Money, economy and currency in Costa Rica

Costa Rican currency

The official Costa Rican currency is the Colón (pl. colones). There are bank notes of 10,000, 5,000, 2,000 and 1,000 colones and coins of 500, 100, 50, 25 and 5 colones. The exchange rate fluctuates within a controlled range, although it is expected that the government’s control over the exchange rate will be gradually relaxed to leave the currency float in the market. The official exchange rate can be seen in the Costa Rica Central Bank web site: http://www.bccr.fi.cr



Banks

There are both state-owned banks (which usually provide the most favorable exchange rates, although service is worse and queues longer) and private sector banks, exchange offices and investment funds. There is only one insurance company, which is a state-owned monopoly.

Bank office hours are usually 9:00 AM to 3:00 PM non-stop, Monday to Friday. Credit cards are accepted in big cities and tourist spots. Dollars are also often accepted, except high-denomination notes. Traveler cheques can be exchanged in the banks showing the passport.

You don’t need to be a resident to open a bank account, although it is the policy of most banks to require so. Banks are subject to antilaundering money laws which require to verify the origin of the money in transactions above $10,000. There is nevertheless a bank secrecy law that forbids governments an other institutions to access customers’ identities without a judicial warrant. This has made of Costa Rica one of the countries preferred by investors to put their money away from unwanted eyes.

Economy

Agriculture is still the main pillar of the Costa Rican economy, and it is well known that Costa Rica produces one of the best coffees in the world. The second most important crop is banana, and also important are pineapple, sugarcane, oranges, rice and ornamental flowers.

The services, particularly tourism, are becoming increasingly important. This is one of the country’s greatest successes, as it has been managed in such a way that favors the conservation of biodiversity.

Costa Rica’s main customer is the United States. The country’s investment-friendly legislation, with unrestricted repatriation of profits, has allowed the set up of manufacturing industries in several sectors, including electronics, with Intel at the head of it.


Most usual forms of incorporating a company are Sociedad Anónima, or Sociedad de Responsabilidad Limitada, although the limitations of the later one make it less usual.

At least 90% of the company’s staff must be formed by Costa Ricans, and at least 85% of the wages must go to them.

Visas and residency in Costa Rica

General rules for entry visas (non-resident)

1. No need for a consular visa, maximum stay up to 90 days.

Due to the existence of bilateral agreements, citizens of the following countries can enter the country without a consular visa for a stay of up to 90 days:

Germany, Finland, Poland, Uruguay, Argentina, France, Paraguay, Austria, Holland, Belgium, Hungary, Puerto Rico, Brazil, Israel, United Kingdom, Canada, Italy, Greece, South Korea, Japan, Romania, Denmark, Liechtenstein, Sweden, Spain, Luxembourg, Switzerland, USA, Norway, Trinidad and Tobago, Panama.

2. No need for a consular visa, stay up to 30 days.

Citizens of the following countries are allowed to enter the country and stay up to 30 days with no need to apply for a visa:

Antigua & Barbuda, Philippines, Taiwan, Australia, Grenada, Republic of Ireland, Bahamas, Guatemala, Rusia, Barbados, Guyana, South Africa, Belize, Honduras, St. Kitts & Nevis, Bolivia, Iceland, San Marino, Bulgaria, Jamaica, St. Lucia, Chile, Kenya, St. Vincent & the Grenadines, Dominica, Mexico, Singapore, El Salvador, New Zealand, Surinam, Slovakia, Monaco, Turkey, Vatican City, Venezuela.



3. With visa, stay up to 30 days.
Citizens of the following countries do require a consular visa prior to them entering the country for a maximum stay of 30 days.

Andorra, Malaysia, Belarus, Malta, Cyprus, Nicaragua, Colombia, Peru, Ecuador, Dominican Republic, Egypt, Thailand, Slovenia, Zimbabwe, Lithuania.

4. Restricted access.

For the rest of the countries, visas will be granted after individual study of every case.



Residency card

It is technically possible to apply oneself for it, although it is easier to put it all on the hands of a specialized lawyer, who will charge between $1000 and $1500.

Kinds of residency permits and requisites:

Pensioners and retirees:

If you earn at least $600 every month from your pension, or $1000 from your investments, then you have the right to apply for residence.

-Residency for investors
In order to apply you must first invest in a company or business in Costa Rica. There are some sectors, deemed prioritary, where the minimum required investment is about $50,000:
Ornamental plants, leather, spices, vegetable products, food and timber industry and tourism. For any other sector, the minimum amount to invest would be of about $100,000. One must live in Costa Rica during at least six months a year, and you don’t need to justify any level of income.

-Work permit.
If you have the required professional qualifications, acquired in an officially recognized institution, you can obtain a work permit or a temporary residency permit.

Pets

In order to introduce domestic animals into the country, you must provide a health certificate for them, issued by the Ministry of Health and filled in by a veterinary at the origin. With this document you get an authorization, valid for thirty days that you must present at the customs.

Remember that when returning to your home country, you’ll most likely need a new certificate issued by a Costa Rican veterinary.

Moving around in Costa Rica

By land

Costa Rica is a very small country. From the center of the territory, any point of the country can be reached in about five hours. The road network is extensive and complete, although maintenance is somewhat precarious and signaling is almost non-existent.

Busses

Bus transportation system is cheap and efficient, reaching destinations all around the country. Although some busses might be old, transport conditions are definitely better than in other Central American countries.

Most routes have San José as departure or destination point, although several bus terminals exist in the city, which an make a bit difficult to find the right one.



Taxis

Taxis are painted in red and must carry a yellow licence plate with the shape of a triangle painted on the side. They also should carry and use the taximeter, here known as maría, but they try to avoid using it when the customer is a tourist.

You will have to insist on using it, although it is compulsory for city trips (but not outside of the city, where the price must be agreed previously).

There are also unlicensed taxis, allegedly cheaper, although one must know well the fares before negotiating the price.

Driving around in Costa Rica

There are many rent-a-car companies such as EuropCar, Ada and Economy, at reasonable rates. You can drive with your country’s driving license during all your authorized stay in the country. If you are a resident, though, you must obtain a local license.

However, the real problem for non-native drivers are the local driving habits, quite anarchic, coupled with the lack of signaling and the poor state of the roads.

In case of accident wait for the transit police, no matter for how long you have to wait. And remember in case of being fined that local transit officers must not accept or receive any money, but they must give you your notification ticket instead.

Domestic flights

Costa Rica is a tiny country and can be crossed from one end to the other in just a few hours. However, comfort ant time savings might make interesting the possibility of taking a domestic flight.

Main local companies that fly between Costa Rican cities are: Sansa, domestic branch of the TACA group, which flies from the Juan Santamaría International Airport, and Nature Air , which flies from the Tobías Bolaños airport in Pavas, near San José.

Other companies such as Aero Bell, Helisa, Tropical, Pitts Aviation and Aero Costa Sol have fleets of small planes and helicopters which can be hired for trips or transportation.
As an example, a flight from San José to a resort in the Pacific coast might cost about $150 per person for non-residentes (Costa Rican citizens and legal residents pay less). The same trip by bus would cost only a few dollars, but it would be about five hours long.