During the last immigration reform round, the amount required for rentistas increased a lot, and there were drafts that increased the amount required for pensionados, though those increases didn’t pass. Many years ago (before my time) there were evidently some enticements to migrants in the form of waived import taxes on cars and such, but they’re long gone. I suspect that you’re aware of current immigration policies, though, and don’t need information about them.

Some gringos feel that the luxury tax on houses valued over around $200,000 that was passed a few years ago targeted them, and maybe it partly did. Some also feel that the annual tax on the corporations that people use to own everything from their guns to their houses targeted them too, but in reality affluent Ticos also have a drawer full of corporations (and own luxury houses).

The current tax reform bills also increase the the real estate transfer tax, as well as adds a tax on services, which can increase the cost of building a dream retirement home. However, we’re not talking a ton of money, the taxes don’t target foreigners, and the bills haven’t been passed. Many predict they won’t pass.

The single biggest gringo gripe seems to be that they are now forced to pay into the Caja, the public health system, and–go figure–the sweetheart discounts have been eliminated. For those who never use the system, this strikes them as a “gringo tax,” although actually close to half the Ticos don’t use the system either, yet many of them pay the tax too.

Some gringos are miffed that the current law prevents them from owning a gun unless they become permanent residents, and the draft revision of that law would require them to wait 5 years after becoming permanent residents. If owning a legal gun is a priority, incoming gringos lose out.

Some get annoyed by the departure taxes, and I actually don’t like them either, but they’re only a few bucks and you don’t have to pay them if you don’t leave.

Also importantly, Larry phrased it correctly by saying that restrictions are aimed at “extranjeros.” Most extranjeros here are Nicas, and many Ticos attribute most of their country’s problems to them along with the Colombians and Dominicans. There is some sentiment among Ticos that continuing to roll out the red carpet for property-buying and maid-hiring gringos is not in their best interest, as also are some Ticos tired of the old skirt-chasing gringos throwing their Social Security checks across bars, but in the main gringos are an afterthought for their policies. Actually, we only tie Colombians in the number of residents, and together gringos and Colombians only add up to around 10% of the Nicas.

Things like the rule requiring people to pay into the Caja and restrictions on gun ownership aren’t I believe aimed at us, though they end up applying to us as well.

I wonder if Larry has more to add.

The only problems Solís is trying to solve now are the tax shortfall and corruption, not the problems of excessive salaries and benefits for public employees.

To some extent, solving the problems of the tax shortfall and corruption has the same solution: The VAT. Since unlike the sales tax, the VAT is collected at each stage, it is far more difficult for it not to be paid at all. Replacing a sales tax with a VAT increases tax compliance and reduces corruption.

Meanwhile, Solís has taken other steps to reduce corruption. While the extent to which they will succeed is unknown, at least he’s targeting the problem.

As for the excessive salaries and benefits paid to public employees, I’m among those who are persuaded that this is a problem that the country needs to deal with.

However, the facts are that nobody really knows how severe the problem is and there’s no way to solve it quickly.

With respect to the severity of the problem, all we really have now are anecdotes, and these don’t prove patterns. Solís has commissioned a study to look for patterns. I realize that people hate studies (because they believe they already know the answers without the facts) but a study really is the first step. On the average, public employees are more apt to be better educated than their private counterparts, and actually the public wants the best public employees it can get. Again, I think the study will show patterns of excessive remuneration, but it won’t show that in every case, and we really should have the facts before we take action.

Regarding solving this problem, I can’t think of any way to solve it quickly, in part because the the lawsuits that will surely be filed by public employees in response to quick action, but also in part because of the likely strikes and and obstructionist actions on the part of angry public employees that will surely follow quick action. Indeed, quick action will likely prompt the most competent public employees to quit and leave only the deadwood.

So I think this has to be a phased in solution, and probably nothing that will save much money for at least 5 years or more. However, sure, it needs to be done, and let’s hope it will be done.

But the “will be” on all this is the unknown. Unfortunately, I have less than a decade in Costa Rica, but the old-timers tell me that these kinds of problems have never been solved in the past and won’t likely be solved in the present. During my tenure, I’ve seen nothing to prove them wrong.

So maybe nothing will change.

I miss living in Costa Rica and, contrary to many who post here, never had problems with the local inhabitants of our little pueblo. When I was gone the whole neighborhood would look after my wife and when I was there alone with a broken leg had coffee brought to me every morning by one of the neighbor’s wife or daughter. I would not move back, however, because of the current restrictions and laws that seem to be directly targeting extranjeros.

Then reported it is estimated 250,000 are out of work/looking for work , Plus 10′ of thousand working making only $100 a week. A country of 4.2 million this is a huge amount of unemployment and underemployment.

China licking their collective lips making a big foot print here in Nicaragua, Costa Rica and about every country. What does CR have to give Pineapples? I don’t think so …….. It their ports and natural resources. Where am I wrong.