Comments on: Banks in Costa Rica

By: Tim

Tim — Wed, 27 Jan 2010 17:06:37 +0000

1. Costa Rica does not care if you buy or rent and they do not control who gets loans. Banks require you be a citizen or be here LEGALLY meaning that you have residency. No US bank would ever grant a mortgage to a tourist… why should Costa Rica banks do differently? You think a visiting alien could get financing in the USA?

2. You do not have to buy ANYTHING here to be a legal resident. So what you have to spend is not relevant to residency at all. Some buy homes. Some do not. Why would anyone buy except to live here or to rent it out. If you plan to rent it out, then you do not need residency. If you plan to live in it then you should be legal. The CR government cannot be responsible because you do not have the cash to meet their very liberal laws. For you the answer is easy. Do not buy! There are no tax advantages and ven if you could get financing, the interest is not deductible.

3. They do not care how old you are. They care that people coming here will not use/abuse the system and the infrastructure by not having sufficient funds on which to live! . They care that you will not burden the system. Sound like anything being talked about in the border states in the USA? As young people cannot (generally) work or get a job here, what is the issue with asking them to prove they have the cash to live here?

4. Costa Rica has perhaps the worlds easiest residency requirments. Basically they require:

a. That you have and prove that you have sufficient money to live here for 5 years or forever if a pensionado. Very reasonable request! The US certainly has no such easy method to be a legal immigrant. $1,000 for pensionados? How easy can that be? $1,000 per month is barely enough to live on now as Costa Rica is no longer cheap! $150,000 for 5 years for a family? IMHO, that is barely enough!

b. They require you not be a felon.

Perhaps it is YOU that needs to re-evaluate your dreams/needs. Buying is NOT required. Rent. Your bigger issue is how you will earn a living.

By: Tim

Tim — Wed, 27 Jan 2010 16:58:41 +0000

I cannot disagree more. Let me simplify this. 1. Costa Rica does not care if you buy or rent and they do not control who gets loans. Banks require you be a citizen or be here LEGALLY meaning that you have residency. No US bank would ever grant a mortgage to a tourist... why should Costa Rica banks do differently? You think a visiting alien could get financing in the USA? 2. You do not have to buy ANYTHING here to be a legal resident. So what you have to spend is not relevant to residency at all. Some buy homes. Some do not. Why would anyone buy except to live here or to rent it out. If you plan to rent it out, then you do not need residency. If you plan to live in it then you should be legal. The CR government cannot be responsible because you do not have the cash to meet their very liberal laws. 3. They do not care how old you are. They care that people coming here will not use/abuse the system and the infrastructure by not having sufficient funds on which to live! . They care that you will not burden the system. Sound like anything being talked about in the border states in the USA? As young people cannot (generally) work or get a job here, what is the issue with asking them to proove they have the cash to do so? 4. Costa Rica has perhaps the worlds easiest residency. Basically they require: a. That you have and prove that you have sufficient money to live here for 5 years or forever if a pensionado. Very reasonable request! The US certainly has no such easy method to be a legal immigrant. $1,000 for pensionados? How easy can that be? $1,000 per month is barely enough to live on now as Costa Rica is no longer cheap! $150,000 for 5 years for a family? IMHO, that is barely enough! b. They require you not be a felon.

By: Paul

Paul — Wed, 20 Jan 2010 20:10:14 +0000

Tim, re: my question above, I have continued reading your blog and notice you generally advise people not to buy in CR, given rent is cheap and keeps your money liquid. If one does buy, don’t buy until one has rented for a year or more, given most people leave CR within one year. Great advise. HOWEVER, were I visit CR and see a condo I just love and really want to buy, I believe my observations above holds true re: there being a catch-22 of sorts. No mortgage loans to non-residents. $150,000 cash required for residency. Add in a downpayment and the mimumum residency requirements, and CR seems to be saying they want only four types of people living in, or investing in, CR… 1) Foreign cash buyers 2) Resident retirees with a min. $1k income per month 3) Resident rich young people with $150,000 cash 4) Resident investors willing to invest $100,000 – $250,000 in certain approved businesses. — Anyone else can STAY OUT. Isn’t that really what they are saying? And if so, doesn’t that exclude a large percentage of credit worthy people who want to invest and/or reside in CR?!

By: Paul

Paul — Wed, 20 Jan 2010 03:42:37 +0000

Re: Lisa’s question above, and your answer to her, my hopes are fading. As a younger man, who is not eligible for social security etc., and given the new laws coming March 2010, plus your observation that banks will only lend to a citizen or resident of CR… can I reasonably presume the following? I cannot get a mortgage in CR without becoming a resident. But I cannot become a resident without first depositing $150,000 cash ($2,500 over 5 years). And since some of that cash would have been my downpayment on a property, I’m out of luck. Right? I would simply like to buy a property in CR to retire to in 10-15 years. I want to lock the price in now, before inflation takes hold. But it appears that the banks’ unwillingness to lend to non-residents, combined with the upcoming residency law changes, have all but ruined my prospects. I now have only two options. 1) Buy a property in CR for cash. or 2) Pay $150,000 to become a resident so I can get a bank loan. But that would also require me to live in CR for 4 months a year. Tim, I appreciate CR tightening it’s lending and residency standards, but they’re killing younger folks like me… who do not have pensions nor a small fortune in cash! If I can come up with 20% or more down, and have good credit in the U.S., why on Earth would a CR bank not lend to me? It all seems very unfair. But no one said life is fair, right?

By: Tim

Tim — Sat, 16 Jan 2010 00:56:49 +0000

Spanish is not the issue. I know of NO Costa Rica bank that will lend to anyone who is not a citizen or a legal resident. I am guessing you are neither? Private lenders maybe. Be REAL careful.

By: Lisa

Lisa — Thu, 14 Jan 2010 14:37:40 +0000

Hello,
I am planning to purchase a property in Costa Rica. Even though there are many banks in Costa Rica, based on your experience, which ones would you recommend to apply for a mortgage loan? I have heard that the rates are high but given the current recession and impact on real estate, I am convinced that I can find one bank in Costa Rica that offers a decent mortgage rates and reasonnable terms and requirements. I do not speak Spanish yet and am fluent in English and French.
Thank you.

By: Jimmy

Jimmy — Wed, 25 Feb 2009 22:10:05 +0000

Coopenae, friendly, fast, passport required for opening an account. Everybody smiles and free coffee at the Canas branch at least. AND,.. they offer 8.5 % on US money deposited there.
Anyone have anything bad to say about them before I put all my money in there?
Their English was actually quite good too,.. but come on people! If you are going to live here, ESTUDIAR ESPANOL

By: JERRY

JERRY — Sun, 25 Jan 2009 20:04:57 +0000

WE HAVE A BANK ACCOUNT WITH SCOTIABANK. VERY PLEASE WITH THEIR SERVICES. CURRENTLY LIVING PERMANENTLY WITH RESIDENCY STATUS IN CR. HAVING PROBLEMS WITH RECEIVING MY USA COMPANY PENSION. THEY INFORM ME THAT I MUST HAVE A USA BANK ACCOUNT AND USA HOME ADDRESS AND ID. THEN THEY CAN WIRE THE FUNDS TO THE BANK. WHAT CAN I DO? HAD REQUIREMENTS BEFORE BUT NOW WHICH TO CHANGE BECAUSE MY DAUGHTER (CO-OWNER) IS STEALING MONEY FROM THE ACCOUNT.

By: Ben

Ben — Wed, 19 Nov 2008 00:22:04 +0000

Nice post Tim! I also have accounts with the three banks listed here.

Scotiabank – the most foreigner-friendly. My branch in San Ramon usually has someone who speaks English. Before jumping through all of the hoops to open an account there, they told me that I could use their online website to automatically pay my bills. After opening the account, I found their online services to be mostly useless and down most of the time. However, they did try to make it up for me and paid my bills manually each month for free. My lights were only shut off once. This is not a regular practice though. They are also active in the community by donating to poor schools, etc.

BAC – I found Tim’s account accurate with the exception that I was able to transfer funds online to a different BAC customer’s account with just their account number (no need to go to the branch).

BNCR – Longest Lines and most useful website. I am still waiting for them to add RACSA to their PAR (autopay) program, though.

By: Dr. Max Gamble

Dr. Max Gamble — Thu, 17 Jan 2008 06:09:10 +0000

Greetings! This is my first visit to your site and really enjoyed it. I have been living on and off in Costa Rica since 1980. Luckily, when I opened my first ever bank account in CR I had no problems. However, at that time you could walk around downtown at any hour and feel comlpetely safe. Unfortunately, CR has changed. Anyone who has done any due diligence should already know that there is so much corruption and illegal activities going on here that I applaud the banks for their effort to know their perspective new clients. BCR is at times a difficult bank to deal with unless you do what I have learned to do. Once you experience the “sometimes ridiculous” requirements to open a savings account find yourself a local branch and visit it 2-3 times a week until the smaller branch recognizes you as soon as you walk in. I have found this to work for me and pass this tidbit on hoping it may work for others. Funny thing, I had new savings and checking debit cards issued in 1992 and one was for use in dollars inside CR and the other for international use. Very professional and even had my picture on each of them. However, 2 years ago they told me for “my security” they were going to give me 2 new cards. Well, typically you return the next day for the cards. I did and the new cards did not have any photo. I asked them how this was for my security…photoless. The answer is a nonanswer as far as I am concerned. So, I took the new cards over to the ATM to make sure they worked. They didn’t. Long story short. I had to go and return on 3 seperate occasions because they finally figured out that i knew how to use them and was not an idiot but that whatever company they had making the physical cards were defective! Oye. Today, I walked into ScotiaBank for the first time and within an hour i walked out with a Universal account. If you plan on all possible obstacles i.e. banking references etc. you can make banking tolerable but never have the type of service that most of us are used too. The funny thing is ScotiaBank requires a utility bill from where you are living…but it doesn’t even need to be in your name. Go figure.