Thinking about moving from North America to Costa Rica? Here’s a general guide on what you need to know and expect, including residency options and cost of living.
Thousands of international visitors are attracted to Costa Rica for its natural beauty, affordable healthcare, and lower cost of living compared to North America.
As of recent estimates, around 70,000 Americans live in Costa Rica as full-time residents, making it a popular destination for U.S. expats. The number of Canadian residents is smaller but still significant, with approximately 3,500 Canadians residing in the country.
Sources: Real Estate in Costa Rica & Expatra
What Are The Main PROS Of Moving To Costa Rica?
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Pura Vida Lifestyle
- Costa Rica offers a relaxed, stress-free way of life. The “Pura Vida” philosophy is about enjoying life’s simple pleasures, which appeals to those looking to slow down.
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Lower Cost of Living
- For many expats, the cost of living is lower compared to cities in the U.S. and Canada, especially in terms of housing and everyday expenses, depending on the location (however, note that Costa Rica is still more expensive than most of Latin America).
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High-Quality, Affordable Healthcare
- Costa Rica’s private healthcare providers are known for high standards at much lower costs than in North America, making them attractive for retirees and those in need of regular medical care.
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Stable and Safe Country
- With a long history of political stability, no military, and a strong focus on peace and democracy, Costa Rica remains one of the safest countries in Latin America.
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Natural Beauty and Outdoor Lifestyle
- Costa Rica is renowned for its biodiversity, beaches, rainforests, and adventure activities like surfing, hiking, and wildlife watching. It’s ideal for nature lovers and outdoor enthusiasts.
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Expat Communities
- Established expat communities, particularly from the U.S. and Canada, offer support networks, making it easier for newcomers to adjust to life in Costa Rica.
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Mild Climate Year-Round
- Costa Rica’s tropical climate offers warm temperatures throughout the year, which can be a major draw for those escaping harsh North American winters.
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Eco-Friendly Environment
- The country is a global leader in sustainability, with most of its electricity coming from renewable sources and a focus on eco-friendly living. Moreover, expats interested in green living find many opportunities to participate in environmental initiatives.
What Are Some Important CONS If Moving To Costa Rica?
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Learning Spanish
- While English is widely spoken in tourist areas, learning Spanish is necessary for fully integrating into local communities and navigating day-to-day tasks like government services or non-tourist businesses.
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Bureaucracy and Slow Processes
- Costa Rican bureaucracy can be slow, and tasks such as obtaining residency, setting up utilities, or dealing with government offices may take longer than expats are accustomed to in North America.
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Higher Costs in Tourist Areas
- Popular tourist regions like Nosara, Tamarindo or Santa Teresa can be much more expensive compared to other parts of the country. Costs for imported goods, certain services, and dining out can be higher than expected.
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Infrastructure Challenges
- While slowly improving, Costa Rica’s infrastructure can be underdeveloped in some rural or remote areas. Roads may be in poor condition, short distances may take a long time to cover due to traffic or mountainous terrain, and services like high-speed internet might not be readily available everywhere.
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Distance from Family and Friends
- For North Americans, being far from family and friends back home can be a drawback, especially since flights between Costa Rica and the U.S. or Canada can get expensive depending on when you travel.
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Taxation and Financial Issues
- While Costa Rica offers favorable residency options, expats still need to manage taxes both locally and in their home country (especially for U.S. citizens). Import duties and taxes on goods can also be high, adding unexpected costs.
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Cultural Differences
- Adapting to Costa Rican culture, where things often move at a slower pace and the sense of time is more flexible, can be frustrating for newcomers accustomed to more punctuality and efficiency.
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Rainy Season
- Costa Rica is a tropical country with a strong rainy season (April to November), which can bring heavy rains and flooding in some areas. Those who prefer dry, sunny weather year-round may find this challenging.
Understanding Residency Options
Costa Rica offers several residency options for expats, tailored to different needs such as retirees, investors, and those with a steady income. Below are the main residency options and visa types:
1. “Pensionado” (Retiree) Residency
- Who is it for? Retirees with a steady pension or retirement income.
- Requirements: Applicants must show proof of receiving a pension of at least $1,000 per month from a qualified retirement fund (like Social Security, military pensions, etc.).
- Key Benefits: Once approved, pensionados must reside in Costa Rica for a minimum of 4 months per year and can import household goods duty-free.
- Restrictions: You are not allowed to work in Costa Rica, but you can manage investments or businesses.
2. “Rentista” Residency
- Who is it for? Individuals who may not have a pension but have a steady income from investments or savings.
- Requirements: Applicants must show proof of a stable monthly income of at least $2,500 (for at least 2 years) or deposit $60,000 in a Costa Rican bank, which will be used to cover the income requirement.
- Key Benefits: Rentistas can reside in Costa Rica for 2 years before renewing their residency and are also allowed to import household goods duty-free.
- Restrictions: Like the Pensionado visa, rentistas cannot work as employees but can manage businesses.
3. Inversionista (Investor) Residency
- Who is it for? Individuals willing to invest a significant amount in Costa Rica, particularly in real estate, businesses, or tourism.
- Requirements: The minimum investment required is $150,000 in a Costa Rican business or property. This amount was previously lower, but it has been updated in recent years to reflect current economic conditions.
- Key Benefits: This visa allows you to engage in your investment activities, and after three years, you can apply for permanent residency.
- Investment Types: Real estate, tourism projects, and businesses that contribute to the country’s economy are common investment choices.
4. Permanent Residency (After Temporary Residency)
- Who is it for? Anyone who has held temporary residency (such as Pensionado, Rentista, or Inversionista) for at least three years.
- Requirements: After fulfilling the residency requirements for three years, you can apply for permanent residency, which allows you to live and work in Costa Rica without restrictions.
- Key Benefits: Unlike temporary residency, permanent residents can work as employees in the local job market.
5. Residency by Marriage
- Who is it for? Individuals married to a Costa Rican citizen.
- Requirements: Proof of legal marriage to a Costa Rican national, plus a background check. This is a fast-tracked residency option compared to others.
- Key Benefits: This residency allows full employment rights and requires less stringent financial criteria.
6. Digital Nomad Visa
- Who is it for? Remote workers and freelancers looking to live in Costa Rica while working for foreign employers or clients.
- Requirements: Applicants must demonstrate that they earn at least $3,000 per month (or $4,000 if applying with a family). Proof of health insurance for the entire duration of your stay is also required.
- Key Benefits: This visa is valid for one year, with the possibility of extension. It does not lead to permanent residency but offers an easier way for remote workers to live in Costa Rica without tax obligations.
7. Student Visa
- Who is it for? Individuals studying in Costa Rica.
- Requirements: Enrollment in a recognized Costa Rican educational institution and proof of sufficient funds to support yourself during your studies.
- Key Benefits: This visa allows you to stay for the duration of your studies but does not allow you to work.
Source: Temporary Residency Costa Rica
Housing Costs
- Rental Prices: Rent varies based on location (urban vs. rural) and proximity to the coast or tourist areas.
- San José (downtown): $600 – $740 per month for a 1-bedroom apartment
- Outside San José: $360 – $445 for a 1-bedroom apartment
- Beach Areas (e.g., Tamarindo): $900 – $1,100 per month for a similar apartment.
- Luxury Condos or Houses: In areas like Escazú or Santa Teresa, rentals can go as high as $2,500 – $5,000 per month.
- Buying Property: Prices for homes can range widely depending on location. It’s possible to buy a small house in the outskirts of San José starting at $75,000, but prices in more upscale areas can easily exceed $300,000 – $500,000.
Utilities
- Electricity: For a typical expat household, electricity bills range from $50 to $100 per month, but can increase if you frequently use air conditioning.
- Water: Water is relatively affordable at around $10 to $20 per month
- Internet: High-speed internet costs around $40 to $70 per month, depending on speed and provider.
Daily Expenses
- Groceries: Costs for groceries vary depending on how much you rely on imported goods versus local products.
- Local Produce: Fruits, vegetables, and staples like rice and beans are inexpensive. A pound of chicken costs around $2, and pineapples are about $1.50 each.
- Imported Items: Imported goods (e.g., wines, cheeses, specialty foods) can be much more expensive than in the U.S. Expect to pay a premium for these items.
- Monthly Grocery Bill: For two people, expect to spend around $300 to $600 per month on groceries, depending on eating habits.
- Dining Out:
- Local restaurants (“sodas”) offer meals for as low as $4 to $6 per meal.
- In more touristy or upscale areas, dining out can cost $15 to $30 per person.
Healthcare
- Public Healthcare (Caja Costarricense de Seguro Social, CCSS): Only expats who are residents can access the public healthcare system, by paying 7% to 11% of their income monthly.
- Private Healthcare: Most expats opt for private healthcare due to no residency or public system contribution requirements, and shorter wait times for surgeries and other procedures. A visit to a private doctor costs around $65 to $85, while specialist visits range from $90 to $200.
- Private Health Insurance: Monthly premiums for private insurance range from $60 to $250, depending on the level of coverage.
Transportation
- Public Transport: Buses can cost $0.80 to $1.20 for city routes and up to $8 for intercity routes.
- Owning a Car: Car-related expenses can add up quickly. Gasoline costs around $5 to $6 per gallon, and importing cars can be expensive due to high import duties.
Cost of Living Comparison with U.S. Cities
- Rent: Compared to large U.S. cities like New York, Chicago or Los Angeles, housing in Costa Rica is significantly cheaper. For example, a one-bedroom apartment in downtown San José costs $600 to $740, while in New York, the same apartment could cost $3,500 to $4,000.
- Groceries: Daily staples and local produce in Costa Rica are much cheaper than in U.S. cities, especially when purchasing from local markets. However, imported goods may match or exceed U.S. prices.
- Dining Out: Eating at a local restaurant in Costa Rica can be much more affordable than dining out in major U.S. cities. A casual meal for two in the U.S. can easily exceed $40, whereas in Costa Rica it could be as low as $10 to $20 in local establishments.
Summary of Monthly Expenses for a Couple (Moderate Lifestyle)
- Rent: $700 (urban apartment)
- Utilities: $120
- Groceries: $500
- Dining out: $100
- Healthcare (public): $150
- Transportation: $50 (public transport)
- Total: $1,620 to $2,000 per month, which allows for a comfortable lifestyle in most parts of Costa Rica.
This is much lower than the cost of living in large U.S. cities like New York or Los Angeles, where rent alone can exceed $3,000 per month. However, in more tourist-heavy areas of Costa Rica, the cost can rise significantly depending on lifestyle and housing choices.
Sources: Expatra, CRIE, Real Estate in Costa Rica, Global Property Guide.
Moving Logistics
Shipping personal belongings to Costa Rica is feasible and common among expats, but it requires planning and consideration of costs.
For larger household moves, sea freight using a container is the most cost-effective option, while smaller shipments or urgent items might be sent via air. Reputable international moving companies like Crowley and Rainier Overseas Movers offer reliable services for large or complex shipments between Costa Rica and North America.
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This post provides a comprehensive overview to help North Americans weigh the pros and cons of moving to Costa Rica.
For even more specific details on Costa Rica’s hotspots for expats and remote workers, check out our blog and our “Moving To” series!