Buying Property in Costa Rica

Taxes in Costa Rica

Taxation in Costa Rica is much more simplified than that of many other countries. There are different limits of taxation depending on your income: the more you earn, the more you pay; if you earn less than the minimum amount established by Costa Rican law, you pay no taxes. The following basic information discusses some of the tax system, but you should always check current figures with your accountant.

Municipal Taxes.
The local community government charges municipal taxes to clean the streets, for public lighting and to finance the local bureaucracy. The amount charged is based on the number of meters of street frontage of your property its location, and on your Municipal Government. The amounts vary, but they are never over US$10 per month per residence.

Municipal Government Property Tax was recently moved from the central government to the Municipality, to which you pay directly 0.25% of the price of your property per year. If your house is rated at less than the ¢6,000,000.00 (six million colones) you are exempt from that tax. If you think this exemption applies to your property, your Municipality will tell you the procedure for applying.

Sales Tax
Sales tax is 13% on the amount paid for goods and for some services. The services of Lawyers, Doctors, Dentists and other independent professionals are exempt from sales tax; anything else you buy, from a candy bar to a computer or furniture is taxed. (Houses and cars require payment of a ‘transfer tax’, and that is covered elsewhere.) In some cases the sale is subject to the Simplified Regimen, used for very small businesses like your local ‘Pulperia’ or ‘Soda’. (corner store)

Transfer Taxes
You do not pay sales taxes, as such, for your house or car. Because they have to be inscribed in the National Registry, you pay a Transfer tax. In the case of real estate there is a 1.5% tax over the price registered in Hacienda (the Treasury Department) or in the National Registry. Cars are taxed at 2.5% over the retail price that is established by the Ministry of Treasury in an annual publication for that purpose.

Income Tax
All individuals who work - and any Corporations that are involved in commerce in Costa Rica- have to pay Income Tax. There is a tax scale and an amount due from the amount you earn from your employment, your professional services, and from whatever activity your Corporation performs. (There are individual exceptions depending on circumstances.)

In Costa Rica the fiscal year runs from October 1st to September 30th of each year, and each worker is required to at least file his/her tax declaration: if no income or business occurred, they have to declare that.

There is an exempt amount for the regular worker who earns less than or the exact amount that is established by law. For this year, the amounts are as follows.

Individuals:
a. Income up to ¢215,600.00 per month is exempt.

b. 10% tax is due on income in excess of ¢215,600.00 up to ¢324,100.00.

c. 15% tax is due on incomes in excess of ¢324,100.00.

Corporations:
There is no exempt amount for corporations, but they may deduct some expenses from their earnings. The tax percentage is taken from gross earnings, but that percentage is applied to net earnings. They are regulated the following way:

Corporations pay 30% tax over the annual earnings for 1 October to 30 September.

Small enterprises are Corporations whose gross earnings are under ¢28,860,000.00 (US$93,090.00) per year.

a. 10% tax on amounts up to ¢13,200,000.00 (US$42,580.00) in gross income.

b. 20% tax on amounts above ¢13,200,000.00 up to ¢28,860,000.00 (US$93,090.00) in gross income.

Individuals with lucrative activities (Liberal Professionals)
If you are self-employed because you have a professional degree, like a Doctor or a Lawyer, you will be subject to the following taxation:

a. Incomes up to ¢958,000.00 are exempt from tax.

b. 10% tax on incomes over ¢958,000.00 up to ¢1,431,000.00

c. 15% tax on incomes over ¢1,431,000.00 up to ¢2,388,000.00

d. 20% tax on incomes over ¢2,388,000.00 up to ¢4,785,000.00

e. 25% tax on all amounts above ¢4,785,00000.

Costa Rica Properties, protect your Investments

It is not always easy for foreigners investing or living in Costa Rica to find the right information to protect their investments.

There are a handful of simple rules you should follow, which might save you trouble and money later.

Many come to Costa Rica to buy property and the first thing you should do is make a title search on the lot you are considering. This means that you have to go to the Public Register in order to get a certificate in which all the main details of the property will appear. Use a good lawyer to help you with the research and the to advise on the transaction process.

After you are sure about purchasing the property, you will have to appear before a Notary Public or attorney to get the property transferred and registered in your name. This is necessary, and if a seller ignores this process there is something wrong.

When you have signed the transfer document, you will need to pay the transfer taxes. Usually the notary will ask you for a specific amount of money, which should include the notary’s fees and those taxes. It is the notary who will be in charge of paying all the necessary taxes and tax stamps, so always ask for a detailed receipt of what you are paying for. If these taxes are not paid, the property will not be registered in your name and you can be defrauded. Another thing to keep in mind is that transferring a property is relatively simple. No unreasonable delays should take place, and if they do, something could be wrong.

Another issue that could put your property at risk is land taxes. If you come from a country such as

Canada, Holland, Germany, the United States or any other countries which boast advanced tax collection systems, you may be surprised at that which you find in Costa Rica. A landowner here must pay land taxes every quarter, but the difference between our system and the one that you are used to, is that here you do not receive a notice from the collecting authority when taxes are due.

The system assumes you will remember every quarter to appear before the local government or Municipality and pay such taxes. If not, you could face foreclosure procedures and lose your investment.

In order to duly pay the taxes, you will have to make sure the property is correctly registered and appraised by the local municipality.

Keep in mind it is possible to become the victim of fraud or natural disaster and you can guard against both. Natural disasters are constant risk. Property insurance is a good idea, especially if you are investing in Costa Rica but not planning to be a permanent resident. Property insurance, known in Costa Rica as title insurance, can protect your investment not only from possible fraud, but also from natural disasters. For that reason it is important to have an insurance agent analyze your case.

Another good idea is to constantly “keep an eye” on your title’s status. This can be easily done by accessing the Public Register’s web site, or you can have your attorney do that for you.

Costa Rican tax authorities require all taxpayers to file income statements every year, and that includes local corporations. It is possible your corporation will be excused from paying taxes because of a so-called “lack of commercial activity.” For example, a corporation may not have to file a tax state or pay any taxes if it has been created simply to maintain your property title.

Even if you own one of these corporations --- which by law are not required to pay income taxes --- it is important that you are aware of the Educación y Cultura tax stamp. This tax has to be paid every year in March and the amount will not exceed 9000 colones (about $18). While this may appear a small sum, it must be paid in order to comply with the law.
Of course, there is a lot of other paperwork which must be filled out and considered, but those above are among those most commonly neglected. Deal with them and you can save a lot of time, money and trouble later.

Donations

You can legally, in Costa Rica, transfer your assets via donation.

The donation is in general terms as any contract, an agreement among two or more people in which they declare their will to originate, modify or to extinguish a legal relationship of an economic nature. Nevertheless, there is no payment in a donation, and only one of the parties benefit financially from this type of contract.

This contract gratuitously transfers a property belonging to the donating part to a receiving party, which only needs to accept. According to our legislation, the acceptance must be done within one year from the date of the deed of donation, and the donating party must be alive at the moment of the acceptance. The donor can indeed withdraw the donation before the acceptance of the person receiving the asset, as interpreted by our case law.

The object of the contract of donation, namely the control over the asset which the donor wants to transfer to the other party, should be individualized and be clearly specified in such a way that there is no confusion regarding the asset or assets the donor wishes to give away. Deeds of donation that do not comply with this requirement are not valid. For example, one cannot donate “one’s lands”, “one’s patrimony” or “one’s future assets”.

The donation must meet the formalities set forth in our Civil Code. As a general rule, the donation must be done by means of a public deed through a Notary Public. This formality is required as the party donating the asset, is suffering a deterioration in its patrimony, and the law needs to make sure that there is a thorough understanding of the consequences of the donation by all parties involved. If the asset to be donated is not a property but a movable asset, the simple delivery of such asset suffices.

In order to be qualified to donate, the donor must be mental and legally able (have the capacity to act); the asset must be, of course, his legal property, and he must expressly state his intention to donate. If the donation is to be done through a third party, this person must be appointed with a special power of attorney (poder especialísimo), which must specifically state the asset to be donated and the person to receive the asset.

In order to be able to receive an asset through donation, the person must be at least conceived at the time of the deed of donation; the right of the receiving person remains pending as article 31 of the Civil Code sets forth that a person exists when he or she is born alive, but they are deemed alive for all that favors them including 300 days before its birth. This means that donations to unborn children can be done within those 300 days before birth. The acceptance would come from the parent or custodian of the child.

Legal entities can donate according to their nature if their articles of incorporation allow for this to happen, but it must be expressly allowed. Commercial entities such as S.A.s or SRLs cannot transfer assets via donation, as this is an obvious detriment to their holdings.

A donation does have the effect of transferring the property, but it is not exactly the same; for example, a sales-purchase agreement may be contested.

A bankrupt person is not legally able to donate assets, as fraud against creditors will always be presumed. A donation may also be revoked (as opposed to a sales-purchase) if the person receiving the donated asset seriously offends the donor, or his close relatives, for a criminal accusation from the donor against the person receiving the donation. This is of course, based on the lack of gratitude of the person receiving the donation regarding the person freely delivering the asset to them. The offended party must act quickly, within one year of receiving the offense, in order to be able to revoke it. Even if the property has been transferred to a third party or mortgaged, the receiving party must indemnify.

Special donations are for example the mortis causa donation, which is set forth in the event of death, which is to be accepted before such death occurs, as opposed to wills which require no acceptance; the donation as payment, in which a person donates in order to repay debts or services not payable otherwise; the donación a carga, in which the donation is made with a specific purpose which becomes the obligation of the person receiving it; and the conditional donation, where the donation depends on future or pending facts.

A donation, even though a contract without a value (no price is paid) and a valid form of transferring assets especially through family members, must pay the same fees and taxes as a regular sales-purchase transfer.

Buying & Building in Costa Rica

Buying & Building in Costa Rica

Buying property and constructing buildings or a home can be an intimidating process, even when you are at home in the culture and know what to expect and plan for. In a foreign country, the same processes can be downright frightening. In a new setting, you need to learn what the usual way to go about things is and also who is legally and ethically responsible for what-in other words you should invest some time in learning how things work and how to protect your investment.

Fortunately, in Costa Rica there is a defined process through which an intelligent buyer and builder should proceed. In addition, there is a licensing body for architects and engineers, which also sets standards for fees should you decide to build. But let's start at the beginning.

I want to purchase property in Costa Rica. What is required?

So you've found, either through a real estate agent or your own searches, a piece of property that is perfect for you. Once you have negotiated a sales price and the seller has accepted your offer, then the legal procedures for transferring ownership of title begin.

How is title transferred?

In Costa Rica, property is transferred from seller to buyer by executing a transfer deed (escritura) before a Notary Public. Unlike common law countries, such as the United States and Canada, where the role of the notary is limited to authenticating signatures, in Costa Rica the notary public has extensive powers to act on behalf of the state. The notary public must be an attorney and she or he may draft and interpret legal documents, as well as authenticate and certify the authenticity of documents.

In order to close on the property, the buyer and seller must select a notary/attorney who will draft the transfer deed and register the sale in the Public Registry (Registro Nacional). The local custom is that the buyer may select his or her notary/attorney to draft the transfer deed if paying cash for the property. If the purchase price is financed, there are generally three alternatives for selecting the notary/attorney.

1. If a large percentage of the purchase price is being financed by the seller and a mortgage needs to be drafted to guarantee payment, then the seller may request that her or his notary/attorney draft the transfer deed.

2. If a property is purchased 50 percent cash and 50 percent financed, it is common for the buyer's attorney and seller's attorney to jointly draft the transfer deed and mortgage in a single document. This is known as co-notariado.

3. Finally, the buyer nay insist that his or her notary/attorney draft the transfer deed and let the seller's notary/attorney draft a separate mortgage instrument. In this case, because the mortgage is being drafted separately, it carries a higher registration fee. The registration fees are discussed below in the section on closing costs.

At your option, the property can be purchased in an individual's name, jointly with other persons, or in the name of a corporation. the decision as to ownership should be based upon your particular situation and after consultation with your attorney.

How can I ensure that I have clear title to the property?

Costa Rican law requires that all documents relating to an interest and/or title to real property be registered in the property section of the Public Registry (Article 460 of the Civil Code). Most properties have a titled registration number known as the folio real, and the records database can be searched with this number or by name index. The Public Registry report (informe registral) provides detailed information on the property, including the name of the title holder, boundary lines, tax appraisal, liens, mortgages, recorded easements, and other recorded instruments that would affect title.

Since Costa Rica follows the doctrine of first in time, first in right, recorded instruments presented to the Public Registry are given priority according to the date and time in which they are recorded. Obviously, every situation differs and in some cases a review of the Public Registry record will not be enough to uncover all encumbrances. That is why it is important that the buyer have her or his own attorney conduct an independent title search and investigation rather than rely on the seller's attorney.

How about closing costs?

The general custom is for the buyer and seller to share equally in the closing costs. this can be modified by agreement and usually depends upon the particular transaction. Closing costs involve three things: government taxes and fees, notary fee, and mortgage costs, if any.

A] Government Transfer Tax and Registration Fees

(1) Real Estate Transfer Tax. - The government collects a property transfer tax (Impuesto de Traspaso ) which is equal to 1.5% of the registered value of the property. The Public Registry will not record a transfer deed unless the transfer taxes and documentary stamps have been paid. (The transfer tax was reduced from 3% to 1.5% by Law No. 7764 effective May 22, 1998)

(2) Documentary Stamps - The government also requires that documentary stamps be affixed to the deed. These stamps include the following: Municipal Stamp: (Timbre Municipal) ;Legal Bar Association Stamp (Timbre del Colegio de Abogados); Agricultural Stamp (Timbre Agrario); National Archives Stamp (Timbre del Archivo Nacional); Fiscal Stamp:(Especie Fiscal). The Public Registry also imposes its own tax of .05% on documents presented for recordation to the Public Registry. (Derechos de Registro)

[B] Notary Fees

The Notary that drafted the contract for sale and carried out the closing is entitled by law (Decree 2307-J) to a fee equal to 1.5% of the first one million Colones of the actual sales price and 1.25% on the balance. The Attorney and Notary fee schedule which was established by Executive Decree No. 2307-J on April 4, 1991 was repealed on February 9, 1999 (Decree No. 27624-J). However, in October of 1999, the Supreme Court of Costa Rica ruled that the Decree which repealed the Fee schedule was unconstitutional and reinstated the original fee schedule.

[C] Mortgage costs. It is customary for the person who is receiving financing to pay the costs of drafting and registering the mortgage instrument. A mortgage can be created simultaneously at the time of sale by adding a mortgage clause in the transfer deed. Or, a separate mortgage instrument can be drafted. A mortgage document paysregistration fees of 1.00 Colon for every 1,000 Colones. The mortgage document also pays documentary stamps. The Notary Public will also charge for drafting the mortgage instrument and that fee can range from approximately 0.625 percent to 1.25 percent of the amount of the mortgage, depending on the circumstances involved. The buyer should be aware that Costa Rican real estate transactions commonly operate on a two-tiered system. since Costa Rican properties have a low property tax appraisal base in relation to market value, it is a customary practice to run property sales through at the registered value, which may be substantially less than the actual sales price of the property. In such a case, all transfer taxes and fees discussed above would apply to the registered value as opposed to its sales price, with the exception of the notary fee. Buyers should consult their attorney about the potential risks of this practice.

Registration of the transfer deed.

Once all the fees have been paid, it is the obligation of the notary who drafted the transfer deed to ensure that the deed is presented (anotado) and registered (inscrito) in the Property Section of the Public Registry. I have stressed the words presented and registered to highlight the importance of following up with the notary to ensure registration. Although presentation guarantees your priority (i.e., first in time, first in right), it does not automatically guarantee registration. The Public Registry will not register a transfer deed unless all taxes and registration fees are included; a certified copy from the Municipality where the property is located is provided certifying that the seller's property tax (bienes inmuebles) and municipal assesments (impuestos municipales) have been paid through the date of closing. Likewise, any prior instruments that encumber the property(i.e., mortgages, liens, judgments, etc.) must be lifted before your transfer deed will be registered.

Once a transfer deed is accepted for registration, the Public Registry will return the original document with all the documentary stamps affixed to it and properly sealed. Assuming no defects in the transfer deed, it should be registered by the Public Registry with 45 to 60 days after presentation. It is therefore important to follow up with the notary to ensure registration, otherwise you will run into problems in the future when you decide to resell the property and find out that your sale was not registered.

Beach Front Property. In most cases, beach front property is untitled property because in Costa Rica the ownership and possession of the shoreline is governed by the Maritime Zone Law (Ley Sobre la Zona Maritimo Terrestre) which restricts the possession and ownership of beach front property. By law the first 200 meters of beach front starting at the high tide markers is owned by the government. Of the 200 meters, the first 50 are deemed public zones and nobody may posses or control that area. On the remaining 150 meters the government through the local Municipal government will lease by way of concessions the land to private individuals. The Maritime Zone Law provides restrictions as to foreign ownership or possession of beach front property so a more through and careful study is always required when considering beach front property in Costa Rica.

I want to build. What do I do?

In order to build in Costa Rica, you will likely face a bureaucratic maze of governmental regulations. The law requires that any application for a construction permit be presented by a licensed architect or engineer (Article 83, Law of Constructions, Article II.2 Construction Regulations). It is therefore advisable to contact a reputable, licensed architect or civil engineer to guide you through the construction process.

What do architects and engineers charge?

All architects and engineers in Costa Rica must be licensed by the Costa Rican Association of Engineers and Architects (Colegio Federado de Ingenieros y Ingenieros y Arquitectos-CFIA. This governing body establishes the fee schedule that can be charged by its members. Most fees are based upon a percentage of the value of the construction project. According to the regulations of the CFIA (Reglamento para la Contratación de Servicios de Consultoría en Ingeniería y Arquitectura), the involvement of a licensed architect/engineer in a construction project is separated into two phases. Phase 1 is construction plans and permits, and phase 2 is control and execution.

Phase 1. Construction plans and permits. This phase is further subdivided into several distinct professional services that can be provided to the client by the architect/engineer. The percentages cited below are those that the CFIA has established as minimum chargeable fees.

Preliminary studies (estudios preliminaries): 0.5 percent. These studies may or may not be required, depending on the scope of the project.

Preproject design (anteproyecto): 1.0 to 1.5 percent. Generally, during this stage, the architect/engineer will meet with the client in order to discuss the client's construction requirements. With this information, the architect/engineer will prepare drafts of the proposed construction project for review by the client. These drafts should include site planning and preliminary work drawings. When you contract for this service be sure you agree with your architect/engineer beforehand on what he or she is going to provide you.

Construction plans and technical specifications (planos de construcción y especificaciones técnicas): 4.0 percent. This is one of the most important steps in the overall construction project since execution of the project will depend upon the quality and accuracy of your construction plans. Once you and your architect/engineer have agreed on the layout and design of the project, she or he will begin drafting the plans. In Costa Rica, a complete set of plans should include a site plan, distribution plan, elevation and transversal and longitude perspectives, roof design and drainage, design of footings and support beams, structural plans, electrical design, mechanical and sanitary system design, as well as a plan that details all of the interior finishings of the construction. Budgeting (presupuesto): 0.5 percent for global budgeting; 1.0 percent for itemized budgeting. Here the architect/engineer prepares a materials list based upon your construction plans and prepares a construction budget for you.

Phase 2. Control and execution. This stage involves the actual construction and project supervision. The regulations authorize three kinds of supervisory tasks, each of which requires a larger time investment from the architect/engineer. Inspection (Inspección): 3 percent of total construction value. Here your architect/engineer will visit the construction site at least once a week and will inspect it to ensure that the plan specifications are being followed by the general contractor. They will also verify the quality of the materials being used and review invoices being presented by the general contractor.

Supervision (Dirección técnica): 5 percent. This requires more direct involvement by the architect/engineer in the day-to-day operation of the project.

Administration (Administración): 12 percent. Here, the architect/engineer takes complete responsibility for the execution and completion of the project.

The option you choose will depend upon the type of project involved, the reliability of your builder/general contractor, and the amount of time you are willing to dedicate to the construction project. All told, phases 1 and 2 can range from 9 percent to 18 percent of the estimated value of the construction project, depending on the amount of services required. As such, it is common practice to negotiate fees with the architect/engineer. Most, of course, will be eager for your business and, depending on the scope of the project will be willing to work out an agreement tailored to your particular needs. Otherwise, have your attorney do the negotiating for you to ensure that you will get the best agreement possible. Before you sign any contract, be sure that you understand the fee structure and know exactly what is and is not included in the fee. Likewise, clearly define the responsibilities that your architect/engineer is going to assume. Do the same thing with your general contractor and any subcontractors.

Construction permits.

Before you purchase a lot with the intent of building on it, you should conduct some preliminary studies on the property to ensure that there won't be a problem obtaining a building permit. First, determine if the lot has basic services such as water, electricity, telephone, and drainage. Second, make sure there are no restrictions placed on the lot that could result in the denial of a construction permit. It will not be enough to check the Public Registry. You should also check the Ministry of Public Works (Ministerio de Obras Públicas y Transporte) for future road construction projects; the Ministry of Health (Ministerio de Salud); the National Institute of Housing and Urban Development (Instituto Nacional de Vivienda y Urbanismo) and the municipality where the property is located (municipalidad). And finally, be aware of any environmental regulation that may effect your construction project, such as national wildlife refuges and areas deemed protected by the forestry Law.

Requests for construction permits are filed with the Permit Reception Office (Oficina Receptora de Permisos de Construcción), which is a centralized office that houses government representatives from MOPT (Ministerio de Obras Públicas y Transportes-roads), INVU (Instituto Nacional de Vivienda y Urbanismo-housing), ICE (Instituto Costarricense de Electricidad-telephone), AYA (Instituto Costarricense de Acueductos y Alcantarillados-water), SNE (Servicio Nacional de Electricidad-electricity), CFIA (Colegio Federado de Ingenieros y Arquitectos), and the Ministry of Health (Ministerio de Salud).

For a single family home that measures more than 70 m2 (735.2 ft.2), the applicant must provide the following documentation: four copies of the construction plans, four copies of the property cadastre plot plan (Plano catastrado), four copies of the permit checklist (hoja de comisión), two copies of your property deed (escritura), one copy of the consulting contract with your architect/engineer (contrato de consultoria), an approval from the water company (AYA) regarding availability of water, and one copy of your electrical design plan approved by SNE. Condominium projects, commercial construction, and urbanization projects all carry additional requirements for obtaining construction permits.

In addition to these requirements, you will need to request a building permit from the municipality in which the property is located. By law it is the municipality that is delegated the responsibility to ensure that all constructions comply with building regulations (Article 1, Construction Law). You can, therefore, expect periodic visits to your construction site by the municipal building inspector, who must certify that the construction is proceeding according to code.

Whether you purchase an existing property or decide to build you dream home, be well informed about the procedures involved so that you ensure your investment will be a profitable one.

Banking in Costa Rica

Whether you’re planning to settle in Costa Rica for the long term or simply looking for a safe place to exchange a few dollars, an important decision you will need to make is "What Bank Should I Use?"

Costa Rica offers a wide range of banking and financial services catering to personal as well as business banking. Recent government reforms and the introduction of private banking have also made Costa Rica an attractive choice for investing.

Costa Rica’s banking system consists of the central bank; three state-owned banks, which account for nearly half of total banking assets; a state-owned mortgage bank; 18 commercial banks; four mutual house-building companies; 12 private finance companies; and 27 savings and loans cooperatives. In addition, there are 30 investment and retirement funds or trusts run by both state and private commercial banks and the state insurance company.

The Central Bank of Costa Rica is in charge of establishing banking policy. It is then up to the SUGEF (the General Supervisory Agency of Finance) to enforce compliance with Central Bank policies. All banks (both public and private) are subject to the policies dictated by the Banco Central de Costa Rica.

When choosing a bank, take into consideration both personal convenience and what fees the bank charges. Get information on the types of accounts available and their associated fees from several banks. Internet services offered by both state run and private banks have improved in leaps and bounds over the past couple of years.

Most banks in Costa Rica now offer savings and checking accounts in Dollars and Colones. Banks do differ, however, on the amount of time it takes to cash foreign checks and the availability of ATMS. It is also very important to note that while interest is much higher on colon accounts, there is a monthly devaluation of the colon to the dollar, so you might not be earning as much as you expect. Many also offer Credit or Debit cards, if you meet the requirements (but not all are internationally accepted). All banks will also have different requirements for opening accounts or obtaining credit cards, possibly including banking or personal references, identification, and most likely minimum deposits. Opening hours for most banks are from 9 am to 3 pm.

State run banks are backed by the Costa Rican government and are therefore usually considered safer. They are also located in practically every town in Costa Rica. On the down side, long lines are frequent and bilingual staff is not always available (especially outside the central valley).

Private banks usually offer quicker and more personalized service, shorter lines and English speaking staff. However, they may have fewer branches available outside of the central valley. The great majority of private banks are connected with banks outside the country so that transfers can be done relatively quickly.