www.CostaRicaTicas.com

You guys are talking retail. This is where CR and a lot of other countries get most of their revenue - think tax, think a lot of tax.

It is also about what is priced on the world market and what is not.

If you live in CR, the cost compared to the US is very cheap. Property taxes are nothing like the US, income tax (do they exist, if so, probably way less than US), health care cheaper, Ch*ld care cheaper, labor in every way cheaper. Things like taxes, health care, Ch*ld care, labor are not priced on the world market - metals, food, oil (materials) are priced outside of CR so they are same price in CR plus the tax.

My wife is from the Philippines. Food portions in normal restaurants are very small so buy enough to equal portion served in the US and price is comparable. There is no income tax of any kind and property tax may as well be free. Gov't pull revenue at retail cash registers.

I have a friend who is Brazilian and no way will she buy any clothes when she visits, because with the tax, way more expensive than in the US.

Electronics are way more expensive while less reliable outside the US all because of the tax. Gov't has to get its revenue from somewhere. Even in the US, when a tax has no income tax, that same state will have higher sales and/or property tax or in the case of FL and NV, have huge hotel tax, car rental tax (basically a tourist tax). You choice to live in whatever state benefits your situation the most, if you aren't tied in various ways to where you live.

Jewelry is actually a good buy outside the US. If you are buying gold, say 14K, by weight it costs the same all over the world, but the artistic value will be a lot less outside the US. The art in jewelry can't be priced the same as in the US. If you are buying your girl a ring, earrings, necklace, whatever, buy it outside the US.

Bottom line is that you can't compare cost of living solely on your retailing experience.

The economy is too damn good here. The average unemployment rate for a recent college graduate in Costa Rica is less than two percent. It's actually pretty easy to find a job in technology, medical, or accounting. Also, there are now a good deal of younger, educated Ticos that speak at least three languages.

Amazon.com has call center in Heredia, and while the pay may be a bit less than stateside, the private medical insurance is good and even low level managers receive Amazon stock options (add 10k per year). Also, since the employees are not U.S. persons they do not pay taxes on their stock options. If you speak Spanish-Portuguese, then entry level you get paid better than Spanish-English and have more opportunities for advancement.

HP just folded all of its English language technical support last month. Apparently the English language work is cheaper to do in India. However, they held onto their lucrative Spanish language technology services. There is a good deal of growth in IT here in Latin America.

Devaluation is definitely not a problem. Costa Rican Central Bank bought $73.7 million in dollars in January to prop up the dollar. They have been doing this for two years now, trying to keep the colon cheap and keep local prices from going through the ceiling. If the central bank did not meddle, then the U.S. Dollar would be worth alot less.

Total foreign direct investment in Costa Rica last year was $574.5 million. That money comes from multinational companies when they pay their employees and build new facilities, along with investment fund managers who see plenty of up side in Latin America.

I am currently receiving 9 percent annual on my bank CDs in colones. Also, the more the dollar slides in the toilet, then the more that is worth.

As far as the "gringo influence" is concerned, it is here but has NOTHING to do with tourism or retired baby boomers. The gringo influence is the $1 billion microchip fabrication (fab as Intel calls it) plant in Heredia. The economic output of that one fab is responsible for 7 percent of the national GDP. There is also much bio-medical manufacturing going on here as well.

So when my gringo friends say, "business opportunities", it is difficult to keep a straight face as they talk seriously out of their depth. The government isn't giving them any breaks and is throwing tons of red tape at them because they do not really want to encourage more to come. They do want gringo corporations like Intel, Amazon and P&G of course. Just at this stage of the game, there is no reason to invest in Costa Rica unless its a really big project, and has nothing to do with tourism.

In my experience the majority of the U.S. retired types in Costa Rica are some of the most marginalized, least educated and ultimately poorest bunch of folks down here. I mean, you can buy more groceries with your social security check in Alabama then you can get in Heredia. I think some of the guys are making a mistake because they could also get medicare and subsidized housing in the U.S.

Keep in mind when you are playing with party girls down here, you are dealing with the bottom of the barrel socially, parents could not afford to send them to university, single mother types. There is a good deal of inequity, but also much economic growth.

Bottom line, expect prices to go up, ALOT more. Globalization has more in store for Costa Rica.

Cell service still cheap. And labor of course. And cigarettes still the cheapest in CA and among the cheapest in Latin America at app $2per. And obviously way cheaper then N America. But, my smoker friends say that the Marlboro's don't taste the same as gringo Marlboro's. Here's a link comparing cig prices. http://www.insidecostarica.com/dailynew ... 040902.htm