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Is Costa Rica targeting gringos to make more money via fees, etc.?

Last activity 24 January 2016 by samramon

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samramon

At another forum I was told that the gringo immigrants in Costa Rica are a very small percentage of immigrants and so the idea that they are trying to make a lot of money off us is erroneous.

It does seem to me that they target gringos, like with the recent CAJA scam where they were trying to charge expats DOUBLE for CAJA (i.e. wife and husband had to pay TWICE for insurance whereas before it was just one payment for both). That policy was struck down as being a poor interpretation of the law.

Now this corporation thing. Who mostly buys corporations - I would bet gringos are a good % of those who buy them as it is common practice to create a corporation when you buy property.

Then of course there is the "luxury" house tax. Who purchases and builds luxury taxes more? Gringos or Ticos?

Just curious how you guys here think. Does the  Costa Rica government currently target gringos to make $ off of with taxes and fees?

kohlerias

There are many more Ticos with 'luxurious homes' than expats...and many more with expensive, luxurious vehicles.
Check out the gated communities that are located all over the country and you will find that the majority of the homes are owned by Costa Rican citizens.
Most of the  large haciendas are owned by Costa Ricans.

samramon

kohlerias wrote:

There are many more Ticos with 'luxurious homes' than expats...and many more with expensive, luxurious vehicles.
Check out the gated communities that are located all over the country and you will find that the majority of the homes are owned by Costa Rican citizens.
Most of the  large haciendas are owned by Costa Ricans.


Good to know. So maybe the luxury tax was not so much directed at extrañeros.
What about the CAJA fiasco though?

cupacoffee

Seemingly, this was solely 'miscommunication' although longtime residents have posted that you can ask the same question and receive different answers from the staff at the various offices around the country.

samramon

cupacoffee wrote:

Seemingly, this was solely 'miscommunication' although longtime residents have posted that you can ask the same question and receive different answers from the staff at the various offices around the country.


I can tell you it was not "miscommunication" according to articles I read.
It was - according to set articles - a misinterpretation of the law regarding CAJA. Some higher up there misinterpreted the law or policy and sent out a memo and that was that.
It was later struck down.

I heard - and this can be put in a basket of "rumor" - that it was enforced against gringos while Ticos knew nothing about it for the most part and when asked about it their response was "What??!" So while I am not certain this is an example of anti-gringo regulations, I have to wonder.

Part of the reason for starting this thread was to gather evidence and info. I am not saying gringos ARE being targeted as a cash cow for the government, I am just asking if there is evidence that they are, or are not.

kohlerias

Two years ago, certain CAJA offices were requiring an 'up to date' copy of marriage license for a dependent spouse...and if this was not available, they were required to open their own account. Just like some CAJA offices allow living expenses be taken into account...and some don't.

Maybe not  a 'cash cow for the government' but definitely for certain business where being charged  'gringo prices' is common.

Edward1958

Years of American's boasting about how cheap the health care is in Costa Rica has always raised the neck hairs on many Tico's who barely have money for food. The same goes with gringo's openly talking about their low property taxes, and preaching about how easy it is to become a perpetual tourist.  If you've got a good thing "stay quiet about it", and not give Tico's the impression all Expats are wealthy, and taking their country for a ride.

del12k

Yes! There are two prices for almost everything in Costa Rica. One price is for Ticos. The other price is for Gringo's! It has always been this way. I have lived here for 10 years and that's the way it is! :(

samramon

kohlerias wrote:

Two years ago, certain CAJA offices were requiring an 'up to date' copy of marriage license for a dependent spouse...and if this was not available, they were required to open their own account. Just like some CAJA offices allow living expenses be taken into account...and some don't.

Maybe not  a 'cash cow for the government' but definitely for certain business where being charged  'gringo prices' is common.


When you apply for CAJA do you have to apply where you live or ?
If not, then where is the most lenient office? ;-D

Edward1958

I have a Tico buy everything for me, and then I pay him for his efforts.

samramon

del12k wrote:

Yes! There are two prices for almost everything in Costa Rica. One price is for Ticos. The other price is for Gringo's! It has always been this way. I have lived here for 10 years and that's the way it is! :(


I am mostly interested in whether or not the Costa Rica government is targeting gringos to make $ but sure, we can discuss Ticos in general targeting gringos as well.

I think the most common situation where this occurs is taxis. Although I am told this happens in the USofA too, to foreigners. I've been gouged many times by San Jose taxi drivers and finally I learned to ask "How much is it from here to _______?" and "Sirve la maria?" (Does the meter work?) If the meter works they go by that but often they'll "forget" to turn it on or they'll go "the long way around" to run up a higher meter.

One time I was going to Spanish school outside San Jose and I went for lunch at a nearby place. Ordered from the menu which had the prices listed.

When the owner gave us the check it was considerably higher than what I had seen on the menu. I asked about it. His answer: "Oh, there's a NEW menu".
This was of course his way of covering for the fact that he'd just charged my friend and I the "gringo price".
I paid after complaining.
But I never went back.
Short term gain, long term loss for him.

samramon

Edward1958 wrote:

Years of American's boasting about how cheap the health care is in Costa Rica has always raised the neck hairs on many Tico's who barely have money for food. The same goes with gringo's openly talking about their low property taxes, and preaching about how easy it is to become a perpetual tourist.  If you've got a good thing "stay quiet about it", and not give Tico's the impression all Expats are wealthy, and taking their country for a ride.


I agree with you that it's probably not beneficial to talk about these things in front of Ticos. But that said, I think the cat is out of the bag already and whether we talk about it or not many Ticos are already going to have their opinions, often times based on wrong information.

Ticos need to understand that by our standards property taxes and health insurance and some property and other things  arecheaper in Costa Rica than in the USofA. It's simply a fact.

It is like when the Japanese or rich Arabs etc visit us here in the USA and talk about how cheap everything is compared to their country. It's the truth, that's all. I don't get mad at the Japanese for saying what is true for them. Arabs etc. come here and buy up our land, the Chinese are buying up our land, including farm land... Do we like it? Most probably don't. But it is what it is. If you can afford it you can buy it.

Things cost different prices in different countries. Ticos need to understand this reality and not blame us for it. EVERYthing (pretty much) is more expensive in the USofA - which in turn makes pretty much everything cheaper in Costa Rica for us.

As to the issue of Ticos thinking all gringos are rich, this will always be the case in most Latino countries. 

I remember 20 years ago I went out with a group of Ticos in San Jose' and when it was time to go this Tica expected me to give her $15 to get home because she didn't have the money.
At the time I had been living in  Costa Rica for months and was out of money myself.

I told her I was just as broke as everyone else, that I was not a rich American, and that if she didn't have money to get home she shouldn't have come. (She was with the group of us, it was not a date, nor had I even spoken much to her.) (my Spanish at that time was not good.) I explained that not all gringos are rich and that she was wrong to expect me or any other gringo to give her money "just because she needs some".

She started crying and so I forked over some cash - though not all of it, I made the Ticos chip in.

My wife is a Latina and she also thought most Americans were rich and when she came here to the USA to live after we got married, she said she was so surprised to see so much poverty in person and on tv. People get the idea that because we make $10/hour for unskilled or nearly unskilled jobs, or $25-50 hour for professional work, that we are rich. What they don't hear about is the $1100 rents, the $120/month car insurance, the $460/month Obamacare insurance, etc. that eats up all our "big wages".

What people in Latino and other countries don't realize is that many Americans work very very hard just to have 2 weeks vacation where they spend like a drunken sailor. So they get the wrong impression when they see us there on vacation.

Or we save a LIFETIME to buy a small piece of land to call our own in Costa Rica because we can't afford one here. Then they (some of them; and Nicas etc) target our homes for robbing, assuming we have a goose that lays golden eggs.

[end of rant!]
One more comment: Ticos are perfectly happy to get our money when we hire them or buy their car or property etc. If they don't want us to buy stuff, don't sell it to us. At least they are not GIVING us free health care and food and other stuff like we give illegal immigrants, here.

Edward1958

Hello Samramon,

Thank you for the very informative post.  You were mentioning rich people who visit America, like Japanese etc.
The difference with you respecting them, is the fact you as an American can eat as well as those rich foreigners, you are not stuck with a diet of rice and black beans as they eat steak.  If the Tico's had a slightly higher level of living, they wouldn't care how wealthy American's in their country appear to be.  If they had the basic things in life "like American's do", they wouldn't care if you had more than the basics.  It is their impoverished lifestyle that makes them somewhat bitter towards foreigners "who can drive good cars and eat whatever they wish".  The rising cost of living in Costa Rica has chased away many expats over the past few years, so you can imagine how the Tico's are suffering financially, and they have no place to run.

Have a good day....

samramon

Edward1958 wrote:

Hello Samramon,

Thank you for the very informative post.  You were mentioning rich people who visit America, like Japanese etc.
The difference with you respecting them, is the fact you as an American can eat as well as those rich foreigners, you are not stuck with a diet of rice and black beans as they eat steak.  If the Tico's had a slightly higher level of living, they wouldn't care how wealthy American's in their country appear to be.  If they had the basic things in life "like American's do", they wouldn't care if you had more than the basics.  It is their impoverished lifestyle that makes them somewhat bitter towards foreigners "who can drive good cars and eat whatever they wish".  The rising cost of living in Costa Rica has chased away many expats over the past few years, so you can imagine how the Tico's are suffering financially, and they have no place to run.

Have a good day....


I see your point. It's different when you don't have anything at all.
What can I say?
It is what it is.

What can we do to make it better, given that we (gringos) are going to continue to emigrate to Costa Rica, and given that we do have more than the poorest Ticos? Other than hire them and maybe pay them a little more than what the law requires, there's not that much we can do I don't think. As I mentioned in another forum, I plan to try to set up charities for school supplies and things like that, or whatever is most needed in my area. My wife plans to volunteer to teach at the local school. There's not much more anyone can do unless you're rich enough to give money away. (I'm not.)

My approach is to treat everyone well (Ticos and gringos) and try to be sensitive to the fact that many of them are very poor. I, by American standards, am poor myself, especially as I retire on social security with little savings; and at times in my life - believe it or not - I didn't have any money for anything more than beans and rice. I was homeless basically but a friend let me sleep in a tent outside the trailer she rented. This for me only lasted about 3-4 months but it was an eye opener. Eventually I found a job.

I really don't think there is much of a solution to this situation. There are plenty of homeless here in the USA who don't have a roof over their heads - at least most Ticos have that. Just sayin'.

kohlerias

Samramom, just noticed that you asked earlier, where you have to register for CAJA. You have to do this at your nearest CCSS/CAJA office and can only use this EBAIS facility, unless you are in a 'true emergency when traveling'...and they mean a true emergency.

samramon

kohlerias wrote:

Samramom, just noticed that you asked earlier, where you have to register for CAJA. You have to do this at your nearest CCSS/CAJA office and can only use this EBAIS facility, unless you are in a 'true emergency when traveling'...and they mean a true emergency.


Thanks for the info. Hope I get a good one then!

del12k

The obvious answer is YES and Yes and again YES! Even the US Embassy targets Americans to make more money. Renew a passport and pay over $100 for the damn thing? Also, buy something outside this country and have it shipped here and the Ticos will charge you up to 100 percent of its real value in a fee! It won't take you very long after being here for awhile to know about the two price rule in this country. If the price is not posted on an item the highest price will be charged, especially if you are a gringo. The most greedy people to target gringos are other gringos. Those gringos that try to set up so-called social events have one purpose in mind and that is to sell you overpriced property. Should you attend one of these events you must remain a skeptic as your hosts are con-people! You will discover you are being questioned as if in friendly conversation, and if you pay attention you will become aware that the interviewer is asking about if you sold property in the US before coming here. They really want to know if you have dollars in the bank. If you do, then they are suddenly your friend. If you don't have a big bucks in the bank you will not be invited to another "social" event. The best rule to follow is: Don't trust gringos!!  And jumping off the topic for a moment: Pray to your god that you never need the services of the US embassy when in trouble here. You won't get it, especially on a weekend when they are closed!

TerrynViv

WOW - sure glad that we haven't had the experiences that you have had!

pebs

After living here 25 years I Do unfortunately agree with you .
We lived in MANY areas but found  the BEST places to get ripped off (especially by other Gringos is in the "Gringo Gulches " my name for them ...and BELIEVE me we lived in ALL of them before settling AND learning Spanish  in a few months, in our GORGEOUS area of Heredia Hills,  which not many Gringos have even heard of SUCH A SHAME to miss such an area by being a  sheep.
So those moving here check out THIS lovely area,,, Upscale yet NOT 0verpriced  ( we can still get a delicious LUNCH complete with all the trimmings and a fresh juice for 2,200 colones . )$4.40.Just had one devine fish )and enough Gringos for our dose of English . if needed but most of us learn Spanish in a matter of months and NO we do NOT have the " 2 priced system " here,  as do  the Gulches
..Come and see for yourself.
IF ever I see n(VERY rare )  a place with no prices posted I steer clear and tell my friends and visitors to do the same..They soon get the hint TRY THIS side of the Hill..and just 20 minutes from the Airport...
As for the US Embassy THAT  is a JOKE It is there mostly to get the Ticas their visas to marry the aged Gringos LOL true! I wonder how many moths they last ..I know approx 6 months once in USA :):)

samramon

I have a friend who's lived all over the world in 3rd world countries and he says you are a gringo wherever you go and will get gringo priced from time to time because of it. This is true in the Asian world as well as Latino world, and like I said, pretty much everywhere.

That is not to say it always happens but that it DOES happen at times.

As to gringos cheating gringos, yes, that certainly happens too.

I have received gringo pricing a couple times at the local Farmer's Market. It's no big deal, I just say "that's too much for me" and move on to the next vendor. I prefer vendors who actually put their prices on the goods for this reason, though I acknowledge that MOST are not out to cheat me.

Just to show there are many good Ticos too, 2 things happened to me this week:
I overpaid by a mil for some produce and the Tico vendor called me back to give me the mil. (I had given him two, thought I'd given him one)

And at the local Maxi Pali they hunted me down to tell me I'd left my bank card in the atm machine and give it back to me after asking my name. Pretty cool! (And pretty careless of me! Had a "senior moment" I guess...

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