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Do you need to send money to Costa Rica? Is it easy to wire money to someone else to make payments? You could give your realtor cash to make your payments some years ago. Money laundering laws have made that impossible.
The whole process of moving to Costa Rica is complex, and especially your financial situation must be planned ahead of time. Are you going to buy a property? How will you pay for the property purchase and your caretaker, housekeeper, and gardener? Are you going to rent? How are you going to pay for your utilities and groceries?
Unfortunately, you must be a resident or citizen to open a bank account.
We cooperate with the ARCR Relocation Seminar and Christopher Howard Tours. Therefore, we can assist our clients in opening bank accounts with Promerica Bank. Otherwise, your only option is to get a simplified bank account with a max of $1,000/month. So hire one of our agents for your real estate purchase, and we’ll find the solution for a normal bank account. In the meantime, let me give you more options to send your money here.
Escrow
Once you have offered a property, and the seller agrees, your attorney must write up a Sale-Purchase Agreement (SPA) to formalize your offer. Due to money laundering laws, the escrow company (there are several) requests a Know Your Customer (KYC) form with your personal data and the origin of the funds that you’re using for your purchase. Escrow is only a third party that facilitates funds transfer between buyer and seller and is controlled by SUGEF. Once the escrow company has opened escrow, you can send the earnest money deposit. Then, a week before closing, you send the purchase balance.
That covers your purchase.
Other Payments
BUT, there are other payments to make that escrow companies often don’t want you to send through them:
- Car or boat purchase
- Furniture purchase
- Funds to build, remodel or repair
- Paying your monthly bills
There are many ways to bring or wire your money into the country without being accused of money laundering. Here are a few factors to consider before you choose a method.
Factors to Consider
Before selecting a money transfer method, consider the following factors:
- Exchange Rates: The value of the Costa Rican colón fluctuates, so comparing exchange rates across different providers is essential to get the best deal.
- Fees: Transaction fees vary widely depending on the method used. Some services offer lower fees but may compensate by providing less favorable exchange rates.
- Speed of Transfer: While some services provide instant or same-day transfers, others may take several business days.
- Security and Reliability: Always use reputable services with strong security measures to protect your financial information.
- Recipient’s Access to Funds: Consider whether the recipient has a bank account or prefers to collect cash from an authorized location.
Once you are aware of the above factors, you can move to the next step, choosing how to send the money to Costa Rica:
Methods of Sending Money
Ask other ex-pats how they bring their money, but you have the following options to send money to Costa Rica:
- Bank Transfers: One of the most secure ways to send money to Costa Rica is through an international wire transfer via a bank. Most major banks offer wire transfer services, allowing you to send money directly to your or another recipient’s bank account. However, bank transfers can take a few business days and may involve high fees, especially for international transactions.
- Online Money Transfer Services: Companies like Western Union, MoneyGram, PayPal, and Wise (formerly TransferWise) provide convenient fund transfer options to Costa Rica. These services often have lower fees than banks and can facilitate faster transactions. Some providers allow cash pickup, direct bank deposits, or mobile wallet transfers.
- Cryptocurrency Transfers: With the growing popularity of digital currencies, some people choose to send money using cryptocurrencies such as Bitcoin. The recipient can convert the cryptocurrency into Costa Rican colón or U.S. dollars through a local exchange. This method can be cost-effective but requires both the sender and recipient to be familiar with cryptocurrency platforms.
- Remittance Services: Specialized remittance companies, such as Remitly or Xoom (a PayPal service), offer tailored solutions for sending money to Costa Rica. These platforms often provide competitive exchange rates and multiple delivery options, including cash pickup locations.
- Withdraw cash from your credit card account using an ATM. However, you must set up a PIN with your credit card issuer. Using your PIN and the cash advance option, you can insert your credit card at any qualifying ATM to access funds immediately. Don’t forget to tell your bank that you’re in Costa Rica. Also, before you move, check with your banker to see if they charge a commission for cash withdrawals. You can withdraw a max of $300/day from an ATM.
- Bring your checkbook: This method is slower and may not be ideal for urgent transactions. Write a check for X amount and deposit it into your bank account here. The check will take 2-3 weeks to clear, depending on whether an intermediary bank (so more fees) is involved.
I hope this article was useful to you, and we appreciate you taking the time to read it. Are you interested in moving to Costa Rica and doing business with us for your property purchase? Then contact us now for a Zoom meeting, and we’ll walk you through the process.
