ILuvCR
6/14/2016 17:37 EST
"For the Mildly Curious:"
Say's Paul and Gloria Yeatman,
"Our total cost of living for 2015 was $26,228.58, if you include our big Mexico trip which covered almost one month (29 days).
If you don’t include the trip, we lived in Costa Rica on $24,127.97 for the entire year, including rent and utilities for the months we were traveling."
source: http://retireforlessincostarica.com/our-annual-cost-of-living-in-costa-rica-issue-for-2015/
Follow the link for all the details!
La vida es Buena, (if you can afford it) right Kohl?
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Kohl
6/14/2016 18:51 EST
¡ Sí, señor!
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Veteran2Expat
6/15/2016 11:37 EST
Great write up! Thank you very much for sharing. I will have to show my wife this article and show her it is possible. I am trying to set. A budget of $2500 a month for our family(4). Hoping we can make it Work but we shall see.
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Kohl
6/15/2016 11:57 EST
Note that the writer of the original item, a Pensionado over 55 with no children and paying a low healthcare premium is very different from a young family, so 'hoping' to live on $2500 with two teens who I expect will be attending a private school could be a BIG challenge.
Again...location is key!
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ILuvCR
6/15/2016 13:16 EST
True dat! Kohl, well said
Pura Vida, La vida es Buena (if you can afford it!)
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escapefromnyc004
6/15/2016 14:03 EST
Is homeschooling allowed in CR? I don't know any expats with kids who aren't paying for a private school. I'm curious if homeschooling is an option for them?
I also don't think $2,500 would be enough to cover (traditional) education & healthcare for a family, but it would work for 2 healthy adults.
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Kohl
6/15/2016 14:28 EST
Legally no, home schooling isn't 'acceptable' for a CR citizen and the government will and have been known to get involved, but as a 'tourist' they can't do anything about it. You are required to be a legal resident for enrollment into a public school.
Some parents do add home schooling when their children are also enrolled in a public school.
Home schooling will not be accepted for entrance to a CR university.
Most parents who want their children to become fluent in Spanish will enroll their children in a bilingual school. Plus, it may not so easy for children to meet their peers, when not attending school.
Yes, I agree that $2500 is good for '2 healthy adults' although if maintaining a vehicle, this gets to be a tight budget.
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Veteran2Expat
6/15/2016 14:44 EST
We understand that homeschooling is not legal for residents in CR. While we are going thru the residency process though and are "Turistas" our kids will be enrolled and attending an accredited school from the states. I am not sure how CR will take that but we are hoping to have both of them finish out their High School career and receive a US HS Diploma.
I understand that the writer of the article is over 55 and has no children. I noticed some money they spent will not need to be spent on our end. We have 2 forms of medical coverage that will cover all of us while in Costa Rica. A bit tricky and it will take a bit of driving to get to medical appointments but doable. We have been in contact with a Lawyer there in CR that will help us navigate the legal issues during our move as well.
Thanks for your input folks, always a pleasure.
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escapefromnyc004
6/15/2016 15:20 EST
Interesting. A virtual high school? I knew some homeschooled kids often take some online lessons, but I didn't realize that it's possible to attend high school online like college. That sounds like it could work out well.
In that case when picking somewhere to live you should make sure that you will have reliable, fast internet so that your kids don't miss any deadlines. Try to have at least 2 ISPs in your home.
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Veteran2Expat
6/15/2016 15:24 EST
Yeah, pretty cool thing. It is actually accredited by our State and it is an online High School both can attend. good internet connection is definitely a must with our online businesses, blogs and the kids schooling. We where looking at Golfito but realized infrastructure there is limited so we have moved our search up the coast a bit to Quepos-Uvita area now.
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Kohl
6/15/2016 15:44 EST
It looks like you are doing your homework, so that is good.
Remember though, even with existing healthcare programs in place, you will still have to join the mandatory CAJA healthcare system with higher premiums if under 55. If attending high school here and to receive credit abroad, the student must be enrolled in an Internation accredited facility.
https://www.godutchrealty.com/Costa-Rica-Private-Schools_Colleges_Language-Schools.html
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Veteran2Expat
6/15/2016 17:35 EST
Thank you for that link Kohl. I will add that to my reference lists as well.
We are waiting to hear back from our lawyer about specifics for our case. If we can keep them Imemrolled in the US school we will. Not sure if they will go to university in the states or not but I imagine it is easier if they have a US HS diploma.
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marianney
6/28/2016 11:18 EST
What an incredible breakdown, thanks for the level of detail! One question came to mind regarding the housecleaning: how often do you have it done?
And do you pay workman's comp insurance because you hire someone from a cleaning company or because that's required no matter who you hire?
For example, if we hire a man or woman to clean our home based on a recommendation from our neighbor and he/she works for themselves for cash, how do we pay this workman's comp? or do we?
I ask because I have never heard of that and want to make sure we are abiding by the correct laws and practices.
Thanks for your insights!
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Kohl
6/28/2016 13:31 EST
When hiring help you are required to pay both CAJA and INS. This can cost more than the salary.
Unfortunately you will pay for CAJA coverage the same amount whether they work one day a week or every day. Not all Costa Rican or expat employers do this, but as an 'extranjero' it could come back to haunt you.
It is very important to do this, as if/or when a employee is terminated or leaves your employ, they WILL go to the local labor board and if you have NOT done so, you will be 'in trouble'.
http://costaricalaw.com/costa-rica-legal-topics/labor-law/labor-law-in-a-nutshell/
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escapefromnyc004
6/28/2016 14:52 EST
Does that really apply to someone who comes over for a few hours a week?
That link didn't work for me.
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carolvaughn
6/28/2016 17:43 EST
Yes, the laws apply for occasional and regular workers alike. Many expats have household or gardening help once or so a week, and you can get in some serious trouble with that if you don't pay all their insurance etc. Breaking up is real hard to do; employer beware.
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marianney
6/28/2016 17:55 EST
Thank you all. That is good to know. I do remember reading something about this a while back, but wasn't sure it applied to household workers.
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Kohl
6/28/2016 18:22 EST
You better believe it!! If they say they are covered as they are paying it voluntarily themselves, realise what you are paying the CAJA goes towards their pension, so a husband and wife are required to have separate accounts...even if they both work for you. You should always check with your local CAJA office to see if the payments are up to day, prior to hiring anyone, else you will have to pay their delinquent account. And a nice policeman will personally deliver the bill to your door...
That link has always worked for me...but it looks like it has been hacked. It is the best website for all sorts of important info in Costa Rica...and they made it easy to read, so I hope they get in 'back on line' soon.
Try this one: www.crexpertiise.info/hiring-uncovered-workers-is-asking-for-a-nightmare
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Kohl
6/28/2016 19:05 EST
A good place to look for past articles is www.amcostarica.com on the second page.
Or the full list here: http://www.amcostarica.com/topstoriesintext021516.htm
Another article on hiring is hiring employees is here
http://www.amcostarica.com/052515.htm#31
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escapefromnyc004
6/28/2016 22:01 EST
Oh man. That is definitely not something I want to get caught up in...especially regarding paying for a delinquent account.
Quick Question: On the "real" side of things....I know so many Ticos who simply don't pay income tax & live life with cash. If they were to "report" someone for not paying their caja, workers comp, etc., would they also expose themselves to penalties from the government?
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escapefromnyc004
6/28/2016 22:12 EST
If you need less than 3 days of help a month this could help marianney:
There is a nice work-around for RT Hogar for a homeowner. INS has a policy called Seguro Hogar Comprensivo (comprehensive homeowners insurance) which covers fire and other risks and includes workers compensation for domestic workers. The same restrictions apply for outside occasional workers. If they work more than three days a month, they are not covered under this policy.
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shermanwc
6/28/2016 22:47 EST
Kohl, if a Tico is helping someone one day a week and works for other people other days of the week, it doesn't make sense that each "employer" would have to pay full CAJA/Social Security? There must be more to this.
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Kohl
6/29/2016 07:45 EST
Yes, Seguro Hogar Comprensivo (comprehensive homeowners insurance) can be used, but CAJA is still mandatory.
Outlier legal services also has a good article: http://outlierlegal.com/category/labor/
Read where it states "If you will be hiring domestic help, you have to options when it comes to liabilities. Number one, to pay all of the benefits. Number two, to sign an agreement for domestic services, for which the worker should be registered with CAJA as an independent worker and with the revenue service as well. Sometimes, the house keeper will tell you that she is registered as an employee with a different employer, and she may not sign a contract either. If that is the case, do not hire that employee. Do not expose yourself to liabilities."
This link is to a older article (2008) but the 'rules remain the same': http://crexpertise.info/hidden-pitfalls-hiring-domestic-employees/
http://news.co.cr/costa-rica-hiring-uncovered-workers-is-asking-for-a-nightmare/26238/
Even an illegal immigrant worker is covered by these 'rules' and there will be no retribution by the government.
Just noticed that the 'costaricalaw.com' website has expired on 06/26/2016 and is pending renewal or deletion... so check back later.
Just be careful....
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guestuser
6/29/2016 07:48 EST
I have workers that have their own corporation. You then just contract them out. And in typical Costa Rican fashion they can then pay for their own insurance and it is at a cheaper rate then you as an employer will pay. And also better in several respects. When you look at it that way the cost of a corporation for them and even paying them enough to cover their insurance will keep you from being liable for many of the potential pitfalls of being an employer and get your employee better benefits to boot!
Gill Phelan www.gvecr.com
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