Relocation Country Guide: COSTA RICA

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1 Relocation and International Assignment Trends and Practices Costa Rica is the oldest and most established democracy in Latin America. This beautiful country is recognized worldwide for its biodiversity and beautiful landscape. Currently, over 30% of Costa Rica s national territory is under some form of protection including national parks, forest reserves and wildlife refuges and the government and civil society share the responsibility for conservation efforts. In recent years, Costa Rica has nearly become synonymous with ecotourism and many foreigners come to witness the astounding abundance of plant and animal species each year. Costa Rica s attraction for foreign investors is due in large part to its uniqueness within the larger region of Central America, and to its stable political environment, reaching back to 1987 when former President Oscar Arias was awarded the Nobel Peace Prize for his key role in reaching regional peace after several years of political crisis. Costa Ricans are usually considered the least hierarchical culture in Latin America and have very little class consciousness compared with their neighbors. They have a more informal approach to life, business and politics and it is not unusual to see the president of the country shopping at the local market. That is why one of the most frequently heard phrases in Costa Rica is Pura Vida, which equates to: everything is great, everything is cool.

2 BUSINESS AND PERSONAL RELATIONSHIPS Business Relationships While Costa Rica is less hierarchical than many of its Latin American neighbors, appearance and protocols do matter! Dressing professionally, maintaining eye contact during conversations, and using formal titles when addressing individuals (e.g. Doctor, Professor, Señor + Surname, Señora + Surname, Don for men and Doña for women + name e.g. Don Pedro, Doña Ana) are all important. As in many other Latin American countries, develop personal rapport before getting down to business. Building relationships and trust first is essential. Expect long conversations about culture, history, futbol (soccer), home and family and don t discuss religion, politics, or historical conflicts! In terms of communication, in general, Costa Ricans are not direct. When communicating, they tend to suggest or imply meaning. It is necessary to read between lines and to understand the context of communication. Yes may mean maybe or even no, as Costa Ricans avoid saying no. Spanish is the primary language, but many people speak English. The Spanish accent common in Costa Rica is very standard except that they emphasize the r sound. Costa Ricans are proud of their national identity and will continue to do things their way, so understanding the cultural norms is essential. An additional piece of information about Costa Rica: women in business will meet with greater acceptance in Costa Rica and play an influential role in politics it should be noted that the former president was a woman! PAGE 2 OF 14

3 Additional tips include: Conduct business with high level persons; they make the decisions. Bring documents and business cards in Spanish and English. Be on time for meetings, but expect waiting. Costa Ricans, similarly to other Latin Americans, have a more flexible attitude toward time. However, they can be more punctual when it comes to business meetings and events. Shake hands with everyone when greeting and leaving, but greet the eldest or most important person first. Business dinners and lunches are common among executives, but not among employees in lower levels of the organization. Most business entertaining takes place in the evening, and spouses are welcome at business dinners. Don t be afraid to namedrop; it s common in Costa Rica. Establishing connections can make a big difference. Re-state information during business meetings to make sure everyone is clear. Teamwork is highly valued. Decisions are usually made through group consensus and the process can be lengthy before decisions are reached. Costa Ricans typically stand/sit close together, so don t expect a lot of personal space. Well-acquainted business associates and friends often greet with a kiss on the cheek (male-female, female-female). Male business associates shake hands. The handshake, particularly between men, is very important in showing solidarity and friendship. Costa Ricans are very sensitive and can be defensive when receiving feedback, especially in a direct way. Use indirect language when giving feedback. PAGE 3 OF 14

4 Personal Relationships Relationships are very important to Costa Ricans, and family ties are strong. Children often live at home well into adulthood, until they get married. Elders are treated with respect and care as part of the family unit. Costa Ricans value harmony, so it is important to avoid confrontations. Things to remember when building relationships: Costa Ricans call themselves Ticos which comes from the national tendency to use the diminutive form (-ito, -ita) with everything (e.g., mesa [table] mesita) and soccer is the first sport in the hearts of Costa Ricans! Service from support staff such as maids, gardeners and chauffeurs are typical and easily accessible to most. Additional tips include: Arrive 30 minutes after the set time for non-business appointments. Pat your friends on the shoulder to show your respect and friendship. Bring flowers, wine or chocolates to any home gathering. Keep your hands visible when dining and out of your lap. Wait until after the toast before drinking. TOP TIPS FOR SUCCESS Costa Ricans value harmony and dislike confrontations. Avoid hardselling tactics and pressure. Relationships are very important, in both business and personal settings. Expect talk about family, hobbies, and other personal issues. Teamwork is highly valued. Make business appointments ahead of time and confirm them one week prior. Be on time for meetings but expect waiting. For personal invitations, you can arrive 30 minutes after the set time; business meetings will likely be more punctual. While kisses on the cheek are common methods of greeting in personal situations, male business associates shake hands. The handshake, particularly between men, is very important in showing solidarity and friendship. PAGE 4 OF 14

5 SAFETY AND SECURITY Although some of the information and safety measures listed below may seem like common sense, they are important to follow, even though Costa Rica in general is a safe country compared with other Central American locations. Companies often provide security briefings prior to the employee s move to Costa Rica and many of the following tips may be included: In general, it is recommended that expats keep a low profile and exercise caution always, but especially at night. Become familiar with your neighborhood and learn what areas to avoid. TOP TIPS FOR SUCCESS Keep a low profile and avoid showing off flashy jewelry or electronic devices in public. Avoid looking lost! Know your neighborhood. Use a GPS and review the proposed route first; the GPS may take you through unsafe areas in an attempt to avoid traffic. Avoid looking lost. If you must look at a map or app, walk into an establishment and do your research there. Be discrete when wearing valuables (jewelry, expensive bags, etc.) or when using an ATM; choose an enclosed establishment rather than street ATMs. Avoid using electronic devices in public and never leave electronics, money or other valuables unattended or in cars, visible to others. If renting a car, ask for a GPS, because addresses are very informal and complicated in the country. You can also download the Waze application which is very helpful. Review the proposed route first, since it may drive you by unsafe places or long distances to avoid traffic jams. Be more careful when traveling to the Caribbean (Limon port and nearby beaches), since crime rates are higher than in other parts of the country. Look for a safe hotel to stay. PAGE 5 OF 14

6 TRANSPORTATION Driving in Costa Rica International driver s licenses are not accepted in Costa Rica. All foreigners can drive with their valid driver s license from the origin country during the first three months from the day they enter the country. After 91 days of uninterrupted residence in Costa Rica, expats are no longer allowed to drive with their country of origin driver s license, even if it is still valid and updated. They must go to the governmental office to request the local license. To request the Costa Rican driver s license, expats must present their Residency Permit (ID document issued by Costa Rican Immigration Authorities, with assignee s picture DIMEX). The document with the resolution from Immigration approving the residency permit is not accepted, it must be the actual residency permit ID. If at the end of the first three months expats do not have yet their Residency Card from Immigration, they are not authorized to drive. They must leave the country for at least 72 hours and enter the country again; this will grant them the right to drive a car with their country of origin driver s license for another three months, until their residence permit is granted and they complete their uninterrupted three-month stay in the country. Expats must always carry with them a copy of their passport with the last entry to the country, to be presented to the transit authorities in case they request proof of the date of entry into Costa Rica. In case the origin country driver s licenses does not come in both origin country and English (the English version of license information underneath in small letters), it is mandatory to present an official Spanish translation of the document from the Ministry of Foreign Affairs. It is important to check the expiration date of the foreign driver s license before traveling to Costa Rica and verify that it has a long validity period in case the required uninterrupted three-month stay cannot be met before getting the official Immigration ID. If the assignee travels frequently, every time he/she enters the country, three more months will be granted to drive with the country of origin driver s license. Requirements for obtaining the license include: Original and two copies of passport (front page with personal information and the page with the last stamped entry). 91 days of uninterrupted stay in Costa Rica. CR Residency Card (DIMEX), original and two copies. Valid foreign drivers license, (original and two copies). The license must be in good condition and legible. Official Spanish translation if language is not Spanish or English. 45,000 colones, approximately, for the process-related costs (medical exam, validation of driver license). Bring cash in local currency. Note that the process can take four to five hours. PAGE 6 OF 14

7 Similar to most countries; the below although not limited to these are against the law: Driving under the influence of alcohol or illegal substances Use of a cellular phone while driving Seat belts must be worn by driver and passengers Children must be in a car seat/booster, as appropriate to his/her age/weight Public Transportation San Jose, Costa Rica Driving in Costa Rica is common for expats. Public transportation is not recommended, as it might not be secure and commute times are slow. Buses normally mean long lines and long commute times. There are a few commuter train services connecting Heredia and Cartago provinces with San Jose, and taxi and Uber services which may be considered safe, but more expensive than in other countries. Red taxi fees are set by the Public Services Regulatory Authority (ARESEP). All red taxis are supposed to have meters, which means there should be no negotiating over the price of a ride between driver and customer. Taxis also have a yellow taxi hat on top and a yellow triangle on the door displaying the taxi license number and the area where the taxi is permitted to operate. TOP TIPS FOR SUCCESS Driving in Costa Rica is common for expats, but after ninety-one days of uninterrupted residency, expats must apply for a Costa Rican drivers license. If expats do not have the documentation required for that local drivers license, they must leave the country for 72 hours and enter the country again; this will enable them to drive for another three months with their country of origin license. Public transportation is not recommended as it might not be as safe, and commute times can be slow. Driving without a proper local driver s license may result in traffic violations if stopped by the police. Insurances may also reduce or decline coverage in case of an accident. PAGE 7 OF 14

8 REAL ESTATE MARKET Market Customs Generally speaking, the real estate market in Costa Rica is fast moving. There is no Multiple Listing System (MLS) which means that there are no country controls over the real estate market and/or landlords listings. They are free to list their homes as they wish and most landlords will list a property with several realtors and at different listing prices. Something to take into consideration is that many of the listings on websites are outdated and often pictures are not representative of the actual properties. The following are important considerations when choosing your neighborhood: Expatriate areas are commonly located in the west part of San Jose (Escazú, Santa Ana and San Antonio de Belen areas). Recently Heredia province has presented high demand due to the increase of free zones in that area. Gated communities are in high demand but there are reasonable options/inventory. Furnished housing is very limited for houses. Inventory is better for furnished apartments. The market moves so fast that properties are sold and rented within days. Generally speaking, real estate in Costa Rica is inflated. Properties in gated communities are more expensive because they have nice social areas and are in high demand. Properties tend to be smaller than expected by foreigners. PAGE 8 OF 14

9 Typical Lease Process Broker s fee is equivalent to one month rent and it is paid by the landlord to the broker. Lease contracts (by law) are a minimum of one year (12 months) with an option to renew, up to three years. Leases are typically negotiated and signed in U.S. dollars. If the rent price is stated in colones an annual increase will apply. Increases cannot be higher than the annual county inflation percentage. Guarantors are not required. Some landlords may require a local corporate letter using the company s letterhead. Some landlords may not accept the Diplomatic Clause. Lease cancellation: A cancellation clause is always included. Leases terminated before the first 12 months are subject to penalty which may be the equivalent of one month of rent. After the first year, the notification period required to cancel the lease and vacate the property would be one or two months. The security deposit, paid at the time the lease agreement is signed, is typically one month of rent. Home insurance is up to the tenant for personal property. Utilities are not included. Appliances typically included are the washer, dryer, stove/ oven and refrigerator. TOP TIPS FOR SUCCESS Guarantors are not typically required for lease signing, but landlords may ask for a guarantee letter on company letterhead. There is no MLS in Costa Rica, and landlords may list with multiple realtors listing prices may vary by realtor. Online listings may be unreliable. Some landlords may not accept the Diplomatic Clause. Negotiating rental prices is not a local custom. Expats should bring sufficient funds to secure lease and pay for initial expenses until a local bank account is established. Location and Commute to Work/Schools If you have school age children, it is strongly recommended that you secure the school before committing to housing. Traffic patterns can make commuting a challenge. Types of Properties Apartments typically range between one and three bedrooms, but houses may be found from two to four bedrooms. Anything above four bedrooms will be hard to find, especially furnished. Most of the single-family housing outside of gated communities is owned by locals and may not be available for rent. PAGE 9 OF 14

10 APARTMENTS FURNISHED Accommodation size & level Studio 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Non-Management $1,000 - $1,200 $1,300 - $1,500 $1,500 - $2,000 $2,100 - $2,600 N/A Manager N/A $1,600 - $2,100 $2,100 - $3,000 $2,700 - $3,500 $3,500 - $5,000 Senior Management N/A $2,200 - $2,800 $3,100 - $3,800 $3,600 - $4,500 $4,500 - $6,000 UNFURNISHED Accommodation size & level Studio 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Non-Management $900 - $1,100 $1,100 - $1,400 $1,400 - $1,800 $2,000 - $2,700 N/A Manager N/A $1,500 - $1,900 $1,900 - $2,600 $2,800 - $3,000 $3,500 - $4,500 Senior Management N/A $2,000 - $2,500 $2,700 - $3,200 $3,500 - $4,300 $4,500 - $5,500 HOUSES FURNISHED Accommodation size & level 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 bedrooms Non-Management N/A $2,000 - $2,500 $2,500 - $3,200 $3,500 - $4,500 N/A Manager N/A $2,500 - $3,300 $3,100 - $3,800 $4,000 - $5,000 N/A Senior Management N/A $3,300 - $3,500 $3,800 - $4,500 $5,000 - $6,000 N/A UNFURNISHED Accommodation size & level 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 bedrooms Non-Management N/A $1,500 - $2,000 $2,200 - $3,000 $3,000 - $4,000 N/A Manager N/A $2,000 - $2,500 $2,500 - $3,500 $3,500 - $4,500 $4,500 - $5,500 Senior Management N/A $2,500 - $3,000 $3,000 - $4,000 $4,500 - $5,500 $5,000 - $6,500 PAGE 10 OF 14

11 EDUCATION The best education offered is in private schools. The main international schools follow the U.S. calendar and are located near preferred expatriate areas. Expats should confirm their children s school before choosing a neighborhood. Traffic and commute times and patterns should be taken into consideration. Most private schools are from 1st grade to high school; therefore, children usually spend all their education (11 years) in the same school. School Schedule: American schools run from August to June and schools with local calendar run from February to end of November. TOP TIPS FOR SUCCESS Have school confirmed before choosing housing, as traffic and commute times can be difficult. Admission forms must be submitted with all required documents before an admissions test will be scheduled. Admissions Process: It is strongly recommended that you start the admission process as soon as possible. An appointment is usually required for enrollment. Submit the admission form with all other required documents to the admission office. Upon receiving the required documents, an admission test will be scheduled. Only complete files will be taken in consideration. After the entrance exam is administered, parents will be notified by of the admissions decision. PAGE 11 OF 14

12 Typical Admission Requirements The application for admission form. An official copy of grade reports and/or transcripts for a minimum of the two previous years of education (current year and previous two). In the case of high school students, all records from the 8th grade forward are required. If available, a photocopy of the applicant s most recent standardized testing scores. A photocopy of the applicant s passport or identification card (identification page only). Two recent, passport-size photographs of the applicant. A photocopy of the parent(s) passport (identification page only) or identification card(s). Letter of recommendation from an administrator in applicant s previous school regarding applicant s conduct; this must come in a sealed envelope from the school. Copy of applicant s birth certificate. A letter of financial status from previous school. Official report if the student will need curriculum accommodations. Health Information and Immunization record. Audiometry and eye screening for PS-PK-K and 1st grade children. Typical Accreditations and Programs Accredited by AdvanED/SACS, (the largest accrediting agency in the U.S.) and the Costa Rican Ministry of Education International Baccalaureate (IB) British and French School Payments In general, international schools in Costa Rica require payment in U.S. dollars, and they charge a membership fee of typically around $1,000 - $1,500 plus the annual school fees (matriculation fee and tuition). Schools are typically closed during Easter and Christmas time. PAGE 12 OF 14

13 BANKING AND CURRENCY RESTRICTIONS The DIMEX (Residency Card) is required to open a bank account. Local currency is not restricted, and once the account is open, international transactions can be made. It is recommended to bring sufficient funds to get by for initial expenses (until the local bank account is established.) MEDICAL SERVICES Government health care is available to permanent residents and Costa Ricans; however, the support that is provided is nominal, and waiting lines and long timeframes for appointments are frequent. Private healthcare is expensive and only mid- to high-class citizens can afford it. For expats, state services in public hospitals are not recommended; private health insurance is a better option. If an assignee has health insurance deducted from his or her salary, they can simply present their card to any of the authorized private medical clinics. There is a wide range of private insurers to choose from, national and international. Private health insurance premiums vary depending on age and family needs, as well as the risk that the insured person may represent. In general, these companies do not cover pre-existing conditions. TOP TIPS FOR SUCCESS Assignees with private insurance can present their insurance cards to authorized private medical clinics. Patients with no health insurance have to meet the costs of treatment in private hospitals. For specific information regarding your Healthcare Insurance Plan and/or coverage, please discuss with your employer or designated party. PAGE 13 OF 14

14 COSTA RICA: BASIC FACTS Capital: San Jose Official Language: Spanish Currency: Colones Demographics: Even though Costa Rica has been very successful over the years in lifting the standard of living of the population, it has recently seen an increase in income inequality. Infrastructure: The government of Costa Rica has made great efforts to improve the infrastructure of the country in the last several years. The energy and water supply is guaranteed. Telecommunications in Costa Rica are among the most modern in the region. However, the infrastructure still requires a lot of updating and renewal, providing significant opportunities for investors and services for roads, ports, railroads, telecommunications, among others. Main Cities: San José, capital of the country with a central location, is not only a vibrant and cultured area, but also a convenient travel base to all national destinations. Visitors will discover mountain towns as well as restaurants, museums and breathtaking views. Cartago, located to the east of San Jose, was central to early Costa Rican life, and is home to the indigenous communities responsible for creating the country s most significant archaeological monument, now known as Guayabo National Park. Alajuela, bordering San Jose s western limits, is a diverse and dynamic province. The Juan Santamaria International Airport, named after Costa Rica s national hero, is in Alajuela. Guanacaste, which gives its name to the area s iconic tree, is Costa Rica s most northwestern province and the country s most visited area, boasting beautiful beaches, peaked volcanoes, and several national parks. Climate Costa Rica is a tropical country with two main seasons: the dry season (December to April) and the rainy season (May to November). The average annual temperature is around 70 to 81 degrees Fahrenheit. The coolest months of the year are November, December and January. The months of March through May are the hottest months of the year. Heredia province, known for its coffee production, safe neighborhoods, and stunning scenery, lies just six miles north of San Jose. Content for this publication was provided by Cartus Supply Chain, LARM Costa Rica, and Dwellworks Cost Rica. trustedguidance@cartus.com 2018 Cartus Corporation. All rights reserved. Cartus and the Cartus logo are registered trademarks of Cartus Corporation. Source: Country Navigator powered by TMA World and AtoZ of the World (Cultural Issues section). AtoZ of the World is an online country guide which is available free of charge to Cartus clients and assignees on CartusOnline. The information in this publication is provided in good faith based on information currently available and is therefore subject to change. However it is not intended to provide specific advice or guidance or take the place of either written law or regulations. Cartus accepts no liability for the accuracy, completeness or usefulness of the data and information contained herein or for any loss or damage arising in contract, tort or otherwise in reliance of the data contained or omitted from this publication or from any action or decision taken as a result. PAGE 14 OF 14