Costa Rica Howler August 2022 International Digital Magazine

Page 94

CR BIZ

What are the Social Compr for Expats Moving to Live in by Rick Philps

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his article would be more apt under a “social” rather than a “legal” due diligence category. But I believe that after 24 years of living in Costa Rica — 19 of them practicing law — a reflection on these social compromises is necessary to complete the due diligence investigation required of any expat moving to live in Costa Rica. This is particularly true for U.S. and Canadian expats, who make up the greatest number of such expats and face the biggest challenges to socially adapt. Moving to live in a foreign country is a lifechanging event and an expensive undertaking. It is imperative that an expat contemplating such a move be complete in both their legal and social due diligence inquiries. The integrity of the party providing the expat with such advice must also be of serious consideration, to identify any overriding self-interest or other conflict of interest on the advice-giver’s part.

DOING BUSINESS RIGHT

As statistics show, a large percentage of expats return to their home country within two years of moving to live full-time in Costa Rica, for the reason of not being able to "fit in," socially speaking. Costa Ricans are generally a polite, friendly, and pacifistic group of people. However, the social, legal, and cultural differences are strikingly different indeed, from those of many expats. Differences in legal structure Most expats will come from jurisdictions where English common law is the legal system utilized. This system of laws originates from England and is the dominant system of laws in the U.S., Canada, and British commonwealth

countries. It is a system composed of statutory and judge-made laws. It allows for an evolution of the law based on societal changes over time, as interpreted by judges in court, producing a “common thread” of legal jurisprudence respected by the courts as a whole. In Costa Rica, as in all of Latin America, civil law (Roman law) is the legal system that has been adopted, for the most part, from the mother country of Spain. This legal system is considerably different in its approach to delivering justice. Each area of the law (eg. criminal, family, etc.), is codified into various legal declarations in the form of articles, which are applied by a judge to any fact situation presented in court, largely without reference to any established jurisprudence. Case precedents producing a common thread of legal jurisprudence do not form an integral part of the judicial process as in English common law. This allows for a greater opportunity for external influences to affect a judicial outcome, and corruption is an issue. Differences in social structure and social norms Although a plethora of social and cultural differences can be observed, understanding a few main ones can be very helpful. Roots: Costa Rica largely has a “classdriven” social structure. The political power rests in an elite class comprised of old family money and associations dating back to Costa Rica’s beginnings as a republic 200 years ago. This has resulted in a defacto oligarchy being created. Upward mobility between classes has been slow to evolve over the years. People from