The Costa Rican banking system is quite different from what you are used to and 9/11 has changed it tremendously. The US Government has obliged Costa Rican banks to make sure your money is legal and therefore they want to know everything about you. Since the banking system has been privatized, you can choose to open an account with different government owned banks (Public banks) or privately owned banks.
The government banks are not known for being client oriented so if you need to do any diligence, bring a book. In many rural areas though, they are the only option or you would have to open an account in one of the private banks in the nearest city. Unless you are a resident or citizen, mortgages through these banks are NOT an option. They are much more lenient on the requirements for opening an account than the private banks. The government guarantees all monies deposited in their banks.
You have many options available if you want to open an account in a private bank. Most of these banks have English spoken employees, Scotiabank being the best in town with plenty of offices throughout the Central Valley. Most private banks are more service oriented and the lines are a lot shorter or non-existent. They are much more protective of their funds when they write up mortgages, therefore appraisals will be much lower than the Government owned banks.
The more foreign client oriented private banks are the following, but there is only one with a website in English:
Private banks with only Spanish website:
If you want to open an account on your first trip, check what you will
needed with the bank of your interest. Most will request a recommendation
letters from two banks you have an account. Ask your GoDutch agent or your
attorney to help you open a bank account.
If you are looking for a
mortgage, again don’t expect the same services you are used to. Most
banks will only supply you with a mortgage if you have a residency or a local
income. Mortgage brokers do not exist in Costa Rica and banks are not used to
realtors get involved in their business. Scotia Bank recently started a program
for mortgages to foreigners, ask your GoDutch Realtor to inform you about it.
Mortgage rates change from bank to bank, but generally is around 9% plus a one
time charge (all fees) of 2 – 3%. I’ve seen some banks lately
lending as low as 7%, but that’s ever changing. Fixed interest rates do
not exist in Costa Rica.
If you need to wire money to any account
in Costa Rica, make sure you have the correct wire instructions. Your bank and
the receiving bank will both charge a wiring fee which will be deducted of the
amount wired, so beware. Wire transfers are available as soon as they arrive;
usually they take 2-3 days. If you are in Costa Rica, your U.S. bank will not
allow you to order a wire transfer from here; you HAVE to be in the U.S. to do
so. Another way to get your money in Costa Rica is to write yourself a check
from your US account and just deposit it into your account in Costa Rica. It
will take 2-3 weeks to clear, but you wouldn’t have to pay any wire
cost.
When making deposits in national banks you should consider
the following. Checks from outside Costa Rica, including bank cashier's checks,
require 30 working days (minimum) before funds will be available after they are
deposited. Checks issued on Costa Rican private banks will usually take 8 to 9
working days before the funds will be able to be used. Checks deposited from
the same bank and branch are usually available the next day. Money orders and
other forms of payment do not exist in Costa Rica.
Before selecting a bank it
is necessary to decide what services you will need!! (from the famous book
“The New Golden Door to Retirement and Living in Costa Rica”)
There are branches
of Costa Rica’s state-owned banks in San José and in other large
cities and towns. The headquarters of Costa Rica’s largest banks: El
Banco Nacional, El Banco de Costa Rica and El Banco Crédito Agrí
cola are in downtown San José near the Central Post Office. BISCA or the
Banco Internacional de Costa Rica (506) 257-0885 is a special international
bank with an office in a Miami bank.
There are also many private
banks many of which are affiliated with international banks. In the last few
years there has been a trend towards privatization, so now private banks can
offer many of the same services the state banks do. When the minimum deposit is
not maintained, service charges for account operations at private banks can
sometimes be higher that at the national banks. Many private banks pay higher
interest than state banks but cannot guarantee your deposits as the government
banks do.
Remember the higher the interest the more the risk. In
the mid-1980’s private finance companies were offering up to 45% interest
in Colones. Needless to say they all failed within a couple of years and the
investors lost everything.
Some of the better private banks are
Banco de San José, Banco Elca, Scotia, Banco Interfin, Cuscatlán
and BANEX. Check the yellow pages for more private banks. It is advisable to
open an account at one of these banks so you can have a dollar account to
protect against unexpected currency devaluations, cash personal checks, obtain
a safety deposit box for some of your valuables and facilitate having money
sent to you from abroad.
Regarding the latter, you should make
sure that the bank you choose works with a U.S. correspondent bank to avoid
untimely delays in cashing checks. We have a safety deposit box in the Banco
Nacional that is readily accessible during working hours. We also have a dollar
account, certificates of deposit, and an ATM card. Our only complaint is that
service in state run banks tends to be very slow. You can spend up to an hour
in the bank waiting to make a simple transaction.
Other banking
services are 24-hour automated tellers that disperse a few hundred dollars at a
time from your account, cash advance in colones only, high-yield certificates
of deposit in colones, certificates of deposit in dollars on a par with U.S.
interest rates and credit card related services.
All banks have
different requirements for opening accounts or obtaining credit cards, possibly
entailing banking or personal references, identification and most certainly
minimum deposits. Requirements will vary slightly from bank to bank, so check
with the banking institution of your choice.
Permanent and
non-residents may open a savings account in state and private banks. All that
is needed is a minimum deposit, in some cases a letter of reference and a
passport or cédula. To open a local checking account you have to be a
resident and may be asked to provide a Costa Rican ID card or passport as
a means of identification.
You may be asked to show your water,
telephone and electric bills in your name to prove you live here. If you
can’t provide these documents you’ll need two references from banks
in the U.S. or from two account holders in the same bank where you wish to open
your account. If opening a checking account in local currency you’ll need
an initial deposit of around $500. A local dollar checking account may require
an initial deposit of $2000.
If you have a Costa Rican Corporation
you may also opening a local corporate checking account, or Cuenta Corriente
Empresarial. You’ll have to provide the following: Passport or cé
dula (Costa Rican ID), the name of the corporation or Personería
Jurídica, proof that it is active, a letter from person who has general
power of attorney of your corporation authorizing those people who can sign on
the account along with their ID numbers and an initial deposit of around $1,000
for an account in local currency or $2,000 for a local dollar account.
International dollar checking accounts are offered through all banks.
Individuals and corporations may open these accounts but there are specific
requirements which must be complied with. Check with the bank of your
choice.
Another alternative is an international debit card in
dollars. Relocation and retirement consultants can arrange a debit card and
with one of these cards you have instant access to your funds anywhere in the
world. You may also use one of these handy cards in conjunction with a
Panamanian Corporation. Bank references, application, or foreign residency are
not required.
Most banks are normally open from 9 a.m. to 4 p.m.,
Monday through Friday. Some branch offices like the one in Plaza Mayor in
Rohrmoser are open until 10:30 p.m. The Banco Nacional in the San Pedro Mall is
open on Saturdays, and most private banks also have Saturday hours.
Warning: Never plan to do any banking on the second or last Friday of the
month since it’s payday for most Costa Rican workers and lines sometimes
extend outside the bank.
The state banks are also very crowded after
holidays and on Monday mornings. It is always best to get to the bank at least
a half-hour before they open to get a good place in line. Bring some good
reading material since the lines often move at a snail’s pace.
Taken from “The New Golden Door to Retirement and Living in Costa
Rica” by Chris Howard.
Note: Before you come to Costa
Rica, you need to get 2 referral letters from your banks at home, to be able to
open a bank account here. Without these referral letters you cannot get a new
bank account here.
You can also read more about banking on
our group’s website:
http://www.american-european.net/offshore-banking.shtml
