There are surprising facts about Nosara that highlight why it continues to be the top expat destination in Costa Rica. While the region has long been known as a surfers’ mecca, there is more to this tropical location than meets the eye.
The essence of what makes Nosara a unique place begins with its history and continues to grow to this present day. There are few places in the tropics that bring together the natural and aesthetic vibe like this special location on the Nicoya Peninsula.
Surprising Facts About Nosara’s History
There are a couple of surprising facts about Nosara from a historical perspective that many expats are not aware of. This background is one of the primary features that has contributed to the desirability of Nosara as a place to build a tropical paradise.
Nosara was not always part of Costa Rica.
One surprising fact about the Nosara area is that it did not always belong to Costa Rica. Prior to 1824, Nosara and the entire Nicoya Peninsula were part of the Spanish province of Nicaragua. On July 25th, 1824, the Central American Federal Republic signed a law transferring the entire Guanacaste Province, including the Nicoya Peninsula, to Costa Rica.
Even then, the region maintained a unique autonomy of its own. Finally, in 1848, the territory gained provincial status as part of Costa Rica.
A North American put Nosara on the map.
Another surprising fact about Nosara is that it was actually the brainchild of a North American. Alan Hutchinson, an entrepreneur and developer, purchased a large cattle ranch (several thousand acres) in 1962, with the idea of building a resort community he called “The Beaches of Nosara.”
The “American Project” (as it came to be known locally) never came to fruition. However, it did call attention to the region and its attractiveness for expats looking for someplace different.
One of the most positive aspects of the American Project was the creation of the 170-acre permanent Green Zone. This vital natural area is a testament to the community’s desire to balance the interest of people with the interests of the environment.
More Surprising Facts About Nosara
The kind of opportunities for expat living that can be found in Nosara today cover a wide range of choices. There is something for everyone in this unique location.
Yoga in Nosara, Costa Rica is the new surfing.
Nosara has long been recognized as one of the best surfing destinations in the world. In 2017, Nosara was ranked number one among the fastest growing surf towns worldwide. The combination of unsullied beaches and good natural surf-breaks have helped build on Nosara’s reputation as a surfers’ paradise.
What fewer people know is the fact that the area in and around Nosara has become home to a large number of yoga, meditation, and alternative health retreats. There are also a number of spas that combine yoga and surfing, two activities that complement each other well in so many ways.
Live a longer, healthier life in Nosara.
In his book Blue Zones, Dan Buettner identified the Nicoya Peninsula as one of the top “longevity hotspots” around the globe. Nosara’s location, in the heart of the peninsula, may well be “ground zero” for longer life spans.
Expats seeking to escape the incessant drumbeat of the 24/7/365 “always on” existence of the modern world can immerse themselves in the more laid-back ambiance of Nosara and rediscover what it means to just stop and take a breath. With a lifestyle focused on sustainability, combined with the cleanest water table in Costa Rica, Nosara can provide a healthier approach to daily life.
It’s family- and language-friendly.
A truly surprising fact about Nosara is that, unlike most surf/beach towns, it is not a frenetic party town. The more relaxed atmosphere is conducive to a family-friendly environment. The location of two bilingual schools in a neighborhood setting can make transitioning for the youngest expats much less stressful.
Additionally, with the growing number of expats and visitors to the region, finding English speakers is easier than it might be in other parts of the Latin Tropics. Daily tasks, like shopping or making appointments, do not require such a robust command of the Spanish language.
The Most Amazing Fact About Nosara: The Price Tag
With all of the interest in the Nicoya Peninsula, and Nosara in particular, it may come as surprise that real estate is still affordable. Although the market has rebounded from the lows of 2008, there is still a great deal of potential for both expats and investors to explore.
Here are a couple of examples of the kind of opportunities that can currently be found in Nosara:
1-Bedroom Home, Great Investment, Lots of Room to Build Your Dream House on Remaining Land. The home is 1-bedroom, 1.5-bath on over 1 acre of land. It is located about 15 minutes from the beach, 9 minutes from shopping and 6 minutes from the airport. It has water, electricity, and a 1-bedroom guest house with septic system and it can all be purchased for only $137,000.
Diamond Point – 2BR Condo Facing the Pool. 2-bedroom, 2-bath condo beautifully designed and comes furnished so you can start living the lush jungle life immediately. It is located on the ground level with a patio facing one of the nicest pools in Nosara that has a waterfall feature and a shallow area for lounging or for kids to play. Priced at $99,500.
Affordable, Flat Lot in Quiet Area of Playa Pelada. This is for those who want to build their tropical dream home from the ground up. It has recently been reduced in price to $74,999.
Finding your place in a tropical paradise may never be easier. And the even more exciting news is that property values in Nosara are headed nowhere but up. With its incredible natural beauty, first world amenities, family atmosphere, and increased interest from developers, Nosara is poised for even more growth in the future.
The Most Surprising Fact About Nosara
Perhaps the most shocking fact about Nosara is that you have yet to experience it for yourself. Take that first step and see if Nosara may be the tropical paradise that you have been longing for.
Mexico is great for expat families looking for a destination that combines a good work-life balance, along with close proximity to the U.S., and a chance to immerse themselves in a culture that is both new and somewhat familiar. The welcoming environment is further enhanced by the number of long-established expat communities in a wide variety of locations throughout the country.
With a favorable exchange rate, currently about $0.05 U.S. to $1.00 Mexican peso, it is very easy to get more for your dollars south of the border. With the large number of multi-national corporations that maintain operations in Mexico, there is also a growing number of employment opportunities for expats looking to take their careers in a new direction.
Many Choices for Your Home in Mexico
A major concern for those moving abroad is finding the right place to live. One of the main reasons that Mexico is great for expat families is the wide variety of homes that can be purchased or rented.
Non-residents can own property in their own name throughout much of Mexico; direct ownership in the “restricted zone,” areas within 64 miles of international borders or 32 miles of the coastline, is prohibited except through something called fideicomiso, or a bank trust. Under this system, the bank is the actual title holder with the purchaser being the beneficiary of the trust, with full rights of ownership.
With favorable property prices to match the exchange rate, finding the perfect casa for your family is easier than you might imagine. Whether you are seeking an urban villa, a beachfront hacienda, or a pastoral setting, Mexico has a place for you and your family.
Survey Says: Mexico Is Great for Expat Families!
For expats with children, there are many additional factors to be considered in making a decision to move abroad. In addition to financial and logistical concerns, there’s also education, health care, and other family-friendly services that play an important role.
A recent survey conducted by InterNations, the largest global network of expats, explored 43 life aspects that factor into the decision to move abroad. On one important component, the Family Life Index, Mexico was the only country in the Americas to rank in the top 20. With a great work-life balance and family-friendly attitude, Mexico is a great place for expat families to live and grow.
Living Day to Day As an Expat Family in Mexico
One of the greatest things about living as an expat family in Mexico is the wide variety of settings in which you can choose to live. No matter what your interests or desired pace of life, there’s something for everyone in Mexico.
Urban Comfort
Many expat families, especially those who move to Mexico for employment, are drawn to the major metropolitan areas like Mexico City, Acapulco, Monterrey, and Guadalajara. The modern amenities, educational choices, and lifestyles in these locales are the ones that most closely mirror major U.S. cities.
Additionally, the number of English speakers and expat-centric communities is also greater. However, these pluses do often come with a higher price tag on things like housing, utilities, food, and other essentials that families need to sustain their lifestyle.
Tourist Central
For those expats fortunate enough to be able to work remotely, beach and tourist locations such as Puerto Vallarta, Cancun, and Rivera Maya may be desirable. In addition to the wide variety of leisure activities, these destinations have established expat communities that make fitting in much easier. As might be expected, however, the cost of living in these areas is also higher than less developed parts of the country.
Rural and Rustic
Though not for everyone, Mexico is great for expat families seeking to immerse themselves in a new and foreign culture. Smaller towns and villages afford the opportunity for children to be exposed to a lifestyle far different than that which they had back in the U.S.
The lower cost of living can offset the fact that many modern amenities may not be as readily available. Being able to truly live an authentic Mexican lifestyle can provide an unparalleled experience that expat children can carry with them as they grow and develop.
Things to Consider
While Mexico is great for expat families, there are some important considerations that should be factored in to making the decision to move. Understanding the pluses and minuses involved in such a decision can provide a good assessment of whether moving to Mexico is the right choice for you and your family.
Crime and Safety
Unless you’ve been living under a rock, you know that Mexico has certainly made its share of headlines with its problems with various drug cartels and other criminal activities. The good news is that, while certain areas appear to be hotspots for these types of incidents, the majority of the country is largely unaffected.
Prior to moving to any new location, make sure you do your research on its safety. Actually visiting prospective choices (preferably more than once) can help you decide if these are the kind of places you want to raise your family in.
Education and Language
It is important to remember that, in spite of the large number of English speakers present, Spanish is still the principal language in Mexico. Living in the country can provide an excellent opportunity – especially for children – to learn a second language, but it can also make navigating daily life rather difficult.
While there are a number of school options in Mexico, the overall public education system still needs improvement. Rural schools, in particular, seem to lag behind the rest of the country. In a recent study, the Organisation for Economic Co-operation and Development (OECD) ranked the public system as below average in mathematics, science, and reading.
There are a growing number of international schools that offer alternatives to the public system. Home schooling and parochial schools are other alternatives that may be considered to provide educational options for children.
Immigration Changes
The election of 2016 appears to mark a dramatic shift in immigration laws that will impact both the U.S. and Mexico. As a result, there is a growing uncertainty about how these shifts will impact expats seeking to move to and work in Mexico. Keeping abreast of all current developments and changes in the laws is a necessary step in making the decision to move south of the border.
Is Mexico Right for Your Family?
There are many reasons that Mexico is great for expat families. Its affordability, relaxed pace of life, abundance of leisure-time activities, and close proximity to friends and family “back home” are all positive elements.
There is no better way to begin the discussion about moving than for you and your family to visit places in Mexico that may appeal to you. Seeing firsthand the places you could call home and seeing how your family interacts is the best barometer for measuring the success of such a life-changing decision.
If you’re a new or potential expat, you probably have a lot of questions about the tax implications of your current living and income situation. You may also know that your predicament has been made just that much more complicated by some recent IRS initiatives that affect your reporting requirements.
Understanding your tax burden while you’re living abroad does create an additional perplexing step come tax season. But don’t let it scare you. Just like all the other hurdles you have to overcome when you break free and thrive in the Latin Tropics, this one is manageable.
But, wait, before I proceed…here’s a disclaimer. I’m a fellow expat who has done some research and has personal experience with this topic. I am not, however, an authority on any financial or legal matters. It’s always a good idea to hire an accountant with experience in assisting U.S. citizens living abroad if you have questions about what’s required.
The Long Arm of the Tax Man
Being in the know about income reporting requirements has become even more important with the implementation of two major IRS mandates: FATCA (Foreign Account Tax Compliance Act) and FBAR (Foreign Bank Account Report). Although passed by Congress in 2010, these two reporting requirements did not go into effect until July 1, 2014, and are the source of both confusion and concern for expats and the foreign financial institutions that they may be dealing with.
While the stated intent of these mandates was to identify and limit tax evaders who sought to conceal assets outside of the country, their impact has been far more profound for the average expat seeking to build a new life a foreign land. Here’s a little bit more about these two requirements.
FBAR
If you have accounts in foreign bank accounts with balances that total $10,000 or more at any time during the previous year (emphasis added), then you must file an FBAR. It’s submitted to the U.S. Treasury Department annually via FinCEN Form 114.
With the requirements for residency in many Latin Tropic countries including maintaining a minimum amount in a local bank, it is important to keep track of your bank balances throughout the year to avoid potential penalties. The fine is $10,000 for each non-willful violation. If considered willful, penalties can be as high as the greater of $100,000 or 50 percent of the amount in the account for every year for every account you fail to report.
At this point in time, however, the IRS reserves the right to merely issue a warning. The goal is to compel compliance, not to levy punitive actions.
FATCA
The FATCA (Foreign Account Tax Compliance Act) requires expats to report all foreign assets to the IRS on Form 8938 as part of their annual 1040 filing. The scope of FATCA is significantly larger than FBAR, as it includes such things as foreign pensions, foreign bank accounts, partnerships, and stock holdings.
These last two items are important as some countries require that a corporation/partnership be established in order to purchase real estate. Consequently such assets would have to be included on the Form 8398.
There are income thresholds that would trigger the FATCA requirements. Single taxpayers who have assets in excess of $300,000 at any point during the year or in excess of $200,000 by year’s end have to file; for married taxpayers, the limits are increased to $600,000 during the year or $400,000 at year’s end.
All sources of foreign income are included under FATCA. Since many foreign companies and financial institutions do not issue tax forms, such as w-2s and 1099s, it is important that you maintain good records of your finances to minimize potential issues when filing with the IRS.
Failure to file Form 8398 will result in a $10,000 penalty. After IRS notification, this amount can increase to $50,000. It’s also important to note that, while FATCA does include bank accounts, filing a Form 8938 does not relieve you of your need to file a FinCEN Form 114. Both forms are required, and the penalties are separate for each violation.
You Can Run But You Can’t Hide from the IRS
With over 50 countries now participating in FATCA, expats can expect increased scrutiny from the IRS on any foreign investments, employment, or property ownership. Although there has been continued criticism of these programs, more countries can be expected to sign on as participants.
Being prepared before making your move to the tropics is the best way to ensure that you will not run afoul of these tax situations. Doing your research, understanding your financial profile, and keeping solid records are important steps to take before setting foot in your new country.
Benjamin Franklin said it best when he pointed out that taxes were one of only two things of which we could be certain. You may not be able to avoid taxes, but with adequate preparation you can certainly limit the severity of the headache they cause. Don’t let your uncertainties prevent you from realizing your dream of living abroad.