LIVING IN COSTA RICA: TIPS

Vol. 1: Banking, Phones & Internet

Living in Costa Rica has its challenges, especially with banks and telephones.

I'll guide you through the maze here.

Need Two Costa Rica Bank Accounts?

There are two excellent reasons for this advice.

First, inflation in Costa Rica is always higher, sometimes considerably higher, than in the States, Canada, or Europe. Your colones account will depreciate faster than your dollar account (your money in dollars will be worth more in the future than your money in colones).

Second, remember there's always an exchange rate for changing dollars (or euros) into colones and vice versa. While most transactions will be in colones, some are in dollars.

For example, when I got a mortgage, I had the choice to pay it in dollars or colones. The option for dollars avoided an unnecessary exchange rate cost. Additionally, some vendors price their wares in dollars. Hence the usefulness of a dollar account.

And since most stores, restaurants, and other establishments sell in colones, you should have an account in that currency as well (not to mention that some places will charge more than the exchange rate if you pay in dollars).

Opening a Costa Rica Bank Account

If you get the run-around and the explanation: "Es la ley" (It's the law) smile and move on to a different bank because it's not "la ley."

How Safe is Your Money?

The government guarantees deposits against failure of the national banks but there is no institution similar to the FDIC that guarantees deposits in every bank.

That's not to say if you're living in Costa Rica you need to be overly worried about a bank collapse here

but

if you have a good-sized bank account it's only prudent to keep some (I recommend extreme care---see next section) of that nest egg where you absolutely know it'll be safe in case of an (highly unlikely) economic calamity here.

Depositor Beware: Frozen Accounts

It is widely reported this is because of the money laundering laws of Costa Rica but many folks with small accounts have been affected so that explanation can only partly be true. In my opinion, it is likely that this is the result of so many customers having had their accounts invaded through fraud (with the banks being held responsible) that the banks are increasingly gun-shy.

Whatever the motivation, customer privacy is NOT recognized and more and more banks are freezing expat accounts until customers accede to demands, such as production of several years of tax returns and other documentation.

Many expats have used their Costa Rica checking account to pay credit card bills from the States, Canada, and so forth, sometimes triggering an inconvenient time-consuming freeze.

My advice to those living in Costa Rica: do not transfer or keep large amounts of money in a Costa Rica bank. Have three years of tax returns handy, a utility bill in your name, and documentation showing where the money came from.

Safeguard Your Debit and Credit Cards

And, unfortunately, some become victims of identity theft.

So, I have three things you need to know.

First, when you pay with your credit or debit card, do not let it out of your sight while it's being processed.

Not for one moment.

Not in a nice restaurant.

Not at a gas station.

Not at all.

Second, at least in Costa Rica's national banks, debit cards are now processed and serviced by VISA or Mastercharge. If you discover a problem, go immediately to the bank and make a claim. Then, and this is important, have somebody take you to the OIJ (it's like the FBI or Scotland Yard) and file a complaint.

The investigation by the servicing company will probably take about 60-70 days so you'll be without your money at least that long.

Third, in September 2008, Costa Rica's highest court ruled that a bank is normally responsible for a customer's debit card losses due to identity fraud. In other words, you may be able to get all of your money back.

Of course, you're going to have to be persistent.

Polite but persistent.

And, if the 60 day window of investigation is nearing, you may need to present a demand letter (use a lawyer) to the bank manager (be sure to get a receipt).

Getting A Costa Rica Telephone Line

No matter where you're from, you'll be able to buy a house or car and title them in your name.

But a phone?

Forget about it (unless you're a legal resident or citizen).

What to do? Ask a Tico or Tica friend to go with you to the government-owned telephone company and get a cell or land line in his or her name.

If it's a cell line you want, you'll need to take the phone and its purchase receipt with you so a chip can be installed. If you don't have a receipt, you can buy a fake receipt in San Jose.

Should you want a land line in your house, be prepared for a long wait. I've never been able to get one in my house even though the previous owner had one! My next door neighbors found a "friend with connections" who promised a line within a week or so---that was well over a year ago and still no phone.

You'll be responsible for the bill, of course, but the line itself will always remain in the name of your friend (remember this when you pay each month).

Buying a New or Used Telephone

Buy an "unlocked" phone to ensure it'll be usable in another country.

Don't discard your sales receipt because you'll probably need to show it to get a phone line (remember that the line will be in a friend's name, though).

Another option is to buy a used phone. There are vendors all over the place and the prices are well below those for new phones (I think this is because so many phones are stolen here and sold to some of these vendors). You won't necessarily get the bells and whistles of a new phone but if it's functionality you want, you'll be set.

The Cost of Costa Rica Telephone Calls

All calls within Costa Rica are local so you can call anyplace in the country for the same small amount.

Long distance calls by telephone can be very, very expensive. If you call another country from a hotel phone you're going to get ripped off and even from your own house, calling on a cell will cost a lot of money.

Use your computer to make calls. You're probably familiar with instant messaging between computers which is free, real-time, and world-wide these days.

If you're living in Costa Rica or even just taking a Costa Rica vacation, I strongly recommend installing a free little program called SKYPE and a cheap video cam on your computer. You'll be able to use your computer like a phone (it already has a built-in microphone) and either call another computer that has SKYPE installed or a telephone anywhere in the world.

If you use SKYPE to call another computer, the call is free and if both of you have cams you'll be able see one another in real time. And, don't worry about the sound quality. Normally it's as good as or even better than your phone.

But, if you call a phone from your computer, it'll either be free if the number you're calling is an 800 or 866 number (like, say, your doctor in the States) or a few pennies a minute for a call to any other number---far cheaper than using your cell phone to call another phone.

So if you're going to be living in Costa Rica, use the technological advances in telephony (computer calls) like SKYPE to your advantage.

FREE is a very good price.

And, while we're on the topic of telephones, you might find it helpful to have a list of certain telephone numbers, click to get a list of important Costa Rica telephone numbers.

The Internet in Costa Rica

Many people living in Costa Rica get it at home through ICE, the government telephone company.

Others, like me, get it as part of their cable package (I use an outfit called AMNET).

Internet is not very expensive in Costa Rica but the cost from a carrier offering dial-up will be almost as expensive as from a carrier offering accelerated, cable service so don't settle for dial-up.

Unless you are really out in the boonies, you'll find that cable internet (or satellite service) is available almost anyplace you'll be living in Costa Rica.

And, of course, if you don't want to pay for the internet at home or don't have access to a computer, there are internet cafes all over the place with really cheap rates.

Wherever you happen to be living in Costa Rica, the world is now at your doorstep.

I love the internet.

Couldn't live without it.

I stay in touch with the world with it.

I call my family for free with it.

I even use it to make a living in Costa Rica using it.

You can, too.

I'll show you how. Just click to see how to work in Costa Rica.

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