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    Implications and Advantages of Credits for Expatriates in Costa Rica

    How to Get the Very Best of All

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    Richard Acosta
    Oriundo de Monagas, Venezuela. Profesional en Lengua y Literatura, Teología y Administración.
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    Cash money on hand

    Costa Rica is a country that offers opportunities. The policies that Costa Rican banks handle, although strict in requirements, have a certain flexibility that provides the opportunity for foreigners or expatriates to access a loan or mortgage. What the immigrant needs to know is what it means and how the weekly appraisals of the appraisal handled by the Central Bank of this Caribbean country and the way private banks propose the future collection of the loan are calculated.

    Costa Rican banks handle the idea of financing, even for foreigners without residence. The dynamics of the economy and local and international financial policies plus the social changes of today led to the philosophy of granting loans had more breadth.

    For this reason, Costa Rican banks currently accredit foreigners and expatriates who have documentation authorized by the competition agency of that Caribbean country, that is, have full-time resident status.

    Generally, in different countries banks hardly assume to grant a loan to a foreign person; The same thing happens when someone manages the application for a loan to a bank in their home country to buy real estate abroad. The case of Costa Rica is different, therefore, Costa Rican banks offer the alternative of acquiring a loan or accessing a mortgage, which can be requested in colones or dollars.

    What does it mean for a foreigner or expatriate to apply for a loan or mortgage to a Costa Rican bank?

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    Learning to invest

    Although there is a reality that not all Costa Rican banks easily agree to grant a loan without the guarantee of a condition of citizenship or permanent residence, some banks, especially those that are foreign entities, have alternatives for those who do not have said migratory conditions.

    In this case, the applicant must have the ability to finance at least fifty percent of the amount required to apply. For this, it must be borne in mind that, generally, in this Central American country those who access a credit, by banking policies, must assume the responsibility of canceling the administrative expenses generated by the processing of a mortgage or bank loan, also, those costs that represent external operations, such as registration in notaries, among others.

    In case there is difficulty in covering this initial, there is another alternative, which is to resort to the help of someone close to them with Costa Rican citizenship who will finance the initial referral of the amount to request, while the rest would be financed by the bank under a framework temporary payment of 2 to 3 years.

    The idea of this operation is that the foreigner who accesses this credit can resolve the procedures related to obtaining permanent residence and establish it. Obtained this residence, the foreigner can access any other credit or mortgage, opting for better benefits, which allows him to promptly repay what is owed. It is a strategic transaction that requires discipline and responsibility.

    What system of interest rates do these credits or mortgages imply?

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    Once the credit or the mortgage is acquired, the foreigner must take into account that the banks in Costa Rica handle a financial concept called the basic passive rate (TBP), which corresponds to the percentage of interest calculated and established weekly by the Central Bank of Costa Rica. , which is the product of the valuations of gross deposit rates in colones made by the Central Bank and the Ministry of Finance of that Caribbean country.

    For those foreigners or expatriates whose objective is to take credit or a mortgage to settle in this Central American country, they must take into account that the bank that grants these loans will add an additional percentage to the basic passive rate, which is typical of the financial policy of the same.

    Therefore, due to the dynamics of the basic passive rate, referred additional percentage will vary according to the appraisal in question, for the reasons explained above. However, there is the incentive that any Costa Rican bank will consider the context of the mortgaged for a said financial phenomenon.

    This mentioned rate should not be observed negatively. It represents an important instrument because it will allow a better definition of the decisions as the cost of the different credits depends on this assessment. It represents a national economic indicator; When this rate increases, it allows discerning that there is a certain budget deficit in the nation, however, as long as it maintains a low percentage level, it will represent that the economy moves without minor or major damage.

    What are the advantages of having access to a credit or mortgage?

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    The beginning of profit

    The benefits are many. In the first place, it is not easy for the emigrant to arrive at a country known theoretically, but experimentally unknown. The possibility of being a foreigner, acquiring a loan or a mortgage opens up alternatives to settle down and achieve the goals set.

    Requesting such financial instruments to acquire a home is a significant advantage. Well, before a country that is characterized as a tourist power, it is necessary to make a comparative analysis of renting a home and acquiring it. However, in order to make this decision, there must be a concrete definition of Costa Rica as a definitive destination to develop your life in the future.

    Finally, without the condition of the permanent resident, having the possibility of financing at least 50% of the credit or mortgage, either by itself or through a third party, is an advantage because economic guarantees are obtained to establish bases while solving the problem; a problem of the migratory condition.

    Costa Rica is a country with a system of banking policies that has no meanings, whether they are citizens, whether they are foreign, it offers opportunity, without greater conditions, to establish and grow.

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