rica

Financing

Or should I say lack of financing? If you are not a Costa Rican citizen or legal resident you will not be approved for a loan. There are a few banks that “say” they offer financing to foreigners, but I have yet to see some one get a loan in the 14 years I have been here. Even if you become a legal resident, the odds of getting a loan are slim but doable. I know because I got one. Costa Rican banks have a very hard time verifying your financial information from the US, Canada, Europe, etc. thus making it difficult to secure a loan. 

But don’t lose hope! There are other ways to secure financing.

  • Sometimes sellers or developers will offer owner financing. 
  • If you own a home in North America you can get a home equity loan or a home equity line of credit. 
  • You can use your retirement fund. If you are from the US, your 401k or IRA can be converted into a self-directed IRA which can be used to make your purchase.
  • Lastly, you can use a private lender, but be prepared for higher interest rates then the local bank which are high to begin with.

If you are interested in more financing information, please read my blog (Financing Property in Costa Rica) or send me an email to jaaechef@gmail.com.

Location

Are you happy with the location you have decided on? Is being in close proximity to an International Airport convenient? Do you enjoy all the amenities such as Pricesmart, Walmart, state-of-the-art hospitals, a variety of grocery stores, plenty of fabulous restaurants, little boutiques, banks, hardware stores, appliance stores, post offices, dentist and doctors’ offices and more? Do you care about great roads and reliable internet? Most importantly the weather!

View of Playa Hermosa in Costa Rica

Obviously, Playas del Coco and Playa Hermosa are my first choice but maybe you still want to search around? Maybe you are interested in the traffic jams and crime in the Central Valley around San Jose or what seems like the endless rain and humidity down in the southern Pacific region like Dominical, or Manuel Antonio? Now don’t get me wrong, they are interesting and can be fun places to visit, but not necessarily a place I want to have a home and spend lots of time.

Type of Property

Have you thought about what kind of property you want? Are you hoping to rent this property or is it strictly for personal use? Do you prefer an ocean view or a walk to the beach? Are you interested in having an HOA or being within a gated community? How many bedrooms, bathrooms, square footage, lot size? It is good to know all the advantages and disadvantages of each style of property. 

Luxury condos in Playa Hermosa Costa Rica

If you are not ready to move to Costa Rica maybe a piece of land is the right choice. Or if you want to get your foot into the door, start small and get a condo. It’s important to look at all your options to make sure if they work for you. 

Expenses 

Just being able to afford the property isn’t always enough. It is true that property taxes in Costa Rica are low, only a one quarter of one percent ( .25 of 1%) but there are always additional financial responsibilities. If this is a second home for you, then it will be double the everyday expenses such as utilities, upkeep, HOA fees, travel costs to get to the home, property management fees, taxes. 

It is important to budget accordingly and factor in all the expenses. You want to guarantee you have enough in savings to cover any unexpected expenses. Things to consider can be….

View of the Pacific Ocean from a luxury home in Playa Hermosa

  • Do you have an emergency cash fund readily available?
  • Do you have any credit card debt? Or still paying down another loan?
  • Is your current home paid off? Or are you still carrying a mortgage?

I am eager to help make your dreams a reality but it is important for buyers to take a step back and see if they are both ready and qualified to take the leap.

Beach Bistro Cinema Playa Hermosa

Lights, camera, action! Playa Hermosa has its very own movie theater. Tucked inside the Hermosa Heights development you will find the Beach Bistro Cinema! 

Beach cinema in Playa Hermosa Costa Rica

This charming movie theater in Playa Hermosa is open to the public and has a varying schedule depending on movie releases. More often than not, you can come see a movie on Friday, Saturday, or Sunday. Beach Cinema often has specials, where you can see 2 movies for the price of 1! To find out showing times and specials, check out their website https://beachcinemahermosa.com. 

Beach Cinema may be a small movie theater with only one auditorium, but that doesn’t stop it from having all the latest movies! You can watch new movies as soon as they are released! Movies are often played in English with Spanish titles, depending on the schedule. This cinema also offers movies in 3D! 

Inside the Beach Cinema in Playa Hermosa

This cozy movie theater was recently completely renovated and offers very comfortable seating and leather loungers up front. Always kept very clean, you won’t have to worry about a sticky floor or stale popcorn in your chair. 

Speaking of popcorn… Beach Cinema has fantastic popcorn. You can get regular orPopcorn kettle or the two mixed together, which I highly recommend! They also offer nachos, hotdogs, candy, soda, water, tea and BEER! Not only do they have local beer but also craft NUMU beer. 

Interested in having the Beach Cinema all to yourself? No problem! This theater lets you rent the entire space for private events. There is seating for 100 guests and every seat offers a fantastic view of the screen. The space is perfect for parties, corporate meetings, fundraisers, and more.

Make sure to check out this fantastic little movie theater next time you are in Playa Hermosa. It’s the perfect activity during the rainy season or a great way to relax after spending the day at the beach! Interested in other amenities in the area or purchasing a property? Feel free to reach out and email me, I would be happy to assist you!