El Residente 2013-03

March - April 2013 1

El Residente

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Costa Rica’s English language newsle�er March/April 2013

El Residente 2


Contents:

President’s Message................. 4

My Costa Rican Experience ....... 6- Linda Gray

Wild Side of Costa Rica ............ 9- Ryan Piercy

LTG: Merely Players ................ 10- Anne�e Halle�

Costa Rica on the Globe ........ 12

A Day in the Life...................... 14- Allen Dickenson

A City Rejuvinated .................. 16- Richard Ternouth

Health Care: Face ................... 19- Dr. Oscar A. Suarez

Legal Update .......................... 21- Allan Garro

Dollars & Sense....................... 22- Alan Weeks

Business Directory................... 26

Changes. For good or for bad, things will likely con-�nue to go on changing. Each year we change the El Residente in order to try to make it a li�le be�er, but some�mes things change for the worse as well.

In this issue you will read a few ar�cles rela�ng to change, from immigra�on to driving, changes in the capital city, in the theatre, and even a few changes here at the ARCR office.

As humans we are funny, in that we always seem to be resistant to change, despite the fact that history has proven that change is inevitable. No ma�er what we have done to try and stop it, or con�nue to try, eventu-ally change overtakes us.

Allan Garro also brings us some of the changes passed by the government, with its eyes looking towards deal-ing with the financial problems it faces. Changes that many of us dread.

As the changes con�nue, I hope we are all able to adapt.

Ryan Piercy

This magazine has been published every two months since 1995 as the official communica�ons media of the ARCR. Our organiza�on provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence.

Since 1984 the ARCR 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 applica�on, immigra�on, business and financial management, real estate purchases and rentals, property management, insurance, pet importa�on and much more.

If you wish to place an ad in El Residente, please contact the ARCR main office. Goods & services offered are paid adver�sements. Neither ARCR Administracion nor El Residente research the companies and take no responsibility for the quality of such goods and services.

Editor’s Note

Contact Informa�on:

Published by: ARCR Administra�onEmail: [email protected] www.arcr.netEd�tor in Chief: Ryan PiercyAdver�sing, Publicity: Cindy Solano

Office Hours: Monday- Friday, 9 am to 5 pm CRC �me GMT-6

Address: #101 Casa Canada, Av 4 Calle 40 San José, Costa Rica Tel: 506-2233-8068 Fax: 506-2255-0051

Mailing Address: P.O. Box 1191-1007 Centro Colon San José, Costa Rica

El Residente 4

President’s Message by Terry Wise

Happy New Year, from a New Face

The purpose of this column is to provide updates and addi�onal informa�on about subjects not covered elsewhere in the issue: subjects that may have been too recent to make the regular ar�cles, but may be important to our members. That said, here are four “late breaking” topics about which you need to be informed.

First, there has been a change in the ARCR office: we now have a new Office Manager. Her name is Saicy Quiros. The appointment of Saicy to this posi�on is intended to make the office more efficient and give be�er service to our members, while also giving Ryan more �me to work on special projects that will be beneficial to ARCR members.

Therefore, beginning immediately, we ask that any ques�ons about Immigra�on, Cedula requirements, Caja, drivers license, etc. be directed her. Her new du�es will require her to be away from her desk or in mee�ngs much of the �me, so Saicy has requested you please send your ques�ons to her via email, rather than calling. Her email address is: [email protected]. Saicy appreciates your coopera�on and promises to respond promptly.

Second, many of you have heard and asked about the law regarding extending Visas. The law specifies that $100.00 USD fine (called a MULTA) will be accessed persons for each and every month they overstay their Visa. The law has been on the books for a while, but had not been enforced. Now, beginning April 23, 2013, the law WILL be enforced. So watch the expira�on date on your Visa. It’s never a good idea to “open the door” to the immigra�on authori�es.

Third, the laws regarding obtaining a Costa Rican drivers license have been changed; it is now a li�le more difficult. And there is a catch. The Costa Rican authori�es have determined that a person now must have a valid CEDULA (Costa Rican residency card also called a DIMEX card) to obtain a Costa Rican drivers license. Therefore, if you don’t have a Cedula you cannot obtain a Costa Rican drivers license.

The law s�ll allows those with an unexpired foreign drivers license to operate a vehicle in the country during the �me their Visa is valid. Now here’s the “catch”; the rules say that if your Visa has expired you cannot con�nue driving using your out of country license.

For Immigra�on purposes, once the applica�on for residency has been accepted and a file number issued, the applicant does not have to leave the country when their Visa expires. However, in order to con�nue driving with your foreign license, you need to have a current Visa, which means a person must leave and reenter the country to obtain a new Visa expira�on date. So, be careful if you are driving while wai�ng for your cedula; technically, to drive legally, you need to keep renewing your Visa un�l you get your Cedula.

The last item is that you may have no�ced on the cover of January/February issue of the El Residente there is a price in the lower right corner. I’ll explain.

Many companies/businesses who adver�se in our publica�on have asked for copies to sell in their wai�ng rooms/restaurants/ lobbies, or to give to their clients. However, the prin�ng of those addi�onal issues would create a financial burden on ARCR. We then recognized that there was an opportunity for ARCR to sa�sfy our adver�sers, gain addi�onal exposure with those who might not be aware of our organiza�on, AND have a way to off-set the costs without raising fees to our adver�sers or members; that was to create a special issue which could be more widely distributed. It is called, El Residente PLUS and will be sold for 1,500 Colones.

To accomplish this, the current issues are being expanded with an insert which contains ar�cles about things Costa Rican; there will be interviews, history, and tourist informa�on. Also included will be entertainment pages for children and a crossword puzzle for adults.

Not to worry, the basic El Residente will con�nue to be distributed to all members at no addi�onal cost, just as it always has been.

Of special interest to ARCR members is that the insert will contain a FREE classified page where they can list items they have for sale. If you want to place a classified ad, send your informa�on to: [email protected]

To make sure there is no confusion, let me repeat: distribu�on of the regular issues of El Residente is s�ll included in the membership and is FREE to members; the price on the cover is only for El Resident PLUS which will be distributed at those loca�ons where it will be for sale.

That’s all for now. Take care and to offer sugges�ons simply email me at: �[email protected].

Contest Update: My Costa Rican Experience

In this edi�on you will find our second place ar�cle, submi�ed by Linda Gray. Her simple and usual encounter with the local law enforcement provides good insight into the culture here, as well as a wholesome method of dealing with the situa�on. Definitely it relates a truly Costa Rican Experience that many of us may have shared already.


El Residente 6

My Costa Rican Experience by Linda Gray

The Yellow Submarine

For about a year, I drove a bright yellow Nissan Xterra. Did I say yellow? I mean drop dead, arrest me, lights-and-sirens yellow.

One day, some friends and I decided to drive down to Drake Bay for some awesome deep sea fishing. I love the drive to Drake Bay. Once you pass Rincon, it’s all dirt roads, bad bridges and river crossings, but the scenery is some of the most spectacular in Costa Rica. Think luscious green fields of horse pasture, with rivers meandering through, do�ed by majes�c Ceibo trees reaching for the sky.

Unfortunately, in my excitement to finally get another deep sea fishing trip under my belt (impossible to pass up for this Gloucester girl), I completely forgot about the �me of year. River crossings in the rainy season can be more than a tad treacherous, as we were soon to find out, when the car literally started floa�ng.

“Gun it!” my fellow passengers (all men of course) shouted. Gun it? What good is that going to do? We are floa�ng, boys. The �res are not going to start ac�ng like propellers you know.

We finally made it to the other side, but while we were crossing, the current in the river ripped the license plate from the front of the car. I didn’t realize it un�l we got back home.

Since I had to take these folks back up to the airport in San Jose in a few days, I beat feet into San Isidro to order a new license plate. In Costa Rica, the Registro (registry) controls all the legal property documents in the country, from real estate to cars. We’re lucky to have a regional office of the Registro right in San Isidro. To get a new plate, I had to bring a le�er from my a�orney sta�ng why the plate was missing (at a cost of $50, thank you very much), stand in line, fill out forms, and … your plate will be here on Friday. Here’s your receipt.

Oh oh. I have to go to the airport on Thursday. It’s going to be a bit dicey, driving seven or so hours up to the airport and back with one license plate missing, in a car that you can “see coming and going.”

So on Thursday, I crossed my fingers, picked up my friends, and headed up the Costanera. I brought the receipt from the Registro as proof that the plate was on order. I mean, really, do they expect me to just NOT DRIVE the car while I’m wai�ng days for this new plate?

Yes, indeed; apparently that’s exactly what they expect.

Everything went fine un�l we were just a�er the

Tarcoles Bridge, north of Jaco. There is one spot where the Transitos (traffic police) always set up shop, to catch speeders and other miscreants. When I came driving by in my bright yellow buggy, the officer mo�oned me to pull over. Oh crap. Here we go.

“Buenas dias señora. Did you know that you are missing your front license plate?” he smiled, leaning in, checking out the other gringos in the car (who had just finished smoking a joint in the back seat, and were trying desperately not to breathe in his face).

“Well, yes, actually it got ripped off when we were crossing a river in the Osa a couple of days ago,” I said with a big smile, trying to distract him from the giggling fools in the back of the car. “I went to the Registro and ordered a new plate, but it won’t be here un�l Friday. Here’s my receipt. I had to take my friends to the airport, or I wouldn’t be driving the car.”

“You know, it’s a REALLY big fine for driving without a license plate,” the officer said, very seriously.

At this par�cular �me, Costa Rica, in its usual not-thinking-about-the-consequences wisdom, had just ins�tuted a new set of traffic fines that were completely outrageous considering the average income level of its populace. For example, $440 for not wearing a seat belt, $700 for speeding (only 12 miles above the speed limit), $500 for talking on a cell phone, etc. It was a poli�cal controversy being debated throughout the country at the �me.

“I know. These new fines are crazy aren’t they? How do the Ticos afford to pay them, it makes no sense.” I said, ba�ng my eyes, coyly smiling. (Seriously, woman you are too old for this…)

“Oh, so you know,” he said surprisingly, “Do you live here?”


“Yes, I live down near Dominical, I have a finca with a lot of horses. Do you like horses, señor?” I said hopefully, trying to become his new best friend. In Costa Rica, making small talk with a big smile is the culturally acceptable method for backpedaling your way out of a s�cky situa�on. So far, so good.

“Well,” he said, smiling with an�cipa�on, “I’ve decided that since you are such a nice person, I’m not going to give you a �cket….but…. it’s a REALLY big fine you know.”

Pregnant pause. He’s wai�ng for me to whip out the wallet, I know it. Bribery is not only common, it is completely expected in a situa�on like this. These transitos probably make a month’s salary every day, pu�ng the screws to innocent tourists.

“Thank you SO much señor, that’s really nice of you. I sure do appreciate you not giving me that �cket,” I said, in my most charming, apprecia�ve manner.

He wasn’t quite sure what to do at this point. The bribe he was hin�ng at just wasn’t forthcoming. So he had to make One Last Try.

“You know, I’m not going to write you a �cket,” he

offered, “but it’s a REALLY REALLY big fine.”

“Well, señor, I can’t tell you how much I appreciate your kindness. Thank you again.”

“So,” he said, dejectedly, “are you driving your friends to the airport now?”

“Yes that’s right. They have a flight at mid-day.”

“You’ll be coming back this way a�er you drop them off?”

“Yes, some�me this a�ernoon,” I said, realizing that my Oh So Easy To Spot car was going to be my downfall.

“Well then you have a good day, señora, drive safe.”

“Thank you again señor. You have a good day too.”

Of course I did NOT drive home via the Costanera , knowing full well what would be wai�ng for me. Instead I went home via the Cierra del Muerte, the mountain road known as the Road of Death. In this case, it was the Road of Savings. Or possibly, the road of People Avoiding Giant Traffic Tickets. In any event, it worked out just fine.

El Residente 8


Wild Side LXXII by Ryan Piercy

Thick-kneed Neighbors

Another sort of oddball avian found in Costa Rica is the Double-striped Thick-knee, Burhinus bistriatus, known also as a Stone-Curlew. Of the nine species, it is the only member of a family found locally; seven are found only in the Eastern hemisphere. More odd s�ll is the name, which is evidently derived from the mistaken impression that their rather large ankle joints are actually knees.

This medium sized bird stands about 20 inches (50cm) and weighs up to 780g. They are fond of open spaces and can be found on the ground in sandy or stony terrain, savannahs, bushy dry areas, pastures, stubbly fields, burned areas, and open meadows in scrubby woods. Their large eyes give them good night vision ability, as they are primarily nocturnal. In the day they will lounge around, preening themselves and res�ng in silent camouflage. If approached they will run away quickly in fright or, less frequently, fly slowly away at low al�tudes. It is unfortunate they avoid taking to the air as they are beau�ful in flight with the striking designs and coloring on their wings.

At night they will become ac�ve, foraging for insects, worms, snails, scorpions, small rep�les and frogs, and some�mes seeds or buds. They will also become noisy, with calls and loud nasal trills, most especially under the light of a shining moon.

The nest of a Thick-knee is inconspicuous and also rather strange, being nothing more than an unlined scrape on the bare ground. Here, during January through April, they will lay one to two eggs which are rather large and boldly spo�ed in brown, black and gray over a buffy-

olive. Both sexes will take turns incuba�ng as the other stands a short way off. In 25-27 days the young will hatch and soon leave the nest under the guidance of the parents.

Males and females are quite alike in appearance with finely streaked gray-brown upper parts and a pale neck blending into a white underbelly. They boast a black stripe on the side of their crowns and their big yellow eyes surround a black iris. Their bill is a dusky brown with a yellow base, and their legs are clearly yellow and very long. Their feet have three short, forward poin�ng toes that are webbed at the base, with no hind toe at all.

There are four sub-species with varying size and plumage, though it is very difficult to tell them apart, par�cularly since it is hard to get near them. They are not endangered due to their extensive range from Southern Mexico to Columbia and Brazil and, in fact, have benefited from the clearing of woodlands to make pastures. The popula�on is considered to be quite stable, numbering in the millions. Es�mated lifespan is fi�een to sixteen years in the wild.

In Costa Rica the bird is an abundant resident, locally called the Alcaraván Americano. It can most o�en be found on the pacific coast lowlands, especially the area from Guanacaste down through the Puntarenas. A good place to look for them is on open grasslands or pasture areas and, if you can determine where they are nes�ng, the eggs can be studied at a close distance during the correct �me of year. Remember, however, that the parents will be wai�ng in extreme concern a short distance away.

El Residente 10

LTG: Merely Players by Anne�e Halle�

“Ac�on is Eloquence” W Shakespeare

It was in 1955 that Jonas Salk announced to the world that he had produced an effec�ve vaccine against Poliomyeli�s, a dread disease that can kill or cripple thousands of its vic�ms during a single epidemic. The US polio epidemic of 1952 resulted in 3,145 deaths and le� 21,269 people seriously handicapped.

An iron lung was used to help those in the acute phase of the disease to breathe. If the pa�ent could survive this acute phase then there was hope for recovery. Invented in 1927, but not in general hospital use un�l a�er 1939, an iron lung retailed for about $1500, about the same price as a house in those good old days!

What you might ask has this to do with the Li�le Theatre Group?

In 1950, with Bert Williams as its president, LTG worked very hard and managed to raise sufficient funds to purchase, not one but two, iron lung machines, and donate them to the San Juan de Dios Hospital. There were none of these life saving devices in Costa Rica at the �me. The hospital’s director did not feel that they would ever be used and wanted nothing to do with them, so LTG had to pay a technician to take care of the machines, and ensure that they would be in working order, in the event of a crisis.

Three years later, Costa Rica was ravaged by a polio epidemic, and more than 2000 Costa Rican children were afflicted. There can be no doubt that the forward thinking and the dedica�on of those founding LTG members was responsible for saving many lives during that terrible �me.

Throughout its history LTG has con�nued to use profits

from their shows to support charitable organiza�ons in Costa Rica. Pu�ng on a show is a very expensive project when one considers the costs of performing rights, performance and rehearsal space, set construc�on, props, and costumes. The group has experienced its lean years in terms of profits, but it has always tried to find a way to provide support.

Organiza�ons such as the Fundacion de Angel de Amor, which provides accommoda�on for abandoned seniors in its facility “The Tom and Norman Home” in Guapiles, and Open Arms of Costa Rica, a collec�ve of benefactors whose aims are to improve the lives of those they encounter by providing funds for educa�on and medical programmes, have both been the recipients of funds raised during LTG Christmas events in recent years.

Last season saw a mutually beneficial collabora�on between the Costa Rican Humanitarian Founda�on and LTG. The script for one of the short plays featured in their produc�on My Life Is a Crazy Quilt was provided by the women of La Carpio. The play told their stories and also featured the quilt they made to record them. The women a�ended the opening night as honoured guests and received a por�on of the proceeds to help them in their work. The unique handra�ed angels that the women make were also sold during the intermission. This was not the first �me that LTG has worked to benefit this very worthy organiza�on and I do not think it will be the last.

With the support of our audiences and our members we hope to con�nue to be of service to the community for many years to come.

The Na�onal Theatre has started a new ini�a�ve this year with its “Theatre in the Theatre “seasons. These are described as being “a family friendly event for drama lovers, which will be held at least twice each year”. Performances will occur on three mid-week a�ernoons at 2pm. This �me slot was selected as a result of data obtained from audience surveys conducted at the Teatro Na�onal during 2011.

The opening event, a presenta�on by the Na�onal Associa�on of Modern Puppet Theatre (MTM) en�tled ODISEA, certainly seemed to be very well supported. The puppetry and scenic elements were most crea�ve and excellently presented. This 60 minute entertainment was more than worth the �cket price of 2000 colones.

The second event is planned for later in the year, but as yet no details are available.


On February 8th, several members of LTG, very talented musicians and singers, came together under the directorship of Barry Slutskin, to present an informal evening of cabaret style entertainment in the Shakespeare Bar, which is located in San Jose at the Teatro Laurence Olivier. This is a great li�le space with a unique ambience, which frequently hosts art exhibi�ons as well as music nights. This compara�vely new venture for the present membership was declared a resounding success. We hope to present more of these events throughout the year.

Also planned is an evening of deligh�ul roman�c comedies featuring the work of renowned French playwrights of the belle epoch. This event will be part of a fund and awareness raising campaign called “Give Your Heart to LTG”. Jim Theologis, well known ar�st and teacher as well as stalwart supporter and ex-president of LTG, has put his considerable talent at LTG’s disposal, and has designed an original “HOT LOVE” logo for T shirts. These T shirts went on sale at the beginning of December 2012 and will remain available throughout 2013.

God of Carnage by Yasmina Reza will be coming to San Jose in April 2013. Directed by Noel Montagano, it will feature some of Li�le Theatre’s best known actors: Tom Humes, Lisa De Fuso, and Susan Liang, as well as a visi�ng professional actor from the US, James Kissane.

God of Carnage, a study in the tension between civilized surface and savage ins�nct, definitely delivers the cathar�c release of watching other people’s marriages go boom. This award winning play promises to be highly entertaining and

well executed. Tickets will be going on sale on April 1st 2013 and there will be weekend performances from mid April through to the beginning of May.

LTG welcomes both new members and poten�al directors and offers plenty of opportuni�es to par�cipate both on and off the stage. If you would like more informa�on about The Li�le Theatre Group please feel free to call Anne�e Halle� on 8858- 1446, or contact us through the LTG website at www.li�letheatregroup.org.

El Residente 12

The Hell Drivers

Costa Rica is just a small country with a mainly farming background, and yet Costa Ricans have always had their eyes set on the greater world. In the 1800’s they began the export of coffee, followed by other crops. In 1884 San Jose was one of the first ci�es in the world, and the first city in La�n America, with electric streetlamps. The

Na�onal theatre was finished by 1897, in order to bring famous acts from the world over to the people of the country.

Over the following decades this fascina�on never changed and with the development of the motor car, along with the rest of the planet, Costa Ricans became a�racted to the new mode of transporta�on and with speed. During the for�es and fi�ies the world became enthralled with a new sport, Stunt Drivers, and this li�le country was no different.

In February of 1960 the most famous of these acts, The Hells’ Drivers, arrived in San Jose. The group, which had driven to Costa Rica, was owned by Jack Kochman, and was one of three groups Kochman orchestrated. The show featured Jasper the Clown, s�ll considered as the number one thrill show clown ever.

Billed as “Los Volantes del Infierno”, Kochman’s group performed in the Na�onal Stadium, built in 1924, with

Costa Rica on the Globe by Ryan Piercy


sea�ng for up to 25,000. The show was so popular that they experienced sell-out crowds and, originally

scheduled for only one weekend, they were held over for an addi�onal two days for a total of six shows. Tickets started at just three colones, about US $0.50 at that �me. However a seat in the shade ran five colones and seats in the balcony were ten colones.

The drivers enthralled the audiences with thirty different stunts, guaranteed to send chills down the spine, intermixed with the crazy an�cs of their legendary clown. Running the ramps at hair-raising speeds, aerial leaps, and �lt-ups just short of rolling, were commonplace stunts. Amongst all the acts were roll-overs, crashes, burning vehicles, and Jasper the clown who would survive a near miss by two cars passing on either side of him at high speeds.

One of the most popular stunts was when “Dapper” Dan Fleenor , Kochman’s headlining driver at the �me, demonstrated his “Salto de la Muerte” (Jump of Death!) This tall Texan was renowned as a great stuntman and later purchased the Hurricane Hell driver’s group from Jack Kochman. His was the last act in North America to perform a ramp-to-ramp jump while another manned car passed underneath the airborne vehicle at the same �me.

The tricks that really caught the a�en�on of the local press were not the death defying acts, but the acts of precision and skill. A local reporter was rightly impressed and found the en�re show “Simply Fantas�c”. He was most impressed by the driver who drove on just two wheels. He went on to say, “The most sensa�onal are the incredible acroba�cs performed by these masters

on wheels, in Simca Aronde vehicles, leaving them in perfectly ver�cal posi�on and holding for approximately one hundred meters on just two wheels, without being �pped over. No doubt both the skill of the driver as well as the consistency and stability of the Simca Aronde are amazing.”

Jack Kochman was also the producer behind these breathtaking events, with years of careful planning for each stunt. He had begun with ten cars, changing the act each season, adding more spectacular stunts, and finally headed on to shows around the world. Kochman himself once stated “the roar of engines, the whine of �res, the sharp smell of exhaust - they’ve always had a thrill for me. And I guess they always will.” In 1960 he shared his passion with the li�le country of Costa Rica, giving them a first-hand taste of the thrills experienced in the face of speed and danger. One has to wonder if it was one of the causes that has led to how the Ticos themselves drive today . . .

El Residente 14

A Day in the Life by Allen Dickenson

How To Sell Your Car

As some may already know, I have a service where I help expats “relocate” their vehicles. It’s mostly just hooking up those who want to buy a vehicle with those who are trying to sell. People usually come to me a�er trying to sell on their own for a while; maybe a�er they ran out of �me before they had to leave. Or maybe it was just bad luck or they got �red of trying, but for whatever the reason, if they are stuck with a vehicle they haven’t been able to sell, some will contract with me to be their broker.

Admi�edly, selling a vehicle in Costa Rica can be frustra�ng because it can be a problema�c process, especially when different languages and cultures are involved. Added to that, there are so many used cars, trucks, and SUVs available here that any vehicle can be difficult to sell.

So, before you get to where you need to contact me and pay me a small fee (Hey, I have to feed those five kids somehow!) to hopefully find you a buyer one day, I want to pass on some �ps I have learned that may help.

First, determine the fair market value of your vehicle. DON’T base your price on emo�on or gut feelings. You may have deep affec�on for your ride, but the buyer won’t be buying emo�on; they’ll know ahead of �me what a fair price is. Instead, go to several web sites and look for comparable models and use them as a guide. You can also look in the newspapers – La Nacion has a large used car sec�on once a week that can be a reference.

A TIP: Most adver�sed prices are 10% - 15% higher than the “street” price. That’s because buyers expect to haggle and bring the asking price down, so sellers set their price to accommodate some reduc�on. But have an absolute bo�om price you will accept in mind.

Exposure is the key to selling. You can’t expect buyers to beat a path to your door if they aren’t aware of what you are offering, no ma�er how good the deal. To increase awareness, put some signs or a no�ces on the vehicle (white liquid shoe polish is good to write on windows, but NOT on painted surfaces) so that when you drive it people will see it. Be�er yet, for about 2,500 colones each, local sign shops can make up adhesive backed le�er signs you can s�ck on your car. Either way, make sure your telephone number is prominent and, if you don’t speak Spanish well, include another number for someone who does that will help you.

Post a lis�ng everywhere on the Internet you can think of – Craig’s List CR and all the Yahoo bulle�n boards for Costa Rica (Costa Rica Living, Central Valley Living, Young Expats, Escazu News, Costa Rica Classified, etc.) Consider the classifieds in the on-line newspapers too.

Also, find one or more of the Costa Rica used car sites, CRAutos.com, for example, and list it there. Give a good descrip�on and add pictures where you can, but be honest. Men�on anything that would add value or en�ce a buyer. Make sure you specify what part of the country you are in too, and give good contact informa�on. Here’s an example:

2008 Nissan Maxima. Santa Ana. V6, automa�c transmission, 45,000 miles (30,000 km). Four doors. Original owner bought new in US and imported. Car maintained to perfec�on. Leather interior with custom wood accents, special (factory installed) stereo system with CD, USB port, and AM/FM radio. Alarm system. Original floor mats. Cold A/C. Aluminum wheels, new �res. Never wrecked and no major dings or scratches. Priced below book for quick sale: $5.00 USD. For more info in English, call 5555-1234, in Spanish 8901-2345, or email at: [email protected]

When lis�ng the price, DO NOT include the phrases “Or Best Offer” or “Nego�able”. You are just telling poten�al buyers you will accept less than your asking price.

Prepare some handout sheets lis�ng the basic points of the vehicle (year, engine and transmission type, mileage, etc.) and carry them with you to give to interested buyers. A TIP: Prepare signs and handouts in BOTH English and Spanish – you don’t know who will be looking.

Another TIP: Have your car regularly, professionally cleaned, inside and out. Think about what you’d like to find when you look at a car for sale. A clean piece of crap will sell faster than a dirty one.

One more TIP: Get any minor problems repaired before pu�ng the vehicle on the market. A buyer will use anything, no ma�er how minor, as jus�fica�on to beat your price down. Be prepared to bargain, but don’t let the buyer be in control of the process by no�ng small defects.

If possible set the vehicle outside where people going by can see it is for sale. Occasionally drive it around your local area and maybe park it on a busy street during the day for drive-by exposure.

Be pa�ent; expect some �me to elapse. Don’t become discouraged early and lower your price too fast – you are looking for the person who wants YOUR car; unless you offer the vehicle at a super, super bargain basement price, responses may be slow. (Some people think that lowering a price to s�mulate a sale is suspicious and indicates defects.) If you have the �me, begin adver�sing well before you ul�mately want to sell, but be prepared to close the deal right away when a legi�mate buyer appears; buyers won’t wait.

A couple of addi�onal notes: If you adver�se on Craig’s


List, be aware that you might get “Phished.” Craig’s List is especially prone to this. For example, be very suspicious of an email saying something like the sender wants your car but is “off-shore” and doesn’t have access to their bank account, but, they do have a PayPal account and will pay that way. Then, and this is a key phishing phrase, they’ll have their AGENT / REPRESENTATIVE / FRIEND take delivery of the vehicle for them. Believe them and you’ll end up without the vehicle or the money.

Take reasonable precau�ons. Don’t meet poten�al buyers alone or in isolated areas; meet them in the day�me, or at least in a lighted, high traffic area like a mall parking lot, preferably one with security. And if you are a woman, take a male friend along. (Sorry, I’m not being sexist, just prac�cal.)

It’s legi�mate for a buyer to want to drive your vehicle, but never, NEVER EVER, let them drive your car alone – always ride along. Make sure it’s just you, plus maybe your friend, and the buyer in the car. If they want to bring their friend along (which they may call their mechanic) DO NOT let them. Two of you can control the situa�on. Two of them can change the odds greatly.

What if you are leaving the country and the car hasn’t sold?

This can be a big problem for some expats – they may have had the vehicle on the market for a while, are scheduled to relocate, but nobody has purchased their car, even a�er the price has been reduced considerably. A vehicle is a pre�y sizable investment and can’t just be abandoned or given away. What to do?

Unfortunately, Costa Rica doesn’t offer many alterna�ves. The best, and most common op�on, is to leave the vehicle with a designated representa�ve, along with the Costa Rican equivalent of a Power of A�orney, to sell for you. There is risk is in doing that and, if you choose to go that route, there are some things that need to be taken care of before hand:

– First and foremost is find someone you trust implicitly because, for all intents and purposes, that power of a�orney allows them to “own” the vehicle. That document lets them do anything with it AND the proceeds from it when it is sold. (An op�on is to give the power of a�orney to one person, but leave the car to be sold with another. That is a bit cumbersome, but it avoids pu�ng all the power in one person’s hands.)

– Make a clear agreement between the representa�ve and yourself as to what exactly is expected and allowed of them. (Can they drive the vehicle? Where will the car be stored? What’s the bo�om line selling price? How will communica�on take place? Who will pay for expenses like adver�sing, repairs, new Riteve inspec�on or Marchamo. And when will any expenses be paid?)

– Leave all the documents (current Marchamo, ownership papers, etc.) for the vehicle behind; don’t take them with you.

– Establish a line of communica�ons via email or telephone where the representa�ve can easily and quickly contact the owner to get approval in case there is an offer that is less than the previously established lowest acceptable price.

– Make arrangements to maintain insurance on the vehicle (especially if it’s to be driven.)

– Establish how the sales proceeds will be transferred. If the amount exceeds $10,000 USD, there may be tax implica�ons, or at least bank transfer rules. Also, if there is to be compensa�on paid to the representa�ve, paying that money may require an addi�onal step. Check with a reputable a�orney so this informa�on is decided up front.

Lastly, be pa�ent. The representa�ve isn’t going to be able to do more that you could when you were trying to sell it.

A quick final point: If you are looking to BUY a vehicle, have a reliable mechanic inspect it for you first. You’ll probably have to pay him a small fee, but it is a good investment because there is a lot of “junk” on the roads of Costa Rica – and you don’t want to spend your money on one with hidden damage. Most people (Gringos and Ticos) have decent cars to sell, but there are some who will try to pass off something as more than it is, so be cau�ous. (There are some areas a mechanic can’t thoroughly inspect, like inside the engine, but you will s�ll have an advantage of knowing the vehicle is otherwise sound.)

And there you have it. Be realis�c, be cau�ous, and good luck selling (or buying) your vehicle. I hope this helps everyone have a happy and sa�sfactory car selling / buying experience.

Allen Dickinson is a member of ARCR. A�er serving 23 years in the US Navy he se�led in Pensacola, Florida, where he resided for 24 years. In 2006 he re�red and relocated to Costa Rica. He has owned over forty personal vehicles and has bought and sold many others. He can be reached via email at: [email protected].

El Residente 16

A City Rejuvinated by Richard Ternouth

A Highway to Somewhere

Highway 27This is the second in a series of ar�cles focusing on the dynamic transforma�ons currently taking place in the area of San Jose. This ar�cle will stray a li�le bit from the greater San Jose area and take a look at the Autopista Del Sol, which has its beginnings in La Sabana and stretches seventy-seven kilometers to the port of Caldera, near Puntarenas. It has also had tremendous impact on outlying areas from Guanacaste to Uvita.

A Long Time ComingThe highway opened in January 2010, two months ahead of schedule, a�er thirty-five years on the drawing board and many delays. From La Sabana at the western end of San Jose, it heads west ending at the port of Caldera. Although it was originally introduced as the Autopista Del Sol, it is also called Highway 27, The Caldera Highway, or the Peace Highway. It was completed at a cost of approximately 230 million USD.

A Ma�er of ConcernOne of those delays occurred a year before the official opening when the environmental control panel, the Tribunal Ambiental Administra�vo, suddenly halted construc�on on much of the new highway between Ciudad Colón and Oro�na. This was due to concerns about the stability of the road’s underlayment and erosion, and excess sediment flowing into about twenty rivers along its route. There were also issues about the steep slopes bordering the route which were suscep�ble to mudslides in the rainy season. President Laura Chinchilla stated that repairs to the Caldera highway were a priority for her, and from my latest trips along the highway it looks like she has kept her word.

Those who have traveled Highway 1 (the Pan-American Highway) prior to the comple�on of Highway 27 will remember those long, dreary stretches through the mountains between San Ramon and Puntarenas where, if you got behind big trucks, the traffic some�mes crept along at a snail’s pace. With the new highway those problems were allayed; you can now get from San Jose to Caldera in about an hour.

The road also provided a new way to get to Guanacaste. From Puntarenas you can zip up to the Pan-American Highway and save about two hours of travel �me. And a trip to Jaco is now only one and one-half hours, which puts des�na�ons such as Manuel Antonio, Dominical, and Uvita closer than ever before.

It’s a Win-WinThe new highway presents a win-win situa�on for residents, tourists, and Costa Rican businesses. The comple�on of the new infrastructure has provided important connec�ons that will con�nue to enhance Costa Rica’s already surging interest among travelers and expats, and s�mulate re-discovery by locals. There are many no�ceable benefits such as:

• Increases in investments and economy in such towns as Atenas, Ciudad Colon, Santa Ana, Oro�na, and San Mateo.

• Rising land values along the highway where some have almost doubled.

• Job crea�on through the construc�on and subsequent opera�onal needs, such as toll booth operators.

• Transporta�on �mes and costs for goods entering from the ports have been reduced.

• More diversity of goods and services are available in previously remote areas.

• Reduc�on in the number of traffic accidents that were caused by overburdened vehicles traveling on the old mountainous, narrow, poorly lit country roads.

Closer to Home: Santa Ana and EscazuEmerging from La Sabana and going west a few kilometers, one cannot help but no�ce the tremendous boom in commercial development on both sides of the toll road, all due to their high visibility and the quick and easy access from the highway. Signs for the businesses along this stretch read like the who’s who of commercial and retail and services. Star�ng with Walmart, there is Office Depot, EPA, Avenida Escazu (did you say Starbucks?), and globally recognized hotel names. And of course, there is the ever expanding Mul�-Plaza which


is populated with many interna�onally famous brand stores.

Traveling west a bit further, one can see where high end residen�al development has exploded in and around Santa Ana, partly due to the quick travel �me to the beaches and the short commute to San Jose.

Viewed from the western end, for the residents of the Central Pacific area, the new highway has cut travel �me to San Jose down to less than two hours. Those traveling in to shop, take care of business, go to the airport, or just visit friends or family, can now make the trip much more quickly and easily.

Approaching San Jose there are off ramps to Rohrmoser, giving great accessibility to the commercial developments, businesses, shops, services, and restaurants in Sabana Sur. Or if the traveler desires to go further east, they have easy access to the circunvalación; the ring road which runs around the perimeter of the city.

Highway 27 ends at the eastern end of La Sabana Park,

but from there the commuter has immediate access to downtown San Jose via Paseo Colon or other routes such as Avenidas 6 and 10, which lead into San Jose Central.

With quick and easy access, travelers and residents alike can now visit and enjoy what San Jose has to offer in museums, cultural events, music and theatre, stadium events, the new Chinatown, or take a leisurely stroll along the many new pedestrian walkways in San Jose Central.

Anyone got a Jet Pack?Not to mislead anyone, there is s�ll way too much traffic on our roads, and that will not change. During rush hour (which at �mes seems like all day) and holiday weekends, my preferred mode of transporta�on would be a Jet Pack. But if you don’t have one of these handy devices, and have not yet had a chance to travel our new highway, I encourage you to give it a try. In fact tomorrow I am on my way to the Dominical and my mouth is already watering knowing there is a great Fish Taco awai�ng me only one and one-half hours away in Jaco!

El Residente 18


Health Care by Dr. Oscar A. Suarez

A New Look: Facial Rejuvina�on

Once called face-li�s and later known as cosme�c surgery, facial rejuvena�on is a common subject of interest for many who visit Costa Rica. Herein I will discuss the modern state-of-the-art for those whose may have an interest in the subject.

The way we appear to ourselves and others is a very important aspect of how we feel about ourselves, as well as having an impact on how others perceive us. Because the face is o�en the first thing many people no�ce, emphasis on its appearance has become widespread. Consequen�ally, facial rejuvena�on has become a very important and popular treatment within the pantheon of modern plas�c surgery.

Not long ago those procedures o�en involved an extensive surgical procedure with a very long recovery �me; one which frequently le� s�gmas, including scars, that revealed that a surgery had been performed. More recently facial fillers such as Botox, and skin resurfacing, have gained popularity. The long term success and poten�al problems with each of these procedures, however, was largely unknown.

The profession now has the benefit of many years of scien�fic studies of surgical and non-surgical facial rejuvena�on procedures. Following an extensive number of pa�ents and conduc�ng many scien�fic studies, combined with different in-depth examina�ons of the various modali�es of facial rejuvena�on, it has been determined which are the safest and most effec�ve.

This informa�on, combined with each pa�ent being evaluated individually to fully understand their needs and expecta�ons, is used to determine the best procedure, with the lowest poten�al for future problems, for that person. As a result, many pa�ents opt to combine surgical with the non-surgical procedures to get the very best possible outcome. In every case, the ul�mate goal is for the pa�ent to achieve a natural look, a shorter recovery period, and to be happy with their ul�mate appearance.

When we use the term facial rejuvena�on, what are we talking about? Rather than the days of a complete facial surgery, the science now more o�en concentrates on various features of the face individually.

There are several main focal areas that, when combined, make up the image others see. The primary features are the eyes, which play a very important role in the way someone appears. As persons age the eyelids begin to change and things like crow’s feet or drooping eyelids start to become evident.

Crow’s feet are an easily corrected problem commonly using a non-surgical procedure, o�en Botox or Dysport. This procedure, however, is only for a select group of pa�ents.

Another common problem is excess skin that may restrict peripheral vision; fat pads in the lower eyelids and / or other condi�ons that cause closing of the eye opening. Correc�ng these condi�ons is more o�en a surgical procedure. In each

case the plas�c surgeon must evaluate the pa�ent individually to determine which procedure(s) will be best to get the results the pa�ent desires.

The second most frequently no�ced facial feature is the middle face or cheek areas; folds and lines which begin on the sides of the nose and extend downward toward the cheeks. As we age, these lines get deeper and more pronounced.

The most popular procedure for correc�ng this problem is the use of fillers such as hydroxyapa�te (Radiesse®) and hyaluronic acid (Juvederm®, Restylane®, or Teosyal®). These types of fillers can also be a wonderful solu�on for the ver�cal lines around the mouth called Marione�e Lines.

Some�mes other features, such as the eyebrows or forehead (frown lines) must be considered and included to get ideal results. Depending on the extent of the condi�on and the pa�ent’s individual characteris�cs, fillers can be u�lized in combina�on with Botox for these areas. This treatment can achieve an incredible result. And, for those pa�ents who are concerned about the loss of tone and elas�city of the facial �ssue, there is now a procedure that combines heat by abla�ve and sub-abla�ve radio frequency to firm up that �ssue for a more youthful appearance.

The third most common concern of pa�ents is the appearance of the neck. Non-surgical procedures are only able to help in mild forms of the loss of elas�city of the �ssue around the neck. In minor cases, abla�ve and sub-abla�ve radio frequency treatments can be u�lized to firm up the �ssues. In other selec�ve cases, Botox can be used for the strong muscular bands. Commonly, neck li� surgery is indicated independently or in combina�on with a full face-li�. Another procedure that has been u�lized for the cheeks and neck is the technique placing treads in the appropriate areas. The long term results, however, have been shown to have a very limited effect and are most successful in those with very thin faces.

There is never just one solu�on for every pa�ent and open communica�on between the pa�ent and surgeon is crucial. One pa�ent may want to start with non-surgical procedures and later, when the correct �me comes, move on to a surgical procedure. Others may need to address their concerns by star�ng with a surgical solu�on and, in �me, complement it with non-surgical procedures.

Each person is different and there really is no formula. A thorough examina�on and consulta�on with a Board Cer�fied Plas�c Surgeon will help determine the best approach for each individual pa�ent.

As you can see, there are many different op�ons available to help a person achieve their personal degree of desired facial rejuvena�on. In all cases, precau�onary measures such as u�lizing skin moisturizer and sun protec�on, ea�ng a balanced diet, and ge�ng regular exercise and appropriate daily rest, are important for maintaining healthy skin.

If you are concerned about your facial appearance there are solu�ons, if you know the op�ons.

El Residente 20

Alcoholics AnonymousGroups meet daily throughout the country; �mes and places change frequently. Call for up-to-date informa�on. San José 2222-1880 (Anchor club, also serves Narco�cs Anonymous) Av 6 Calle 1, 2nd floor Maryland Building. Heredia (Laura) 2267-7466, Puerto Viejo Limon 2750-0080, Zancudo 2776-0012, Tamarindo 2653-0897, Flamingo (Don) 2654- 4902, Manuel Antonio (Jennifer) 2777-1548, Jacó (Nancy) 2637-8824, Zoo Group Escazu 2293-4322. Grecia (Jay) 2494-0578. Southern Zone, mee�ngs in English & Spanish, 8634-9241. Puriscal, Fred 8866-0128.

Al-Anon Mee�ngsEnglish language Al-anon mee�ngs are open to anyone whose life has been/is affected by someone else’s problem with alcohol. Mee�ngs are one hour long and held twice each week in Escazu centro, above the Buena Tierra Restaurant, 25 meters south of the San Miguel Catholic Church. Tuesday’s at noon and Thursday’s at 10:30am. Tel: 89 93 17 62 (Rosemary) and/or 22 28 10 49 (Barbara) email: [email protected]. Also in Grecia on Tuesdays at noon (English), contact Cheryl at 2444-1515.

American Legion Post 10- EscazuThe oldest and largest American Legion Post in Costa Rica meets at 12 noon on the first Wednesday of each month at Club Cubano in Guachipelin. For informa�on and map, go to the website at amlegioncr10.com/met_loc.html, or call John Moran at 2232-1680.

American Legion Post 12- GolfitoMee�ngs are held 4 pm 1st Tuesday every month at Banana Bay Marina. The Golfito GOVETS have been helping Southern Costa Rica for over 20 years. Contact Pat O’Connell at [email protected] or 8919-8947, or Mel Goldberg at 8870-6756.

American Legion Post 16- GoicocheaMee�ngs are the second Wednesday of the month in the Hotel of the Hospital Clinica Catolica. Lunch at 11:30 and the mee�ngs at 12:30 Contact Jim Young at 2524-1265.

American Legion AuxiliaryThe Legion Auxiliary meets the Second Saturday of each month, at 1300 hours in Moravia. Contact Doris Murillo 2240-2947.

Bird Watching ClubThe Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more informa�on contact us at [email protected]

Canadian ClubThe Canadian Club of Costa Rica welcomes everyone to join us for our monthly luncheons, and at our special annual events, like our Canada Day Celebra�on, no passport required. For informa�on visit our website: www.canadianclubcr.com

Democrats AbroadDemocrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Nelleke Bruyn, 2279-3553, e-mail [email protected]. Join Democrats Abroad at www.democratsabroad.org. Register to vote absentee at VoteFromAbroad.org!

Li�le Theatre GroupLTG is the oldest con�nuously running English-language theatre in Central or South America. The group currently puts on a minimum of four produc�ons a year offering a choice of modern, classic,

serious, and farcical plays. The group’s monthly social mee�ngs are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m. and everyone is welcome. Membership: Student C2,500, Adult: C5000, Family: C8000. Also, earn your Wings, become an LTG Angel.

For more informa�on Call the LTG Box Office 8858-1446or www.li�letheatregroup.org

Marine Corps LeagueMeets at 11am the 2nd Saturday of every month, at Tres Hermanas Rest. big bull statue in front. On service road opposite Hospital Mexico on the autopista. Call Bill Enell at 8812-0126.

Newcomer’s ClubNewcomers Club of Costa Rica (for women) meets the first Tuesday of every month, September through May. September mee�ng will be an interest fair. Contact: 2416-1111 [email protected] or h�p://www.newcomersclubofcostarica.com

PC Club of Costa RicaThis computer Club meets on the third Saturday of each month at Pan American school, in Belen, 830 to 11:30 am. Two months Free Trial for newcomers. For informa�on call Chuck Jennings.Phone 2266-0123 www.pcclub.net

Republican’s AbroadRepublicans Abroad meets the third Monday of the month at 11:00 am at Beso’s Restaurant in Sabana Sur. Contact Dick Macauley at 2439-2897 or [email protected].

Radio control Sailing ClubMeets at Sabana Park Lake. For informa�on contact Walter [email protected]

Wine Club of Costa RicaPlease 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 educa�on. For more informa�on on upcoming events please contact us. Phone 2279-8927, 2257-2223

Women’s Club of Costa RicaThe Women’s Club of Costa Rica is the oldest, con�nuously opera�ng, philanthropic organiza�on for English-speaking women in Costa Rica. Founded in 1940, WCCR now includes over 250 members represen�ng 25 countries worldwide, drawn together by the mo�o: Friendship through Service. The Club a�racts fascina�ng women who are interested in serving community needs in Costa Rica, par�cularly focused on children’s educa�on while, at the same �me, making deep, meaningful, personal rela�onships. Along with its philanthropic fundraising ac�vi�es, WCCR also hosts regular lunches, teas and many special interest groups, including a Professional Women’s Group. Guests are welcome and further informa�on and a calendar of planned events can be found at www.wccr.org

Women’s Interna�onal League for Peace and FreedomOpen to men too. English language group in Cariari de Belen, English-Spanish group in Heredia, Spanish language group in San Jose. We work on peace and human rights issues. Call Mitzi, 2433-7078 or write [email protected].

Veterans of Foreign Wars: Post 11207No-host lunch at 12 noon in the Club Colonial Casino dining area, mee�ng at 1:30 pm on the second floor. All members are welcome plus veterans who served overseas may join. Call Bob Sempell at 2588-1475.


Government Raises Taxes and Tariffs

The cost of living in Costa Rica for both locals and expats has been rising a great deal lately. The logic applied by a number of countries to jus�fy raising taxes is because an economic recession is on the minds of our lawmakers, whether it makes sense or not. A�er a huge fiscal plan failed to be approved last year by Congress (thank God) the Presidency found a shortcut to increase income by convincing Congress to change some laws. Here are a few examples of the ways things have become more expensive from a legal point of view.

Luxury Home TaxIn January 2010 the Luxury Homes Tax came into effect, imposing a tax different than the territorial tax to homes with a construc�on value higher than 100 million colons – US $200,000.00 - in which case the value of the land was taxed as well. The law forces homeowners subject to this tax to file a new declara�on every three years, which means in 2013 it is �me to update the value again. The limit was modified to 117 million colons –US $234,000.00- for construc�on value, but the Revenue Ministry also modified the parameters used to calculate the value of construc�on, raising the values another thirty percent.

As a result any person who owns a house with a construc�on value of US $300,000.00 and a land value of US $200,000.00 has to pay 0.25% yearly, which represents US $1,250.00, to cover this tax. If the construc�on value is below US$234,000.00 only normal property tax is imposed on the home. Homeowners with a value beyond US $2,000,000.00 will have to pay 0.40% yearly. The parameters to evaluate homes can be found on the website from the Direccion General de Tributacion -the Costa Rican equivalent to the U.S. IRS or Canada Revenue Agency. h�p://dgt.hacienda.go.cr/valoraciones/

New Tax on Corpora�onsLast year a new Tax on Corpora�ons came into effect. Star�ng April 2012 all registered corpora�ons were obligated to pay a tax equivalent to 50% of a base salary on ac�ve corpora�ons, or 25% if the corpora�on is inac�ve. Propor�onally for the remaining eight months of the year the tax amount was around US $268 for ac�ve en��es and US $134 for inac�ve ones. Most corpora�ons created by expats are used as holding companies to protect houses, lots, farms, vehicles and other type of proper�es. Before this law the cost of maintaining a holding corpora�on was rela�vely low, but this new tax increased it substan�ally.

This year the tax is due in January and the amount to be paid is close to US $400 or US $200 depending on the company status, ac�ve or inac�ve. Star�ng February 1st interest charges apply over the tax. The consequences of non-payment are different; but to name a few: a) The Na�onal Registry will not issue cer�fica�ons showing the legal representa�on of the company, normally known as “personerias”, b) Registered Assets such as proper�es or cars can’t be sold or acquired without paying the tax first and c) A�er three payment periods without paying the tax the Na�onal Registry will proceed to dissolve the company.

To put the cherry on the pie, any person wan�ng to create

a new corpora�on will no longer pay about US $80 in Registra�on costs, but close to $500 because the Na�onal Registry will now charge the full Tax on Corpora�ons plus extra charges to authorize the legal books.

Property TransfersThe transfer taxes and stamps –without fees- over a property represent around 2.6% of the fiscal value or the selling price whichever is higher. This means a property with a value of US $100.000 will pay about US $2,600.00 to be transferred into a different person’s name or company. In order to save money it became a usual prac�ce to create a holding corpora�on in which to register proper�es for sale. When a buyer was found the Seller would transfer the stock of the company into the Buyer’s name instead of transferring the property �tle in order to avoid paying the transfer taxes. This was normal with condominium projects.

The same law men�oned above, number 9069, amended the transfer tax law to impose the tax on “all forms of transferred proper�es”, so now even stock transfers made to transmit the control of a property from a seller to a buyer are subject to this tax. However it is not very clear how this can be regulated because those transac�ons happen based on private contracts, but it is important to know this change on the law. One way the government is controlling the transfer of proper�es through companies is by requiring the presenta�on of legal documents to banks to show the source of deposits of US $10,000 or more.

New Traffic LawIn 1994 a Traffic Law took effect imposing “severe fines.” Over the years such fines became very cheap to pay because they were imposed based on economic values calculated at the �me of crea�on of the law. Because it was obviously necessary to introduce an amendment, and due to the pressure from the media, lawmakers passed a new Traffic Law in March, 2010 imposing fines completely out of propor�on, with amounts of over US $600 in some cases.

Many affected ci�zens challenged this law in Cons�tu�onal Court where the Jus�ces started voiding most of the fines because they were unreasonable in rela�on to the average income in this country. Our lawmakers then had to start over with more reasonable amounts. Instead of dedica�ng the �me and resources necessary to come up with a be�er amendment, what they did was lower the amounts of the fines a li�le by publishing a new law in October 2012. In my personal opinion, changing fines from US $423 to US $380 or from US $282 to US $188 s�ll does not match with the payment capacity of the regular ci�zen. Therefore the current fines are s�ll unreasonable and out of propor�on.

It is evident that government tends to raise taxes and tariffs as much as possible in order to increase income regardless of the impact this has on the popula�on. Things could have been done using more reasonable parameters, considering the �mes we are living in.

ALLAN GARRO NAVARROA�orney at [email protected]

Legal Update by Allan Garro N.

El Residente 22

Dollars & $ense by Alan Weeks

Lies, Damn Lies & Sta�s�cs

Early in my career, a wise accoun�ng manager warned me that “figures can lie & liars can figure.”With this in mind, we should be wary of claims made based on seasonally adjusted data.

We also need to be very wary of op�mis�c economic and/or market forecasts which have been based on a con�nua�on of unsustainable “Ponzi” financing. Perhaps the following excerpts from a document sent in late December to American CEOs by the pres�gious Boston Consul�ng Group (BCG) will help to clarify the current financial situa�on.

“ENDING THE ERA OF PONZI FINANCE” (2) “The biggest Ponzi scheme is s�ll ongoing in the developed economies.”

“The West is not going to find its way to the right economic path with a li�le tweaking at the edges,” the CEO of the BCG Group said. “What’s needed is a wholesale overhaul of the economic system to tackle record levels of public and private debt.”

“The cri�cal star�ng point is to accept the fact that many of today’s debts will never be repaid and to embrace debt restructuring and defaults. All stakeholders will have to contribute to the necessary cleanup. Creditors and holders of financial assets will have to accept losses. Taxpayers, especially the wealthy, will have to accept higher taxes. Otherwise, we risk experiencing a lost decade or more.”

As further collabora�on, a very recent ar�cle in THE ECONOMIST magazine, called THE DEBT CRISIS (3), reported on a private research note from MORGAN STANLEY (MS). Here are some excerpts: “It was argued that most developed governments are effec�vely insolvent. MS drew up balance sheets for each government: its total assets (including future tax revenues), and its liabili�es (including market debt), and the net present value of future “primary” expenditures such as pensions and health care. It was noted that tax revenues could be pushed up in some countries and future spending on health and pensions could be brought down. However, Morgan Stanley reckoned that shor�alls are so large (between 800% and 1,000% of GDP in the US and the UK) that the situa�on is “hopeless.”With this ominous background informa�on let us proceed to review the following:

2012’s BIGGEST LIES; 2013’s BIGGEST RISK (4) Key European Union (EU) officials recently declared the EU crisis is over and this seems to have reinforced the current market complacency. However, their claims are at odds with the many grim facts being reported:1. (a) “Large parts of the Eurozone periphery have

suffered economic collapse as bad as anything since the destruc�on of the 2nd World War”.

(b) Italy is in the throes of its 4th recession since 2001. And, with na�onal elec�ons scheduled in late February, it is possible that a Euroskep�c coali�on government could be elected

2. Eurozone unemployment has already reached all-�me highs, with youth unemployment over 50% in some countries. This could well lead to greater civil unrest and instability.

3. Both Greek and Spanish banks are s�ll significantly undercapitalized and plans to help them seem to be based on dubious assump�ons that the loans made will be repaid.

4. The real estate bubbles that burst in Ireland and Spain created financial havoc. It is now reported that the real estate bubble in the Netherlands is in the process of collapsing, and France’s real estate bubble is standing on shaky ground. A good reason to be very wary is that, as one pundit put it: “the French government seems to believe it can suspend economic reality by government decree.” Other governments seem to suffer from the same illusion.

5. Eurozone factory output con�nues to fall.6. (a) European retail sales have collapsed, with a

near record drop in Italy and the 9th consecu�ve drop in French retail sales.

(b) The steep economic downturn is ba�ering vehicle sales in Europe and car makers have incurred unsustainable losses. As one CEO (5) said: “a day of reckoning looms for EU auto makers.” Thus, in spite of poli�cal pressure to resist, significant plant closings and job cuts are inevitable

The plunge in retail and auto sales has dire implica�ons across the EU because consumer spending accounts for over 60% of the EU economy. The grim reality is that as more people become unemployed, tax receipts will keep shrinking and the need for benefits will keep increasing, worsening the na�onal debts.Furthermore, with the Eurozone being so interconnected, it was not surprising to read that Germany, the EU powerhouse, is expected to report its economy also contracted in the 4th quarter of 2012. Thus, all signs point to a full-blown recession that is worsening every month in Europe.


Why then, are the markets ignoring all these signs? There certainly appears to be a widespread belief that the Central Bank “Wizards” can magically fix it all. How?

CHINA’S EXPORTS SURGEShould you believe China’s latest success story? Certainly Goldman Sachs (GS), UBS, and others are skep�cal and it renewed concerns that China’s sta�s�cs can be unreliable. There are several reasons to be skep�cal:(a) The 14.1% increase in exports from the previous year did not match goods movements through ports, imports from trading partners, nor reported overseas orders.(b) Given that Europe has been China’s largest export market, and the fact that European demand has been declining rapidly, where did the large increase in exports go?(c) Lack of overseas demand is reported to be a drag on U.S. manufacturing.

One explana�on for the big increase is that there was government pressure to report exports before yearend to reach the official 2012 target of 10% growth.

The GS Beijing-based economists stated: “It is possible that local governments may have tried to boost exports data by making ‘round trips’ in special trade zones”. And apparently, for a fee of 1,000 Yuan ($161) per vehicle per day, a freight company will drive trucks into warehouses in bonded zones, where cargo must clear customs, so that business can obtain a refund of value-added tax on the “export” of their products. However, does anyone inspect the truck vans leaving the bonded zones to see whether the goods were actually unloaded?

MOVE OVER MICHIGAN, CHINA IS THE WORLD’S NEXT RUST BELT (6) This recent ar�cle in FORBES described many problems that China is now experiencing. Just two years a�er it overtook the U.S. to become the world’s largest manufacturer, the country faces the prospect of a decade of de-industrializa�on.Industrial sites are being converted back to farmland in one province and a once booming factory center is on the verge of bankruptcy as companies close, leaving the local government severely cash-strapped.

Many factors are contribu�ng to this, including:1. (a) Labor issues are eroding Chinese manufacturing

compe��veness.(b) Labor issues have also spurred the decision

to automate manufacturing and assembly.

Of course, robo�zed produc�on in China is no cheaper than in the U.S. In fact, when transporta�on and inventory costs plus delivery �me delays are also considered, the BCG Group predicted that around 2015 it should be more economical to manufacture in the U.S.

2. Because of ci�zen protests about pollu�on in the water, smog and soot in the air, metals in the soil, etc., Chinese authori�es have had to start enforcing environmental rules, which is cu�ng into both manufacturing and power genera�on.

3. (a) Foreign investors are beginning to pull back from manufacturing in China ci�ng the rampant the� of intellectual property.

(b) Foreign direct investment into China dropped to the lowest level since 2009.

(c) Wealthy Chinese are s�ll reported to be taking “suitcases” of money out of the country as the “get rich and get out” trend con�nues.

4. “Default Alarm Rings as Trust Loans Jump Sevenfold” (7)

“Short-term financing instruments, such as Trust Loans, have been rising very quickly”. The underlying assets in this shadow banking system can be quite dodgy. In addi�on, some of the wealth-management products sold by Chinese banks are “fundamentally a Ponzi scheme.”

If progress on rebalancing and structural reform away from excessive dependence on exports and infrastructure spending, to domes�c consump�on, remains slow, the probability of much lower growth in China will rise. Because the party leaders have been so enriched by the past boom, progress to rebalance and reform is expected to proceed slowly.

Under this scenario, the Societe Generale (SocGen) (8) economists perceive there is a “tail risk” that China will experience several quarters of just 3% growth, with slow improvements for years therea�er. This would translate into a significant global recession with the Asian region being the most seriously affected. And it does not take a great stretch of the imagina�on to paint an even bleaker scenario of outright currency wars and trade protec�onism.

AN UPDATE ON THE U.S.As men�oned earlier, the lack of overseas demand is reported to be a drag on U.S. manufacturing. In fact, manufacturing in the New York region contracted this January for the 6th straight month and the index for the Philly region plunged from the prior month.

El Residente 24

U.S. HOUSING RECOVERY ACCELERATED AT YEAREND (9)

The CEO of CoreLogic stated that “for the first �me in almost 6 years, most U.S. markets experienced sustained increases in home prices in 2012. We s�ll have a long way to return to the 2005-2006 levels but all signals currently point to a progressive stabiliza�on of the housing market…..” See the addendum for some actual housing data.

THE SORRY STATE OF THE CONSUMER (10) The author of this ar�cle contends that the improved sen�ment in the housing market is a percep�on that is not supported by actual data, demographics, nor a�er-tax income trends, but rather by ultra-low interest mortgage rates. He also contends that many home-owners have already refinanced, so that the marginal benefit to the economy has already occurred.

Because consumer spending in the U.S. accounts for 70% of its total economic ac�vity, this sector will be examined more closely.

U.S. economic ac�vity remains very sluggish. This point is underscored by the fact that U.S. holiday retail sales have registered the weakest growth since 2008. Digging into the December retail sales numbers showed weak sales of clothing, auto parts, building materials, and a big drop in home improvement sales. A further indicator is that consumer sen�ment again fell below expecta�ons.

A new ar�cle in Reuters (11) reported that “nearly a third of the na�on’s working families earn salaries so low that they are struggling to pay for their necessi�es.” And “the overall number of low-income working families is increasing.”And, we should remember there were earlier reports that student loans were also being widely used to spend on essen�als as well as on very discre�onary consumer items. This is unsustainable!

Moreover, in another ar�cle by Mish (12), it was reported that “more than one in four workers are dipping into re�rement funds to pay their mortgages, credit card debt, and other bills.” According to another survey, “42% of workers cashed out of their 401-K plans rather than rolling them over when they changed jobs.”

Mish also stated he suspects that many low-income households are desperately clinging to their “underwater homes.” As he said, the mentality that “my house is the only thing I have” is tough to fight. “However, the reality is that many homes are worth less than zero because of ‘underwater’ situa�ons.”

“Currently, there are s�ll more than 25% of homeowners ‘underwater’ which limits their ability to move, refinance, or sell their homes.” (15)

Another writer stated that long-term U.S. unemployment is at the highest level since World War II. He also contended that long term unemployment is “threatening to create a permanent underclass of workers who will find it almost impossible to obtain jobs in the future.”

Several writers made the point that “Obamacare has the poten�al to create more unemployment and part-�me workers.”

Dr. Marc Faber (13) also believes something is not quite right with the U.S. economy, which is evident from the recent performance of Wal-Mart, Tiffany, Kohl’s, etc. However, what disturbs him about most market assets is that they had outsized gains since 2009. In his opinion, investors’ expecta�ons about future returns on their assets are far too op�mis�c.

Dr. Faber also states that while many may argue that the U.S. is not in recession and headline unemployment numbers are improving, he believes the U.S. is not immune to the global economic slump.

Furthermore, Dr. Faber pointed out that “in an economy driven by consump�on, the weakest holiday retail sales growth since 2008 is an ominous sign.” And beyond the U.S. borders, the Eurozone is already in recession with economic ac�vity expected to worsen this year. In addi�on, muted economic growth is expected for both China and India, the recent drivers of the global economy.

Finally, to help him determine the real state of the U.S. economy, he looks at indicators such as the Federal Reserve reports on the velocity of money and the U6 unemployment rate. The fact is that money velocity con�nues to slump and is now at its lowest level in 50 years. At the same �me the U6 unemployment rate remains uncomfortably high at 14.4%. These cri�cal factors make him believe that all is not well with the U.S. economy and the markets will react sooner or later to the real gloom.

For this reason, Dr. Faber’s own priority has shi�ed to the preserva�on of outsized gains and warns that investors also need to focus on capital preserva�on.

Meanwhile, the SocGen (8) Group expects the sub-par


Chinese growth will significantly affect various assets. They forecast the U.S. dollar will appreciate by 10% rela�ve to other major currencies. They also expect about a 50% drop in the price of base metals as well as a drop in oil prices. In addi�on, they expect European equi�es might fall 20%.

Gary Shilling (14) pointed out that “investors are fixated on easy money policy”, and “a zeal for yield that almost completely ignores financial risks.” Shilling calls this a “Grand Disconnect” and believes it will be riskier in 2013. He also just stated that “the latest rush into stocks will end miserably.”

It is also his view that the global investment environment will con�nue to be dominated by deleveraging, which should con�nue for at least another five years, along with low growth.

Gary Shilling provided a list of investment themes, shown below, but cau�ons that his themes could change drama�cally as the year progresses.� Treasury bonds are s�ll a�rac�ve.� High-quality income-producing securi�es of

companies that pay substan�al dividends. (But, be wary of a capital loss in equi�es expected this year.)

� Consumer staples and foods that are necessi�es will do well.

� The U.S. dollar should appreciate.� Selected health care providers and medical

buildings are a�rac�ve long-term because of America’s aging popula�on.

� North American energy producers (ex-renewables) look good as America strives to become more energy independent.

� Rental apartments will benefit as singles and couples no longer see homes as a good investment.

� Produc�vity enhancers like robo�cs and tech companies remain a�rac�ve as businesses try to cut costs.

In conclusion, there seems to be no posi�ve upside trigger in sight to create any robust economic ac�vity. Thus, we agree with Dr. Faber and others that there are good reasons to remain very cau�ous, as well as with his view that this is a year of capital preserva�on.

Please note that the opinions expressed in this ar�cle are solely those of the writer. For more informa�on and reference details, please contact Alan Weeks by e-mail: [email protected]

El Residente 26

AtlánticaMedicalSupply

Company

OstomyWound CareIncontinence

Dermacosmetics

Exchange rate of the Costa Rican ¢ to the US Dollar

August 503.22September 503.31October 503.24November 503.17December 514.32January 507.00

Basic Interest Rate

August 10.50 %September 10.50 %October 10.25 %November 9.50 %December 9.20 %January 8.30 %

Exchange rate of other currencies to the US Dollar

Giro 1.54134Canadian Dollar 1.00220Euro 1.35630Swiss Franc 0.91070Nicaraguan Cordoba 24.56250Danish Krone 5.50100Norwegian Kroner 5.48540Swedish Krona 6.36540Honduran Lempira 19.93000Bri�sh Pound 1.58220Argen�ne Peso 4.38130Columbian Peso 1,774.08000Mexican Peso 12.70500Dominican Peso 40.63500Brazilian Real 1.98920Guatemalan Quetzal 7.85050Korean Won 1,088.59000Japanese Yen 91.04000Venezuelan Bolívar 4.29470Hong Kong Dollar 7.75640Taiwan Dollar 29.55000Bolivian Peso 6.91000Chilean Peso 471.50000Russian Rouble 30.06880Peruvian Sol 2.56250Polish Zloty 3.09240Australian Dollar 1.04180Chinese Yuan 6.21900

Libor Rate

1 month 0.19970 %3 month 0.29800 %6 month 0.46840 %12 month 0.78100 %

Prime Rate 3.25 %


Holidays of Costa Rica

Thurs/Fri, March 28th, 29thEaster - Na�onal holiday

ARCR Closed Mar 23rd - 31st

Thursday, April 11thBa�le of Rivas - Na�onal holiday

ARCR Closed

Wednesday, May 1stLabor Day - Na�onal holiday

ARCR Closed

A Touch of Wisdom

“He that cannot endure the bad will not live to see the good.”

- Jewish proverb

“If passion drives, let reason hold the reins.”

- Ben Franklin (1706-1790)

“One day at a �me.” - unknown

A Bit of Fun...

Why don’t men often show their true feelings?

- Because they don’t have any.

What’s the difference between a man and E.T.?

- E.T. phoned home.

A successful man is one who makes more money than his

wife can spend.

Marriage is a three ring circus: an engagement ring, a wedding

ring, and suffering.

Marriage is the process of finding out what kind of man

your wife would have preferred.

How Dogs and Women are alike.....

Neither believe that silence is golden.

Neither can balance a checkbook.

Both put too much value on kissing.

El Residente 28

Documents

El Residente 2013-03