Tag Archive for: Costa Rica Real Estate

New Import Law for Residents

The newly approved Law 9996, aimed at attracting investors, rentiers, and pensioners, has now taken effect. The new import law for residents grants added benefits to new residency applicants in three categories: retirees, renters, and investors. These benefits are applicable to individuals who apply for residency within the first five years of the law’s validity (2023) and will remain in effect for ten years after approval. I receive many inquiries regarding the importation of personal belongings from the United States.

Here is a summary of the new import law

Our legal department at Cody L Gear and Associates in Escazu has reviewed and prepared this summary.

Household Goods:

Importing household goods, including new and used appliances, furniture, decorative items, and more, is now exempt from one-time taxes. Thus, it is important to understand that the law allows for reasonable quantities, and you cannot bring half of Walmart with you. (Ref: “Decree N° 43926 -MGP-H-TUR, the regulation of Law 9996, March 2023”)

Vehicle Imports:

Individuals can import up to two vehicles for personal or family use without paying import tax, customs fees, or value-added taxes. This exemption applies to land, maritime, and air transport. If someone steals or destroys your vehicle, you can import a replacement vehicle with the same exemptions. (Ref: “Decree N° 43926 -MGP-H-TUR, the regulation of Law 9996, March 2023”)

Income Tax:

The law waives the income tax related to obtaining migratory status, but it subjects income derived from investments within the national territory to income tax. (Note: Further details about the tax reduction of property acquired during the law’s validity are available. Also, equipment or materials for professional or scientific use are exempt from taxes.

Additionally, the law specifies that beneficiaries of immigration status as investors, residents, and retirees will not automatically become tax residents.

In the investor category, the law has reduced the required investment amount from $200,000 USD to $150,000 USD. Individuals can make investments by acquiring assets, shares, securities, or projects of national interest. Moreover, this category also includes consideration for venture capital and sustainable tourism infrastructure investments.

Residents applying for residency in Costa Rica can import a maximum of two vehicles for personal or family purposes, free from import tax, customs fees, and value-added taxes. If a vehicle is stolen or destroyed, a replacement vehicle can be imported with the same exemptions.

These exemptions remain valid for ten years, expiring in July 2031.

To apply for import duty exemptions on vehicles or household goods, the following steps must be taken:

Present your Costa Rica DIMEX card as proof of resident status (retiree, renter, or investor).

Deposit your vehicle at a customs warehouse.

Apply for exemption from the Treasury Department (Ministerio de Hacienda) through their website, EXONET.

You will also need to provide:

A digital signature.

You need certification of being up to date with Caja payments.

Also, a certificate of no outstanding taxes, corporation fees, or property taxes.

Finally, you will need certification of shares owned in the corporation responsible for importing the vehicle and/or goods.

A sworn and notarized statement from each qualified family member (spouse and/or adult single children under 25) confirming they will not request exoneration separately.

The bill of lading and a copy of the vehicle’s title.

The customs value of the vehicle.

Obtaining these certifications takes time and may incur several hundred dollars in lawyer fees.

Once all documents are uploaded to the EXONET website, the Treasury Department has sixty days to approve or deny the application. Approval is based on the economic income declared during the residency application process, considering whether the requested exonerations are within the means of the applicant’s monthly income.

For more assistance contact us at info@codylgearandassociates.com

 

Hiring a Costa Rica Private Detective

What you need to know when hiring a costa rica private detective

Often I have clients that call and are doing so for the first time. Many are confused and anxious about hiring a Costa Rica private detective to watch a loved one. So, what do you need to know when hiring a Costa Rica Private investigator? When searching the web, you see a number of people advertising private investigative services here in Costa Rica. First thing you can do is dismiss the advertisements as the majority of those as they overwhelmingly are not physically located here.

 

They rely on third party contractors who may or may not be qualified to do the work you need done. Additionally, you as the client, is being further removed from the service agent, and have no clue what they are doing. It’s hard enough to speak with a person you don’t know about a very personal and sensitive situation. Some of these third party contractors have been known to play both ends against the other.

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What are you looking for in Costa Rica?

Looking for something in Costa Rica

Just what are you looking for in Costa Rica? Trying to locate someone? Trying to check up on a loved one? Perhaps, finding a piece of real estate to purchase. Whatever the case we are here and are ready to help in any way that we can. Some of the things that have changed dramatically over the past 2 years due to the covid pandemic. Such as people moving to live with family due to no work for example.Currently, there are numerous schemes and scams going on with regard to visitors coming to Costa Rica that are unaware of the changes that have occurred during this time. Remember always that you are in a third world country. Be prudent and cautious.

 

Changes came from top level in Government

Regardless of what you are looking for in Costa Rica, inquiries and the manner to obtain them has been impacted by the changes brought on as a result of Covid 19. According to the University of Costa Rica all of the information concerning the pandemic and the subsequent changes has been orchestrated by to level government.

Most who seek locating someone here are unaware that Costa Rica has no street addresses. It is all descriptive. Additionally there are no protocols in place that update the locations as they are listed in the various registries. Some of the locations could be one to twenty years old. The older the listing of an address the higher likelihood of landmarks changes increases with time. Contacting the U.S. Embassy here to locate someone is uneventful as they will refer you yo the local law enforcement agencies.

Nevertheless

We are here to help you.Our firm has accumulated years of experience and knowledge about this beautiful country. I know what can be reasonable expectations on obtaining the information you seek. We also are a law firm and can help you with many things others can’t.

Playa Samara

Avoiding Costa Rica Scams

Preventing or avoiding Costa Rica scams 

Playa Samara

Playa Samara

Often I am asked what should I do in preventing or avoiding scams in Costa Rica. Some are easily avoided or prevented when you are armed with the right information. Before you go, let us review your itinerary and give you feedback on what we know. Our feedback is free and we do not have any affiliations with what we evaluate. Everything from car rentals to food. We have lived here for the past 15 years and have become very familiar with Costa Rica. 

Although our background is law and investigations, it has broadened our knowledge base on all types of scams and frauds. I feel if we can help anyone coming here from falling victim to a scam or fraud, they will want to come back. As you will learn some scams are not deliberate while others are as deliberate as they come.

 

Scam Alert For Costa Rica

New Scams in costa rica

This is a new scam alert for Costa Rica. The scammers are calling ex-pats posing as workers from the Embassy. This scam alert for Costa Rica has been documented by the U.S. Embassy. The scammers start the conversation with the assertion that the Embassy is updating its records on American citizens.  The scammers then ask for personal information to verify and update the records. If you didn’t know already, the U.S. calls no one.

We are here to assist you in understanding the threat and to lend assistance to those who may have been victimized. As the leading private investigator in Costa Rica, we try and keep you abreast of recent scams.

 

Scams in Costa Rica Rising

This scam alert for Costa Rica, according to the U.S. Embassy is they do not call anyone to ask for this type of information. According to the Embassy, “ The United States Embassy reminds American citizens that Embassy staff will not initiate calls to U.S. citizens. “

ACTIONS TO TAKE:

Another case recently centered around the purchase of a car that was posted on Facebook. The buyer identified himself as an American living in Guanacaste and sent the seller a copy of his passport. Unbeknownst to the buyer, when the seller saw the name she recognized it from her friends list on her Facebook account. She sent him an instant message telling him she didn’t realize it was him who wanted to buy the car. He told her he had not inquired about a car and in fact was in southeast Asia.

Playa Samara

Costa Rica Travel Tips

Costa Rica Travel Tips from a Costa Rica Private Investigator

Playa Samara

Playa Samara

Costa Rica is a beautiful and generally a safe place to visit. I have prepared a few Costa Rica travel tips from to help you. Planning and travelling to Costa Rica will go smoother. First don’t leave your belongings unguarded. This is especially important when you are on the beach or in a crowded place. Keep your passport, money, and other valuables close at hand. Beware of scams. There are many scams targeting tourists in Costa Rica. Be aware of schemes such as people offering to help you carry your luggage or sell you drugs. Stay alert when driving. Many roads in Costa Rica are narrow and winding, and there is a lot of traffic. Be especially careful when driving at night.

Be aware of your surroundings.

Keep an eye out for pickpockets. Also, be careful when using ATMs. Keep your money in your pockets or inside your backpack. It is common for thieves to target visitors. Since stealing is a crime of opportunity don’t make  it easy for the bad guys. I am offering Travel tips from a Costa Rica Private investigator for free. If you want a detail evaluation of your trip, let me know and I will prepare a customized report.

Know the rules.

Costa Rica is a very safe country, but it does have its rules and regulations. Do your best to learn them before your trip. Keep in mind that you are no longer in the United States. The laws here are different than those you are accustomed to.

Know your limits.

Costa Rica is a great place to visit, but it’s not a cheap place to travel. If you’re planning to visit the country, make sure you have enough money for decent lodging, meals, and souvenirs. Also, you may experience holds on your credit cards for things such as car rentals and hotels. Many of the hotels have very restrictive refund and cancellation rules.7. Know your rights.

Practice good manners.

Here are a few more travel tips from a Costa Rica private investigator. While you’re in Costa Rica, remember to be polite and friendly. Try to be as pleasant as possible to everyone you meet. I know this seems to be trite. Unfortunately, many of the “grigos” that come here are less than courteous. Costa Rican people are pacifist culturally and are sensitive to rude people.

Have fun.

It’s a shame to waste a trip to a beautiful country.  You have gone to a lot of expense and planning to come here. Take advantages of the things that you have never experienced before. Anything from visiting an active volcano to zip lining Costa Rica has it all. Unparalleled beaches with incredible sunsets.

Be safe.

Costa Rica is a safe country, but there are many risks, so be careful when traveling. Keep in mind that emergency services are not what you are accustomed to in the United States. Be sure to check the availability of places that you may need to call upon if you need to.

 

Real Estate Fraud Plagues Costa Rica

Costa Rica Real Estate Fraud

Real Estate fraud plagues Costa Rica. Recently, that police arrested four persons in connection with a $50 million dollar Real Estate fraud. According to numerous news sources the four arrested are lawyers and Notaries. In Costa Rica all notaries have to be licensed attorneys. The documents that pass through National Registry must be notarized. Since most land purchases are purchased in a Costa Rica Corporation the transaction must be notarized. Generally, attorneys are given power of attorneys over the transactions. In contrast to the United States, a notary cannot notarize a conveyance to which he is a party. Here that is not the case.

Temptation

With that kind of power, it is easy and tempting to do something less than honest or correct. In this particular case according to the news source, the victim is an elderly German woman. She appears to have lost ownership of her properties in southern Costa Rica due to inappropriate paperwork. Although the accused have yet to be identified the police are saying that have arrested a 61-year-old woman and a 65-year-old man in Alajuelita. Also arrested were a 37-year-old woman in Cartago and a 60-year-old man in Coronado. According to police documents the crimes allegedly happened between 2010 and 2012.

The latest reports

The two persons arrested in Alajuelita are also notaries but are not active now. The pair is charged with improperly administering the woman’s property in Punta Uva and Bahía Ballena, which is located in the southwestern area of the country. According to police documents, both had access to $5 million in cash.
The suspects that were arrested lived in Cartago and Coronado and are active notaries. Police said that they assisted in the creation of 19 corporations that play a role in the fraud. Police alleged that the suspects tricked the elderly woman into signing papers so that she lost the properties.
Agents also reported that when they searched the offices of the suspects they found two unregistered pistols.

Keep in mind there are no licensing requirements to regulate Real Estate agents

Private Property Registry in Costa Rica

Private Property Registry in Costa Rica (PPR)

updating its records. The first step is that a lawyer, or their assistant, will present documents requesting the change to the registry. Upon this presentation, a notation is made on the property records regarding the proposed change.We here at Cody L. Gear and Associates, have learned of a service provided to owners of private property in Costa Rica. The name of this service is Private Property Registry (PPR). PPR currently protects over 15,000 properties in Costa Rica. If you are an absent owner this service is an absolute must. Likewise, by living here you no doubt know the problem with squatters. The private property registry (PPR) updates daily by connecting with the National Registry of Costa Rica. The amount charged for this service is pale in comparison to the loss of your property.

How PPR Works

Fijatevos.com each night the PPR robot connects to the National Registry’s data feed and downloads the day’s transactions. Then, once the data is generated, the company’s software takes over. Likewise, the data is analyzed and compared to the previous day’s snapshot. By 1:30 am a report is generated detailing any change whatsoever to any property related to one of the clients. At 5:30 am this report is reviewed by the company’s legal department. Each change is analyzed to determine whether it is harmless or whether it represents a possible threat to the client. On average, about 90 changes are detected and only 1 is deemed a threat to be taken seriously.

At this point, the PPR legal team notifies the client by email, telephone, or fax. The client can specify the preferred method of contact, or also additional contacts, such as the client’s personal lawyer. At this point, the client can confirm whether it is a legitimate change or not. For example, they have taken out a loan or sold the property. If the change is not authorized, the client or PPR can take action immediately.

Registry Procedures Explained

The National Registry is required by law to follow certain procedures when

The process is for a registry bureaucrat to review the documents presented. The registry determines if they are valid and if there are any errors in the descriptions or clauses. If they are deemed valid and correct, then the change is approved and entered into the registry. A key factor here is that by law a change may not be submitted and approved on the same day. Caveat Emptor while normally there is a 7 to 10-day delay in this process there is a risk. When schemers and shysters have obtained cooperation from an unscrupulous registry employee, then the changes are expedited.

The PPR system takes advantage of this mandated time delay. The automated software reports annotations overnight. This means that if a change is recorded or noted, the property owner or PPR may submit a document opposing the change on the same business day. Thus, effectively freezing the process and obligating the registry to determine the validity of the documents.

PPR Services and Pricing

The PPR offers 2 types of services. The first level is called Monitor and Notify, which costs $143 per year. You, and anyone you specify, will be notified in the event of any change to your property. The notification is sent by email, fax, and telephone as soon as the PPR legal department determines there is a problem. If you have more than one property in Costa Rica, you can get a package that will monitor up to 8 properties for $384 per year.

The higher level service is called Maximum Security and includes the first level plus an automatic procedure for stopping the transactions. It costs $250 annually. This service, requires a power of attorney that allows the PPR legal department to file a prepared statement in the registry on your behalf. The statement opposes any change to your property information in the registry. Subsequently effectively stops the transaction. The registry is required to investigate both claims and provide additional documentation for proceeding with the change. In the case of a fraudulent claim, this alone will stop the perpetrator’s cold.

For more information concerning other services available to protect your investments in Costa Rica, call Cody L Gear and Associates at 321-218-9209

Costa Rica Real Estate Fraud

The U.S.- Costa Rica Real Estate Fraud Increasing

The police (OIJ) busted a real estate closing Monday and arrested five men suspected of Costa Rica Real Estate Fraud. The arrests took place at the closing agent’s office in Guadalupe. I have learned from news sources, that the agents uncovered an elaborate scheme. Prior to the fraud completion police notified the real owners. As a result the  police were able to thart the fraud.

They are incredibly lucky.

What we know

According to news sources, the unusual thing was that the agents were able to move in at the closing. OIJ spokesperson said they received an anonymous tip, The tip was last week, and enabled OIJ to contact the real owner of the property who said that his land was not for sale. Of those arrested one is 82, and the other suspects are 35 to 52, according to OIJ. OIJ did not reveal the names of the suspects. The property in question is in Tres Ríos in the Cartago area.

Authorities moved swiftly

OIJ acted quickly after obtaining the tip and was successful in thwarting the fraud. Being a Certified Fraud Examiner, I know that most of these types of real estate fraud are not detected until sometime after the closing. By being proactive the OIJ and its agents should be applauded for detecting and preventing this fraud. As in the United States, typically real estate fraud cases have low priority and insufficient resources to detect, apprehend and prosecute such cases. If you are considering buying real estate in Costa Rica, call us! We know the ends and outs of Costa Rica Real Estate Fraud.

Conclusion

If you are thinking about or in the middle of a real estate deal here, stop and call us. I recommend this and compare it to a second opinion from a doctor.

 

Legal

Costa Rica Squatters

Costa Rica Squatters: Just when it seemed that investing in property in Costa Rica was safe, today saw the expropriation of property occupied by Costa Rica squatters. After a lengthy legal 2-year battle, a group of Costa Rican squatters expropriates land from owners. Squatters (“Campesinos”) have managed to take approximately 1050 acres from Dutch investors after a lengthy 2-year court battle.

April 2011 saw 316 families enter the farm in Medio Queso de Los Chiles. Located in Costa Rica’s central Northern Zone, near the border of Nicaragua. I know, the land belongs to a group of  investors, who rented the property to Costa Rica farmers. Consequntly, the land grab continues. If you have property here especially now, and you are an absentee owner beware you are at risk.

What is a squatter?

In the US, a squatter is any person who has moved onto property without permission of the owner. Commonly known as adverse possession.  Similarly, Costa Rica squatters move onto the property. Your intervention can stop the squatters building and protect yourself. I know the land is owned by a group of Dutch investors, who rented the property to a Costa Rican farmer. The farmer has been using the land to grow crops for the past few years, but the investors have decided to sell the land to a new buyer.

The farmer is worried he will lose his land and his livelihood if the new buyer decides to evict him. Shifting buildings and dwellings and claiming the land as their own. The squatters claim the owners were not producing on the land.  This is despite the declaration by the Costa Rican that had leased the land. Subsequently, asserting that he had made over $2 million in improvements to the agriculture area since the time he leased it.

The conflict grew over the next two years,  with the Costa Rica squatters being evicted numerous times by the police.  On several occasions, the attempts to evict the squatters turned violent.  The squatters alleged in addition to destroying their homes on several occasions the owners hired men to destroy farm animals. Moreover the men in doing so their belongings as well.

What happened next?

The squatters frequently returned to the property after being evicted, sometimes within hours of the eviction, and begin rebuilding. The dispute made Costa Rica national headlines last year when a secret audio recording of a police officer instructing privately hired guards to “shoot to kill” was made public.

The government agency that oversees such disputes, known as the Rural Development Institute (INDER) issued resolution 032-2013 this week, which orders the land to be expropriated and given to the squatters.

Over the years, the squatters have drawn support from many Costa Ricans, including on social networks. The local daily, newspapers heralded the decision by INDER to expropriate the property. One paper *Dario” declared,  “This agreement is a triumph for rural families of that community”. “The successful expropriation sets a precedent for struggling “Campesinos” (squatters) of the country. It shows that INDER is legally qualified to expropriate and distribute land to “Campesinos” who need it,” the newspaper continued.

Adverse possession in the US

Unlike the United States which has statutes in all states covering adverse possession, Costa Rica has none. Costa Rica law provides that unimproved agricultural land can be occupied by squatters. Furthermore, once they erect a structure they can obtain title to the land. There is no time restriction, thus the land once occupied by the squatter takes a court action to remove. The United States adverse possession laws give time limits with most requiring seven years of occupancy openly and notoriously prior to the squatter obtaining title.

This decision will have a chilling effect on foreign land investors. Gear said that any investor contemplating investing in unimproved land in Costa Rica should seek the services of a licensed attorney in Costa Rica prior to buying such land.