Note: information here was gathered in spring 2003.

Costa Rica is between Nicarugua and Panama, at about 10 degrees north latitude - roughly the same as southern Thailand.

It's one of the most stable countries in Central America, with about 3.8 million people, and GDP (gross domestic product) of $4300. It has no army! It does have an educated and literate population, national health care, and a tradition of ecologically aware development policies.

• CIA World Factbook: http://www.cia.gov/cia/publications/factbook/geos/cs.html
• State Department background notes: http://www.state.gov/r/pa/ei/bgn/2019.htm
• State Department warnings: http://travel.state.gov/costa_rica.html
• Lonely Planet: http://www.lonelyplanet.com/destinations/central_america/costa_rica/
• Escape Artist: http://www.escapeartist.com/oque/rica.htm
• Country Watch: http://www.countrywatch.com/

Tourists can stay 90 days, though it can be fairly easy to make a day trip outside the country and return for another 90 days.

There are three types of permanent residency:

• Pensionistas are retirees who can show at least $600 per month pension income.
• Rentistas are other foreigners having $1000 per month income from outside the country. The government is considering eliminating this category.
• Inversionistas are investors who bring $50-200K into the country for specified types of investments.
• For more information see the Association of Residents of Costa Rica: http://www.casacanada.net/arcr_info/arcr.html

There are legal complexities for foreigners owing land in Costa Rica, especially beachfront property. Here's a brief summary of the law. Of course, many foreigners do own property. It's not impossible, but it does require being smart, informed and somewhat wary.

See also this 1998 essay on "Property Rights and Foreign Investment in Costa Rica" - this is a must read, particularly as it discusses title insurance (see below as well).

In addition to Costa Rican law, we are also subject to US tax and anti-money laundering statutes, such as reporting cash over $10,000 that we take out of the US. There are also favorable tax and investment breaks (Costa Rica has no capital gains tax). Please consult your own advisors about your own personal situation before investing.

Crocodile Bay - an example

In 2003 I spoke with the developer of the "Crocodile Bay" fishing/eco-tourism resort in southern Costa Rica.

He started planning the project about 1996. By 2003, he'd spent three times his original budget, all personal funds. He wasn't able to obtain financing despite substantial effort.

He's happy to have done this, but experienced quite a few trials and tribulations, including embezzlement by his local manager. His key bits of advice:

• Land must be surveyed, and title registered with the central government office in San Jose. Title insurance from Stewart Title, a US-based company, is absolutely essential - if you can't get it don't do the deal.
• While there is a legal system, foreigners are at a disadvantage in legal disputes with Costa Rican nationals. The problem of squatters claiming title to land is especially difficult, and he felt keeping clear ownership requires arranging some kind of security if you are not going to be on your property at all times.
• Beachfront development within 200 meters of high tide requires concession from the government. He is just now finishing his "plan regulador' (environmental impact statement) for building near the sea - everything he has completed thus far is further back. If building is critical, make sure it can be approved and even then, be prepared to wait.