SAN JOSE – The acquisition of HSBC retail banking operations in Costa Rica earlier this week was reported in several news media outlets, including the Wall Street Journal and La Nacion. The latter newspaper approached the corporate offices of HSBC on January 23rd regarding the impending sale, which at that time the bank chose to label as a rumor that would later be confirmed by Efrain Forero Fonseca, president of Banco Davivienda, the Colombian financial entity that acquired HSBC here and in El Salvador and Honduras as well. Banco Davivienda is known for its marked interest in residential mortgage lending, something that makes it a good fit for Costa Rica and its nascent real estate bubble.

The HSBC Costa Rica attainment by Banco Davivienda marks the second time in recent years that a Colombian financial entity makes inroads in the lucrative banking industry in Costa Rica. Not long ago, the prominent BAC San Jose and Credomatic operations were purchased by a Colombian financial consortium.

A possible reason why HSBC declined to confirm the acquisition rumor to La Nacion may be related to a Yahoo! News and Reuters article published on the same day the transaction was formally announced in Costa Rica. According to that article, the United States Senate announced the investigation of HSBC Holdings PLC, which is the parent of the HSBC brand worldwide, for alleged money laundering irregularities. Over the last few years, HSBC has been trying to position itself as a truly international bank, an effort that has brought great convenience to account holders, but it has also come under scrutiny by the United States.

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SAN JOSE – While median home prices in the United States keep adjusting downward to some of their lowest levels in decades, real estate values in some areas in Costa Rica soared in 2011. According to a report in El Financiero this week, the western suburbs of San Jose experienced a 10 to 15 percent gain in value, and the outlook for expansion is very positive. The development of commercial projects such as Plaza Tempo and the Corporate Center in Escazu promise to attract even more home shoppers to the area, thereby increasing the likelihood of a housing bubble.

In the Central Valley and the Greater San Jose Metropolitan Area (known as GAM by its Spanish acronym), strong growth is predicted, even in the outlying counties of the Valley such as Atenas, Grecia, La Garita, and Orotina. Such were the projections indicated by real estate professionals Milena Guevara and Aris Stamatiadis to El Financiero. The construction of the Plaza Lincoln indoor shopping center in the northeastern suburbs of San Jose promises to bring a great interest to Moravia and the nearby neighborhood. The examples cited by El Financiero are certainly indicative of a bubble: a three-bedroom home in Lomas de Ayarco in Curridabat (the neighborhood where our interview with musician Carlos Valerin took place) is valued at $335,000. A four-bedroom home in rural La Garita spread over 612 square meters goes for $245,000. The seller of a two-story mixed-use property ideal for office space in Los Yoses of San Pedro is asking for $615,000.

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A few dear readers recently sent questions regarding a number of immigration affairs that visitors to our country regularly experience.  We have consolidated the relevant questions and answered them in this article for a more convenient reading experience.  Please note that the information below is not meant to be legal advice.  Immigration issues are legal proceedings that can be better handled by Costa Rican attorneys.  Thanks to our democratic roots, we are free to discuss our public laws and administrative rules, which is what we are doing here.

We thank Greta and John for their questions.

- If a foreigner has a child within Costa Rica does the child automatically become a citizen and does this help with increasing the mother’s chances of getting permanent residency?

Here’s what our laws states about your question:

Title II, Article 13, section 3 of our Constitution states that a child born to foreign parents in Costa Rica is considered a Tico unless he or she renounces such citizenship after coming of age.

Title II, Article 78 of Law 8764 as it pertains to Immigration and Foreigners, states that parents and other first-blood relatives of Ticos have the right to apply for, and be granted, Permanent Residence.

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Moving to another country can be one of the most rewarding experiences in one’s lifetime, but it could also become one of the most frustrating and stressful if not done correctly.  Potential residents have a lot to learn, and thus proper information and guidance in their chosen country is essential.  Organizations like the Association of Residents of Costa Rica (ARCR) that are dedicated to offering essential services to newcomers are often a good starting point for foreigners.  Here’s why:

Costa Rica has deservedly become a very inviting land for foreigners who either seek retirement or a new life.  Most foreigners have traditionally come from Western industrialized nations, but in recent decades the landscape of foreign residents has changed, with many immigrants arriving from other countries.  Globalization and the strengthening of ties between our country and nations such as China and the Netherlands are other reasons why immigration patterns are changing.

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Click here to view past “readers mail” questions that we have answered in published articles.

A couple of dear readers recently sent us questions regarding air travel in Costa Rica. We have consolidated their questions and respective answers to make it more informative for everyone.

A reader named Bill from Chicago asked general questions about our airports and airlines, whether it’s possible to bypass San Jose and fly in to Guanacaste’s fabulous beaches, and about flights from Costa Rica to other tourism hotspots in Central America.

Thanks for writing, Bill. We have good news for you: Budget airlines USA3000 and Frontier are currently offering some direct and non-stop flights from Chicago O’Hare to Liberia’s spiffy-new Daniel Oduber Quiros International Airport (LIR) through American tour operator Apple Vacations. As we have previously reported, Guanacaste is becoming a prime destination for medical tourists, surfers, celebrities, and seasoned visitors -like you, Bill- who want to skip the hustle and bustle of the Juan Santamaria International Airport (SJO) and head straight for the balmy paradise beaches in the Nicoya Peninsula and our North Pacific shores.

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There have been a lot of changes in travel lately. Airline fees tend to bring you to your knees in the past few years. I want to touch base with the traveling surfer and fisherman who are interested in traveling to Costa Rica. All of you “water sport junkies” have been hit really hard where it hurts the most, your wallet. I am on a mission to get the most out of my money, have the best time, and not go home saying, “I got screwed on that one!”

Let’s start off with the surfers. I know the first thing that comes to mind is “BOARD BAG”. You are correct! It sounds like it was the airlines first thing that came to mind as well. Truth be told, it was cheaper for me to fly my dog out here than it was for my 1 board bag! OUCH!! Here is an example of what 1 airline has to say. I will not mention what airline for a lot of reasons.

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Whether on vacation or living in Costa Rica, the Internet is more than just a way to stay in touch with business. The internet is how we stay in touch with all our family friends, no matter where they are located. We live a mobile life style. As long as we can connect to Internet, we can chat, talk, and share photos. Our friends and family are part of our experience.

The easiest way to connect to Internet is through WiFi. In Costa Rica, there are a lot of WiFi hot spots. I use the WiFi radar on my phone just to monitor the number of public WiFi hotspots. Rare is the hotel that doesn’t provide a Wifi hotspot for its quests. Just make sure your room has WiFi access, as some rooms have terrible signals. Many times, I have called the front desk to give them a diagnostic report of the hotels WiFi problems. On several occasions, the front desk had their technical support call me for the information. WiFi hotspots are not limited to use by laptops. If you have a smartphone, you can connect to a WiFi hotspot. With the right apps, you can even make calls, without having a compatible SIM card.

If you cannot connect to a WiFi hotspot, there are still two options: cable service, or a 3G USB modem (USB Data Card in Costa Rica). The television cable service offer high-speed Internet as an option to the cable service. We use Telecable with the 1.5 Mps Internet service. The cost of the Internet service is 15,400 colones per month. You do need a cable modem. We have two, so I avoided this expense. You do not need to be a legal resident to get cable service. All they wanted was my passport, and a credit card for payment. We even use this service to watch shows from hulu.com, using my HP mini netbook connected to the TV. Yes, you can connect to Web sites that restrict access to specific countries. It is a little tricky, and will be the subject of a future article.

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Expats have a lot to say! And they aren’t afraid to write it down.

It seems that lot of people who have moved to Costa Rica are frustrated writers who want to share what they have to say. Blogs abound, posts to bulletin boards are sometimes prolific and informative, and long letters to friends and family are common. Some people write informative pieces, others simply record the every day events of living in a different culture, while still others toil in the quietness of their own minds and computers, chronicling everything from their own early memories to flights of fantasy – stories that no one will ever see.

Writing is a solitary endeavor. Many of those participating often find a need to get out and associate with others who share their passion and, as a consequence, several small writer’s groups have come in to being. Informal gatherings are held in restaurants, private homes, and other places,where people can ask questions, receive support, and share their work. But even then a certain degree of frustration remains because many would like to go beyond just talking about what they are doing and yearn to see their labors-of-love exposed to a wider audience. And therein lies the problem; how to make that happen?

Blogs gain a certain audience, to be sure.

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Once you have an unlocked GSM phone with a SIM card from either Kolbi, Claro, or Mobistar, you are ready to start using your phone. Costa Rica phone numbers are 8-digit phone numbers. A call to any number in Costa Rica is considered a local call. Some useful local phone numbers are:
911 – all emergencies
117 – police
118 – fire
113 – domestic directory assistance
114 – international directory assistance (costs about 20 colones)

Since the balance on your SIM card is colones, all amounts are given in colones. The conversion rate floats around 500 colones to $1 US. Thus, a 5 colones coin is 1 penny US, a 25 colones coin is a nickel, a 50 colones coin is a dime, and a 100 colones coin is a quarter.

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NATIONAL NEWS

Legislative efforts in the United States to curb digital piracy and establish stringent copyright measures on the Internet were extensively reported by several news media outlets, including La Nacion and The Costa Rica Star. After a full day of online protests against the SOPA and PIPA bills conducted by influential Internet properties such as Wikipedia, Google and WordPress, law enforcement authorities from the United States shut down file storage and sharing site MegaUpload and carried out arrest warrants for the company’s principals around the world. The police action was followed by hacker attacks on American and French government websites; a backlash that may have prompted the postponement of the bill. La Nacion hosted an online chat on the matter and reported on the far-reaching effects that such legislation could have for Tico Internet users, and further announced a conference of legal specialists that will take place on January 24^th to study the matter in detail. The Costa Rican Chamber of Information Technology and Communications will host the event, as well as powerful law firm Arias y Munoz.

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