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Editorial Note: Here we are halfway through another year, and we are now receiving more and better articles than ever. I wish to express my sincere gratitude to all those who have participated, and brought us these wonderful words. Please keep them coming! And to our readers, thank you for your comments, which have also been more frequent than ever. A special thanks to those who take the time to write to us, and to those who are particularly observant. Please don’t miss the Letters to the Editor section in this issue, which many of you will enjoy. OK, nobody’s perfect... Hope you enjoy this one too. - Ryan Piercy
Are your membership dues paid up?
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This magazine has been published every two months for 8 years as the official communications media of the Association of Residents of Costa Rica. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence. Over the last 20 years the Association of Residents of Costa Rica has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents. We have the experience and ability to help you with your residency application, immigration, business and financial management, real estate purchases and rentals, property management, insurance, pet importation and much more. If you wish to place an ad in El Residente, please contact the ARCR main office.
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Presidents Report by Bob Miller Helping the Helpers In the spring of 1969 Costa Rica’s First Lady Margarita Uber was the first major donor for Acopane the only center for the developmentally challenged adults in Costa Rica. Senora Uber obtained a condemned building to house the fledging center and started it on its journey of service to the community of the disabled adults. Acopane located in Alto Guadalupe is an enormous building boasting work area, administrative offices, classrooms for crafts and various educational opportunities, kitchen, social area, and storage. The center has 60 students, all over age 18 and 5 staff members led by Director Liliana Marin, a
licensed psychologist. The area advisor is Mr Gerado Chacon. These were all present at the site visit by the ARCR Charity Committee The Center is an active hub of work projects provided by companies like Jiminez and Tanzi, and Distribudora Depot. The Center is also the center for social activities like dances and socials, and tasks of daily living and crafts. However the main purpose of the Center is to help train these disadvantaged adults to help support themselves. Acopane obtains subcontracts for work from many companies, which are comparatively simple. (i.e. Repackaging, trimming.) The Center has an active parent’s board. Dr. Lininger an original board member since 1969 was the translator for the visit. Dr.Lininger, a retired linguistics professor from the University of Costa Rica has a son Orlando who is a happy participant in the Center’s activities. In the spring of 2005 Acopane under the leadership of Earl Tomlinson became the Charity project of ARCR. Continued on page 4...
COVER PHOTOThe Costa Rican National Bird: In late 1976 or early ‘77 the “yigüirro” (Turdus grayi) was officially declared as Costa Rica’s National Bird. This was thanks to a project by Don Eliseo Gamboa, who considered the bird an important part of the local folklore, literature and music. The clay-colored robin or gray thrush, as it is known in English, is said to “call the rain” with its melodious singing. Truly enough, the bird tends to have a beautiful mating song, with mating season happening to be at the beginning of rainy season in Costa Rica. The yigüirro represents the fertility of the earth, the symbol of the rain fertilizing the earth, the richness of Costa Rican soil. The law protects this bird, and severe punishment lies in store for any who hunt, capture or mistreat this living symbol of Costa Rica.
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The purpose of this visit was to review what we at the ARCR had accomplished.
Renfer, Bob Miller and his wife Elsa, and last, but not least Jose Carter
The accomplishments were there for all to see. The new laminated roof for which we had supplied the laminates, paint and labor soon were tested. After a tour of the facility the skies turned dark and with lightning and thunder, as a forerunner, along came the torrential outpour to check out the job.
The installation was done by the Wet Paint Company’s Milton Soto and Juan Loaiciga.
It checked out perfectly. Not a drop of the rainwater came through. Now thanks must go to the Charity Committee led by Earl Tomlinson. So here goes: Atillio Gilberti who obtained the laminate roofing material from Nieto Co., and the paint from AMERICAN PAINT Co., Terry
El Residente
Upcoming Event & Raffle This September we will be planning our annual ARCR Celebration of the Independance of Costa Rica. Each year during this event, we hold a raffle for various prizes including hotels, tours, meals, and other exciting chances. The funds raised by both the raffle and event help to support our charity efforts, and even if you can’t be there, we will call you if you are a winner. Tickets will be available starting later this month, so please help to support us, and the best of luck to all of you who do. Talk to you soon...
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Wild Side XXVI Rockin’ Robin by Ryan Piercy When discussed in connection with Costa Rica, any series on Fauna would be incomplete without including the Familia Turdidae, or thrushes. This is because one of their number happens to be the National Bird.
15 of the near 300 species can be found in Costa Rica, these being common residents through much of the country. They are, as with most New World species, quite plainly attired in browns, gray, black and white. So with some 850 Avians recorded in the country, why was the plain looking Tardis Grayi chosen over more colourful species?? Well, aside from being very familiar to Ticos (it is unafraid and will live near humans) the Yiguirro (clay-coloured robin) like other thrushes is a renowned songster whose mating call in April is said to ‘call the rains’. The Yiguirro is but a small 9” tall bird, rather plain looking being coloured mainly in an olive-brown with shading to a buffy-brown on the belly. They are found throughout the country, from down in the low areas all the way up to some 8000 feet in altitude, and can often be found hopping around on the ground in search of food. Being unafraid of course puts this bird at risk, with nests easily accessed near homes. While
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making it nice for nature lovers (we recently had the opportunity to experience some newborns with our own young children) it also makes it convenient for bird-poachers. Fortunately the government protects the Yiguirro with severe punishment for these poachers. The country also has some other notable Thrushes for the bird-lover, as a few species can only be found in Costa Rica and parts of Panama. These include the Sooty Robin, Black-Billed Nightingale Thrush, and the Black Faced Solitaire. Each of these is distinctive in its own way, but the last, known locally as the Jilguero is another famous songster. This little slate-gray bird wears a black mask over his eyes, and has a voice that sounds incredibly beautiful in its natural surroundings. Though often harsh sounding in a city setting, unfortunately the Jilguero is highly sought after as a cage bird for its song, putting it at especially high risk from the local poachers.
Being common creatures, it is likely you will have many an opportunity to enjoy these little songsters on many an occasion, and encourage others to leave them in their natural surroundings where they belong. It would be unfortunate for such a beautiful symbol of the country to be locked behind bars like a jailbird.
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IMMIGRATION UPDATE 06-2005 by Ryan Piercy RE: ALL RENEWALS If you already have, or plan to have residency, you should know that there is a minimum amount of time you must spend here each year. It is now necessary to know that, due to a resolution at the Constitutional Court and the increase of false Immigration stamps, you need to keep all airline boarding passes, personal vehicle exit permits, bus tickets or other proof of entry/exit. The Dirección General de Migración y Extranjería has informed that in case of lack of migratory movement in their computers for Entry or Exit, it will not be sufficient to simply show the stamps in your passport. In case the medium of transport you use does not have any of the above (or you don’t have them for prior trips), you will need to present a letter from that company. This letter can be difficult to obtain for past trips, especially as airlines only keep flight records for 6 months, so if you don’t have proof, get it now. Again, KEEP YOUR TRAVEL BOARDING PASSES along with your exchange receipts to be presented at renewal time.
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Association of Residents of Costa Rica September: ARCR’s Annual Celebration of the Independence of Costa Rica. Good Food, Traditional Entertainment, and Great Prizes. Raffle tickets will be on sale this month, EARLY BIRD PRIZE. Event tickets on sale in August. If you are interested please contact Bob Miller or Earl Tomlinson at the ARCR (233-8068 or 221-2053) www.arcr.net Canadian Club Calling all Canadians...Join us on the Third Wednesday of each month for our luncheon and meeting. Find out all about our various groups and charity work around the country, and meet some fellow Canadians Call Bob or Elsa at 228-1250 www.canadianclubcr.org Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more information contact us at 282-5365 or at costaricabirding@hotmail.com
Send us your club news or activities for free publication in this column
PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 9 am to Noon 2 months Free Trial for newcomers For information call Chuck Jennings. Phone 266-0123 www.pcclub.net Republican Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month Contact Francis 286-6060, 386-1420 Radio control Sailing Club Meets at Sabana Park Lake For information contact Walter Bibb. Wwbbsurf40@yahoo.com
The Toastmasters Club Wine Club of Costa Rica Improve your public speaking skills 1st and 3rd Monday of each month 9 A.M. Contact Natalie 296-3059 Democrats Abroad The Democrats Abroad of Costa Rica meets the last Saturday of each month at the Aurola Holiday Inn, 9:30 a.m. to noon, coffee break menu. Visit www.cr.democratsabroad.org or call David Sagel 249-1856 for information and reservations.
Please mark your calendars The wine club usually meets at 1 P.M. on the last Sunday of each month. Join us to tantalize your taste buds and expand your education on one of the finer things in life. For more information on upcoming events please contact us Phone 279-8927, 257-2223, 285-1276 Women’s Club of Costa Rica
A film club: Classic films, World Cinema, PBS, BBC, books, discussion Michael Bowman Phone 272-5492
The WCCR would like to invite you to a private Jazz Concert up in the mountains. If you love Jazz, then keep the morning of July 16th open and call Grace at 369-7992. Space is limited, and at ¢6000 per ticket it won’t last. The group is a special guest visiting from the USA, and is well worth seeing. Concert will be at 10:30 am. Remember that you can contact us or keep in touch through our website www.wccr.org
Newcomer’s Club
White Artist colony (for David & Julia)
Golden Era Movies
A women’s social organization that meets the 1st Tuesday of each month. We welcome English speaking women who reside in Costa Rica. New and long term residents-contact Carol phone 232-3999
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The colony has currently suspended their concert series, but continues to operate in bringing artists to Costa Rica. For information and details, please E-mail bwhite@forjuliaanddavid.org
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Letters to the Editor Hello Ryan There is an egregious error in your latest issue of El Residente. You are correct on page 3 that the Guanacaste is the national tree of Costa Rica and that it got is name from ear-shaped fruits, but the picture on the cover is not the Guanacaste but rather the Higuerón. You are not alone in this confusion, but confusion it most certainly is. The Guanacaste is Enterolobium cyclocarpum is a giant reaching a height of 30 meters or 100 feet in maturity. The Higuerón is Ficus constaricana and typically displays the rounded symmetrical umbel shown in your cover picture. Its leaves are simple and alternate whereas those of Enterolobium cyclocarpum are compound and bipinnate (feathery). Both trees share virtually the same distribution area in the province of Guanacaste and northern Costa Rica, which may be one source of the common confusion. Take a look at them at http://www.cientec.or.cr/ambiente/arboles/ htmls/guanacaste.html and
Dear Bryant, Thank you for your letter, as it is nice that someone pays attention to the details. In fact I, uh, was, er, testing you all! Thats it! Yeah! It was a test! Well, no, OK, you got me. I can’t really tell a Guanacaste from a Oak Tree, so I certainly wouldn’t dispute it. Actually the photo came from a source that said it was a Guanacaste, and it looked right, so that’s what was used. Anyway, I can’t do anything about the cover now, BUT, I can print a couple images from the sight you mentioned so our readers can spot the difference, and on top of that extend your membership for a year in gratitude for your keen eye. Ryan Piercy
Guanacaste Fruit that is ear-shaped Guanacaste Flower
http://www.cientec.or.cr/ambiente/arboles/ htmls/higueron.html
Bryant Smith Palo Seco de Parrita
Guanacaste Tree
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Fruit & Flower of the Higueron
Higueron Tree
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A Not So Rosy Future by Alan Weeks Welcome to the Bubble Economy 2005
THE US ECONOMY Various leading indicator charts graphically illustrate that US economic growth is decelerating fairly rapidly. This is further indicated by the continuing downward trends in the rate of change in industrial production and non-farm payrolls. In addition, this lackluster economic expansion, constrained by a lack of savings, too few jobs and too low wages, and sustained by cheap credit and boundless borrowing, cannot go on forever. Consumer spending is already at record levels now approaching 160% of wages. Household debt, up an annualized 9.3% in the first Quarter, now totals $10.5 trillion. This is equivalent to the total US annual output. The tenuous economic situation in the US is further dampened by the drain of enormously pricier energy, and the current state of government finances. And, it is expected that the US balance of payments position is going to continue worsening. For these reasons, more independent economists are now forecasting an extended period of slow US economic growth.
WHITHER THE US DOLLAR “Money never leaves its country of origin. It’s only the ownership that changes” (1). This can be easily confirmed if you try spending some yen or euros in your local WAL-MART. Dollars are just paper IOUs. When US dollar-
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denominated IOUs pile up outside the US, they must come back, one way or another, to purchase US goods, services, or securities. Because the US imports about 65% more than it exports, it is substantially dependent on foreign lending. Of course, this is a very healthy set of circumstances for the emerging economies. They are using their capital to pay down their debts and are buying US Treasury bonds to hold their own currencies back. While the US need for foreign capital is likely to grow; at the same time China’s desire to buy US bonds, and Japan’s as well, should diminish. It is expected that China will commence to revalue their currency only modestly this year, but next year it should revalue more aggressively. Other emerging market currencies should strengthen as well relative to the US dollar because their central banks have also been artificially holding their currencies back to stay competitive with China. In addition, major commodity exporters such as Canada and Australia, should also continue to see their currencies appreciate relative to the US dollar, as the strong demand for commodities continues. More on this later. Another professional advisor (2) indicated that Continued on page 12...
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in the 35 years he has been analyzing currency markets, at no time has the US dollar been in a more dangerous trend versus the Canadian dollar, the yen, and the sterling.
BE CAREFUL WHAT YOU WISH FOR! Over the last few years China, for its own reasons, has acted as an enabler both of US fiscal irresponsibility and of a return to NASDAQ-style mania, this time in the housing market. Now the US government is finally admitting there is a problem – but is asserting that the problem is China’s, not its own. Unfortunately, there is no sign that anyone in Washington has faced up to the following unpleasant reality: The US economy has become dependent on low-interest loans from China and other foreign governments, and it’s likely to create major problems when these loans are no longer as forthcoming. Of course, the US government is complaining because it is politically expedient to put the blame elsewhere for the problems. And, there is political pressure from the very vocal US manufacturers and their employee groups who are angry about those Chinese trade surpluses. Yet they represent a small minority in the US as only 10% of all corporate profits now come from US manufacturers. Knowledgeable people expect significant real-world consequences, if and when China changes its currency policy, and the cheap loans are no longer available. US interest rates will rise; the housing bubble will probably burst; construction employment and consumer spending will both fall; falling housing prices should lead to a wave of bankruptcies. Sooner or later this will happen anyway. The short term pain should then be immediate but the US economy could end up healthier in the long run. Right now China has its own problems. Hundreds of millions of Chinese workers are still employed by the old state-owned
El Residente
industries. Chinese leaders hesitate to create more unemployment by closing those moneylosing operations. Thus, they must continue to prop them up by forcing their banks to keep making bad loans. The difference is that, while both the major world economies have serious problems, China is accumulating money that could be used to help meet its obligations, while the US and its citizens are going deeper in debt.
COMMODITIES The future for commodities is really an issue of consumption. In China’s case, many do not believe their economy is going to slow down. Soon, China will also be a net exporter of steel along with the myriad of other low and high tech products. But, the big story is the rapidly growing Asian appetite for all the modern goods, including cars. It is now being recognized that the peoples in China, India, and other S.E. Asian countries, are no longer a mass of peons eking out an existence. The fact is, “that more people have been lifted out of poverty in China and India in the last 20 years than at any time in the history of the world, because of globalization” (3)
All this new growth in consumption means lots of continuing demand for commodities. Oil is a favorite of many investment gurus. Some are predicting the price of oil to be around $100 a barrel by mid next year. Current problems are the capacity limitations on both extraction and refining of oil. Continued on page 13...
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There has been a tremendous surge in oil demand, with China now the world’s 4th largest importer. While the US has only 3% of proven oil reserves, it consumes 25% of the world’s oil. Now with China and India in hot competition for oil supplies, this can only push prices upward. And, what has the US done about this? Average fuel economy in the US is at a twodecade low. As one independent economic analyst (2) put it, “This is abject stupidity. So far, Americans just don’t get it.” “Cars and light trucks suck up almost 45% of US oil consumption and ships, trucks, and planes about another 25%. Thus, at about 70% of total consumption, it’s clearly a transportation industry problem that must be resolved”. One “tongue-in-cheek” solution presented very recently by Thomas Friedman (3) was to replace the GM management team by executives from Toyota. To make a long story short, Toyota’s existing hybrid
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technology could rescue not only the US people and the economy from the current transportation oil addiction (how about 500 miles per gallon of gas), but also US foreign policy from dependence on Mid-East oil autocrats. A very interesting story, indeed! The key point is that both the technology and the production process already exist and could be implemented en mass quite quickly. It will probably take some incentive to make this happen. In conclusion, there should be a continuing demand for commodities for years to come. And, many are predicting the value of the US dollar will decline significantly from its current tenuous heights. For this, plus other good reasons, we also expect much more demand for gold over the next period. For more information and/or marked reference details, please contact Alan Weeks at 256-5848
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Our Adventure Continues by Carol Marujo My love affair with Costa Rica, like all relationships if they are to last, is transitioning into the second stage. The first stage, one of new love, is the exciting beginning, realizing the dream of living here. The second is the “settling-in stage” when you notice and then adjust to the inevitable irritations. It’s the capleft-off-the-toothpaste stage when euphoria (which cannot continue indefinitely) gives way to reality. And then you decide the toothpaste cap really isn’t that important. It is also the stage when excitement gives way to comfort, and love matures into deeper and lasting connections. With time and experience I am learning to accept how things are done here. For a month the shopkeeper promises that the floor tile I ordered will be here in a few days. “Come back on Tuesday,” he says. “It will definitely be here then.” Three Tuesdays later he finally admits that he was unable to order
it. But compared to the natural beauty of this country and the warmth of the people, the timely purchase of floor tile just isn’t important to me. Likewise, these stories I write about being here are shifting from the stage of, “Oh look, there are toucans!” to describing in more depth the events around me. But it still thrills me to see toucans. Remembering Roldan Living in a place long enough to have known someone who has died may be a sign that you are no longer a newcomer - still a foreigner perhaps, but starting to become part of the community. Roldan was one of the campesinos that guided our trek though the brush and forest down to the waterfall on the first day I saw the farm we would soon buy. He and his wife had a large farm about half a mile up the road from ours. They invited us into their home on occasion, and we included them in some social gathering with other Tico and Gringo neighbors. Continued on page 15...
“Most villages have a small Catholic church such as this one, even if they are too small for weekly services.”
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Everyone in the canton of Puriscal seemed to know him. He was outgoing and talkative. I enjoyed his sense of humor. Knowing of my interest in learning about life in this area, he would tell me about the medicinal uses of some wild plants, and which animals were good to eat. With a cupped hand held up to his chin and a wave of his fingertips toward his mouth, he would indicate which were most tasty. Pizotes (a close relative of the raccoon) are high on the list, and armadillos are only good for soup. He grew up at a time when most people on these farms raised their own food, supplemented by what they could catch in the forest and streams. He told me about one boyhood day when he and some friends were at a soda, a tiny snack shop selling inexpensive food. They sold cold fruit drinks, which he really wanted but decided to pass up because he was saving his money to buy shoes. One day last year while he was helping us to clear away some overgrown vegetation, he disturbed some wasps. He then used the Indian trick of wiping sweat from his face and neck and holding it out toward the wasps. They flew away without stinging.
raising fruits and vegetables. I remember summer visits as a child and the tastes of sun-ripened peaches, freshly picked tomatoes and corn-onthe-cob, and warm apple pie. During the summer my grandfather would rise at 4 a.m., have a bowl of oatmeal, and be on his tractor by 5 a.m. ready for the day’s work. I remember his pickup truck loaded with bushels of produce for market. I had not thought about these memories very often until I found myself out here living on a farm. Now I am very interested in learning sustainable, organic methods of producing food. It seems to me we should be doing more to utilize our land. Other than some vegetable gardens, which my husband and I each had when growing up, neither of us brought any farming experience with us to Costa Rica. We bought the place we did because this is where we want to live. It just happened to have things growing on it. We have reforested some of the land and will continue to turn more and more of the pasture back into forest. We are leaving the thick secondary forest on the steep slopes and along the streams
Another time he showed me a place along the banks of a stream where you can find rocks, gravel and clay in a beautiful shade of teal blue. I used some to make a path leading to the guesthouse we built. Roldan was just a few months away from retiring on a pension, when he died unexpectedly of injuries received in a terrible fall about ten days earlier. Several hundred people attended his funeral the following afternoon. People began to arrive by 10 a.m. in cars, taxis and riding standing up in the backs of trucks. Around noon, family members brought his coffin to the small Catholic Church, which had been decorated with flowers and candles. Our village of fewer than 100 people receives a visit from a priest only a few times a year. But that afternoon a priest came to say the words of comfort people needed to hear. A mariachi band gave him a serenade before he was taken to the cemetery - a typical Tico send-off. I think of him from time to time when I see an armadillo or water the trees I planted from seedlings he gave us. I’m glad we moved here in time to have known him. Farming My grandparents had a farm in Connecticut where they supported themselves and three children by
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“The farm we bought has a lot of coffee growing on it.” wild and undisturbed, as habitat for whatever creatures are living there. The return of the rain brings a new planting season, and I am eager to plant a lot of vegetables this year. I also want to raise chickens for eggs and meat and hope to grow at least some of the corn to feed them. We are thinking of having ducks and a tilapia pond in the future. Someday I will get a horse. Continued on page 16...
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The farm also has many kinds of fruit trees and the palm tree, which produces pejibaye. Pejibayes are orange in color, about the size of limes and are highly nutritious. They are typically boiled, peeled and served with limejuice and mayonnaise. They also make a great soup. This place has quite a bit of coffee. For the first harvest, we let neighbors pick and sell for themselves the coffee our plants produced. Since then, we have joined our local, organic coffee producers’ association. They came out and took soil samples and gave us a book about California red worms. The book has cute cartoons showing how these earthworms quickly turn leaves, grasses and kitchen scraps into compost. This particular type of worm is well suited to our rocky soil. Speaking of kitchen scraps and other garbage, out here when you create it, you own it. There is no garbage collection. We use what we can for compost, recycle and reuse what we can, burn some and put the rest into our own landfill - a hole of eight cubic meters. At the rate we are going, we will fill one such hole every two years. I think our Gringo lifestyle results in more garbage than our Tico neighbors create. I want to learn to make less of it. We have started to keep the coffee plants tended and composted to fight parasites and diseases that could attack them. Much of our coffee is partially shaded, which attracts birds that eat harmful insects. Some readers may be wondering, how can coffee production be considered sustainable, when
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arable land is used for a product that does not contain the nutrients needed by a hungry world? My answer at this time is that I don’t know. Maybe by definition, coffee is not sustainable even if it is organic. I’m just learning about these concepts. But I really like coffee and drink a lot of it. Costa Rica is home to many Gringos with farming experience who are serious about generating income. Some of them are committed to conserving the earth’s resources by using sustainable methods. We learn from their successes and their mistakes. One neighbors’ small tilapia were all eaten by a heron, because he did not make the pond deep enough for them to escape the predator. However, we don’t expect to break even at first or to ever make a lot of money at this. I just find it very satisfying to learn how to use the land to produce wholesome food and to provide some work for people who need it. But the most important thing is that we have the amazing good fortune to be able to live the way we want in a place that suits us so well.
About the author: Dr. Marujo is a freelance writer and retired psychologist who resides in Costa Rica as a pensionada. These stories are of her experiences living in a new country.
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LEARNING THE LANGUAGE
Bodily Sensations by Christopher Howard Describing certain physical states can be difficult when speaking Spanish. You need to have to know specific idiomatic expressions to be able to tell how or what you are feeling. Unfortunately many of the words or specific phrases you need are either not to be found in a dictionary, or they are not included with these specific concepts. Here are some of the most common expressions used to describe strange bodily sensations. Sentir hormigeo (hormigas) en... – I feel tingling in my… (Siento hormigeo en las manos. My hands are tingling.) Tener …… dormido – My ….. is asleep. (Tengo el pie dormido. My foot is asleep.) Estar mareado – to be dizzy, seasick. (Estoy mareado. I’m dizzy.) Todo darle vuelta a alguien – to feel a spinning sensation. (Todo me da vuelta. I feel like I am spinning.) Dolerle a uno – to hurt. (Me duele la cabeza. My head hurts.) Tener escalofrios – to have the chills. (Tengo escalofrios. I have the chills) Temblar – to shake. (Me tiemblan las manos. My hands are shaking.) Castañetear – to have your teeth chatter. (Me castañetean los dientes. My teeth are chattering.) Zumbar – to have your ears ring. (Me zumbar los oidos. My ears are ringing.) Ponerle a uno la carne de gallina – to get goose bumps. (Me puso la carne de gallina. I got goose bumps.) Empalagarse – to get sick from eating sweets or too much sugar. (El pastel me empalagó. The cake made me sick.) Estar encandilado – to get temporarily blinded when going from bright sunlight to a dark area. (Cuando entré el cine yo estaba encandilado. When I entered the cinema I was blinded.) Destemplar – word used to describe the uncommon sensation your teeth feel when you eat something like hot soup after drinking a cold beverage. (Cuando tome la sopa se me destemplaron los dientes. When I drank the soup my teeth hurt.) Erizársele/parársele el pelo – to have your hair stand on end. (Cuando vi el fantasma se me paró el pelo. When I saw the ghost my hair stood on end.) Estar sudando frío – to break out in a cold sweat. (Yo estaba sudando frío. I broke out in a cold sweat.)
Here is your Costa Rican expression or tiquismo for this week: “Más largo que un domingo sin plata.” literally translates as ‘Longer than a Sunday without money’. This phrase is used when something takes a long time.
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El Residente Update
Expotur 2005
Jay Brodell- AM Costa Rica www.amcostarica.com Immigration stamps
will
stop
use
of
Despite the CD videos and the spiffy electronics, tourism operators again are proving that the best way to do business is face to face.
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Costa Rican immigration officials are eliminating transaction stamps, and those who will be affected most by the change are foreigners with residency in the country. The change was announced over the weekend. Marco Badilla, director general de Migración y Extranjería, said the change was prompted by the great amount of time spent by the employees in his department finding and pasting stamps on official documents. Frequently immigration officials outside of San José had trouble in just locating the stamps. So now the agency has set up two bank accounts, 242480-0 at Banco de Costa Rica and 215936-6 at Banco Nacional, into which persons may make deposits for various immigration needs. Costa Ricans also will use the accounts for updating their passports. Foreigners who have appointments for renewing their residencies have to make a deposit one day earlier, said Badilla. Foreigners pay 1,250 colons (some $2.64) for renewing their residency identification and 1,013 for the small booklet carried by permanent residents. Fines for renewing the residency late also will be collected via bank deposit. The fine is 300 colons a month. Badilla said that this system would work in conjunction with a new method of providing identifications for foreigners in the coming months. Foreigners will be issued an identification card much like the driver’s license-sized plastic document carried by Costa Ricans. Stamps are used continually on official documents in Costa Rica. Tourists even purchase stamps for permission to leave the country. Legal documents bear stamps, and some cost more to print than their face value. For example, there are legal stamps for a colon, which is one 474th part of a U.S. dollar at this writing.
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The scene was Expotur 2005, the 21st annual edition of the tourism marketplace being played out at the Herradura Hotel and Conference Center west of San José in San Antonio de Belén and at hotels, restaurants and bars all over the Central Valley. There were 276 registered companies seeking business and 210 representatives of companies seeking to do business, according to the sponsors of the event. Not all the sellers were from Costa Rica. A substantial contingent comes from Nicaragua, including representatives of that country’s tourism board. Guatemala, too, has a strong presence. Only 75 percent of the sellers were Costa Rican. In these days of Internet, Web pages, CDs, DVDs, video and virtual meetings, there is no technical reason for Expotur. And, indeed, such devices are much in evidence at the event. But in many exposition booths earnest conversations were taking place as deals were made - face to face. The bulk of the buyers, some 83 percent, came from the United States and Canada. The exposition lasts a few days. It is a private affair, and the public is not invited. That fact is a shame because many booths are elaborate and richly crafted. The gathering of Nicaragua sellers was located within an area decorated with pineapples, mangos, bananas and other real fruits - enough produce to open a farmer’s market. And all neatly hung from various columns. The exposition also demonstrates the diversity and complexity of what tourists can find here. The sponsor, the Asociación Costarricense de Profesionales en Turismo, reports that exhibitors included 10 airlines, a cruise company, 80 tour operators, 140 hotels, 11 rent-a-car companies, two transportation companies, two providers of charter flights, a company that rents helicopters and 17 other firms offering other types of services. Some 20 percent of the exhibitors were new to Expotur, and 41 percent of the potential buyers were new also.
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FAQs; On Property & US Tax by James Brohl When I buy property in Costa Rica, do I need to report the investment to the IRS? No‌investments as a general rule are not reported to the IRS. Upon sale of the property, the gain/loss is reported on Schedule D of form 1040. It is important to keep good records regarding the purchase date and price (include all costs of the purchase: fees, commissions, etc. that make up the basis of the property), which in turn is used to calculate the gain/loss on sale. When I invest in a corporation in Costa Rica do I have to report that to the IRS? If the foreign corporation is a controlled foreign corporation that produces income, form 5471 is ďŹ led and income, whether distributed or
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not, is reported on form 1040 according to the stockholding percentage of the foreign corporation’s income. A controlled foreign corporation is when more than 50% of its total voting power or value is owned by US shareholders (this includes a US partnership, corporation, estate or trust). If the US shareholder owns or controls more than 10% of the foreign corporation, then constructive ownership rules apply. Many corporations in Costa Rica are used as a vehicle to transfer property and/or for personal liability protection. By and large, these corporations are not income generating rather, they hold assets such as property. Therefore, when the asset is sold the gain/loss is reported on form 1040, Schedule D. If I have a bank account in Costa Rica in my name do I have to report that to the IRS? No, if the combined value of the account was less than $10,000 during the whole year. If the account is greater than $10,000 or you have signature authority of such an account, it is reported to the Continued on page 23...
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IRS on schedule B of form 1040. Additionally, form TD F 90-22.1 is filed with the Department of Treasury by June 30 of each year. Consulting a CPA to address your personal situation would be helpful. If I have a checking account in Costa Rica that is in the name of a corporation in which I own the shares and I am an officer with power, do I need to report this to the IRS? The guidelines of the previous question hold true if the person holds more than 50% of the shares of the corporation or has a partnership interest greater than 50%. If I receive rental income on a property I own in Costa Rica, do I need to report this on my US tax return? The United States taxes its citizens and residents on all of their worldwide income. Rental income is reported on Schedule E of form 1040. However, all the expenses related to this income are deductible against it, including mortgage interest and property taxes, among other expenses. Consult with a CPA to get the full list. Can I invest my IRA funds in property in Costa Rica? The short answer is yes, IRA funds can be used to invest in property in Costa Rica or anywhere else for that matter. However, there are challenges and very specific guidelines in doing so. First, the IRA must be in a truly self-directed account that allows investments in alternative assets such as Real Estate, Limited Liability Companies, Tax Lien Certificates to name a few; note these IRAs are atypical. Second, you must avoid self-dealing in your IRA. IRS Publication 590 explains selfdealing by addressing prohibited transactions and disqualified persons. Some prohibited transactions from Pub 590 include dealings between your IRA and disqualified persons, borrowing from your IRA, selling property to it, receiving unreasonable compensation for managing it, using it as security for a loan and buying property for personal use whether present or future. Disqualified persons include your IRA fiduciary (for their or their company’s personal benefit) and members of your family (including companies where these people are officers, directors or shareholders). The IRA
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plan must operate in its own best interest in all transactions. Consult with a CPA for further details. If yes, can I use both IRA funds and other investment funds to purchase a property or invest in a corporation? In most cases, the answer is no. Because the IRA account must operate in its own best interest, commingling funds raises questions whether this is true. However, that would not restrict one from finding other like-minded people that could use their IRA plans to invest together; if one’s own IRA plan does not have sufficient cash to make the investment itself. If I invest my IRA funds in Costa Rica by buying shares in a corporation, can I be an officer of that corporation and hold power to act on its behalf? No, this would prohibit the IRA plan to operate in its own best interest. When I sell a property of shares in Costa Rican corporation, how should I treat any profits from the transaction? Gains and losses of property are reported on Schedule D of form 1040, file for the year it sold. If I sell the shares of a corporation but immediately buy the shares of another corporation what are my reporting obligations? If you sell shares the gain/loss is reported on Schedule D of form 1040; it should state it is not a like-for-like tax-free exchange. If there is a like-kind exchange it is also reported on Schedule D of form 1040 in the year the transaction takes place based on market values of the shares that are exchanged. James Brohl is a Certified Public Accountant from the United States with over 18 years experience in accounting and finance. He presently lives and works in Costa Rica as a Tax Practitioner and Business Consultant. To contact him send an email to jrtb_1999@yahoo.com
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Beyond the Waves…The Wonderful Ocean! Fundación Promar Costa Rica is surrounded by 580,000 Km2 of oceans and 1,200 Km of beaches. They represent an invaluable source of benefits for the country at economical and social levels, through tourism and fishing activities, among others. Environmental awareness in Costa Rica has been specially focused on the forests. The oceans are still conceived just as areas for resting and entertainment where the sand and the waves are it all. However, the oceans are so much more: they are a macro-ecosystem composed by diverse and rich systems full of organisms…full of life. Fundación Promar (PROMAR) manages the Marine Educational Program (PEM, Spanish acronyms) with the purpose to create a link between people and the oceans, promoting them as ecosystems instead of simple relaxation places. Through Marine Excursions and Marine Camps as well as Scitourism, PROMAR transforms the oceans into live classrooms where people from different ages, nationalities, social and educational levels can learn to see the marine areas with new eyes.
The dolphins are delightful... Marine Excursions are focused on whales, dolphins, mangroves and coral reefs and are developed in different areas of Costa Rica. International alternatives are also available, including Belize and Galápagos, with the objective to show marine species less abundant in Costa Rica such as whale-sharks and sea lions and to promote the oceans as a world heritage. Marine Camps have marine turtles as the main characters and involve light volunteer work, such as protection of hatchlings and monitoring activities with nesting adults. Scitourism is developed in Golfo Dulce and involves support to scientific data collection along with formal lectures about marine biology. As PROMAR philosophy is based on sustainable development, all those three alternatives seek a balance between fund raising, benefit for coastal communities and environmental health. Because of this, every option offers accessible prices, involves coastal services managed by locals (hotel and boat) and respects behavior guidelines around marine organisms and ecosystems.
The personnel are wonderful...
All the alternatives include stay, meals, private bus and marine transportation, guidance by Continued on page 25...
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...and the turtles are just a plain miracle.
specialists, educational material and personal insurance. They involve visit to marine ecosystems and respectful observation of organisms as well as formal talks about specific marine topics according to the specialization of the activity (dolphins or whales or marine turtles, etc.) These activities can be scheduled according to specific interests, seeking to involve a minimum of 20 people each, so that the price can be as comfortable as possible with economical benefit for the foundation. For further information, PROMAR can be reached at 226-9787, at 227-1491 or at pem@promar.or.cr Details of PROMAR work can be found at www.promar.or.cr. We will be glad to offer a talk about PROMAR and its PEM. Through the support of ARCR the oceans can be protected.
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Exchange rate of the Costa Rican ¢ to the US Dollar 457.58 December 461.06 January 464.25 February 467.46 March 470.41 April 473.72 May Basic Interest Rate December 14.25% 14.50% January February 14.75 % 15.00 % March April 15.00 % 15.75 % May Exchange rate of other currencies to the US Dollar Japanese Yen 108.13 Swiss Franc 1.2448 Canadian $ 1.2584 Giro (DEG) 1.4795 £ Sterling 1.8223 Euro 1.2344 Mexican Peso 10.915 Korean Won 1,008.0 Danish Krone 6.0288 Norwegian Krone 6.4295 Argentine Peso 2.8865 Colombian Peso 2339.6 Brasilian Real 2.3970 Libor Rate 1 month 3.1300 % 3 month 3.3375 % 6 month 3.5375 % 12 month 3.7800 % Prime Rate
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6.00 %
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Holidays Of Costa Rica July 25th ‘Guanacaste Day’ August 15th ‘Mother’s Day’ ‘Assumption Day’ September 15th ‘Independance Day’ ********************
A Touch of Wisdom “A quarrelsome man has no good neighbors.” Ben Franklin (1706-1790) “Do unto others as you would have others do unto you.” Bible “Fair words never hurt the tongue.” George Chapman (c.1559-1634) ******************** Caution is the watchword when dealing with local language... Electrolux is a vacuum cleaner manufacturer based in Sweden. They came out with a print ad in Britain featuring the headline, “Nothing Sucks Like an Electrolux!” The ad may have been successful in the UK, but would have been a disaster in the USA. Why? Analysis: literal translations of words, headlines and advertising slogans can be a big cultural mistake - even between “English” English and “American” English. In America, the word “sucks” is a slang term meaning that something is really bad, (e.g. “That really sucks!”) and this “English” headline would laughably come off as “Electrolux sucks!” (is a really bad vacuum cleaner). Not exactly the image you want to project! Fortunately for Electrolux, they didn’t use the British ad in the USA.
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