Digital push at Registro opens door to crooks

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Expats and everyone else holding assets in Costa Rica should check the documents pertaining to their properties as soon as possible to be sure everything is in order. Asset thefts are on the rise because of the digitalization of documents throughout the country.  

The problem is that as the government institutions digitalize, the workers are omitting important information from the original documents.  One could wake up one morning and find the house stolen.

Heavy-handed judges complicate domestic cases

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

The intention of Costa Rica's domestic violence laws is to protect — especially women — in cases of aggression or violence against a mate. 

However, the law has been transformed into a law that creates a legal license to steal.  Judges have not helped the situation at all.  There are around 18 different medidas cautelares. This would translate into protective measures or injunctions in English.  Most judges use only the harshest one, six months of complete separation of the parties involved.  This is true even though in many domestic violence cases the charges are complete lies.  

After police eject a husband from his home even if the allegations are fabricated, a court hearing may not take place for months.

Those planning now will reap future rewards!

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Businesses, including hotels, real estate agencies, tour operators and developers, to name a few, need to plan their long-term Internet strategies today.  Social media is transforming the world dramatically, and a simple Website is just not good enough anymore.

Websites, online advertising and Internet promotion have for many years been the primary means to market a product or service in Costa Rica to an international audience. The Internet is cheaper than print advertising. It is an effective medium to reach a mass audience in the United States and other parts of the world, especially those people in the planning stages of a Costa Rica vacation or retirement.

Online U.S. hookers affecting sex tourism here

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Social media like Facebook and Myspace, among others, have officially overtaken pornography as the No. 1 activity on the Web. Obviously, people have not lost an interest in sex, but clearly the marketplace is moving, growing and operating with relative impunity in the United States via social networks.

This kind of global social change has implications for Costa Rica, and it could mean that the problem of sex tourism will come to an end. However, on the other hand, it could make it much worse.  When living in Costa Rica, it is easy to lose touch with what is happening in the United States and other parts of the world.  The fact that cities like Houston, Chicago, Dallas, and Miami have been turned into virtual brothels is something that an expat might have missed if they have failed to keep up with technology.

Social networking endangers country's image

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Internet social networking accelerates life in the 21st century. It also proposes challenges to everyone doing business in Costa Rica.

More importantly, all the negative remarks about Costa Rica are going to kill the country's tourism future because the negative runs rampant through social networks. The country's marketing system had better catch up fast. The country is plagued with bad reports, from out-of-control property thefts to Americans getting beaten up at popular tourism destinations.

Social networking is the practice of expanding social contacts through connections among individuals, and although the process is as old as civilization itself, the Internet has accelerated the pace while increasing the amount of information that can be shared.

For those living in Costa Rica or considering relocation here, the Internet social networks are as important as ever. While in the past much of the information has been disseminated by those with a profit motive, the Internet social networks allow individuals to share first-hand information and experiences. A person can now consult instantly with dozens of other people to determine if retirement in Costa Rica would fit their lifestyle or if a particular doctor, dentist, or real estate broker has a good reputation.

New type of tax status would spare expats pain

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There are several types of company structures in Costa Rica. The two most common are the sociedad anónima and the S.R.L.  

However, there are only two types of tax statuses, active and inactive.  This fact complicates tax filings for expats and is becoming more of a problem every day due to the enforcement of the country's new banking regulations.  There should be another status offered to filers by the tax department.  This status could be called something like “nonoperational|”, “static” or “passive.” 

Active companies, in theory, exist to make revenues and after deducting legal costs and expenses end up with a profit, which is taxable.  Inactive companies exist to hold assets but do not have revenues, costs, or expenses.  Active companies need to file many types of returns including, but not limited to, sales tax, education, and culture tax and income tax forms.  Inactive companies only need to file the education and culture tax form each year.

Smart money checking out those failed projects

By: Garland M. Baker B.
Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There are international developers currently searching for deals in Costa Rica.  The past boom in the country created some opportunities because many projects were left unfinished when the market fizzled in late 2008.  They are looking for the money trees of the next boom.

However, some opportunities that look good are not what they appear after some digging into their fundaments.  The most common problems are that the original founders borrowed too much money to get the projects moving because they believed they would sell fast to pay off the debts.

There are other concerns too.  Many of the original promoters did not do their due diligence and bought land that in some cases cannot be developed at all. In other cases, only a small portion of the land is dividable and buildable.  Other difficulties range from water issues, slope of the land, offsets from springs and rivers, and forestry restrictions, to name a few.

Real estate agents tend to emphasize the good and paint a pretty picture to prospective buyers.  Often, they do not disclose the bad — and to be fair — many of them do not know the true state of the property they are trying to sell.

Shaky domestic violence laws fracture families

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Domestic violence laws in Costa Rica seem to work when they should not, and seemly do not work when they should.  The law is also in direct contradiction to Article 52 of Costa Rica's Constitution, which states, “El matrimonio es la base esencial de la familia y descansa en la igualdad de derechos de los cónyuges.”  This translates into English as, “Marriage is the essential element of family and can rest in the equality of the spouses.”

In fact, the domestic violence laws of this country tear a family apart on the slightest whim of a spouse.  A few tears and without any kind of witnesses, a judge will throw a spouse out on the street.  The minimum forced separation is six months, and usually the initial court audience where parties can be heard by a judge is at least a month after the eviction of the presumed guilty party.

Now this is even more interesting:  Article 51 of Costa Rica's Constitution states, “La familia, como elemento natural y fundamento de la sociedad, tiene derecho a la protección especial del Estado. Igualmente tendrán derecho a esa protección la madre, el niño, el anciano y el enfermo desvalido.”

This translates into English as, “The family, as a natural and fundamental element of society, has the right to special protection of the State.  Equally, this right protects the mother, the children, older people and the disabled.”

Read closely, this article leaves out the man.  So, according to Costa Rica, the man is not an important part to a marriage and has no special rights.  

Cloud computing is a big help to tourists and expats

By: Garland M. Baker B. 

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There is great news for expats and tourists in the cloud.  Speaking of cloud computing, that is.  Most expats — people of other nationalities who have made Costa Rica their home — do not have a clue what the term cloud computing means. Even though, the concept could greatly change their lives, especially those who would like to make Costa Rica their home or at least visit the country more often.

Cloud computing is nothing more than working on the Internet using software and services that are provided on the Internet.  Google is one of the foremost pioneers of these new services.   Gmail, Google's e-mail service, was just the beginning of its huge other offerings in software.

Two examples in Google's menu are its calendar and document applications.  However, the company offers other applications as well.  Many are free, and some others have charges associated with their use.

Why is this important to expats and tourists?  

Tax officials finally OK use of electronic records

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Here is some great news for green-minded expats. 

The Costa Rican tax department required all tax contributors to keep their account documents for five years and their accounting books up-to-date at all times.   This meant gobs and gobs of paper and sufficient storage places to stash all the stuff.  Not very green thinking.

In a country that pledges to be carbon-neutral by 2021 — different politicians have used a variety of different pledge dates — not allowing companies to digitize their accounting was insane.  

Pesky tax time is here again for corporations

By: Garland M. Baker B. 

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There is only one tax inactive companies need to pay every year.  It is the education and culture tax.  The tax is due by March 31 which falls on a Wednesday this year.  However, it can be paid anytime during the month of March.

Law 5923 requires the paying of this tax.  Many people slough off paying or do not know about it. The tax is filed and paid using tax form D.110.  

The form is easy to fill out and most banks will accept the payment for the tax authority.  A company’s net capital amount determines the tax to be paid.

As realty cycle renews itself, buyers must be wary

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There is a much quoted phrase in Costa Rica between lawyers.  Everything legal is not always right, and everything right is not always legal.

Many of the development projects of the last decade were put together by individuals with high hopes of raking in the dough, selling to unsuspecting buyers.  They skipped doing the correct due diligence on the properties they bought to sell.  They bought only to flip.  

Even well-known Costa Rican developers built without all the paperwork and permissions required by law.  They built fast to sell fast to the flocks of people coming to Costa Rica to buy property.  There is one developer in so much trouble now in Guanacaste, he is telling his buyers to move into the condominiums they bought and demand squatters rights because he cannot give them clear title.

Other developers promised everything and anything to prospective buyers.  There is a well-known adage when it comes to sales.  A good salesperson needs a little larceny in their blood.  Well, it appears that some sellers of real estate to foreigners in Costa Rica had a lot of larceny in their blood.

Chat sites and text messages A dangerous combo

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

The internet is as wonderful as it is evil.  The dark side is where predators lurk, waiting for the unsuspecting innocent to fall into their traps.  These creeps lie in wait to menace adults and children alike.  The internet, cellular telephones and text messaging can work together to steal, maim and even kill.

Many expats have come to Costa Rica with families, including their children. Others have started families here.  In a modern family, having several computers in the household is not uncommon.  Giving children cell phones at a very early age is also normal practice.  They are great little devices to keep tabs on kids.

The Internet extended the dating services of the past century into a whole new world, social networking.  These networks have grown geometrically on the web.  Adults and kids use them to find new friends and relationships.  Some adults find their mates nowadays using the tools of cyberspace.

Most people hide behind avatars —  an icon or figure used as a personification of the computer operator — and use false information when using social networks.  This is good practice but does not curb the danger and can even exacerbate it.  

Here is a wake-up call to expats with children in Costa Rica.  Internet predators are out to get them.  They know all the tricks.  Expats here are usually of retirement age because they came to retire in this country.  Many of them did not count on having a new family in this country, but it happened.  Because they are of retirement age, many are not familiar with the Internet or text messaging on cell phones, so they do not understand how much danger their kids are facing every day.

This is the scenario.  It usually — but not always — starts with a social network on the Internet. 

Real estate slowly becoming a great investment here

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Plenty of people came to Costa Rica during the feeding frenzy in the past decade to invest in property.  Today, many of those that invested are licking their wounds because they jumped into the shark-infested waters unprepared.  Most of them looked at investing here through kaleidoscope eyes.

Projects are not the only thing on hold in Costa Rica.  Many expats lives are on hold too.  They bit off more than they could chew when they invested in this country.   During the days of skyrocketing prices, they did not save their pennies for a rainy day, but chased prices up into the stratosphere and paid ridiculous prices for land and buildings.  Some expats bought homes, but many others bought one or more parcels to speculate the market would go up even higher.

Trusts are a good way to insure trustworthiness

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Trusts are one of the most important legal documents a lawyer can make for a client in Costa Rica.  It is astonishing that most attorneys do not know how to create or administer them here.  Most people think of trusts in the case of death and inheritance, but they can be used for many more situations.

This is a refresher for expats to remind them of the usefulness and power of making a trust to protect assets or to solve a dispute.  Originally, this subject was addressed last year in “Trusts are a perfect vehicle for getting deals done.”