I usually don’t write about residency requirements as part of my popular retirement blog. However, a few of my readers have requested information about this subject, so I have included it below.

Here are the three main categories and the requirements for each. Please feel free to request additional information.

(1) Pensionado

Requires proof of US$1000 per month income from permanent pension source or retirement fund.
Must remain in country at least 4 months per year.
Can claim spouse and dependants under 18 years of age.
Cannot work as an employee.
Can own a company and receive dividends.

(2) Rentista

Requires proof of US$2500 per month income for at least five years, guaranteed by a banking institution, OR a US$150,000 deposit in an approved Costa Rican bank. One amount covers the family.
Must remain in country at least 4 months per year.
Can claim spouse and dependants under 18 years of age.
Cannot work as an employee.
Can own a company and receive dividends.

(3) Investor

Investment of US$200,000 in a business.
Must remain in country at least 6 months per year.
Cannot claim spouse and dependants under 18 years of age.
Income allowed from the project.
Can own a company and receive dividends.

*Sources: The Association of Residents of Costa Rica and the 16th edition of “Christopher Howard’s The New Golden Door to Retirement and Living in Costa Rica.”

Ugly American is an epithet (term) used to refer to perceptions of loud, arrogant, demeaning, thoughtless and ethnocentric behavior of American citizens mainly abroad.

I have lived and worked in Costa Rica for over thirty years and consequently had the chance to observe a lot of foreigner’s behavior. Some of them are tourists, a few work here while others are retirees. The majority of the expats are very nice people who want nothing more than to live tranquilly and enjoy all of the wonderful things that Costa Rica has to offer.

Unfortunately there is a handful of bad apples who give all of us a bad name and embarrass a lot of good expats. Below I have listed some common traits which make “Ugly Americans” stand out. However, not all expats fall into all of these categories. The purpose of this article in not to offend anyone but to share one aspect of living here.

(1) A general lack of understanding and low tolerance of the Costa Rican and Latin cultures
(2) Little or no Spanish language skills
(3) Being very overweight (not all overweight people are obnoxious and ugly Americans)
(4) Foreigners who are pushy, rude, impatient and very demanding of the local’s services like they owe it to us because we have more money
(5) Wanting everything to be like it is in the U.S. and complaining if it isn’t.
(6) Complaining in general about everything in Costa Rica from the rain to the traffic, etc.
(7) Becoming an overnight expert on everything and pontificating about it. It is strange that most gringos start to dole out advice after only living here for less than a year to those who have been here for a shorter period of time. Always consider the source!
(8) Bringing a lot of baggage and problems from the States and dumping it on everyone here.
(9) Having a blog and/or website about Costa Rica that is seemingly helpful but really is designed to manipulate or scare people into buying a product or one’s services. Often these sites claim to be the only “real” source of information and offer so-called “expert services.” Most of the cast of characters behind these sites have only lived here a few years, arrived after the year 2000 and prey on naïve would-be residents.
(10) Gringo men who think all Costa Rican women are for sale. Most of these guys treat all women here like whores which gives the rest of us a bad name. No wonder some Costa Rican women don’t want to be seen with Americans.

The are countless other examples of the “Ugly American” syndrome. On my award-winning relocation/retirement tours, at the many seminars where I speak and in my best-selling guidebook “The New Golden Door to Retirement and Living in Costa Rica”, I always make it a point to talk about this subject at length.

The Internet has revolutionized the world of information and has had both good and bad effects on retirement in Costa Rica. On the good side e-mail has made it much easier to stay in touch with relatives in the U.S. and the many on-line sources for information to keep overseas retirees up to date on news events all over the world. It has also made it possible to do business while living abroad. In addition, Costa Rica has become more popular for tourists and retirees due to the proliferation of websites about the country (see below). On-line chat groups can also provide some good feedback about what it is like to live here. If you want to shop on-line you can do it from here and have your purchase delivered by one of the private mail services which operate in Costa Rica and the U.S. I am not talking about courier services like DHL or FedEx but much more affordable private mail services. This way you don’t have to make expensive shopping trips back to the States. You can get almost anything now without setting foot out of the country.

On the other side of the coin, there is a lot of misinformation about Costa Rica being disseminated by a variety of unreliable sources on the Internet. You have to be very careful what you read and who you are dealing with when it comes to information about Costa Rica. Now a days anyone can build a website and say anything they want. Those seeking information about the Costa Rica often end up getting more confused the more they read about the country. Most often sites that seem to be good sources of information have hidden agendas to sell you tours, real estate and other products sometimes without you realizing it. The people behind these sites prey on naïve foreigners.

Another problem is there are a lot of people who use websites to pontificate and act like experts. Unfortunately, many of these individuals think they know everything about the country after only having living here for a year or two. Give me a break! Most of the jerks behind these sites are looking for their fifteen minutes of fame and a captive audience. A few of these jokers even have forums. The problem is that they try to impress you with what they supposedly know and often give you a lot of subjective information rather than tell you the objective truth about the country. Since a lot of these people don’t speak the language fluently, don’t understand the culture nor how things work here they can often paint an unrealistic picture of how the country really is. I heard of people who were so frightened after reading erroneous information on some of these websites that they ended up not moving here and having their retirement dreams die when they should have really made the move. How sad!

I love Costa Rica and strive try to give people a view of the real country and share my insider information so that if they do chose to move here they can do it successfully. Over the years I have personally helped over 10,000 people relocate here. I have nothing to gain by distorting information or pontificating. I take pride in assisting people through my retirement books and tours and have absolutely nothing to prove. I know who is who and show my clients how to separate the wheat from the chaff. Remember experience is everything. When you are going to have surgery, would you put yourself into the hands of a medical doctor who has two, five or ten years of experience or one who has had 40 years experience and is considered the authority in his or her field? I rest my case.

Retirees’ nest eggs have shrunk, and retiree incomes are stagnating. Social Security benefits didn’t rise in 2010, nor will they in 2011. Benchmark Treasury bond yields are at their lowest since January 2009, and certificates of deposit are earning almost nothing — at 0.55% interest, a one-year $10,000 CD would earn just $55. Forget what the Social Security Administration says: For anyone looking to make their savings last, cost of living does matter.

There are places in the U.S. where some can reduce their cost of living. A few U.S. cities are being touted as affordable retirement meccas. Let’s look at what they have to offer.

Prescott, Arizona, just 63 miles southwest of Sedona, shares Sedona’s mild climate (Costa Rica’s climate is better), ample opportunities for recreation, and nice scenery. The cost of living is about 10% lower that it is in Sedona. A two-bedroom in Sedona has an average list price of $396,064, compared to $210,286 in Prescott. Still too expensive for those with a limited income. Bloomington, Indiana. has many of the amenities of bigger cities, plus discounted university classes for seniors, and big-time college sports. However, winters are cold.

Carson City, Nevada has the Sierra Nevada mountains as a backdrop, is close to beautiful Lake Tahoe and is 30 minutes from Reno’s nightlife. The state has no state income tax but winters can be cold and summers warm.

Auburn, Alabama has a quaint downtown, nice weather and was ranked it the best golf city in America in 2005. But it situated in the foothills of the Appalachian Mountains and winters can be very cold.

San Luis Obispo, California is not cheap, by national standards but for a coastal California town, it’s a fair alternative. Like Santa Barbara, it’s got gorgeous weather, 18th century Spanish architecture, a university and distinct civic personality. A two-bedroom home typically costs around $355,000. Pretty pricey for seniors trying to get by on Social Security or a small pension. California’s taxes are also high and the state is broke so they won’t come down.

Some savvy Baby Boomers are looking at Costa Rica to get even more bang for their buck than the cities above and enjoy a great lifestyle.

Consider this:

• Costa Rica has year-round spring-like weather in many areas, so you won’t have high heating bills. I don’t have heat or air conditioning for my house in the Central Valley.
• Costa Rica offers excellent low-cost medical care. In fact, Costa Rica has the longest longevity rate in Latin America which is comparable or better than that of many first-world countries like the U.S. Personally I know many Americans who have moved here because they just can’t afford medical insurance in the U.S and are very satisfied with the care they are getting.
• Small homes or apartments may be rented for under $1,000 per month.
• Domestic help is cheap, so you can have more free time to enjoy yourself
• Public transportation is a bargain. You won’t really need a car here, so you will won’t have to spend money on car insurance, license fees or maintenance.
• Bargain fruits and vegetables may be found at our weekend farmer’s market.
• First-run movies in English cost three dollars.

There are countless other ways you can save money by moving here. Just do as the locals do. “When in Rome do as the Romans.” Costa Rica isn’t for everyone nor is it dirt cheap. However, if you move here and learn the “ins and outs” your retirement check will go a lot farther than it will in the States and you can enjoy the country’s incredible lifestyle.

It looks like retirees and others who move to Costa Rica may be able to live longer if the copy the healthy lifestyle locals. In case you don’t know Costa Ricans are the longest living people in Latin America. Costa Rica has 9,995 citizens over the age of 90, of which 471 are centenarians.The average age expectancy is 78.9 years which ranks 29th in the world ranking. Japan is at the top of the list.

Here is an example of a Costa Rican centenarian. Graciela Flores or “niña Graciela” recently had a lot to celebrate because it was her 104th birthday. Graciela, the retired teacher was born on October 26, 1907, and assures that her longevity is due to eating healthy and being active. “We always eat eat food low in fat, she remarked” Graciela comes from the Nicoya, an area of Costa Rica that is home to 471 centenarians. The areas of Nicoya, Carrillo, Santa Cruz, Hojancha and Nandayure has been identified as a “blue zone” and subject of a National Geographic study and report, is home to many over the age of 100.

A Blue Zone is a region of the world where people commonly live active lives past the age of 100 years. Scientists and demographers have classified these longevity hot-spots by having common healthy traits and life practices that result in higher-than-normal longevity. The name Blue zone seems to be first employed in a scientific article by a team of demographers working on centenarians in Sardinia in 2004. Other blue zones in the world have been identified in Okinawa in Japan, Sardinia in Italy. Icaria in Greece, and Loma Linda, California in the USA.

Many foreign who come here to retire enjoy better health due to the country’s good health care systems, less stress and a laid-back life style, the pura vida attitude of the locals and the availability of affordable fresh fruits and vegetables. In fact, I don’t know how many times I have have heard Americans say, “I think I have found the fountain of youth here.” I really think it has something to do with one’s out look on life which can change just by making the move. However, not everyone who comes here stays for a variety of reasons. Costa Rica isn’t for everyone. But those who fall in love with the place couldn’t be dragged back to the U.S.