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Editorial Note: Here we are again, a simple issue in the middle of a year, yet it is the end of an era, as Bob is leaving, yet the beginning of another as others arrive. This issue was created with a little bit of sadness, happiness, opinion, and excitement. Of course it may not all come across well on paper, but believe me it is there. In this months feature you will see the joy of Costa Rica for the first time again, through someone elses’ eyes. This is the first of a series that we hope you will all enjoy. Also if you have anything to contribute, please let us know. Or if you just have a complaint, please call me at the office in early July, when I will be away in Canada. Thank you for your support, and see you next month. - Ryan Piercy
Don’t forget to inform us of any change of address or contact information!
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This magazine has been published every two months for 10 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. Since 1984 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 Repor t by Bob Miller Well this report may make some people unhappy as well as me. It may make one other person happy, and that’s fine with me. Now I am sure you are all wondering what this is all about. It’s the fact that this will be my last President’s Report. In all the years that I have been writing the report or Contributing to El Residente I have received many emails, mainly questioning an item that I wrote about. Many were Complimentary. I thought of myself as another George Bernard Shaw. Then I received one about three weeks ago that brought me down to earth. It seems as though this person hated me. Well as someone once wrote we are known for the enemies we make. I was going to reply to it. I typed out a reply and asked Ryan Piercy to review it and the sender’s email I received. This to see if I was what the writer said I was. I decided to forget the whole thing Ryan who is the editor decided to publish it. The email and my reply are in the Letters section. You decide if I am what the writer described me, or what. Well this is my last
report. Not because of that email, but because my wife and I are returning to Canada. Now to you readers, the 99% who don’t think of me as a nasty person I will say that my stay in Costa Rica has been a very pleasant experience. I have enjoyed the people and the country. I have made many good friends. Farewell and Good Luck to All. ******************* We would like to take this time to show our appreciation, and extreme gratitude to Bob, and of course Elsa, who have been with us for over 6 years now. Their support through these years has been absolute, and helped the association make it through a difficult time in the beginning. Frankly, without Bob, the Association may not have existed, yet here we are now, well into 2500 members, and stronger than we have ever been. Bob and Elsa will be returning to British Columbia, and we hope they will continue to stay in touch. It has been the decision of the Administration to make them Honorary Lifetime members, and they will always be welcome at our door, So long Bob & Elsa, and we hope to see you again!
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Cover Photo The National Coat of Arms: The National symbol on the cover, photographed from the Presidential Box at the national theatre, is one of the more current examples of the many Escudos the country has seen, and the first to be so similar to the shield we know from today. It flew from 1848 to 1906. The shield of today [at right] depicts the same symbols with some slight modifications. In general we see 3 volcanoes in an extensive valley between two oceans. On each ocean is a merchant craft. Though akin to the original shield as decreed by Honorable President Jose María Castro Madriz in 1848, it has been redesigned twice. In 1906 all war elements were removed (canons & rifles), then in 1964 two more stars were added to depict one for each of the seven provinces.
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This coming October the board will be changing, and we are looking for members who may be interested in volunteering. We know you’re out there somewhere! We are really starting to make headway, and if things go as we hope, there may be some big things in the future, so why not come and really be a part of it! Earl Tomlinson, who will be back in Costa Rica by July, will be taking over as Acting President, so anyone interested may contact him or the other board members through the office. Speaking of Honorary Members, it was also decided by the board to extend this honor to one of our other members in recognition of her birthday. Member #3128, Mrs. Pannabacker, turns 100 years old this August. We would like to wish her a very Happy Birthday on this special occasion! Also we continue to need support in the Charity Committee, or in fact with any individual acts you can. For example Monika and Nives, of the Non Solo Cafe Restaurant in Escazu, have been very helpful by assisting us in the sale of our Continuous Raffle. This little Italian place has great food, and they help us raise
El Residente
funds, so please visit them at Plaza Colonial to show our reciprocal support. So, do you own a business that deals with the public? Would you be willing to help us sell raffle tickets to your guests? Monika and Nevis did, and two of their clients won already! What Great Publicity! In fact anything you are able to do would be most helpful, and we really appreciate the assistance of those who have come forward already. Thank You. To make a donation for childrens’ education please contact the committee at the office, or to help children in need of medical care please donate directly to the account below, and fax us your deposit. ALSO check out Project Talamanca and our Permanent Raffles, discussed in this issue... Account: Asociacion Damas Voluntarias HNN # 161-0100262001116-7 We would appreciate any help you can give, and I assure you the children will also be extremely grateful to you from the bottom of their little hearts.
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Letters to the e Editor On The Presidents Report: Attn: Bob Miller As always, I enjoyed your Presidents Report. One quibble. You are incorrect, or should I say, not fully informed as to a minor detail. I did say quibble. My quibble is with one sentence. “Of course, in the states they need people to do the low paying jobs no American want to do”. That is a thought, not a fully thought out. I humbly suggest you consider this small piece of the puzzle I now submit. What do America businessmen do when citizens won’t do the job they offer? The answer is mechanization. Every agricultural job done by a Mexican would be done by machinery if the politicians did not want this new potential voting constituency. Problem: I can’t get people to pick cotton fast enough to make the profit I dream of. Solution: The cotton gin. But, machines don’t vote! I’ll stop here. You get the picture. Live long and prosper & pura vida, Ronnie Guell Dear Bob I read your May-June article and true to form, a Canadian bad mouthing the States on one side and asking for money on the other side. You mentioned that there are three ways to solve the U.S. and Mexico border problem, however you left out a fourth. How about Canada offering those Mexicans crossing the border to the U.S. free passage to Canada to take Canada’s low paying jobs? Also, you mentioned something about U.S. College graduates helping kids here get scholarships to the schools they attended. How do you do this? Finally, you mentioned Gringos and Canucks. When was the last time that you ask someone in the campo if they could define Canucks? I know the answer, they can’t. However, you can go to any restaurant, any hotel and ask the employees there who they think are the stingiest group of travelers and they will, without a doubt, say Canadians. You can ask the same people who they think are the most generous and they will undoubtedly say Americans. I am, as you can tell, a U.S. citizen, and provide funds to send two needy children to school, and have been doing this for four years. I also, whenever I am asked, contribute to school projects. Tell me, how many Canadians do this? One last question, from where are the majority of ARCR members from? Al Almeida, Nuevo Arenal Dear Albert, I have received your Email. A very interesting and unique message, and I will try to cover each of the points you raised. Your opening statement was that I was a Canadian badmouthing America. Now as an engineer I had to be precise
January-February, 2006
and accurate in my reports, or misinterpretation might result in injury to innocent persons. I therefore reviewed the President’s Report that you commented on. I also had three other people review it. They were U.S. citizens. None could find any anti-U.S. commentary or diatribe in it. Your next statement was that I was asking for money. This was true but not as you implied. If you have been reading my reports you would know that I was asking for money for the Hospital del Ninos in San Jose, where we have supplied them with monitors and equipment to help Costa Rican children. Another point is your questioning how U.S. college graduates could help Costa Rican students obtain scholarships in U.S. universities. Most American universities offer scholarships to foreign students in order to help the American students become knowledgeable of foreign students. Therefore U.S graduates can recommend to their former universities foreign students for possible scholarships. Good for you for helping two Costa Rican children. Comments on Canadians helping Costa Ricans: The Canadian Club has modified and repaired dozens of Costa Rican Schools. (This has been done for a lot longer than four years). Information is available from the Asociacion Canadiense de Costa Rica Now in order for you to know where I come from: I served in the USAir Force from 1942 until World War 2 ended in 1945. My crew and I were at Kadena Airfield in Okinowa preparing for the invasion of Japan if the atom bomb didn’t do the job. It did! Now that I have told you about me. Let me know about you? Where you dine and how much do you tip? How have you helped your country during their wars? You have surprised me with what you said in your last question. If you have to ask me where the majority of ARCR members are from I am truly disappointed. Sincerely Bob Miller President ARCR ****************************************** For the readers: I thought it appropriate to publish these letters in the hope to solicit further input. While I will not interject any personal opinion, I did want to say that I don’t believe Bob had any negative remarks about the USA in his May report, though I am Canadian of course. Immigration problems affect most countries, including Costa Rica and Canada, and often in very similar ways. In any event I feel that feedback, of any type is important, and always good if taken in a positive light. We want to know what the readers think, and it is good to know that people take an interest in the various issues. Keep those letters coming… Ryan Piercy ARCR
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Association of Residents of Costa Rica ARCR has now begun a series of continual Charity Raffles to be available through the office. We will be holding 4 series per year, with many prizes to be won at each draw. Tickets are only ¢1000 each, with thousands of dollars in prizes to be won, so don’t forget to buy some on your next visit to the office! All proceeds go to Charity. Are you the owner of a business? Would you help us sell our raffle tickets? Remember the ARCR charity funds are 100% for charity. We have no overhead. Please contact the office if you can help. website: www.arcr.net Alcoholics Anonymous Groups meet daily throughout the country; times and places change frequently. Call for up-to-date information. San José 222-1880 (Anchor club, also serves Narcotics Anonymous) Av 6 Calle 1, 2nd floor Maryland Building. Heredia (Laura) 267-7466, Puerto Viejo Limon 750-0080, Zancudo 776-0012, Tamarindo 653-0897, Flamingo (Don) 654-4902, Manuel Antonio (Jennifer) 777-1548, Jacó (Nancy) 637-8824, Zoo Group Escazu 293-4322. Al-Anon Meetings Sabana Vigilance Club: Sandy 288-4836 or Martha 483-1275 American Legion Post 16 All veterans are welcome. Meetings are the second Tuesday of the month at Oporto Restaurant in Heredia. Contact Post Commander Jim Young or Post Adjutant Ken Johnson at 591-1695. 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 Canadian Club Aren’t you just ‘itching’ for a good game of Pool, or maybe Darts? Perhaps the challenge of a competitive match of Backgammon or Chess is more up your alley! Or, maybe you just want to ‘kick back’ with old friends and a Big Screen TV! Then Plan to attend the monthly “ACCR Pub Night” Now, the first Thursday of the month. ‘Laurie’s Bar & Grill’ in front of the ‘Ceviche Del Rey’ on the Old Road to Santa Ana. website: www.canadianclubcr.com Democrats Abroad The Democrats Abroad of Costa Rica meet the last Saturday of each month at the Aurola Holiday Inn, 9:30 a.m. to noon, coffee break menu. Visit cr.democratsabroad.org or contact Luisa Kaufman for information and reservations. 820-1912 or 239-5042, ladyauag@gmail.com
El Residente
Send us your club news or activities for free publication in this column
Newcomer’s Club 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 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’s Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month. Contact Francis 203-6131, or or fax 282-2150. Radio control Sailing Club Meets at Sabana Park Lake. For information contact Walter Bibb. Wwbbsurf40@yahoo.com Wine Club of Costa Rica 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. For more information on upcoming events please contact us Phone 279-8927, 257-2223, 285-1276 Women’s Club of Costa Rica Founded in 1940. The Women’s Club of Costa Rica is one of the oldest, continuously operating service clubs in the country. The name has changed in 63 years, but our motto “friendship and service” has remained the same,. An English-speaking organization, our club has approximately 350 members, originating from over 30 countries. Please join and help us to continue to grow. Remember that you can contact us or keep in touch through our website www.wccr.org Women’s International League for Peace and Freedom (open to men too) Bi lingual group meets in Heredia on the first Wednesday of the month at 10 a.m. in the clinic of Mireya Gonzalez. We work on peace and human rights issues. Call Mitzi 433-7078 or write peacewomen@gmail.com Young Expats of Costa Rica Some Expatriates under the age of 40, and currently living in Costa Rica, have formed a new social club to be coordinated through their website This club will help younger expatriates living in, or moving to, Costa Rica meet other expats in their age group for; friendship, romance, travel and activity partners, and professional networking. www.YoungExpatsOfCostaRica.org
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January-February, 2006
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New At ARC CR by Ana Hernandez
SELE Fever! ??: When it comes to sports, we Ticos are die-hard fans. By “sports” we mean “soccer.” Soccer unites us and also separates us; soccer makes us laugh and also makes us cry; it makes us scream with enthusiasm and at times it frustrates us and let us down. And when our national soccer league, known as la “Sele” makes it into the World Cup, we become more than fans, we become true nationalists.
Rican national team was the only one in the whole Central American region that qualified to go to Germany -the official site of the Cup-and one of the only 5 Latin American teams competing there. Back in 1990, we also had the honor to participate in the World Cup for the first time in Italy. At the time, people all over were wondering where Costa Rica was located on the map. Now, in June 2006, our chance has come again and everyone on the bus, at work, or in the streets, is talking about “the Sele.” Every Tico becomes a soccer expert and has suggestions as to how to improve on the strategies that the national technical team and its manager ought to use: which players to call on, which players to leave resting at the bench because of their bad performance, etc. With promises of being a real thriller, our team was scheduled to play at the official opening game on June 9, right after the inaugural pageant opposing host-country Germany. This probably prompted newly elected president Oscar Arias in a fit of Sele fever to call for a national day off so everyone in the labor force could watch the Sele playing on T.V. With the president’s proposal overturned, instead of a full day off, most Ticos came to work anyhow, but counting with his blessing, most employers allowed their workers to watch the game during working hours.
Costa Ricans gain a remarkable common identity when our team is playing in the World Cup play-offs. We are a bit more united during this time and become really proud of being Ticos. Just to drive home the honor of what participation in the World Soccer Cup means to us, this is how it works: The World Cup takes place only every four years, and Costa Rica has to compete endlessly in finals against several other countries to qualify. For a small country like Costa Rica, the privilege to be a finalist and participant of the Cup or Mundial, as it is known in Spanish, is no small potatoes. This accomplishment gets more magnified when we consider that the Costa
Not to let this special occasion be missed, we at ARCR managed to convince our manager Ryan Piercy to let us bring a T.V into the office. Our main room, where members come daily for a variety of services, turned into a haven for ARCR soccer fans. In a festive mood and all decked out in red and blue, we eagerly anticipated the moment when our pride and joy, the players of the National Sele, made their World Cup appearance in Germany and our national hymn was heard by millions of people all over the world. Sharing munchies, cheering, howling and hissing at the bad plays just like everybody else in Costa Rica, we were glued to the T.V. for a precious two hours. Our entire country comes to a stand still every time the Sele plays, but now, prouder than ever, and filled with excitement in our hearts and a good degree of apprehension for the difficulty of the games, we give sports fans all over the world a great show of Tico pride for our national soccer team.
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January-February, 2006
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Top Ten Driiviing Tips for CR R by Rick Chalmers
1-4. Driving Hazards The following article is a primer, or introduction to safe and competent driving in Costa Rica. While this article is brief and does not necessarily cover all facets of driving in Costa Rica, it is an attempt to cover the most important aspects of vehicle safety here. In this edition of El Residente we will cover the first four of our ten driving tips. These first four tips focus more on the driving hazards of Costa Rica.
and raises your chances of successfully navigating the roads of Costa Rica. The pressure and attention needed to drive at night is often not worth whatever you would gain by nighttime driving. For ex., I recently almost hit a cow on the road while driving at night. The hides and eyes of cattle do not seem to reflect light. I was literally on top of the herd before I realized they were there! Who would have thought cattle would be in the middle of a road the night? As you can see from the list of obstacles described above, a high level of concentration is needed at all times behind the wheel. Costa Rica highways are not like many highways in other parts of the world. On the highways of Costa Rica there are a lot of hills and most of the highways are singlelane, allowing for no relaxation. If you want to pass the numerous, slow trucks on highways, you will be passing vehicles constantly, and on hills and narrow roads, this is riskier than ever. Additionally, you drive faster on the highways and need more time to break suddenly - which you frequently have to do. Off-road driving, or, driving any of the paved roads in poor condition (i.e., with lots of potholes), requires the driver to concentrate on the path and track of both sets of wheels, left and right. You should also watch others in front of you to see what they are swerving to avoid. Be sure and leave
1. Maintain a high level of concentration while driving It is easier to maintain a high level of concentration while driving during the daytime, therefore we recommend you to avoid nighttime driving. The paved and dirt roads of Costa Rica, while better than some roads around the world, have many dangerous challenges that are not easily foreseen. • • • • • • • •
Large pot holes Road side and road bed wash outs Narrow bridges Pedestrian, motorcycle traffic Horses, cattle, dogs, and other animals on the roads Other vehicles (at night, sometimes without lights) Narrow roads and very little, if any, shoulder If you get stuck at night, finding help is more difficult
All of these obstacles make driving challenging in Costa Rica. Therefore, driving when visibility is best, makes sense
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some space if you are following vehicles in front of you. You need to be able to see the road surface and their maneuvers. If you are to swerve, you need to be able to see if you have room on the shoulder and the oncoming traffic in view the other lane.
recommend the circular dial gauge at minimum if you are not planning to purchase an air compressor. Knowing ahead of time where the gas stations are is also helpful.
2. Adjusting tire pressure for on-road/off-road
The driving in Costa Rica is much more demanding of a vehicle. Therefore, preparedness is essential to driving with reduced risk of incidents. Due to the demands on our vehicle in Costa Rica, mechanical and electrical devices may fail frequently and without notice. Preparation is necessary before driving of any type, duration or distance. We highly recommend the following:
We recommend for both paved roads in very poor condition and the unpaved roads of Costa Rica, that you lower your tire air pressure from the maximum tire pressure stated on the vehicle’s tires. You may need to try your vehicle with different tire pressures to find the best pressure for your vehicle, its weight, and the driving conditions. I have found that for passenger cars and trucks, running the tire pressure from 18-25 pounds gives the vehicle you are driving improved ride characteristics, traction, and smoothness to absorb potholes and the washboard effect of the unpaved roads. For paved roads in reliably good condition, use the tire pressure as recommended by your vehicle’s manufacturer. Deflating and re-inflating the tires requires access to compressed air of some sort. For our vehicle, I have purchased an onboard air compressor. I am able to re-inflate the tires at any point in our trip without having to locate a gas station. I also purchased a tire pressure gauge with a circular dial. I can now accurately measure our tires’ pressure. I
January-February, 2006
3. Vehicle preparedness is essential.
• • • • •
Conduct a visual inspection of the tires and tire condition, including the spare. Make sure that you have your spare changing tools and know how to use them. Make sure your mirrors are able to be adjusted according to your needs and are well-secured. Make sure all of your exterior and interior lights and signals work. Make sure your vehicle’s head-lights are properly aimed. In addition, you may want to consider upgraded or auxiliary lighting. Continued on page 12...
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•
• • • •
Make sure all vehicle fluid levels: engine oil, coolant, windshield wiper fluid, brake fluid, transmission fluid and power steering fluid are at their proper levels. Keep the interior and exterior glass clean for visibility. Make sure your windshield wipers and washers are in excellent condition. If you have a defroster or A/C, make sure it is capable of clearing steamed or foggy windows. Make sure you have enough gasoline or diesel for your destination or a means to obtain it. You might consider carrying extra fuel for long or back country drives.
• • • • • • •
Know how to change a tire. The likelihood of getting a flat is higher her due to the road conditions. If you are off-road, know how to operate your 4WD. Be well-rested. Don’t drive fatigued! Have working seat belts and use them. Wear sunglasses during the day and don’t forget your prescription glasses if you need them. Try not to drive alone if you can avoid it, it is better to have someone with you for moral support, navigating, making a call and spelling the driver. Additional things to have on board: 3 reflective triangles in case of breakdown; gas can; circular dial tire gauge; jumper cables; tow rope; emergency flashlight; drinking water and cell phone.
Rick Chalmers, President of Adventure Motors: “Bigger Than Yours!” S.A., has over 30 years experience in automotive repair. He is a licensed mechanic and emissions technician. Rick owned and operated an automotive repair business in San Diego, CA for 13 years. He currently lives in Costa Rica and specializes in the importation and modification of specialty off-road vehicles. Questions or comments? Email: advenmotor@yahoo.com For the full version of this article: go to www.advmo.com and go to our Blog!
4. Driver preparedness is also important. • •
Know the laws related to driving here as they are enforced! Know where you are going and how to get there (have your map). Searching for directions or counting on being able to call someone by cell phone is not wise while driving in Costa Rica. You may not have phone access on the road.
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January-February, 2006
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What I Did On My Winter Vaca atio on by Allen Dickinson
Day One Let me start off with saying my trip to Costa Rica was all I had hoped for. I left Pensacola at 7:30 AM on Wednesday, January 11th. It didn’t begin really well but, in the end it was absolutely great. Here’s how it went.... I flew from Pensacola to Houston (via Continental) for the first leg without a hitch. We were, however, about an hour late getting out of the Houston airport because someone tried to fly without a passport. (Now who would do something dumb like that? Oh, me. I forgot.) Their bags were already loaded on the plane so the airline had to unload the whole baggage compartment, retrieve the person’s luggage, then reload ... so about an hour was lost. It wasn’t too bad though, it was a very nice plane with huge roomy seats and ... Oops, kidding there. Anyway, once in the air, the flight was perfect. Two and one-half hours later we arrived at the San Jose airport -- at about 2:30 in the early afternoon. Because we were late, we had to disembark the plane on the ramp and ride a bus to the terminal. During that short walk to the bus I quickly discovered Costa Rica weather was perfect -- it was clear, sunny , and the temperature was a very comfortable 82. I was reminded of being in the south Pacific, in particular the Philippines. The air was the same, the light was the same, and looking around at the green hills surrounding the airport, the total feeling was very similar -- except the humidity was much lower..
have walked out through any door, at any moment. Not exactly what I expected. But, they do things different in the Latin countries. Immigration was perfunctory -- “Hi. Welcome to Costa Rica. Let me stamp your passport. OK, go pick up your bags over there and go to Customs, over there. Have a nice stay!” all in Spanish, of course. But, I understood, so off I went to Baggage Claim. The baggage carrousels were not well identified and it took me about 10 minutes to realize I was at the wrong one. (Signs? We don’t need no stinking signs!) It was no big deal though, unloading the baggage from the aircraft was slow and it was another 10 minutes before my bag appeared. Or, at least I think it took that long -- it could have been there earlier and I didn’t see it. (It’s amazing how all bags nowadays looks exactly like every other. Tip to travelers: Put some sort of distinctive ‘something’ on your bag to make it identifiable. I now have a red ribbon tied around the handle of mine.) Then it was on to Customs. Again, not what I expected. After being cautioned on the plane to carefully fill out the customs form to avoid problems and delays (because instructions were either in Spanish or so small I couldn’t read them, it took me two tries to get it right.) I looked for someone to take the form and open my bag and compare the contents to what I had written (that’s the way it is in the movies, right?) but all I got was some guy in a uniform shooing me out the door, form in hand. It’s a Latin country, right? I allowed myself to be shooed but then decided I had better give the form to someone so I went back and found a very disinterested guard who grudgingly took it and reshooed me out. Cool! Welcome to Costa Rica. Down a short passage and I was outside in the main terminal departure area, again. Mine wasn’t the only flight to arrive and there were people milling, cars honking, taxis rushing, people vying for space, etc. Yep, it’s a Latin country alright! I decided that before I got a taxi I needed some money changed and stepped back inside and went to the money changing booth. I parked my bag beside me, got out my wallet and my travelers checks was quickly changed to Colones. I turned back .... and my bag was gone. Stolen? Yeah, probably. I walked fifteen feet directly to a uniformed guard and reported it. Ahhh, my first language difficulty.
The bus took us 150 feet or so and we were led off and into the terminal and told to go to Immigration. No guides or escorts, just a pointed finger. As it turns out, Immigration was at the other end of the airport building and we had to traipse the whole length of the structure -- right through the regular incoming/outgoing crowds. It was strange because I could
El Residente
If you didn’t know, I know basically zero Spanish. My residual Italian was some help, but how does one describe a bag that looks like every other one to someone Continued on page 15...
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who doesn’t speak your language? It’s difficult! “Dark gray. Uh, about this big. Looks like every other one....” In the end, it didn’t matter. Within seconds there were four uniformed and two plainclothes cops conferring madly and then rushing off in all different directions. One waved for me to follow him and we made a big loop through the taxi lines, the parking garage, working our way through the 250 or so other passengers attempting wave down and/or board cars, motorbikes, trucks, cabs, trains (and I assume possibly a boat or two) looking at 250+ bags that all looked similar to mine. At each one the cop would look at me and ask, “Is that it?” in Spanish, to which all I could do was shake my head, No. I had already decided that if I didn’t get it back it wasn’t that big a deal -- all I would have lost were some clothes and toiletries, all easily replaced -- valuables I had kept on me. But, wonder of wonders, when we got back to the terminal there was one of the plainclothes officers with my bag! It was sitting there, all alone, roughly 25 feet from where I had last seen it. Ironically, it was sitting under a sign that said, in three languages, “Tourists. Do not leave bags unattended. There a bad people who may take them.” Yep, Welcome to Costa Rica! I was extremely thankful and all I could say “Muchos Gracias” and shake hands with all of the six officers I could find. (It could have been there were even some I thanked and shook hands with that weren’t part of the original six, I don’t know.) With bag in hand I got into a cab with four other people (Americans, not locals) and gave the driver the name of a hotel I had been recommended. No reservation, no address, just the hotel name and address. Riding in a taxi, and driving in general for that matter, is extremely chaotic in Costa Rica. To start, everyone drives at breakneck speeds. Maneuvers, like suddenly diving into a hole smaller than your vehicle could possibly fit in, in another lane (I say there are lanes because there are painted lines on the road) extreme tailgating, and making quick, unsignaled moves (moves that in the USA would automatically result in mayhem, mangled sheet metal, and fist fights -- if an ambulance wasn’t required) all at high speed, is not only routine but expected by every driver. It was very reminiscent of driving in Italy. (I recall my first reaction to traffic in Naples -- “It’s like bumper cars at the fair, only lots faster and you’re not allowed to hit anyone -- or be hit!”) The biggest difference between Italy and Costa Rica was the lack of constant horn blowing and they do stop at traffic lights in Costa Rica. Amazing!. I, with my Italian driving experience, was the most relaxed person in the vehicle. To me it was fun. Almost like coming home, in a way. But I could tell the other “touristas” weren’t having the same reaction -there were a lot of white knuckles in evidence.
January-February, 2006
The hotel was great and had a room for me. It was a very clean and neat, small single but had a good bed, nice bath, cable TV (more about TV later) and was charmingly decorated. It was about ten blocks from the heart of downtown and I was happy to find the staff spoke English. (I later found out all staff in all the hotels speak English, but at the time I was impressed.) I unpacked my bag and by the time I was settled in it was about 4 PM and I was hungry. I obtained a map of the city from the desk and identified my hotel’s location on it, then headed towards where I was pretty sure I knew the central commercial district to be. It should be only about 9--10 blocks, not too far to walk -- an easy trek. Ha! I soon realized that downtown SJ is situated on a hill. And my hotel was at the bottom. It’s a pretty steep climb -- the rise being about 25 feet a block. I was winded after I had gone four blocks but, when I reached level ground, I was rewarded by a little Boca on the corner with sandwiches and pastries in the window. As I mentioned, I know basically no Spanish but, by using a sophisticated trick I learned in Italy (pointing and mouthing words that might or might not be close to what I was actually trying to communicate and nodding my head yes or no) I was able to obtain a delicious sandwich and a cup of coffee con lecche. (That was when I learned my first word of Spanish -- lecche -- milk.) The sandwich was some kind of sliced meat with sauce, tomatoes, lettuce, and some mashed beans (?) on a short loaf of bread to die for, all heated and toasted to perfection. Delicious! I knew I was not going to starve! It was so good I had one of the pastries too! Total cost? About $2.20. Refreshed, I headed out again, now on flatter ground. In about four blocks I was in the heart of the city. One of the first things I saw was a plaza surrounded by closed streets, all teeming with people. Hundreds of them! It was, I found, the main plaza on a main thoroughfare and surrounding it are hotels and stores. All kinds of stores, but one I that was looking for particularly. There were clothing stores, cell phone and electronics stores, specialty stores, and restaurants ...... restaurants, as in McDonalds, Quiznos, Taco Bell, and Burger King, plus some others whose names you would recognize. It was the McDonalds I sought. Not because I wanted a quarter pounder with cheese but because I knew that it was a gathering place for American expats. It was those people I was looking for -- I wanted to pump their brains about living in Costa Rica. There weren’t any there right then, but that was no surprise -- I knew they usually were there in the mornings. And now I knew where to find them. Continued on page 16...
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I wandered around the area observing people and taking in the sights. There were people everywhere. They were sitting, strolling, walking rapidly (as if they were late getting somewhere) eating, chatting, relaxing on benches, and buying things. It was so typically southern European I was amazed. I felt, again, like I had come home. What struck me the most was the average age and the number of kids.
European males) all very practical. Hair is short and nicely groomed.
I came to learn that SJ is a very “young” city. I would estimate that over 80% of the people I saw and encountered were between the ages of 15 and 40, with another 10% being under 15. There were very few “older” people in evidence. I later confirmed that with people I met that, yes, the primary population is quite young. There were no hippies, Gen X, or sloppy dressed “rapper” types. And very, very few overweight people. Everyone was well dressed. (I later found out that the USA “dumps” a lot of clothes in Costa Rica and it is cheap to buy, so it’s easy to be well dressed there.) The women, known as Tica’s (the word Tico is the locally accepted word for native Costa Ricans) dress extremely sexily -- tight, hip hugger pants or short skirts and very tight, low cut blouses of the same waist baring type popular here. And by short skirts, I mean SHORT! That description might lead one to create a mental image very different from reality. In truth I would say that the women dress very demurely. I NEVER saw a woman expose anywhere as much as they do in my country. No “whale tails” (where thong panties are exposed above the waist band) no flashes of thigh from improperly monitored skirt hems, and no bras peeking out of a top, or sloppy décolletage. Women in my country spend millions of dollars to try to have the skin color and texture that seems to be the normal in Costa Rica -- smooth, soft, healthy, and blemish free. The skin tones range from a “nice, healthy tan” to quite dark. Very Latin. The women with darker skin are almost always “Nicas”, which is the accepted slang for those from Nicaragua, the closest adjoining country to the north. And, although their skin color may be black, or nearly so, these women do not have the coarser afro type of facial features -they very European in structure. And usually quite lovely. In fact, it’s difficult to find a woman of any skin tone that wasn’t pretty. Hair, which is almost always dark, was always neatly and classically styled -- no spikes or radical cuts, though bright red highlights seem to be popular. The men were also as neatly and attired and groomed. There were very few wearing jeans (men or women.) Most men wore button up shirts, or good quality T--shirts. Almost every man carries a bag of some sort, be it a backpack or some other small container (no leather handbags ala ‘80’s
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I wandered around a while or sat in the plaza watching. As with any plaza worth its salt, there were plenty of pigeons present. There wee numerous street vendors selling “pigeon food”, as well as other things, and it was delightful to sit in the warm (but not hot) sun and just watch kids (generally between 2 and 10 years old) alternately feed and the chase pigeons while their parents watched and ate ice cream. By the way, ice cream is very popular. Five of every ten people were eating ice cream cones, sold at local stores. More about that later, too. I had been up since 4 AM (Costa Rica is in the same time zone as Pensacola -- central standard) and by 7 PM I was getting tired, so I headed back to the hotel. Down hill was much easier. I said I would mention TV later? Well, in my room I was surprised to find that the TV had about 75 channels on cable, about 30 of which are in English. There was CNN, HBO, Speed, Food, ABC, NBC, ESPN, FoxNews, and a multitude of others available. Some were subtitled in Spanish but the dialog was in the original English. Obviously, there was no shortage of diversion there. BTW, like most of the rest of the world outside the uptight USA, nudity is not considered a terrible thing. Though it wasn’t blatant and not a frequent occurrence, I did observe a few instances as part of the normal programming. So, I ended my first day in Costa Rica. I was excited and happy. I had this feeling of all my expectations being more than met and that I had found the “right place” as I slipped off to sleep.
---------Allen Dickinson is a member of ARCR. After serving 23 years in the US Navy he settled in Pensacola, Florida, and owns his own licensed mortgage broker business there. He holds a Bachelors Degree from the University of the State of New York and a Masters Degree from the University of West Florida. He will soon be retiring and moving to Costa Rica. He can be reached at humphree@bellsouth.net.
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January-February, 2006
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Dollars & $en nse by Alan Weeks
Is There A Place For Logic In Investing? Two respected gentlemen, with completely different backgrounds, pointed out recently that the information conveyed in my D&S articles and in seminars seemed quite logical, but may be ‘falling on deaf ears’. They are obviously much more perceptive of human nature than I am.
IRRATIONAL EXUBERANCE It is also human nature to overreact. Just look at the huge fluctuations in the stock market between the extremes of incredible optimism and overwhelming pessimism. Some call the motivations involved: greed and fear. When Allan Greenspan used the phase “irrational exuberance” in late 1996 to describe the rapid unsupportable growth in stock market valuations, very few appeared to have been listening. Of course, the idea that it could be overvalued was ‘drowned out’ by a whole gambit of ‘talking heads’ on business shows, and by Wall Street ‘experts’ who took turns exhorting the masses to get into the market quickly in order to share the huge potential gains. They even gave pseudoscientific reasons why “it’s different this time”. HOT TIPS Investors will never forget the incredible hype that drove up the valuation of dot-com IPOs, regardless of any prospect of these actually ever making money. All the talk at cocktail parties and dinners during that era was about how rich our friends were becoming through their latest hot stock tips. The stock market went on to irrational heights before this “bubble” burst”.
COVETING WHAT OTHERS HAVE There are many examples to show how just how irrational human beings really are. And, to illustrate how early it starts, just put two toddlers in a room full of toys. Each of them will inevitably demand the toy the other kid has. Thus, coveting thy neighbor’s toys seems to be ingrained in human nature for life. As we get older and more affluent the size and value of the ‘toys’ simply escalates. Many seem to be driven, perhaps even unconsciously, by the urge to keep up with the Joneses.
The long-time motto of savvy investors to “buy low and sell high”, was forgotten by too many in 1998 and 1999. And then, in 2002, when so many were fleeing the market at any price, a period called capitulation, how many remembered this to be the best time to buy? Dr. Robert Shiller, a Yale Professor in behavioral psychology, published a book called IRRATIONAL EXUBERANCE at the beginning of 2000 to point out the “bubble” in the stock market, and try to bring us back to reality. Many ignored the advice, while those with vested interests, “pooh-poohed” him outright. Then the market headed south and didn’t rebound. And, Shiller went from being a “Chicken Little” to a “Paul Revere”. ANOTHER BUBBLE
Just as this is natural, it is just as human to: ‘leap’ at chances to get rich quick rather than search for real opportunities, follow the ‘herd’, (it must be the right thing to do because………..), and confuse wants with needs and become impulsive shoppers. It is also apparent that most do not try to understand their neighbor’s finances. The real story behind the presumed wealth could be an inheritance, or more likely, a shopping addiction, credit card debt and/or a huge home-equity line of credit.
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In early 2003, the same Dr. Shiller recognized that another bubble was building in US residential real estate values. To try to warn us of this, he had his graduate students determine from US news archives, the average home prices and cost of construction over the last 115 years, net of inflation. Then, Dr. Shiller updated his book and published the Second Edition of IRRATIONAL EXUBERANCE. He warned that “we haven’t lost our irrational exuberance, we’ve just redirected it to real estate”. Continued on page 19...
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Shiller is too smart to predict this. However, he believes it is a much more serious risk than is being widely acknowledged. Who should read Shiller’s Second Edition? Logically, anyone planning to buy or sell a home or condo in the near future should do so immediately. It should also be recommended reading for fund managers, investors, and lenders. HEDGE FUNDS
Did someone say “real estate”? Oh, the talk was everywhere; at cocktail parties, in the elevators, and even in waiting rooms, about home values skyrocketing and people “striking it rich” Why? Because we were obsessed with it. And, we are irrational. That is what causes “bubbles”, Shiller points out. Our irrationality has again been fed by optimistic forecasts from ‘analysts’, by the media, and by rationalizing this boom with new era thinking. “When it comes to real estate”, Shiller writes, “we cling to the myth that home prices always rise. It’s simply not true”. Shiller shows in graph form that since 1890, real (net of inflation) home prices have been flat or declining. The only dramatic increases were confined to two brief periods – right after World War II and the current one. The WW II boom was caused by actual strong demand and a corresponding serious shortage of housing. Today’s boom is driven by speculation. On Shiller’s chart, the mini-pricing peaks in 1979 and 1989 are apparent, as well as the declines thereafter, when prices reverted back to the mean. Beginning in 1998, however, the home price line shoots skyward and has now reached 160% of the US national GDP. Shiller’s chart also illustrates that recent home price increases bear no resemblance to the slow steady increases in housing costs and population growth. And, he adds, “We didn’t just run out of land since the late 1990s”. Because real estate prices have risen much more rapidly than incomes, people have to be stretching themselves thin, and many have had to resort to interest-only (for a period) or adjustable rate mortgages. These are coming due for renewal at much higher interest rates over the next 18 months. How many will be able to afford the much higher monthly payments?
The majority of hedge funds on the market today are long/ short equity funds. This mandate allows the managers to invest “long” in company stocks they believe are undervalued and have growth potential, and to “short” the stock of companies that they have analyzed to be well overvalued. Then, they should make money when these latter stock prices fall by buying replacement stock at lower prices and ‘pocketing’ the difference. As a class, these hedge funds enjoyed outstanding gains in 1998 and 1999 when stock prices were escalating and again through the 2000-2002 period when stock prices were falling. By mid 2003, these spectacular gains became widely knows and money ‘flooded in. Much of this money came from investors who had experienced significant loses in equity mutual funds. To logical thinkers, this type of investing should be able to deliver consistent superior returns regardless of the direction of the market. Why then have most hedge funds failed to perform as expected since 2003? One reason seems to be that many investors do not stop to analyze stock valuations, and thus, do not appreciate when stocks are overvalued and keep bidding up the prices anyway. And, whenever anything ‘spooks’ the stock market, they panic and sell stocks on impulse, not on any logical evaluation. Therefore, hedge fund managers are toiling in a market controlled far more by the emotional whims of the majority of investors, than by any logical criteria. CONCLUSION Many have found out there is no quicker way to lose money in stocks than letting emotions determine how to invest. Skilled investors are invariably poised to profit from others’ irrational fears and overexuberant optimism. I used to believe FACTS were sought after by the majority of investors. However, as my mentors pointed out, I need to be more perceptive of human nature. Is there any place for a logical analysis of the facts in order to invest more wisely, or are too many just looking for the next hot tip? For more information please contact Alan Weeks at 256-5848
Signs are already apparent that the housing market is cooling. How bad could it be when this “bubble bursts”.
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Spotlight On..... Expotur 2006
This year in May ACOPROT (the Association of Professionals in Tourism) once again held their annual Tourism Travel Mart, EXPOTUR, with great success. The largest of its kind in Central America, this year’s event realized nearly US$ 130 million in signed contracts, a growth of 28% over last year. According to inquiries made among the 60 of the International Wholesalers attending, the amount negotiated translates into 140,000 passengers who will begin to visit Costa Rica within the next few months.
64% of those asked felt that the products offered in the fair were excellent, and 34% qualified it as good. 86% actually managed to sign deals; both for immediate and future business, and 100% confirmed they would be back next year.
Of particular interest this year was the inclusion of “green” products, with Expo Verde, an exhibition of companies that will offer products and services, which are nature friendly and the environment to those companies interested in controlling the impact of polluting agents and ways of saving energy power, water and fuel. Organized by the Corcovado Foundation, this section was given the full support of ACOPROT and other various groups, and due to its success within the fair, it is likely going to grow and continue to be a part of EXPOTUR permanently. So if you have a product that’s use or manufacture doesn’t harm the environment, this will be a great place to promote in the future.
EXPOTUR 2006 included participation from 245 Costa Rican companies and 35 more from Central America offering their services to 200 delegates and 140 wholesalers from the “This confirms to us that EXPOTUR is a very valuable promotional tool for Costa Rica and the region and that USA, Europe & South America. we must strengthen it, mainly by increasing the number of “We are very pleased with this closing, overall because we sellers, for which it is urgent to have a Conventions and achieved our expectations”, stated Patricia Duar, president Meetings Center in the near future which can provide greater of ACOPROT, the Association that created and has hosted capacity”, expressed Carlos Lizama, president of EXPOTUR Committee. the event for the last 22 years.
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January-February, 2006
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the future. The greatest growth in 2005 was to European countries not in the European Union - a 52% increase. Exports to Asia increased 26% while exports to North America increased 6% and to the European Union 3.5%. Other Central American countries increased their purchases 12% while South American exports grew less than 1%. Intel to open 500 new jobs The largest volume of exports was made up of pineapple, bananas, prepared foods and microprocessor components. Intel Costa Rica announced that it plans to fill 500 new The products with the largest gains were sugar, pineapples, positions this year in Costa Rica. Even though the firm bananas and aluminum sheets according to the daily La regularly hires new staff, that figure is a projection of its Nacion. growth in 2006 and is subject to changes. According to manager Bill Abraham, the new jobs would increase the payroll to 4,000, following a trend that created 1,000 new Lower Tax to Attract Investment positions between 2003 and 2005. From 1997 to date, Intel President Elect has invested $732 million in Costa Rica. Dr. Oscar Arias announced his Would be ministers do not accept intention to lower income tax to below The difference between the salaries that the Government 10 percent for firms and the private sector pay is limiting the President Elect’s investing in poor options to appoint ministers. The private sector pays around areas or who $10,000 a month to one of the professionals that Dr. Oscar are in innovating Arias wants in his cabinet, but Government pay barely sectors. According reaches $3,000. He admitted that several professionals have to the fiscal plan, which was discussed by Legislative already rejected offers of cabinet posts. Assembly over the past four years and then turned down by the constitutional court, income tax would be around 15 percent. Dr. Arias asserted that no one can fool themselves New Marina for Quepos into thinking they would be competitive at that high a tax. He added that his aim is to lower it into the one-digit level. The first phase of a $13.5 million marina is scheduled to Dr. Arias is going to visit several countries in order to attract begin in May. Developer Marina Pez Vela chose the Central investors, and this is one of the tools he is going to use in Pacific town because of its tourist attractions and renowned order to enhance Costa Rica’s ability to be the top choice for sports fishing. It is expected to take five years to build and investors. Deputy Bernal Jimenez -a member of Dr. Arias create 1,000 new National Liberation Party- pointed out the examples of Ireland jobs. and Malaysia with income tax at 12 percent as a magnet to attract investors. Another National Liberation congressman, Luis Villanueva, said that lowering the tax should go hand New in hand with a highly accurate definition of “poor” areas and Resort for “innovating” sectors.
Business Brie efs
Limon
ECI Ltd, who are building the $55 million Gran Pacifica resort in Nicaragua, have purchased 1,200 hectares of land 16 km north of the city of Limon at the mouth of Matina River on which they plan to build a 250 room, five-star hotel, a marina, 200 condominiums and a 27 hole golf course. They have not yet begun the permit process.
High Competitiveness
Costa Rica is third in Latin America and the Caribbean in the 2005-2006 world competitiveness rankings made by the World Economic Forum. Chile and Argentina are first and second among the 21 nations in the region. Much larger economies, such as those from Brazil, Mexico, and Colombia, which have many times the population of Costa Rica, are below the small Central American nation. In global ranking, Costa Costa Rican Exports Fueled by Rica is 56 among 117 nations, which are headed by Finland, then the United States, Sweden, Denmark and Taiwan. The Non-Traditional Markets leading indicators in favour of Costa Rica, according to the Although the dollar volume to non-traditional markets is still Forum, are the independence of the Judiciary, high health comparatively low, the rate of growth may change that in indicators, and the quality of basic education.
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Wild Side XXXII by Ryan Piercy
Terror-antulas! Many people are afraid of spiders, and the movie Arachnophobia certainly did a lot to reinforce those fears, but imagine actually encountering for the first time one as large as your hand! Tarantulas are indeed a fearsome looking creature, but in reality are not interested in attacking people unless bothered, and are in fact quite a fragile species. In fact if they fall, their own weight can crush them. Now I was aware that there were Tarantulas in Costa Rica, but was very surprised to find some at our house, at the high altitude we live. But having now seen three individuals I am certain there must be a number of them in the woods here. Tarantulas are spiders belonging to the family Theraphosidae. They are characterized by having tarsi (feet) with two claws and claw tufts, called scopulae. When people who knew about the tarantulas arrived to the Americas and discovered fearsomely large and hairy spiders in the New World, they bestowed the name “tarantula” on them. The name originally comes from a real spider that is found in southern Italy, it lives mainly in an area around the town of Taranto. Now what really surprised me is the number of different species there are, as it numbers in the hundreds. Each area seems to have developed slightly different species, and Costa Rica is no exception to this. In fact one of her species, the Costa-Rican Zebra Tarantula (Aphonopelma seemanni), is a favourite among both collectors and fans. (Indeed the tarantula is a popular pet) The Zebra comes from the deep Tropical Rainforest where it lives in deep burrows. Though not considered to be highly poisonous, it
is known to be skittish, and therefore unwise to be handled. The Zebra is also known to be extremely capable of Houdini acts, or escaping, so if you decide to pick one up for your home collection be very careful. Another local beauty is the Tigerrump. (what is in a name!) Yep, the big old abdomen of this creature is a striped resemblance of a tiger, in brown with black stripes. They grow to be around 2 inches in size, and like their cousins, enjoy a diet of invertebrates. Some species such as the Tigerrump can ‘kick off’ hairs: Besides the normal hairs covering the body of tarantulas, some also have a dense covering of stinging hairs, called urticating hairs, on the abdomen, opisthosoma, that they use as a protection against enemies. These hairs are only present on some New World specimens (only the subfamilies of Ischnocolinae, Aviculariinae and Theraphoseae) and are absent on specimens of the Old World. These fine hairs are barbed and contain mild venom.
While some species live underground, others make their homes under rocks, in trees or cliff faces, or even in woodpiles which is where I have encountered them. In general Tarantulas feed on a variety of living animals (insects, small mice, small fish in the water bowl, and reptiles are on their menu). In captivity crickets are a common dish, which can be purchased in many pet stores. Live of course is the preferred method, after all a little exercise before dinner is good for the appetite. After eating many Tarantulas tend to immobilize while they slowly digest. In fact, probably due to their excessive size and weight, they quite often move very slowly. Don’t let them fool you however; some species are able to suddenly jump great distances. For some reason tarantula’s reputation isn’t that good. Maybe because they are big. Maybe because they are hairy. Maybe because they are poisonous. Well, each of these are true, and yes they do have poison, but they can’t kill a person unless you’re allergic to the venom. For most people, tarantula bites are no worse than a bee sting. So if you do see any, even if you are afraid, try to overcome your fear to at least observe a little these incredible spiders.
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Learning The Languag ge by Christopher Howard
Looking Good! Generally speaking the verbs mirar or ver mean to ‘look’ or to ‘see’ in Spanish. For example “Miro la television” means “I’m looking at the TV.” or “Vemos el mar” – “we are looking at the ocean”. However, when we want to say something or someone looks sad, happy, fat etc, we have to use either the verb lucir or the reflexive verb verse. El agua se ve profunda (The water looks deep.); El hombre luce inteligente (The man looks intelligent); or La comida se ve deliciosa (The food looks delicious). Both of these verbs are usually interchangeable when used in this context. Here are other idiomatic expressions that use the verb ‘to look’. Velar por Ocuparse de Examinar Tener cuidado con Tener buen aspecto Tener mal aspecto Despreciar
to look out for (someone) to look out for (someone) to look over or examine to look/watch out for to look good to look bad to look down on (a person)
Buscar Venir a ver Respetar admirar verse bien verse mal
to look for to look someone up to look up to someone to look up to someone to look good to look bad
Here is your Costa Rican expression or tiquismo for this week: Buscarle tres pies al gato means to “look” for trouble.
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Living in Co osta a Rica and US Tax xatiion by Randall J. Linder E..A.
Do Not Fall Into An IRS Trap! (3 of 3) Building a Family If you get married to a non U.S. Citizen you must choose to file your tax return as married filing a joint return, or married filing separately. In either case your new spouse needs to apply for a taxpayer identification number. If you choose to file a joint return with your spouse, the income your spouse earned worldwide during the tax year must be included in your income. Generally speaking if your spouse has little or no income, it could save you tax money by filing jointly. If your spouse has an income it may be best for you to file a return as married filling separately. You cannot file as single.
Combined with other income your benefits could be taxable. Make sure that your foreign income is included in your taxable income. If your income is solely from Social Security it is not taxable and you do not have to file a return. Beware! If you notice reduction in your Social Security and other retirement benefits, it could be assumed by the paying agency since you are living outside of the United States, that you may not be a U.S citizen. The paying agency could withhold up to 30% of your benefits. Notify the agency that you are a U.S. citizen and not to withhold this money. The only way to have this money refunded is by filing a timely tax return and requesting the refund. Do yourself a favor. Do not ignore your responsibly to the U.S. government. File your income tax returns on time and avoid the possibility of unwanted and unnecessary trouble in the future. If you require further information on any of the areas discussed, or in any other US tax matters, please contact the author Randall Linder at 288-2201, or 839-9970.
If your new spouse has children that are not U.S. Citizens, they do not qualify as your dependants. This is true even if you support them 100 %. If you and your spouse have a child together, it is important that you inform the U.S. Embassy of your new family member. This will enable you to apply for a social security number and U.S. Citizenship. This should be done promptly.
Buying and Selling Your Home If you sell your foreign home and you meet the time requirements, you could be eligible for the $250.000 home exclusion. Because you are selling your home that is in a foreign country, it would be wise to show the sale on your tax return and show you are taking the exclusion. This will be extremely helpful if and when you decide to return the U.S. with the proceeds.
Receiving Social Security & Other Retirement Benefits This is the same as if you were living in the United States.
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Exchange rate of the Costa Rican ¢ to the US Dollar December 495.65 January
498.77
February
501.38
March
504.84
April
506.59
May
508.80
Basic Interest Rate December 15.50% January
15.25 %
February
15.25 %
March
15.25 %
April
15.25 %
May
13.75 %
Exchange rate of other currencies to the US Dollar Japanese Yen 112.18 Swiss Franc
1.2127
Canadian $
1.0956
Giro (DEG)
1.4942
ÂŁ Sterling
1.8747
Euro
1.2868
Mexican Peso
11.274
Korean Won
945.65
Danish Krone Norwegian Krone Argentine Peso
5.7954 6.0655 3.0900
Colombian Peso 2,496.5 Brasilian Real
2.3000
Libor Rate 1 month 5.1106 % 3 month
5.2381 %
6 month
5.3300 %
12 month
5.4263 %
Prime Rate
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8.00 %
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Holidays Of Costa Rica July 25th ‘Guanacaste Day’ August 2nd ‘Virgin of the Angels’ August 15th ‘Mother’s Day’ September 15th ‘Independance Day’ ******************** A Touch of Wisdom “Anger is one letter short of danger.” Eleanor Roosevelt “Be not niggardly of what costs thee nothing, as courtesy, counsel and countenance.” Ben Franklin (1706-1790) “Fear the Greeks bearing gifts.” Virgil ******************** More Errorous English HOTEL JAPAN: You are invited to take advantage of the chambermaid. DONKEY RIDES ADVERT, THAILAND: Would you like to ride on your own ass? AIRLINE TICKET OFFICE, COPENHAGEN: We send your bags in all directions. A LAUNDRY IN ROME: Ladies, leave your clothes here and spend the afternoon having a good time.
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