Second home owners may face sales tax nightmare

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

A recent trip to Liberia and Playas del Coco to check out the Mickey Mouse rumor of Dec. 4 revealed some good and bad news.  The good news is that, places are full of energy and tourists abound.   “The streets are bustling much more so than last year, and it seems tourists have arrived earlier too, way before Christmas.” said one property manager.

This is great news for local businesses and the country.  One area that has shown significant improvement is the rental market for villas, condominiums, and apartments.  One rental agent in Coco said her rentals were up significantly over last year and that everything is booked for the Christmas season.  Property managers said the villas in Los Delfines, Tambor, were full through holidays and that they have great bookings into March and April.

The short-term rental market and the real estate market in general appear to be improving in most areas of the country.  If one were to gauge the market by the building and traffic, especially the crazy traffic, it would appear the country is exploding as it did in 2005.

One option to make a sale is an owner-carry mortgage

By: Garland M. Baker B.

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

In a market where buyers are scarce, sellers need to look at all the options to snag a sale.  Owner financing is one option available to sellers, but many expats are scared to death of the courts and shy away from carrying a mortgage.

Two groups try to professionalize real estate agents

By: Garland M. Baker B.

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

In a country where real estate or attorney used in the same sentence as ethics is an oxymoron, two organizations are trying very hard to bring some sanity to the real estate profession.  There are two real estate associations here: CGGAR, the Costa Rica Global Association of Realtors, and CCCBR, the Camara Costarricense de Corredores de Bienes Raices (Costa Rica Chamber of Real Estate Brokers). 

Registro to auction goods of firms that do not pay tax

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!

Doomsday is coming for expats and Ticos alike who have ignored their responsibilities under Law 9024. The law is better known to all as the Impuesto a las Personas Jurídicas or the company assessment tax.

The law provided several bailout provisions. There is only one left, outlined on Oct. 28.  This last provision allows anyone with judicial and extrajudicial authority or full power-of-attorney in a company the ability to relinquish their post through resignation by April 1.

Five months left to dump company without charge

By: Garland M. Baker B.

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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!

Christmas is closing in on everyone.  So are some critical deadlines.  Two critical tax-filing dates for the D-151 and the D-101 are just around the corner.

One that people may have forgotten or chosen to ignore is the deadline to get out of a Costa Rican company before it is too late, and the country begins suing liable parties for the company tax. This should not be confused with income tax. 

Part-timers with few jobs are employees automatically

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!

What makes a service or independent worker an employee?

According to the Caja Costarricense de Seguro Social, commonly known as the Caja, and the Instituto Nacional de Seguros, known as INS, the key element is the number of jobs. 

Yes, if anyone is working, regardless of what, and they only have one, two or three jobs, they are considered employees and should be covered as such by the people for whom they work, the agencies said Friday.

Expats have to pay attention to local taxes

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!

Today is the end of fiscal year 2012-2013. This is important for Costa Ricans and expats alike doing business in this country.  It is also noteworthy for individuals and retired people who are not in the Costa Rica tax system.  There are more tax collectors beating the streets, making phone calls and performing audits like no time in Costa Rican history.  Fines have increased dramatically, too, making it expensive not to follow the rules.

Real estate market shows signs of improvement

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!

Up and down the coast of Guanacaste, real estate circles are buzzing with talk that properties are selling again and that there are buyers in the market.  

Linda Gray, vice president of Coldwell Banker Costa Rica, which includes 10 franchises, said, “Real estate sales and activity since the start of the New Year 2013 has increased over 2012.” A representative of Century 21 Beach Area Properties in Tambor echoed this view: “Business is better this year than last.” He also said Ticos are in the market buying second homes.

Hiring uncovered workers is asking for a nightmare

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 popular adage in Costa Rica, Pide perdón, no permiso.  Doing this can get an expat snagged into a big, expensive problem. 

The saying means “ask forgiveness, not permission.” It is a strategy used by Ticos and expats alike to get things done without going through the normal red tape.   The scheme is also used to avoid traffic fines, building permits, payments, and the list is long.  

Some expats find that mortgages can boost income

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!

Some expat retirees in Costa Rica are giving mortgages to others to supplement their retirement incomes.  Generating a nice extra sum is possible if ones finds the right debtor because interest rates are high in Costa Rica. Finding the borrower is easier than it was in the past because numerous services are providing credit information on individuals and companies here. Mortgages are easier to collect now, too, if the deal goes amiss, than they were a few years ago. 

Balloon mortgages tend to be the financial instruments of choice, with interest rates ranging from 6 to 12 percent on the principal.  Some lenders even charge more in some situations because they can get away with the practice. 

How to get access to U.S. movies on TV the easy way

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 living in Costa Rica would love to watch U.S. movies, shows, and sports on their home televisions. Hotels and bed & breakfast owners would like to offer the same to their guests. Travelers would like to access their favorites from home while visiting the country.

An article July 1 outlined how to use a VPN, a virtual private computer network, to accomplish this goal. There is another way, and for many, a simpler means to unblock U.S. sites like Netflix, Hulu plus and HBO GO to name a few. 

This system is not secure like a VPN, but it offers great benefits. It can be applied to almost any smart device or any router in a network.  What does this mean?  It means that any device connected to the network can access the unblocked content.  In other words, at home, changing the DNS on the home network unblocks all the TVs and any other connected device. In a household, the adults can be watching a movie on Netflix while the kids are watching cartoons on Hulu plus.

Turning likes into money by the (Face)book

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!

People engaged in business all over the world use Facebook and other social media services to reach customers.  Facebook's statistics are impressive indeed.  Many are not aware that older people use Facebook, too. It is not just for the young.  The numbers among retired people are growing rapidly as they start to use all the new gadgets on the market.  It is just dang convenient to lookup what friends are doing using an iPhone, iPad, Kindle, Nook, or whatever.  Facebook works on just about anything.  Expats in Costa Rica are strong users.

In light of this, there is a concern.  Many businesses using Facebook to reach customers are using personal fan profiles instead of business pages.  This is in direct violation of Facebook’s terms of service.  Here is an excerpt, “Facebook profiles are meant to represent a single individual. Organizations of any type are not permitted to maintain an account under the name of their organization… If you create a profile for your business, your account may be disabled for violating our Terms of Use.”  

Here's a trick to defeat hackers and movie restrictions

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!

What does watching a movie in Costa Rica restricted to viewing in the United States and accessing the Internet securely at a Wi-Fi hotspot like McDonald's have in common?  Give up?

Social media can be a great tool to resolve a problem or find an answer to a question in Costa Rica.

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!

Government institutions in Costa Rica are usually impossible to reach on the telephone.  Every so often, the phone just rings and rings. Other times, one gets a phone tree that states, “dial 'this' for 'that.'”  If “that” answers, frequently it knows nothing about the “this” one was calling about.

Many expats need assistance in English because they do not speak Spanish.  Many times, it's almost impossible to find someone who speaks English well enough to help them with a question or a problem on the phone.

Registro will keep an eye on your property for $15

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 great way to protect property and foil attempts by property thieves in Costa Rica by using Registro Nacional Digital asset monitoring service.  The best news is the latter is cheap, only $15 per year.  There is no better way to protect a property in Costa Rica for $1.25 a month.  Expats can also save money by using the other many service offerings.  The system now includes more certifications plus many free reports.  

Service software can provide a grip on hard 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!

Expats can regain control over their personal and business matters in Costa Rica today by employing new, easy-to-use tools.  Many of them are free.

Sometimes getting things done is hard here.  Simple things can turn into frustrations, and harder ones can turn into nightmares.  When contracting professional assistance, in some cases, it seems the contractor is working without a plan.  This-seat-of-the-pants management style can cause expats headaches and outright grief.  

The secret to expat success might just be in the cloud

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 running businesses or tracking investments while struggling with new Costa Rican taxes and accounting rules may find some freedom in the cloud.  The cloud represents powerful computing resources delivered to customers as a service.  By using hardware and software via a connection to the Internet, users can tap applications once only available to the few with money to buy them.