www.CostaRicaTicas.com

I mentioned in another topic that I am a finance guy, not a travel guy. My friend is the travel guy, so I get all of my information from him.

He told me one thing on the phone, a couple of months ago, that shocked me, but it made sense when he explained it. I had asked, "How difficult was it to get your residency in Costa Rica?" He said, "Not difficult at all. Get an attorney, preferably a Tico attorney, who knows what he's doing, and it's a piece of cake." Then he said, "The hardest part, not hard in terms of procedures or paperwork, but emotionally, was renouncing my U.S. Citizenship."

I was floored. "Say What? You're not a U.S. Citizen any more? I had no idea. What happened?"

"Well, Lyle, there are a lot of reasons, many reasons, that being a U.S. Citizen who lives in a foreign country is a huge pain, and I wanted to remove that stone from around my neck."

The rest is a long and boring story about taxes, financial statements, something called "inter-territorial law" (I think), and a few other things. Jerry isn't a patriotic fanatic, but he does love the USA, and he hated to renounce, but there was no good reason not to. He spent 10 years establishing his residency in Switzerland and obtaining his Swiss citizenship, which was not difficult. It mostly required 10 years of waiting. He always has, and still does, visit his place in Switzerland once a year, to go skiing.

I had heard that Costa Rica is called the "Switzerland of Central America," but he said, "No. That's not why I chose Switzerland. That's just a coincidence." He did it because he loves Switzerland, the Passport will get you anywhere, nobody hates the Swiss, and Switzerland doesn't care what other countries you are a citizen or resident of.

You don't need to give up your US citizenship to live here as a resident. I disagree with his viewpoint and I do not think that in Costa Rica there are any significant advantages to not being a U.S. citizen. Giving it up does not turn you into an instant Tico, you're still a gringo. If you are considering this move talk to A LOT of people before you give up your citizenship and all the rights that go along with that.

I understand. I am not considering giving up my U.S. citizenship. However, I do know that my friend saves a ton of money on income taxes and a lot of time not filling out paperwork, after giving up his U.S. citizenship. Also, your U.S. citizenship doesn't give you any rights in Costa Rica. So, if you're living in Costa Rica permanently, there is truly no benefit to being a U.S. citizen.

Right!

The only valid reason to give up your US citezenship would be to avoid having an annual relationship with the IRS....if it is one that dents your net worth significantly, why else, if you are a law abiding citizen?

Considering how many people who don't have it would give anything to obtain it...it is a pretty good thing to have.

How about losing your SS and Medicare benefits, if you care about them?

I love Costa Rica and it appears to be a stable democracy, I plan on retiring there in 2 to 5 years and going for my residency but you never know what will happen, in the 50's Cuba was considered safe and stable and look what happened.

I still wouldn't give up my citizenship (lose ss and medicare benefits??) and the right to return home if the sh*t hits the fan...don't think it can't happen there, if the world economy takes a big dump, socialism and resentment can rise rapidly in these little 3rd world countries...

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Don't try to understand 'em, just rope 'em down and brand 'em...

Keep in mind when planning to get your residence that if you do not have a clean record in the states most likely you will be wasting your money. I was lucky that I had a honest lawyer that asked me all the questions before taking my money and because I have a felony from many years ago they told me not to waste my time and money. If anyone knows something different I am listening.

I'm not advocating renouncing at all. If I do decide to become a Costa Rica resident, I have no compelling reason to renounce. Jerry had a compelling reason: saving tens of thousands of dollars in taxes each year. As a finance guy, I would advocate that Social Security and Medicare would not be a major concern for people who have a compelling reason to renounce. There are plenty of Passports in the world that are just as good, some better, than a U.S. Passport, and there are certainly a few places that are just as nice to live in.

"What's the story Jerry?"

Big difference in residency and citizenship. You can renounce and it won't hurt your citizenship in the USA. I think you must register but it is free and worth the time.
http://www.arcr.net/

Read this.

http://forums.arcr.net/index.php?/forum ... nt-policy/

Excellent info from those that have been there and done that.

I am a bit confused ! What is "free" and "you must register" for what????
If you are referring to "residency" in Costa Rica there is nothing free about it. If you are saying you must obtain residency, that is technically not correct thou Costa Rican migracion officials seem hell been to force all "perpetual" tourists to obtain residency or leave even though the law still does not say one cannot leave every 90 days and return. They are now (at the land crossings) refusing to give 90 days to people who are obviously (based on the stamps in ones passport) perpetual tourists. and they are warning these people that next time they try to enter they may be reviewed (with the threat of not being allowed to re-enter).

As for free-not at all free to obtain residency. It is a rather long drawn out process and at a very minimum cost several hundred dollars. There are several types, but the easiest, least complicated (besides marrying a Tico) is pensionado. You must fill an application with several documents (birth certificate, proof of $1000 + monthly income that is permanent (such as SS), police record from the FBI, etc. (all papers from the USA must be certified). Also you must be fingerprinted here (they check you out thru interpol), you must have a physical and join the caja, you must open an account with BCR and have your check directly deposited here. The cost of the application fee is $250, obtaining all the papers cost (fees and other expenses), and attorney fees if you use an attorney. The process takes several months to over a year depending on a lot of factors!!!

And by the way, ARCR is in my opinion one of the two worst Gringo ripoff operations in Costa Rica. I know there are some who will swear by them. Most of those just accepted everything they were told, paid the "double the price" cost and after over a year finally got their residency. In most cases they have no knowledge of what their other options were nor that they had to do almost as much of the leg work as a person doing it even without an attorney. Plus they had to pay for ARCR membership (one of the reasons it takes over a year is so they can ge the second year's membership out of everyone. Just as the second suggested link (an ARCR discussion form dealing with questions about the process) is worthless unless you are a paid member of ARCR (YOU cannot access and read any of the info)

After living here for 10 years I have just gone thru the process of obtaining residency. I did use an attorney (total cost of everything was less than half the ARCR price. Half the time of what it has taken for everyone I have ever talked to who used ARCR. And I had to do no more of the "legwork" than they had to do with ARCR. The main thing my attorney did do which made it worth his fee to me was he took all the papers to migracion in Uruca and he stood in line (sometimes for hours), and he made sure that everything was correct before taking it there. Time: about 6 months!!!

Just my opinion based on my experience in obtaining residency and that of several friends.

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Old and retired but still bang, and bang, and bang!!!

BB57... thanks for reiterating this... you mentioned this last week when we met up

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its easier to fool people than to convince them they have been fooled- mark twain

hello BangBang,

If I may ask, what are you paying for caja, what are the benefits, can you go to CIMA under caja and do you think it's worth it for the monthly fee???

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Don't try to understand 'em, just rope 'em down and brand 'em...

It is free to register at ARCR to read the thread. I am not telling anyone that they should use their service. Once you apply for residency they give you a Combrate document and number. Then you do not have to leave every 90 days. You will need to leave the country and come right back in again to reset the time line on your dr lic. That is the lic from the country you lived in before CR. Other wise your dr lic will be invalid in CR and you will have to take a test and driving test in Spanis.

Your friend must make a lot of money because the Freign Income Tax Credit is around $99,000. To save a ton a money I think he'd have to make over $200,000 in Costa Rica in legal, reportable income. Sounds like hmmmmm?